Whether you describe them as a Property Manager, home management firms, or rental property management agencies….it all means the same thing. The focal point is usually on residential properties (but commercial property management agencies do exist certainly. Property rental agencies serving the 23831 area provide a variety of services to help you renting your house. It’s a huge list of jobs that a experienced Property Manager will oversee; in fact (if you’re a great follow through kind of people person, you may even want to investigate a job as a property manager yourself!.) Here’s an incomplete list of what property managers do if they are asked “will you help me rent my house?”
Renta Agent RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Locate a tenant
- Deal with legal paperwork
- Keep you out of jail by helping you obey government housing laws
- Open your home to interested tenants in order to rent your house
- Oversee move in and move out
- Collect rent and get you paid!
- Handle follow up if payments are late
- Help with evictions
- Deal with renter questions
- And a lot on top of that.
It’s everything from soup to nuts! Items to consider if you are questioning if you should rent your home on your own or hire a Property Manager near the 23831 area.
IS THERE THE MONEY TO HIRE A Property Manager ?
You’ve discovered that top notchproperty managerswho provide services to the 23831 area in Richmond aren’t free.
Rental management agencies will charge a fee, roughly, between 4% and 10% of the monthly rents for the home. The typical fee for a single family investment is about 8-10%. The charge for a property of 10 units on up is typically between 4% and 8%.
If your house is vacant, it’s normal to pay a tenant finding fee to find and place a new renter in your rental home. Depending on the property management company this can range from 50%-100% of a month’s rent.
One thing to keep in mind: Having expert professional input on market rents and having a professional agent handle locating a renter might mean you can get higher rents, which means a great leasing agent likely will end up covering all or part of their cost because of higher rents.
DO YOU HAVE THE AVAILABILITY TO OVERSEE YOUR RENTAL HOME in the 23831 area?
If you have a full-time job while you are looking after a investment home and simply cannot give your your rental property the time it demands, the viability of your investment could depend on hiring a full time property management company in Richmond
Additionally, realize that time is money and overseeing a rental property takes time. If you feel like the day to day obligations of residential property management are impeding on time that could be more enjoyably spent making more money at your other job, or looking for other investments, paying for an outside property management agency may be the wisest move for you.
DO YOU HAVE ANY PROPERTY MANAGEMENT EXPERIENCE?
If you would like deal in Richmondrental properties, but don’t know anything about residential property management, hiring an experienced Property Manager can be the right choice for you. Learning as you go can become very costly.
For a property investor who is just beginning, hiring the wrong repairman or taking too long to fill a vacancy can quickly eat into your returns. There are huge legal liability problems you can encounter if you aren’t aware about Fair Housing regulations or Federal real estate law. One lawsuit can pay for a lot of property management charges!
WILL YOU HAVE THE TIME TO MANAGE YOUR INVESTMENT PROPERTY in the 23831 area?
If you have a full-time job while you are investing in a rental property and simply cannot give your investment home the time it demands, the profitability of your investment may depend on hiring a professional property management company in Richmond
In addition, realize that time is money and overseeing a rental property takes effort. If you feel like the day to day duties of residential property management are stepping on on time that could be more enjoyably spent making more money at your other job, or looking for other investments, employing an outside property management agency may be the best move for you.
HOW MANY RENTAL UNITS IN 23831 DO YOU HAVE TO TAKE CARE OF?
As the number of units you own multiplies, so does the time it takes to manage them. The more renters you have, the more maintenance concerns, tenant complaints, and empty properties you will have to handle. On top of that, if your units are spread across multiple areas, your time spent will multiply as you will have to manage the cash flow of each single property as well as drive from property to property to resolve issues.
HOW WILL A PROPERTY MANAGER HELP ME MANAGE MY PROPERTY IN 23831?
Rental management companies who service the 23831 area will do a number of things for you as the homeowner, which may include the following:
INCREASING OR ADJUSTING RENT:
The property manager can increase the rent by a fixed percentage each year, according to individual state and/or municipal law. They can also decrease the rent if they (and you) decide that’s necessary.
OFFER GENERAL REAL ESTATE ADVICE:
Chat with you about the positives and negatives of different policies such as accepting pets, permitting smoking etc. A few things are very specific to the Richmond area, so having a local area expert who knows the 23831 area in particular is critical.
CONTENDING WITH EVICTIONS
When a renter does not pay on time or otherwise breaches the terms of the contract, the leasing agent knows understands the legal way to legally respond and move ahead with an eviction.
RESPONSIBLE FOR MANAGING THE BUDGET/MAINTAINING RECORDS
In most situations leasing agents are responsible for managing the budget for the building and maintaining all pertinent records. Managing Budget- the property managermust operate within the established budget guidelines for the property. In certain emergency situations when the renters or property are in need of upgrade, they may use their discretion to order fixup or similar without additional approvals. Upkeep of Documents- the rental manager is required to detailed paperwork regarding the property. This might include all income and expenses; notations of all inspections, signed leases, maintenance requests, any complaints, documentation of repairs, costs of repairs, maintenance expenses, record of rent collected and insurance fees.
OVERSEEING MOVE OUTS
When a tenant ends his tenancy, the agent is responsible for inspecting the home, checking for issues and deciding what portion of the damage reserves mightl be refunded to the tenant. After move out, the agent is in charge of cleaning the house, repairing any areas of concern and finding a replacement renter.
PROPERTY MANAGERS HELP YOU SET THE CORRECT RENT LEVELS
Leasing agents are responsible for determining the initial rent level, and collecting payment from tenants. Top level rental agents know how to set the right rent level todirect renters to your rental property. They hopefully have a specific understanding of the Richmond area, where the home is located and have looked at comparable properties in the general Richmond market.
Most property manager are tasked with for promoting the house to fill vacancies. Residential property managersare aware of to advertise and what to include in their ads. Rental agents also understand what attracts tenants, so they can suggest making cosmetic improvements to help makeover the home.
TAKES CARE OF TAXES
The rental agent may help the home owner with knowledge of how to handle taxes for the house. The rental manager might also file taxes for the property
At times when there is a problem required, the property manager must attend to it themselves or must employ an outside firm to handle the problem it. They frequently have a screened black book full of experienced electricians,carpenters,plumbers and other vendors.
RE-LEASE YOUR INVESTMENT HOME
Once lease ends get existing tenants to re-up their lease for another rental period
A key responsibility of the property managers is to oversee tenants. They are involved in all capacities, from locating the renters and dealing with issues to beginning evictions.
Nearly all they are compensated to deal with maintenance requests, noise issues and have the necessary relationships to take care of emergency situations.
SUGGEST AND SUPERVISE VENDORS
Home management professionals should be able to recommend vendors to do repairs and cosmetic work that maximize monthly rent while providing good return on investment.
MANAGE MAINTENANCE ITEMS AND REPAIRS
Rental agents are usually responsible for the physical care of the residence, including regular maintenance and needed repairs.
Question: What are typical procedures regarding Late Payment Charges?
Occasionally tenants pay date. Look at your agreement to see if those late payment charges go to you as the owner, to the property management company, or are shared in some way.
QUESTION: What is a New Renter Placement or “Lease up” Charge?
Some rental agencies in the 23831 area may charge a new tenants placement charge or have a bonus structure for getting a tenant into a lease. Afee of 50 to 100 % of the first month’s rent for any new renter placed is not unusual. However, you shouldn’t normally run into high multiple up-front charges.
Normally a placement fee is not paid until the tenant is secured, meaning you don’t have to come out of pocket to pay this.
Question: What do do property managers charge?
Answer: As you might guess, the answer is “it depends.” Residential property management companies vary a lot, and much of the response depends on what a firm does for you.. Exactly what do you want a rental manager to accomplish for you?
Usual Percentage of Rent Agreement. As a baseline, expect to be charged a typical Property management company ranging from 8 – 10% of the monthly rental value of the house. This is called a management charge, or monthly management fee. Generally the higher your rent is, the lower the percentage is. For example if your rental charges are $2,100 per month for your rental house, you will typically pay a lower percentage fee than another person whose unit rents for $700 per month.
You do not pay this percentage fee until payment is collected. Look specifically at your contract regarding whether the management charge is based on ‘rent collected’ or ‘rent due’. If the charge is tied to rent received, it means the Property management company won’t get paid if you don’t get paid. On the other hand, if it’s based on ‘rent due’, then you pay whether or not rent is received from the renter typically.
Flat Rate Agreements
Some agencies may charge, say,$75- $150 per month fixed rate. There is nothing dictated bylaw in this; it’s determined by the property management company owner.
You would not owe money on a flat rate contract typically until rent is received.
Question: What do Inspections of my home cost?
Some rental agencies will bill for inspections, others will give you one or more without charge annually. This is a walk through of your property to see how the renter is keeping it up. Charges can range from $50-225 for each inspection.
Question What Services Are Included in A Typical Property Management Contract?
Be sure you establish precisely what maintenance services are a part of with your charges. It may be that when something needs repair, certain labor charges are included with your monthly fixed rate or percentage charge (for illustration, changing out light bulb and replacing faucet handles) while others are billed individually (such as replacing broken windows and installing new sinks).
Regardless, everything should be clearly expressed in your agreement. Consider that these fees might require you toincrease your rental rate, which could make finding – and keeping – renters more difficult. And remember, house management charges can be negotiable. Depending on what you’re willing to pay, you may be able to get a better price by sacrificing particular services and dealing with them on your own.
QUESTION: How Can a Rental Management Company help an owner with the Renter Move In Procedure?
- Initiate leasing agreement
- Pin down move in date with tenant
- Review lease guidelines with tenant regarding things like rental payment terms and required property maintenance
- Ensure all agreements have been properly executed
- Perform detailed move in inspection with renter and have renters sign a report verifying the condition of the property prior to move-in.
- Collect initial month’s rent and security deposit
Question: What are typical procedures regarding Late Payment Charges?
At times tenants pay date. Look at your agreement to see if those late payment charges go to you as the owner, to the rental agency, or are shared somehow.
Question: Should I try to save cash by managing my home myself? Or finding the least expensive property manager possible?
Answer: With the best home managers, paying a little bit more can be a wise investment, because it helps increase the value of your house, and they help attract top notch renters; studies have proven hiring a property managercan reduce your vacancy rate by 50%. On the other hand, going cheap with a property management company can wind up being very expensive.
QUESTION: What types of Maintenance can leasing agencies help with?
Some rental agencies in the 23831 area have in house maintenance employees, full-time. The majority of contract these jobs out to various vendors. Some property management companies charge a flat rate to oversee any work done by outside vendors. Some will upcharge the contractors invoice. Be certain you understand how it works with your home management company!
Question: What Is The Normal Term Of A Property Management Agreement?
Usually, a landlord signs an agreement with a property management company for a certain length of time – 12 or 24 months, for example – with an option to renew. Contracts could be drawn up so that they automatically renew if neither party takes actionstopping it. Termination clauses allow for early termination if the residential property management firm is in breach of the contract in any way.
Question: Should I attempt to save money by going FRBO? Or hiring the least expensive rental agent I can?
Answer: With the best house managers, paying a little bit more can be a wise investment, because it helps increase the value of your property, and they help retain top notch tenants; studies have proven employing a unit managercan reduce your vacancy rate in half. On the other hand, going lowball with a leasing agency can wind up being very costly.
Question: Do property management companies help with evictions?
Some tenants are deadbeats. Some lose their jobs and become unable to pay their rent, while others prove to be irresponsible and a disturbance or pain in the neck at your unit. Most certainly a home manager will impose a fee to go through the laborious process of evicting a tenant which is customarily around $300-$400 for each eviction, plus any relevant courtroom fees.And an evictionoftentimes take a couple months, so be ready to not receive any rental income until they are out. In addition, you could find there is fix up work to do on your unit.
Usually, you are better off giving your renter cash incentives to vacate the unit early and skip suing them, as maddening as that is. You can avoid many problem situations with detailed tenant vetting done beforehand.
QUESTION: Do Property Management Companies Assist With Move Out?
Yes, a Home Management Agency can Assist With Move outs. Services might include:
- Inspect investment home. and complete a report on the home’s status when the client moves out
- Give renter with a copy as well as estimated deductions
- Return the balance of the damage reserves to the tenant
- Mail remaining amount of the owner’s portion of the renter deposit to the owner or keep in owner reserves for repairs.
- Clean house and oversee required repairs or upgrades
- Re-key the locks
- Put the property back on the market for rent
QUESTION: What Inspection Services Do Rental Managers Provide?
- Perform systematic inspections (Inside and outside) on a predefined schedule noting maintenance requirements, safety concerns, code problems, lease infractions, etc.
- Send owner periodic reports on the condition of the property
Question: Should I attempt to save money by going FRBO? Or finding the cheapest property manager I can?
Answer: With the best investment property agents, paying a little bit more can be a smart investment, because it helps increase the value of your home, and they help retain quality renters; studies have shown hiring a property agentcan reduce your vacancy rate by 50%. On the other hand, going lowball with a leasing agency can wind up being very expensive.