Whether you describe them as a Rental Agency, home management firms, or rental property management agencies….it all means the same thing. The focal point is typically on residential properties (but commercial property management firms are out there of course. Property rental agencies serving the 23039 area provide a variety of services to help you renting your home. It’s a long list of jobs that a expert Rental Agency will oversee; in fact (if you’re a good follow through kind of people person, you may even want to consider 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?”
Rental Agency RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Find a tenant
- Handle legal paperwork
- Keep you out of jail by helping you follow housing laws
- Open your house to possible tenants in order to rent your house
- Handle move in and move out
- Collect monies and get you paid!
- Handle follow up if payments are late
- Assist with evictions
- Deal with renter inquiries
- And a lot more than that.
It’s everything but the kitchen sink! Points to think about if you are questioning if you maybe should rent your house on your own or hire a Rental Agency near the 23039 area.
HOW HIGH IS YOUR VACANCY RATE?
Excellent Rental Agency are capable locating and reviewing renters quickly and will have a network of reliable, affordable Richmondmaintenance companies to handle emergencies. Most professional rental agents will also comprehend landlord-tenant law, thereby reducing the risk of a lawsuit.
HOW FAR AWAY IS YOUR RENTAL HOME?
The more miles between you and your rental property,the more difficult it is to look after. If your main home is in Texas and your investment property is in the 23039 area, it will be more difficult for you to find renters,to handle constant complaints,to quickly respond to issues, to take care of maintenance issues, and even to make sure payment is collected in a timely manner.
The total time it takes you to go back and forth the property and the expense of getting there will also start to bite. In situations such as these, hiring a professionalRichmond property management firm? can make good sense and may actually save you some dough.
CAN YOU AFFORD TO HIRE A Rental Agency ?
You’ve figured out that greatrental agentswho provide services to the 23039 area in Richmond aren’t without cost.
Residential property management firms will charge a fee, roughly, between 4% and 10% of the monthly rents for the property. The typical fee for a single family rental property is closer to 8-10%. The cost for a building of 10 units or more is usually between 4% and 7%.
If your investment property is empty, it’s not unusual to pay a tenant finding fee to procure and place a new tenant in your rental property. Depending on the property management company this can fluctuate from 50%-100% of one month’s rent.
One thing to consider: Having experienced property manager input on market rents and having a pro deal with locating a tenant could mean you can get higher rents, which means a good leasing agent might end up covering all or part of their cost because of higher rents.
WILL YOU HAVE THE TIME TO OVERSEE YOUR INVESTMENT PROPERTY near the 23039 area?
If you have a full-time job while you are investing in a rental home and simply cannot give your your rental home the energy it needs, the success of your investment could depend on paying for a great property management company in Richmond
Also, realize that time is definitely money and managing a rental home takes time. If you feel like the every day requirements of leasing management are impeding on time that could be better spent making more money at your day job, or hunting down other investments, employing an outside property management company may be the wisest move for you.
DO YOU HAVE ANY PROPERTY MANAGEMENT EXPERIENCE?
If you want to invest in Richmondinvestment homes, but don’t know the first thing about property management, hiring a certified Rental Agency can be a smart choice for you. Learning on the job can become very expensive.
For a property investor who is getting going, hiring the wrong repairman or taking too long to fill a vacancy can quickly eat into your returns. There are huge legal liability concerns you can encounter if you aren’t aware about Fair Housing laws or Federal real estate law. One lawsuit can pay for a lot of property management fees!
HOW CAN A RENTAL MANAGEMENT COMPANY HELP ME MANAGE MY HOUSE NEAR 23039?
Residential property managers who service the 23039 area will do a number of things for you as the home investor, which could include the following areas:
OVERSEEING MOVE OUTS
If a tenant moves out, the property manager is responsible for inspecting the home, looking for problems and assessing what amount of the security reserves mayl be returned to the tenant. After move out, the property manager is in charge of cleaning the home, repairing any damages and finding a replacement tenant.
Professional property managers are many times engaged to look after empty properties to ensure there has been no vandalism and to execute 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 duration of the agreement and ensuring it has all the necessary clauses to look out for the client. This includes deciding the amount of security deposit needed.
Professional rental agents are often engaged to observe vacant homes to ensure there has been no destruction and to execute routine maintenance. They also make sure contractors and other outsourced workers are finishing their work in a timely manner.
COLLECTING RENTAL PAYMENTS:
This is where a rental agent earns their keep. Home management firms make sure you get your money by collecting rent each month on time and strictly enforcing late charges.
RE-LEASE YOUR PROPERTY
Once contract ends ask current tenants to re-up their lease for another rental period
SUGGEST AND SUPERVISE VENDORS
Rental management pro’s should be ready to recommend vendors to do repairs and cosmetic work that maximize profitability while providing good ROI.
Deliver accounting services Handle payment for the owner (Mortgage, insurance, homeowner association dues, etc.) Specific documentation of expenses via invoices and receipts Manage all historical documents (paid invoices, agreements, inspection documentation, warranties, etc.) Oversee yearly reports, organized for tax purposes as well as required tax documents including a 1099 forms Educate owner on qualified tax deductions related to their investment property. Provide easy to read monthly cash-flow documents which specify a detailed breakdown of income and specific expenses
Deliver accounting services Make payment for the sake of the owner (Mortgage, insurance, homeowner association dues, etc.) Specific documentation of expenditures via invoices and receipts Maintain all historical documents (paid invoices, paperworks, inspection documentation, warranties, etc.) Oversee yearly reporting, structured for tax needs as well as needed tax paperwork including a 1099 paperwork Advise owner on appropriate tax write offs related to their investment property. Provide simple monthly cash-flow statements which offer a detailed accounting of income and itemized expenses
DEALING WITH PROBLEMS
Nearly all they are compensated to address repair situations, noise disturbances and possess the needed contacts to deal with difficult situations.
IN CHARGE OF OVERSEEING THE BUDGET/MAINTAINING RECORDS
In most situations leasing agents are responsible for managing the budget for the building and maintaining all pertinent records. Overseeing Budget- the rental agentmust operate within the established budget guidelines for the unit. In certain emergency situations when the renters or home are in need of upgrade, they may take action to order repairs or similar without concern for the budget. Maintaining Paperwork- the property manager is required to complete documentation related to the house. This need to include all income and expenses; lists of all inspections, signed contracts, upgrade requests, any complaints, notation of maintenance done, charges for repairs, maintenance expenses, documentation of rent paid and insurance charges.
This is where a property manager earns their money! Rental management agencies make sure you get your money by collecting rent each month on time and strictly enforcing late fees.
OFFER SOLID REAL ESTATE ADVICE:
Discuss with you the positives and negatives 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 23039 area in particular is crucial.
HANDLE PROFESSIONAL INSPECTIONS
You want to be sure to have before and after photos and written records, so you can quickly deal with damage deposits and differences of opinion when they move out. A lot of tenants will act shocked when you subtract charges from their deposit, so having comprehensive files will help reduce the amount of arguing they do with you.
Question: What Is The Normal Term Of A Property Management Agreement?
Typically, a landlord signs an agreement with a leasing agency for a fixed 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 residential property management firm is in the breaking of the agreement in any way.
QUESTION: What types of Maintenance can leasing agencies help with?
Some leasing agencies in the 23039 area have their own maintenance employees, full-time. The majority of subcontract these jobs out to various subcontractors. Some rental agencies charge a flat rate to supervise any work done by outside vendors. Some will upcharge the contractors invoice. Make certain you understand how it operates with your unit management firm!
Question What Services Are Included in A Typical Property Management Contract?
Be sure you determine exactly what maintenance services are included with your charges. It could be that when something needs fixing, certain labor costs are a part of with your monthly flat 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).
No matter what, everything should be clearly expressed in your contract. Keep in mind that these fees might require you toraise your rental rate, which could make finding – and keeping – tenants harder. Keep in mind, property management charges can be negotiated. Depending on what you’re willing to pay, you might be able to get a lower price by sacrificing certain services and handling them on your own.
Question: What Is The Normal Term Of A Property Management Agreement?
Normally, an owner signs a contract with a leasing 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 rental agency is in breach of the contract in any way.
Question: What are Miscellaneous fees made by property management companies?
In some cases, you could see some fees passed on to you – especially where the manager is charging a low monthly %. Examples could include an advertising fee in connection with finding a tenant, an annual inspection charge, and some sort of reserve, so that the management agency has some money on hand to handle unexpected, but immediate, costs.
You might want to check into how you divide pet deposits collected and bad check charges (generally whoever gets stuck with the greatest amount of bank costs 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 residential property management help with evictions?
Some renters 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 investment property. Most likely a unit agent will impose a fee to initiate the tedious paperwork involved with evicting a tenant which is usually ballpark cost of $200-$400 per eviction, plus any associated courtroom charges.And an evictionoftentimes take a few months, so be mentally ready to not receive any rental payments until they the legal action is complete. In addition, you may find there is fix up work to do on your house.
Typically, you are better off offering your renter financial reasons to leave the investment property early and skip taking them to court, as aggravating as that is. You can avoid many problem situations with painstaking renter vetting done beforehand.
What can a RichmondProperty Management Firm Do to Market Your Investment Property?
- Get investment property ready for renting out
- Clean house and emphasize interior appeal
- Manicure yard to increase curb appeal
- Develop advertisements specifically created for the property and advertising platform.
- A few of the channels often used are:
- For pay and no charge rental listing websites
- Print magazines
- Installing a lock box
- Multiple Listing Service listings
- Partner with other professionals and rental agents to locate a renter
- Provide a 24/7 hot-line where prospective tenant can listen to specific information about the house
- FieldAnswer phone calls from prospects for questions and viewings
- Meet interested renters for appointments throughout the week and weekend.
- Provide prospective tenants with rental applications that are legally compliant with fair housing laws
- Gather applications with application payment
QUESTION: How Would a Property Management Agency Help With Tenant Screening and Choosing?
Vetting Applicants- A residential property agent will screen the prospective tenant applications to find the applicant that is the best fit for your home. They have a consistent screening process, which includes running credit checks and criminal background checks, which can decrease your possibility of being charged with breaking the law. Professional rental agents have seen hundreds, even thousands, of tenants, so they have a good concept of how to select the best renters; renters who will pay their bills on time, have a longer tenancy and create less problems. Perform a background check to verify identity, wages, credit history, rental history, etc. Evaluate tenant in relation to pre-decided applicant standards Communicate with applicants who may have been rejected
Question: What are typical procedures regarding Late Payment Charges?
Sometimes renters pay after the due 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: How Should a Property Management Company assist an owner with the Renter Move In Procedure?
- Initiate rental agreement
- Pin down move in date with applicants
- 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: Do all property management companies charge basically the same way?
Not every fee structures are the same. Some leasing agencies in the 23039 area may charge a flat monthly rate – which again varies according to area, activities performed, and the total value of the rental – while others charge a percentage rate, as noted above. Price can also change depending on the size and quantity of properties you own.
For example, if you own several homes, you might get a quantity discount that a person with a single property or apartment might not get.
Question: What are Miscellaneous fees made by property management companies?
At times, you may see some charges passed on to you – especially where the agent is charging a low monthly %. Illustrations could include an advertising fee in connection with placing a tenant, an annual inspection fee, and some sort of reserve, so that the management agency has some cash on hand to handle unexpected, but immediate, expenses.
You may want to look into how you split up pet deposits collected and bad check charges (generally whoever gets stuck with the greatest amount of bank costs should get the lion’s share 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: Should I try to save cash by going FRBO? Or finding the least expensive leasing agent possible?
Answer: With the best house managers, paying a little bit more is a wise investment, because it helps enhance the value of your property, and they help retain top notch tenants; studies have proven hiring a house agentcan reduce your vacancy rate by 50%. On the other hand, going lowball with a rental agency can end up being very costly.
Question: What do Inspections of my home cost?
Some property management companies will charge for inspections, others will give you an inspection or more without charge annually. This is a visual inspection of your property to see how the tenant is treating it. Fees can range from $50-225 per inspection.