No matter if you call them a Rent My House, home management firms, or rental property management agencies….it all means the same thing. The focus is normally on residential properties (but commercial property management companies do exist certainly. Property rental agencies serving the Petersburg area offer a long list of services to help you renting your house. It’s a huge punchlist of jobs that a experienced Rent My House will handle; in fact (if you’re a great follow through kind of people person, you may even want to consider a job as a property manager yourself!.) Here’s just a partial list of what property managers do if they are asked “will you help me rent my house?”
Property Management Services RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Find a tenant
- Handle legal paperwork
- Keep you legal by helping you comply with government housing laws
- Show your property to prospective tenants in order to rent your house
- Handle move in and move out
- Collect rent and get you paid!
- Handle follow up if payments are not on time
- Assist with evictions
- Deal with renter questions
- And so much more.
It’s everything from soup to nuts! Issues to think about if you are questioning if you should rent your home on your own or hire a Rent My House near the Petersburg area.
DOES IT MAKE FINANCIAL SENSE TO HIRE A Rent My House ?
You’ve discovered that greatleasing agentswho provide services to the Petersburg area in Richmond aren’t without cost.
Property management agencies will charge a fee, roughly, between 4% and 9% of the monthly gross income for the home. The normal fee for a single family rental home is about 8-10%. The cost for a building of 10 units or more is usually between 5% and 8%.
If your house is not occupied, it’s not unusual to pay a tenant finding fee to procure and place a new renter in your rental property. Depending on the property management company this can fluctuate from 50%-100% of one month’s rent.
Something to keep in mind: Having experienced property manager input on market rents and having a certified agent deal with locating a renter could mean you get higher rents, which means a good property manager likely will end up covering all or part of their cost because of increased rents.
DO YOU HAVE THE PATIENCE TO DEAL WITH RENTERS?
Is the pressure of dealing with evictions, renter complaints and repair concerns stressful for you? Rental agents are skilled in dealing with landlord-tenant difficulties. Rent My House have an understanding of Richmond landlord-tenant law and can act as a buffer for issues that arise. In addition, if the renter is aware they are dealing with a third party, they could act more civilly as well.
You do not have to hire a property management agency because you are new to property investing in Petersburg, have a lot of units or are having difficulty filling empty units. Many people manage their own homes. Personal experience can often be the best instructor and everyone has to begin learning somewhere. If you teach yourself about residential property investing, get the input of others and have a clear desire to manage your investment with excellence, its likely, you will prosper.
HOW CLOSE IS YOUR PROPERTY?
The more distance between you and your rental home,the more stressful it is to take care of. If your main home is in New York and your investment property is in the Petersburg area, it will be a lot of work for you to find tenants,to handle constant complaints,to quickly respond to emergencies, to take care of maintenance concerns, and even to ensure payment is collected on time.
The amount of time it takes you to travel to the property and the cost of getting there will also mount. In situations such as these, hiring a goodRichmond property management agency? can make a lot of sense and may actually save you some cash.
IS THERE THE MONEY TO PAY A Rent My House ?
You’ve figured out that top notchleasing agentswho provide services to the Petersburg area in Richmond aren’t without cost.
Residential property management agencies will charge a fee, on average, between 5% and 9% of the monthly gross income for the home. The normal fee for a single family investment is estimated at 8-10%. The fee for a apartment of 10 units or more is usually between 3% and 7%.
If your house is not occupied, it’s typical to pay a tenant finding fee to find 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.
One thing to consider: Having expert professional input on market rents and having a pro deal with locating a renter could mean you can get higher rents, which means a professional leasing agent likely will end up covering all or part of their charge because of increased rents.
DO YOU HAVE EVEN A LITTLE BIT OF PROPERTY MANAGEMENT EXPERIENCE?
If you would like invest in Richmondreal estate, but don’t know the first thing about rental management, hiring a professional Rent My House can be a wise choice for you. Figuring it out as you go can become very draining financially.
For a property investor who is just beginning, hiring a bad repairman or taking too long to fill a vacancy can rapidly eat into your profits. There are huge legal liability concerns you can encounter if you don’t know about Fair Housing laws or Federal real estate law. One lawsuit can pay for a lot of rental management charges!
HOW CAN A PROPERTY MANAGER HELP ME MANAGE MY HOME NEAR Petersburg?
Residential property managers who service the Petersburg area may do a number of things for you as the homeowner, which can include the following areas:
INCREASING OR ADJUSTING RENT:
The rental agent 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.
MANAGING WRITTEN AGREEMENTS
Many managers are responsible for recommending the duration of the agreement and ensuring it has all the needed provisions to protect the owner. This includes deciding the total of damage deposit needed.
Many managers are responsible for setting the length of the agreement and making sure it has all the needed provisos to protect the client. This includes determining the total of damage reserves needed.
One of the more important duties of the property managers is to manage renters. They are involved in all roles, from identifying the renters and responding to problems to initiating evictions.
One of the main responsibilities of the property managers is to manage renters. Agents are engaged in many capacities, from identifying the tenants and dealing with complaints to dealing with evictions.
Professional leasing agents are many times employed to look after empty houses to ensure there has been no destruction and to oversee regular maintenance. They also make certain contractors and other repairmen are finishing their work in a reliable manner.
Many managers are responsible for setting the length of the lease and ensuring it has all the required clauses to protect the owner. This includes deciding the amount of security reserves needed.
When a tenant does not pay rent or otherwise violates the terms of the agreement, the rental property management agent realizes understands the best way to legally respond and proceed forward with an eviction.
PROPERTY MANAGERS HELP YOU SET MARKET RENT LEVELS
Leasing agents are responsible for determining the beginning rent level, and collecting payment from renters. Great leasing agents know how to set the correct rent level toattract renters to your home. They hopefully have a specific understanding of the Richmond area, where the property is located and have looked at comparable homes in the general Richmond area.
Nearly all they are paid to oversee maintenance situations, noise issues and have the necessary relationships to take care of emergency situations.
HANDLE DETAILED INSPECTIONS
You want to make certain to take before and after photos and written documentation, so you can quickly handle renter deposits and differences of opinion when they leave your home. A lot of renters will act dumbfounded when you take out damages from their deposit, so having comprehensive records will help cut down on the amount of arguing they do with you.
TAKE CARE OF DETAILED INSPECTIONS
You want to make sure to take before and after photos and written documentation, so you can accurately deal with damage deposits and differences of opinion when they move out. Many renters will act amazed when you remove fees from their deposit, so having accurate files will help cut down on the amount of arguing they do with you.
INCREASING OR ADJUSTING RENT:
The leasing agent 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.
Provide financial management services Make payments for the sake of the owner (Mortgage, insurance, homeowner association dues, etc.) Detailed records of expenditures via invoices and receipts Preserve all historical documents (paid invoices, paperworks, inspection reports, warranties, etc.) Provide yearly reports, organized for tax needs as well as mandatory tax documents including a 1099 forms Educate owner on legal tax write offs related to their investment property. Prepare simple monthly cash-flow documents which specify a detailed accounting of income and specific expenses
QUESTION: How Might a Rental management Firm Assist With Tenant Vetting and Selection?
Screening Tenants- A rental agent will sort through the potential tenant applications to find the tenant that is the ideal fit for your home. They have a reliable screening process, including running credit checks and criminal background checks, which can decrease your possibility of being accused of discrimination. Professional property managers have seen hundreds, even thousands, of tenants, so they have a good idea of how to identify the right applicants; tenants who will pay their rent on time, have a longer tenancy and create less problems. Perform a background check to authenticate identity, wages, credit history, rental history, etc. Assess applicant in relation to pre-decided applicant standards Inform tenants who may have been turned down
Question: Should I try to save money by managing my home myself? Or finding the cheapest rental agent possible?
Answer: With the best unit managers, paying a little bit more is a wise investment, because it helps increase the value of your property, and they help retain top notch tenants; studies have proven hiring a home agentcan cut your vacancy rate in half. On the other hand, going lowball with a property management company can wind up being very costly.
QUESTION: How May a Lease Management Firm assist an owner with the Renter Move In Process?
- Prep rental documents
- Pin down move in date with applicants
- 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 renter and have tenants sign a report verifying the condition of the property prior to move-in.
- Collect first month’s rent and security deposit
Question: Should I try to save money by going FRBO? Or finding the least expensive leasing agent I can?
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 shown hiring a house managercan cut your vacancy rate in half. Conversely, going cheap with a property management company can end up being very costly.
QUESTION: How Will a Residential Property Company Help an homeowner with House Standard Maintenance?
Rental property management agents are responsible for overseeing preventative property maintenance to keep your property in good condition. Some of things that may involved:
- Manage and oversee company employed maintenance crew
- Decide on a preventative maintenance approach to locate and deal with repair issues
- Locate a team of licensed, bonded and completely insured vendors who have been vetted for good bidding and excellent performance that is up to requirements.
- Delegate work to various parties such as (in-house employees, handyman and professional contractors) based on whom may do an excellent job for the best price.
- Maintain outdoor areas
- Debris and snow removal
- Removing trash and debris
- Maintain and monitor a 24/7 emergency repair hotline
- Larger fix up or rehab projects
- Provide suggestions on how the project can maximize rental profits.
- Prep initial cost estimates
- Get multiple different bids for the work to be done
- Act as general contractor managing the work
Question: Do all property management companies charge basically the same way?
Not every pricing structures are identical. Some property management companies in the Petersburg area may charge a flat monthly rate – which again varies according to area, duties performed, and the total value of the home – while others charge a percentage rate, as noted above. Price can also change depending on the size and quantity of homes you own.
To illustrate, if you own several houses, you might get a quantity discount that a person with a single unit or apartment might not get.
Question: How much do rental agents charge?
Answer: As you might guess, the answer is “it depends.” Residential property management companies vary quite a bit, and a lot of the answer is dependent on what a firm does for you.. Just what do you want a rental agent to do for you?
Usual Percentage of Rent Contract. As a baseline, expect to pay a typical Leasing agency between 7 – 12% of the monthly rental value of the unit. This is referred to as management fee, or monthly management charge. Typically the higher your rent is, the lower the percentage is. For example if your rent is $2,500 per month for your rent house, you will normally pay a lower percentage fee than someone else whose unit rents for $800 each month.
You do not pay this management charge until payment is received. Look carefully at your agreement regarding whether the management fee is based on ‘rent collected’ or ‘rent due’. If the fee is tied to rent collected, it means the Residential property management company won’t get paid if you don’t get paid. Conversely, if it’s based on ‘rent due’, then you pay whether or not rent is collected from the renter usually.
Fixed Fee Contract
Some firms may charge, say,$75- $150 each month flat rate. There is nothing dictated bystatute in this; it’s determined by the firm owner.
You wouldn’t owe money on a flat rate agreement usually until rent is received.
QUESTION: Do Property Management Companies Help With Move Out?
Yes, a Home Management Firm can Help With Move outs. Activities might include:
- Inspect investment property. and complete a document on the property's status when the client moves out
- Provide occupant with a copy as well as estimated damages
- Return the balance of the damage deposit to the tenant
- Transfer remaining amount of the owner’s share of the renter deposit to the owner or hold in owner reserves for repairs.
- Turn over house and handle needed repairs or upgrades
- Re-key the locks
- Re-List property back on the market for rent
QUESTION: What Inspection Services Do Rental Agents Provide?
- Insure systematic inspections (Inside and outside) on a regular schedule watching out for repair needs, safety hazards, code issues, lease violations, etc.
- Prepare owner periodic reports on the condition of the property
QUESTION: How Can a Home Management Agency Help With Renter Screening and Choosing?
Vetting Tenants- A leasing agent will screen the prospective renter applications to discover the tenant that is the ideal fit for your home. They have a reliable screening process, including running credit checks and criminal background checks, which can decrease your chances of being accused of breaking the law. Professional leasing agents have seen many renters, so they have a good idea of how to choose the right renters; those who will pay their rent on time, have a longer tenancy and create less headaches. Perform a background check to authenticate identity, salary, credit history, rental history, etc. Evaluate applicant in relation to pre-decided tenant criteria Communicate with applicants who were declined
Question: Do all property management companies charge basically the same way?
Not all fee structures are the same. Some property management companies in the Petersburg area may charge a fixed per-month rate – which again varies according to area, duties performed, and the total value of the home – while others charge a percentage rate, as noted above. Price can also change depending on the size and number of houses you own.
To illustrate, if you own several apartment buildings, you may get a “bulk” discount that a person with a single unit or apartment might not get.
Question: How much do rental agents cost?
Answer: As you may guess, the answer is “it depends.” Property management firms vary a lot, and much of the answer depends on what they do for you.. Exactly what do you want a rental agent to accomplish for you?
Usual % of Rent Contract. As a starting point, expect to be charged a usual Residential property management company between 8 – 12% of the monthly rent of the property. This is referred to as management fee, or monthly management charge. Usually the higher you charge for rent, the lower the percentage is. For example if your rent is $2,500 per month for your property, you will normally pay a lower percentage fee than another person whose property rents for $800 each month.
You are not charged this management fee until rent is collected. Look carefully at your contract regarding whether the management charge is determined by ‘rent collected’ or ‘rent due’. If the charge is based on rent received, it means the Residential property management company won’t get paid if you don’t get paid. Conversely, if it’s based on ‘rent due’, then you pay whether or not rent is collected from the tenant normally.
Flat Rate Agreements
Some agencies may charge, say,$75- $150 each month flat rate. There is nothing dictated bystatute in this; it’s determined by the property management company owner.
You would not owe money on a fixed rate agreement normally until rent is received.
Question: What Is The Normal Term Of A Property Management Agreement?
Typically, a landlord signs an agreement with a leasing agency for a specific length of time – 12 or 24 months, for example – with an option to renew. Contracts can be drawn up so that they automatically renew if neither party takes actionopposing it. Termination clauses allow for early termination if the property management company is in breach of the agreement in any way.
Question: What are typical procedures regarding Late Payment Charges?
Occasionally renters pay date. Read your paperwork to see if those late payment fees go to you as the owner, to the rental agency, or are shared in some way.
QUESTION: What is a New Tenant Placement or “Lease up” Charge?
Some residential property management companies in the Petersburg area may charge a new tenants placement fee or have a extra commission incentive for getting a renter into a lease. Afee of 50 to 100 % of the first month’s rent for any new renter placed is not abnormal. However, you shouldn’t normally run into significant multiple up-front charges.
Normally a lease up fee is not paid until the renter is secured, which means you don’t have to pay out of pocket to pay this.