Whether you describe them as a Rent My House, home management firms, or rental property management agencies….it all means the same thing. The focus is usually on residential properties (but commercial property management companies are out there certainly. Property rental agencies serving the 23284 area provide a long list of services to help you renting your house. It’s a huge list of tasks that a experienced Rent My House will handle; in fact (if you’re a detailed follow through kind of people person, you may even want to consider 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?”
Real Estate Property Management RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Locate a renter
- Handle legal paperwork
- Keep you out of jail by helping you follow government housing laws
- Open your home to possible tenants in order to rent your house
- Handle move in and move out
- Collect rent and get you paid!
- Handle collections if payments are late
- Help with evictions
- Answer renter inquiries
- And so much on top of that.
It’s everything but the kitchen sink! Areas to consider if you are considering if you maybe should rent your home on your own or hire a Rent My House near the 23284 area.
CAN YOU AFFORD TO HIRE A Rent My House ?
You’ve discovered that goodleasing agentswho provide services to the 23284 area in Richmond aren’t free.
Property management agencies will charge a fee, ballpark, between 4% and 10% of the monthly rents for the home. The usual fee for a single family rental home is estimated at 8-10%. The charge for a property of 10 units or more is typically between 5% and 7%.
If your house is not occupied, it’s normal 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 month’s rent.
Something to keep in mind: Having expert professional input on market rents and having a professional agent handle locating a tenant can mean you get higher rents, which means a good rental agent likely will end up covering all or part of their charge because of increased rents.
DOES IT MAKE FINANCIAL SENSE TO HIRE A Rent My House ?
You’ve figured out that greatleasing agentswho provide service to the 23284 area in Richmond aren’t without cost.
Rental agencies will charge a fee, on average, between 5% and 9% of the monthly rents for the house. The usual fee for a single family rental property is about 8-10%. The charge for a property of 10 units or more is typically between 5% and 7%.
If your home is not occupied, it’s normal to pay a lease up fee to procure and place a new renter in your investment property. Depending on the property management company this can fluctuate from 50%-100% of one month’s rent.
Something to keep in mind: Having expert professional input on market rents and having a professional agent deal with locating a renter might mean you can get higher rents, which means a professional rental agent might end up covering all or part of their charge because of higher rents.
DO YOU HAVE A HIGH VACANCY RATE?
Great Rent My House are skilled at locating and reviewing renters quickly and will have a network of reliable, affordable Richmondmaintenance companies to handle problems. Most professional property managers will also understand landlord-tenant law, thereby reducing the risk of a lawsuit.
HOW MANY INVESTMENT PROPERTIES IN 23284 DO YOU OWN?
As the total homes you own multiplies, so does your workload. The more renters you have, the more maintenance issues, tenant complaints, and vacancies you will have to deal with. In addition, if your properties are spread across multiple areas, your energies committed will go up as you will have to take care of the cash flow of each particular rental as well as physically commute from property to property to handle problems.
HOW MANY RENTAL UNITS IN 23284 DO YOU OWN?
As the total homes you own increases, so do your responsibilities. The more tenants you have, the more maintenance issues, tenant complaints, and empty properties you will have to take care of. On top of that, if your units are spread across multiple areas, your time spent will increase as you will have to take care of the issues of each single investment home as well as travel from property to property to deal with concerns.
HOW WILL A PROPERTY MANAGEMENT COMPANY HELP ME MANAGE MY HOUSE IN 23284?
Rental management companies who service the 23284 area will do many things for you as the home investor, which can include the following areas:
DEALING WITH CONTRACTS
Many managers are responsible for determining the length of the lease and making sure it has all the required provisos to look out for the client. This includes determining the amount of security reserves required.
One of the more important duties of the leasing agents is to oversee tenants. They are engaged in many roles, from locating the renters and addressing complaints to dealing with evictions.
PERFORM PROFESSIONAL INSPECTIONS
You want to make certain to take before and after photos and written documentation, so you can accurately deal with tenant deposits and disagreements when they move out. A lot of renters will act dumbfounded when you subtract charges from their deposit, so having comprehensive records will help reduce the amount of disagreeing they do with you.
SUGGEST AND SUPERVISE VENDORS
Residential property management pro’s should be capable to recommend vendors to do maintenance and small improvements that maximize monthly rent while providing great return on investment.
RESPONSIBLE FOR MAINTENANCE AND MINOR UPGRADES
Leasing agents are typically charged with caring for the physical care of the home, including scheduled maintenance and unexpected repairs.
IN CHARGE OF MANAGING THE BUDGET/MAINTAINING RECORDS
In most situations rental managers are responsible for managing the budget for the building and maintaining all pertinent records. Overseeing Budget- the rental agentmust operate within the set budget guidelines for the unit. In certain emergency situations when the tenants or property are in danger, they may take action to order repairs or similar without further delays. Upkeep of Paperwork- the rental manager should keep complete documentation regarding the property. This should include all income and expenses; notations of all inspections, signed contracts, repair requests, any complaints, documentation of work done, costs of repairs, maintenance expenses, record of rent collection and insurance charges.
HANDLE PROFESSIONAL INSPECTIONS
You want to be sure to take before and after photos and written records, so you can easily take care of renter deposits and disputes when they move out. A lot of tenants will act shocked when you remove fees from their deposit, so having careful records will help reduce the amount of arguing they do with you.
RESIDENTIAL PROPERTY MANAGERS HELP YOU DETERMINE MARKET RENTAL RATE
Rental agents are responsible for establishing the initial rent level, and collecting rent from renters. Great leasing agents know how to set the right rent level todirect tenants to your investment property. They hopefully have a specific understanding of the Richmond area, where the home is located and have reviewed at comparable homes in the general Richmond market.
One of the more important duties of the leasing agents is to manage tenants. Agents are involved in many capacities, from finding the renters and dealing with complaints to beginning the eviction process.
OFFER GENERAL REAL ESTATE ADVICE:
Discuss with you the pros and cons\pluses and minuses of different policies such as accepting pets, allowing smoking etc. Some things are very specific to the Richmond area, so having a local area expert who knows the 23284 area in particular is critical.
Professional leasing agents are frequently engaged to observe vacant properties to make sure there has been no vandalism and to oversee standard maintenance. They also make certain contractors and other outsourced workers are finishing their work in a reliable manner.
SUGGEST AND SUPERVISE VENDORS
Residential property management professionals should be ready to suggest vendors to do repairs and cosmetic improvements that maximize monthly rent while providing excellent return on investment.
COLLECTING RENTAL PAYMENTS:
This is where a leasing agent earns their money! Home management firms make sure you get your money by collecting rent every month on time and strictly enforcing late fees.
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 leasing agentmust operate within the set budget guidelines for the building. In certain emergency situations when the renters or home are in disrepair, they may use their discretion to order repairs or similar without concern for the budget. Maintaining Documents- the rental agent should keep complete paperwork about the the home. This should include all income and expenses; notations of all inspections, completed agreements, maintenance requests, any problems noted, notation of work done, charges for repairs, maintenance charges, record of rent paid and insurance costs.
QUESTION: How Can a Lease Management Agency assist an owner with the Tenant Move In Process?
- Draw up rental documents
- Confirm 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 first month’s rent and security deposit
QUESTION: How Would a Property Management Agency Assist With Tenant Screening and Selection?
Vetting Tenants- A rental agent will review the potential renter applications to find the tenant that is the best fit for your home. They have a proven screening process, including running credit checks and criminal background checks, which can decrease your likelihood of being accused of bias. Experienced leasing managers have seen hundreds, even thousands, of renters, so they have a better idea of how to identify the right renters; renters who will pay their bills on time, have a longer tenancy and create less headaches. Perform a background check to confirm identity, wages, credit history, rental history, etc. Evaluate tenant per pre-defined renter criteria Inform applicants who may have been rejected
QUESTION: What is a New Renter Placement or “Lease up” Fee?
Some leasing agencies in the 23284 area may charge a new renters placement fee or have a extra commission incentive for getting a tenant into an agreement. Afee of 50 to 100 percent of the first month’s rent for any new tenant placed is not unusual. However, you shouldn’t normally run into unreasonable multiple up-front fees.
Typically a lease up charge is not due until the tenant is found, meaning you don’t have to come out of pocket to pay this.
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 fees. It might be that when something needs fixing, certain labor charges are included with your monthly flat rate or percentage charge (for illustration, changing out lighting switch plates and replacing faucet handles) while others are charged individually (such as replacing broken window panes and installing new sinks).
No matter what, everything should be clearly stated in your agreement. Consider that these fees could require you toincrease your rental rate, which could make finding – and keeping – renters harder. And remember, home management charges can be negotiated. Depending on how much you’re willing to pay, you might be able to get a better price by sacrificing certain services and handling them on your own.
QUESTION: What are Advertising Charges?
Some property management companies charge a advertising fee. This is an upfront charge to market your vacant home. This charge is usually $200-450. A majority of firms don’t charge this fee, so shop around!
Vacant Home charge Some companies charge One month’s payment up front. You might run into this charge if you’re attempting to hire the leasing agency while the home is vacant. This gives them the cash to pay a real estate agent a commission for placing a tenant in the home, or to pay the costs of advertising, repeatedly showing the property to potential tenants, as well as the cost of preparing lease documents (which can take hours).
QUESTION: How May a Lease Management Firm help an owner with the Tenant Move In Procedure?
- Prepare rental documents
- Pin down move in date with tenant
- Review lease guidelines with renter 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: Do residential property management help with evictions?
Some tenants are deadbeats. Some get fired and become unable to pay their rent, while others turn out to be irresponsible and a disturbance or nuisance at your unit. Most certainly a investment property manager will impose a charge to go through the long paperwork involved with evicting a renter which is usually ballpark cost of $200-$700 per eviction, not counting any relevant legal costs.And an evictionoftentimes go on for several months, so be mentally ready to not get any rental income until they are out. In addition, you may find there is fix up work to be done on your home.
Typically, you are better off providing your tenant financial reasons to leave the house early and avoid taking them to court, as maddening as that might seem. You can avoid many difficult situations with painstaking renter screening done beforehand.
Question: What do Inspections of my home cost?
Some property management companies will bill for inspections, some will give you one or more without charge annually. This is a visual inspection of your house to see how the renter is treating it. Fees can range from $25-225 for each inspection.
Question: What Is The Normal Term Of A Property Management Agreement?
Usually, an owner signs a contract with a property management company for a certain length of time – 12 or 24 months, for example – with an option to renew. Agreements can be drawn up so that they automatically renew if neither party takes actionopposing it. Termination clauses allow for early termination if the residential property management firm is in the breaking of the agreement in any way.
Question: What are Random fees made by property management companies?
In some cases, you could see some fees passed on to you – especially when the manager is charging a low monthly percentage. Examples might include an marketing charge in connection with finding a tenant, a yearly inspection charge, and some sort of reserve, so that the management company has some cash on hand to take care of unanticipated, but urgent, expenses.
You might want to check into how you split up pet deposits collected and bad check fees (generally whoever gets hit with the greatest amount of bank fees deserves the bulk of this one!) Also, pay attention to who gets to hang onto the income from vending machines and coin-operated washers and dryers, if any.
QUESTION: What is a New Renter Placement or “Lease up” Fee?
Some rental agencies in the 23284 area might charge a new tenants placement fee or have a extra commission incentive for getting a tenant into a lease. Acharge of 50 to 100 percent of the first month’s rent for any new renter placed is not unusual. Nevertheless, you shouldn’t normally bump into unreasonable multiple up-front charges.
Generally a placement charge is not due until the renter is secured, meaning you don’t have to pay out of pocket to pay this.
Question: What are Other charges made by property management companies?
At times, you could see some charges passed on to you – especially where the agent is charging a low monthly %. Illustrations might include an marketing fee in connection with placing a renter, an annual inspection charge, and some sort of reserve, so that the management firm has some money on hand to take care of unanticipated, but urgent, costs.
You may want to look into how you divide pet deposits collected and bad check fees (basically whoever gets stuck with the most bank fees should get the lion’s share of this one!) Also, notice who gets to hang onto the income from vending machines and coin-operated washers and dryers, if any.
Question: Do property management companies help with evictions?
Some tenants are deadbeats. Some get fired and become unable to pay their rent, while others turn out to be irresponsible and a problem or nuisance at your house. Most likely a house agent will impose a fee to go through the laborious paperwork involved with evicting a tenant which is typically roughly $350-$700 per eviction, not counting any applicable legal costs.And an evictionoftentimes take several months, so be prepared to not receive any rental income until they move out. In addition, you may find there is fix up work to be done on your investment property.
Typically, you are better off giving your renter incentives to leave the house early and avoid taking them to court, as aggravating as that might seem. You can avoid many problem situations with detailed renter vetting done beforehand.
QUESTION: How Should a Rental Property Firm Assist an owner with House Regular Maintenance?
Rental property management agents are responsible for overseeing preventative property maintenance to keep your house in good condition. Examples of what might under consideration:
- Provide and oversee a company maintenance crew
- Establish a preventative maintenance plan to identify and address repair needs
- Identify a network of licensed, bonded and fully insured contractors who have been reviewed for reasonable pricing and excellent performance that meets requirements.
- Delegate jobs to different parties such as (in-house employees, handyman and professional contractors) based on who may do a good 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 remodeling projects
- Provide suggestions on how the project can optimize rental income.
- Prep preliminary cost estimates
- Solicit multiple different quotes for the project
- Act as general contractor managing the work