No matter if you call them a Property Manager, home management firms, or rental property management agencies….it all means the same thing. The emphasis is typically on residential properties (but commercial property management agencies do exist of course. Property rental agencies serving the Shockoe Bottom area provide a variety of services to help you renting your house. It’s an overwhelming list of tasks that a expert Property Manager will oversee; in fact (if you’re a good follow through kind of people person, you might even want to look at a job as a property manager yourself!.) Here’s a quick list of what property managers do if they are asked “will you help me rent my house?”
Leasing Agent RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Locate a tenant
- Handle legal paperwork
- Keep you out of jail by helping you comply with Fair Housing laws
- Open your house to interested renters in order to rent your house
- Oversee move in and move out
- Collect money and get you paid!
- Handle collections if payments are late
- Help with evictions
- Answer renter inquiries
- And so much more than that.
It’s everything from A to Z! Issues to think about if you are questioning if you maybe should rent your home on your own or hire a Property Manager near the Shockoe Bottom area.
WILL YOU HAVE THE AVAILABILITY TO MANAGE YOUR RENTAL PROPERTY in the Shockoe Bottom area?
If you have a full-time job while you are looking after a rental home and simply cannot give your investment home the time it demands, the profitability of your investment might depend on hiring a great property management company in Richmond
Additionally, realize that time is definitely money and managing a rental home takes energy. If you feel like the day to day requirements of property management are stepping on on time that could be better spent making more money at your other job, or looking for other property to buy, hiring an outside property management company may be the smartest move for you.
DO YOU HAVE ANY PROPERTY MANAGEMENT EXPERIENCE?
If you would like invest in Richmondinvestment homes, but don’t know a single thing about property management, hiring a professional Property Manager can be a wise choice for you. Learning on the job can become extremely draining financially.
For a property investor who is starting out, hiring the wrong repairman or taking too long to fill an empty home can easily eat into your potential income. There are large legal liability concerns you can stumble on if you aren’t educated about Fair Housing regulations or Federal real estate law. One lawsuit can pay for a lot of property management charges!
IS YOUR VACANCY RATE HIGH?
Excellent Property Manager are skilled at locating and reviewing renters quickly and will have a network of reliable, cost effective Richmondrepairmen to deal with problems. Most professional property managers will also understand landlord-tenant law, thereby reducing the risk of a lawsuit.
DOES IT MAKE FINANCIAL SENSE TO HIRE A Property Manager ?
You’ve figured out that greatrental agentswho provide service to the Shockoe Bottom area in Richmond aren’t free.
Rental management companies will charge a fee, on average, between 4% and 10% of the monthly rents for the property. The usual fee for a single family rental home is closer to 8-10%. The fee for a building of 10 units on up is on average between 3% and 8%.
If your home is vacant, it’s normal to pay a lease up fee to find and place a new tenant in your investment property. Depending on the property management company this can range from 50%-100% of a single month’s rent.
One thing to think about: Having experienced property manager input on market rents and having a pro deal with locating a tenant might mean you might get higher rents, which means a professional rental agent might end up covering all or part of their fee because of increased rents.
DOES IT MAKE FINANCIAL SENSE TO PAY A Property Manager ?
You’ve discovered that goodleasing agentswho provide service to the Shockoe Bottom area in Richmond aren’t without cost.
Residential property management agencies will charge a fee, ballpark, between 4% and 9% of the monthly rents for the home. The customary fee for a single family rental home is closer to 8-10%. The charge for a building of 10 units or more is on average between 3% and 8%.
If your home is vacant, it’s typical to pay a tenant finding fee to locate and place a new tenant in your rental property. Depending on the property management company this can range from 50%-100% of a single month’s rent.
Something to think about: Having expert professional input on market rents and having a professional deal with locating a renter can mean you can get higher rents, which means a good property manager may end up covering all or part of their charge because of higher rents.
HOW WILL A PROPERTY MANAGER HELP ME MANAGE MY HOUSE NEAR Shockoe Bottom?
Property management companies who service the Shockoe Bottom area may do many things for you as the home investor, which can include the following:
OFFER GENERAL REAL ESTATE ADVICE:
Discuss with you the positives and negatives of different issues such as accepting various animals, permitting smoking etc. Some things are very specific to the Richmond market, so having a local market expert who knows the Shockoe Bottom area in particular is crucial.
Provide financial management services Handle payments for the sake of the owner (Mortgage, insurance, HOA dues, etc.) Specific documentation of expenses via invoices and receipts Manage all past records (paid invoices, leases, inspection documentation, warranties, etc.) Provide yearly reporting, organized for tax needs as well as required tax paperwork including a 1099 paperwork Educate owner on appropriate tax write offs related to their investment property. Provide formatted monthly cash-flow reports which provide a detailed breakdown of income and specific expenses
Professional rental managers are often hired to look after vacant properties to ensure there has been no vandalism and to perform routine maintenance. They also make certain contractors and other outsourced workers are completing their work in a reliable manner.
At times when there is a problem needed, the leasing agent may handle it themselves or will contract with a third party to handle the problem it. They sometimes have a vetted black book full of reliable electricians,carpenters,plumbers and other contractors.
DEALING WITH EVICTIONS
When a renter does not pay on time or otherwise breaches the terms of the lease, the rental agent knows is experienced with the best method to file and move forward with an eviction.
One of the main responsibilities of the residential property managers is to manage tenants. Agents are involved in many capacities, from finding the renters and dealing with issues to initiating evictions.
Other Employees- if there aresome employees in the unit, such as a janitor or security guard, the leasing agent is in charge of being certain they are doing their job. The property manager can set their compensation and even let them go.
RESPONSIBLE FOR OVERSEEING THE BUDGET/MAINTAINING RECORDS
In most situations rental managers are responsible for managing the budget for the building and maintaining all pertinent records. Managing Budget- the rental managermust operate within the established budget guidelines for the building. In certain emergency situations when the tenants or home are in danger, they may use their discretion to order fixup or similar without additional approvals. Upkeep of Paperwork- the leasing agent is required to detailed records related to the property. This should include all income and expenses; lists of all inspections, signed contracts, maintenance requests, any problems noted, records of work done, costs of fix up, maintenance charges, documentation of rent collection and insurance charges.
When a renter does not pay on time or in some way breaks the terms of the lease, the property manager knows understands the legal approach to give notice and proceed ahead with an eviction.
Most rental agents are tasked with for promoting the property to fill vacancies. leasing agentsare aware of to advertise and what to include in their advertisements. leasing agents also understand what attracts renters, so they can suggest making minor improvements to help improve the home.
EXPERIENCED WITH LANDLORD-TENANT LAW AND FEDERAL REAL ESTATE LAW
A experienced property manager will have a exhaustive understanding of local and national laws referencing the proper ways to: Screen the applicants. Escrow security deposits End a rental agreement Oversee evicting a renter Comply with property safety laws Give input in the occasion the event of a legal action or litigation Recommend owner to an experienced attorney when required Be up on and abide by the latest local, state and federal guidelines that are applicable to renting and maintaining rental houses.
RE-LEASE YOUR PROPERTY
Once lease expires ask existing tenants to re-up their rental contract for another rental period
OFFER GENERAL REAL ESTATE ADVICE:
Chat with you about the positives and negatives of different issues such as accepting various animals, allowing smoking etc. Some things are very particular to the Richmond market, so having a local area expert who knows the Shockoe Bottom area in particular is critical.
Professional leasing agents are many times employed to look after empty homes to ensure there has been no vandalism and to oversee standard maintenance. They also make certain contractors and other outsourced workers are completing their work in a timely manner.
QUESTION: What is a New Renter Placement or “Lease up” Fee?
Some leasing agencies in the Shockoe Bottom area might charge a new renters placement charge or have a bonus structure for getting a renter into a lease. Acharge of 50 to 100 % of the first month’s rent for any new renter placed is not atypical. However, you shouldn’t generally bump into high multiple up-front fees.
Normally a placement charge is not due until the renter is secured, which means you don’t have to come out of pocket to pay this.
QUESTION: Will Rental Agencies Handle Evictions in the Shockoe Bottom area?
- Filing necessary paperwork to initiate and process an unlawful detainer lawsuit
- Representing owner in court
- Interacting with with police enforcement to remove tenant and tenant’s possessions from home
QUESTION: Will Residential Property Management Companies Take Care of Evictions in the Shockoe Bottom area?
- Preparing relevant documents to initiate and complete an unlawful detainer lawsuit
- Representing owner in court
- Interacting with with police enforcement to remove tenant and renters possessions from house
Question What Services Are Included in A Typical Property Management Contract?
Make certain you establish precisely what maintenance services are a part of with your charges. It may be that when something needs repair, certain labor costs are a part of with your monthly fixed rate or percentage charge (for example, changing out lighting switch plates and replacing faucet handles) while others are charged individually (such as replacing broken window panes and installing new sinks).
Regardless, everything should be clearly stated in your agreement. Consider that these charges might require you toincrease your rents, which might make finding – and keeping – tenants more difficult. And remember, home management fees can be negotiated. Depending on how much you’re willing to pay, you may be able to get a lower price by sacrificing particular services and handling them on your own.
Question: What Is The Normal Term Of A Property Management Agreement?
Normally, an owner signs an agreement with a rental agency for a specific length of time – 12 or 24 months, for example – with an option to renew. Contracts can be prepared so that they automatically renew if neither party takes actionopposing it. Termination clauses allow for early termination if the rental agency is in the breaking of the contract in any way.
QUESTION: How Should a Property Management Agency assist an owner with the Tenant Move In Process?
- Prepare leasing documents
- Determine move in date with renter
- 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 tenant and have renters sign a report verifying the condition of the property prior to move-in.
- Secure initial month’s rent and security deposit
Question: How much should I price shop the fees my property management company charges me?
Ultimately, hiring a unit manager in the Shockoe Bottom area is creating into a partnership. In the long run, the fees aren’t as crucial as the communication between you and the manager and quality of the service your agent provides. A competent firm can take control of the maintenance of the property, for example, and wind up providing you a lot rental value and price appreciation than you thought possible. That said, you need to be willing to get them the resources to accomplish.
Question: What Is The Normal Term Of A Property Management Agreement?
Usually, a landlord signs an agreement with a rental agency for a fixed length of time – 12 or 24 months, for example – with an option to renew. Paperwork can be prepared so that they automatically renew if neither party takes actionstopping it. Termination clauses allow for early termination if the property management company is in the breaking of the contract in any way.
QUESTION: How Should a Residential Property Company Assist an homeowner with Property Routine Maintenance?
Property managers are in charge of overseeing preventative house maintenance to keep your home in top shape. Examples of what may involved:
- Manage and oversee a company maintenance crew
- Establish a preventative maintenance approach to locate and address repair issues
- Provide a collection of licensed, bonded and completely insured vendors who have been vetted for good bidding and good performance that meets code.
- Delegate jobs to various parties such as (in-house employees, handyman and professional contractors) based on who may do an excellent job for the lowest price.
- Oversee outdoor areas
- Debris and snow removal
- Removing trash and debris
- Set up and oversee a 24 hour emergency repair hotline
- Bigger renovation or remodeling projects
- Take care of recommendations on how the project can maximize rental income.
- Take responsibility for initial cost estimates
- Get a few independent estimates for the project
- Perform as general contractor overseeing the work
Question: What are Other fees made by property management companies?
In some cases, you might see some costs passed on to you – especially where the agent is charging a small monthly %. Examples could include an advertising fee in connection with placing a tenant, a yearly inspection charge, and some sort of reserve, so that the management firm has some cash on hand to take care of unanticipated, but immediate, expenses.
You might want to look into how you split up pet deposits collected and bad check charges (basically whoever gets stuck with the greatest amount of bank fees should get the bulk of this one!) Also, notice who gets to hang onto the income from vending machines and coin-operated washers and dryers, if any.
QUESTION: How Should a Property Management Agency Help an homeowner with House Standard Maintenance?
Rental agents are in charge of managing preventative house maintenance to keep your property in excellent condition. Examples of what might under consideration:
- Manage and oversee a company maintenance team
- Create a preventative maintenance policy to find and deal with repair needs
- Identify a collection of licensed, bonded and fully insured contractors who have been reviewed for reasonable pricing and excellent work that meets requirements.
- Assign work to different parties such as (in-house employees, handyman and professional contractors) based on whom will do the best job for the lowest price.
- Maintain outdoor areas
- Leaf and snow removal
- Removing garbage and debris
- Set up and monitor a 24 hour emergency repair hotline
- Larger fix up or rehab projects
- Offer recommendations on how the project can optimize rental returns.
- Prepare preliminary pricing estimates
- Solicit several independent quotes for the project
- Perform as general contractor managing the work
QUESTION: What are Marketing Charges?
Some property management companies charge a advertising fee. This is an initial fee to advertise your empty property. This fee is usually $200-500. Most firms don’t charge this charge, so shop around!
Vacant House fee Some companies charge 1 month’s rent up front. You could run into this fee if you are attempting to engage the property management company while the investment property is empty. This gives them the money to pay a realtor a commission for placing a tenant in the house, or to pay the costs of marketing, repeatedly showing the property to prospective tenants, as well as the cost of preparing lease paperwork (which can take a long time).
QUESTION: How Would a Residential Property Management Agency Assist With Tenant Screening and Choosing?
Screening Tenants- A property manager will review the prospective renter applications to discover the tenant that is the best fit for your home. They have a proven vetting process, including running credit checks and criminal background checks, which can decrease your chances of being accused of bias. Experienced property managers have seen many tenants, so they have a better concept of how to identify the correct tenants; those who will pay their bills on time, have a longer tenancy and create much fewer problems. Perform a background check to verify identity, wages, credit history, rental history, etc. Assess tenant per pre-decided tenant criteria Inform tenants who may have been declined
Question: Do residential property management help with evictions?
Some renters just don’t work out. Some become unemployed and become unable to pay their rent, while others prove to be irresponsible and a disturbance or nuisance at your property. Most likely a house agent will impose a fee to complete the laborious paperwork involved with evicting a tenant which is usually ballpark cost of $250-$600 per eviction, plus any associated legal charges.And an evictionmay go on for a couple months, so be ready to not get any rental monies until they are out. In addition, you may find there is repair work to be done on your home.
Typically, you are better off providing your renter cash incentives to leave the house early and avoid suing them, as aggravating as that might seem. You can avoid many problem situations with painstaking tenant screening done beforehand.