Regardless if 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 usually on residential properties (but commercial property management companies do exist of course. Property rental agencies serving the Downtown area offer a variety of services to help you renting your house. It’s an overwhelming list of jobs that a good Rental Agency will deal with; 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 a quick list of what property managers do if they are asked “will you help me rent my house?”
Rental Agencies RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Find a renter
- Handle legal paperwork
- Keep you legal by helping you comply with Fair Housing laws
- Show your house to possible renters 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
- Help with evictions
- Respond to tenant questions
- And so much more.
It’s everything but the kitchen sink! Items to contemplate if you are wondering if you should rent your home on your own or hire a Rental Agency near the Downtown area.
DO YOU HAVE THE MINDSET TO WORK WITH TENANTS?
Is the pressure of messing with evictions, tenant complaints and maintenance concerns stressful for you? Leasing agents are experienced in dealing with landlord-tenant conflict. Rental Agency have an understanding of Richmond legal issues and can act as go between for issues that arise. In addition, if the tenant knows they are working with a third party, they may behave more professionally as well.
You don’t have to pay for a property management agency because you are a beginner to real estate investing in Downtown, have a lot of units or are having difficulty filling vacancies. Many people manage their own homes. Personal experience can many times 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 oversee your real estate well, its very likely, you will come out on top.
DO YOU HAVE EVEN A LITTLE BIT OF PROPERTY MANAGEMENT EXPERIENCE?
If you want to deal in Richmondrental properties, but don’t know anything about leasing management, hiring an experienced Rental Agency can be the right choice for you. Figuring it out as you go can become extremely costly.
For a real estate investor who is getting going, hiring the wrong repairman or taking too long to fill a vacancy can quickly eat into your profits. There are big legal liability concerns you can run into if you aren’t aware about Fair Housing regulations or Federal real estate law. One lawsuit can pay for a lot of rental management fees!
HOW CLOSE IS YOUR RENTAL PROPERTY?
The more distance between you and your rental property,the harder it is to take care of. If your primary residence is in Oregon and your property is in the Downtown area, it will be more difficult for you to find renters,to handle tenant complaints,to quickly respond to issues, to handle maintenance concerns, and even to guarantee rent is collected by due date.
The amount of time it takes you to get to the property and the cost of gas will also start to bite. In situations like these, hiring a goodRichmond property management company can make some sense and will likely save you some cash.
HOW CLOSE IS YOUR RENTAL HOME?
The more distance between you and your property,the more stressful it is to look after. If your main home is in Florida and your property is in the Downtown area, it will be more difficult for you to find tenants,to handle tenant complaints,to quickly respond to difficulties, to take care of maintenance concerns, and even to make sure rent is collected in a timely manner.
The total time it takes you to get to the property and the cost of getting there will also start to bite. In situations such as these, hiring a greatRichmond property management firm? can make some sense and may actually save you money.
WILL YOU HAVE THE TIME TO CARE FOR YOUR INVESTMENT PROPERTY near the Downtown area?
If you are employed at a full-time job while you are investing in a rental home and simply can’t give your your rental home the attention it needs, the profitability of your investment might depend on paying for a good property management company in Richmond
Also, realize that time is money and managing a investment home takes time. If you feel like the real life obligations of leasing management are impinging on time that could be more enjoyably spent making more money at your full time job, or looking for other property to buy, employing an outside property management company may be the best move for you.
HOW WILL A PROPERTY MANAGEMENT COMPANY HELP ME MANAGE MY HOUSE NEAR Downtown?
Property managers who service the Downtown area can do a lot of things for you as the home investor, which can include the following:
Nearly all managers are paid to oversee maintenance requests, noise complaints and possess the necessary relationships to take care of emergency situations.
DEALING WITH CONTRACTS
Many they are responsible for setting the length of the lease and making sure it has all the needed clauses to look out for the owner. This includes determining the total of security reserves required.
OFFER WISE REAL ESTATE ADVICE:
Discuss with you the pros and cons\pluses and minuses of different policies such as accepting pets, permitting smoking etc. Some things are very specific to the Richmond area, so having a local market expert who knows the Downtown area in particular is crucial.
HANDLE PROFESSIONAL INSPECTIONS
You want to make certain to have before and after photos and written documentation, so you can quickly take care of damage deposits and disagreements when they leave your home. A lot of renters will act amazed when you subtract fees from their deposit, so having accurate files will help cut down on the amount of disagreeing they do with you.
IN CHARGE OF OTHERS
Other Employees- if there are other employees in the property, such as a janitor or security guard, the rental manager is responsible for being certain they are on their toes. The leasing agent can determine their wage rates and possibly fire them.
MANAGE MAINTENANCE ITEMS AND REPAIRS
Leasing agents are customarily responsible for the physical oversight of the home, including consistent maintenance and needed work to be done.
TAKE CARE OF DETAILED INSPECTIONS
You want to make certain to have before and after photos and written documentation, so you can accurately take care of renter deposits and disagreements when they leave your home. Many renters will act dumbfounded when you subtract charges from their deposit, so having careful documentation will help reduce the amount of disagreeing they do with you.
At times when there are repairs needed, the rental manager must attend to it themselves or must find an outside firm to take care the problem it. They often have a screened team of trustworthy electricians,carpenters,plumbers and other vendors.
OFFER SOLID REAL ESTATE ADVICE:
Discuss with you the positives and negatives of different issues such as accepting pets, allowing smoking etc. Some things are very specific to the Richmond market, so having a local market expert who knows the Downtown area in particular is crucial.
RE-LEASE YOUR HOME
Once agreement terminates persuade existing renters to extend their rental agreement for another rental period
HANDLING MOVE OUTS
When a renter ends his tenancy, the property manager is in charge of inspecting the property, checking for damages and determining what amount of the damage deposit willl be refunded to the renter. After move out, the property manager is responsible for cleaning the property, repairing any issues and locating a replacement renter.
This is where a rental agent earns their keep. Home management agencies make sure you get paid by collecting rent each month on time and strictly enforcing late penalties.
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.
RE-LEASE YOUR PROPERTY
Once lease terminates get current renters to extend their rental contract for one more rental period
QUESTION: What are Advertising Charges?
Some leasing agencies charge a marketing fee. This is an upfront charge to market your vacant home. This fee is typically $$150-350. Most firms don’t charge this fee, so shop around!
Empty House fee Some firms charge One month’s payment up front. You may run into this charge if you’re attempting to engage the leasing agency while the home is empty. This gives them the money to pay a realtor a commission for finding a tenant in the home, or to pay the costs of advertising, repeatedly showing the unit to potential tenants, as well as the expense of preparing lease documents (which can take a long time).
Question: What do do property managers cost?
Answer: As you might guess, the answer is “it depends.” Residential property management companies vary a lot, and a good deal of the answer depends on what a company does for you.. Just what do you want a property manager to accomplish for you?
Usual Percentage of Monthly Rent Contract. As a ballpark figure, expect to be charged a normal Rental management agency ranging from 7 – 10% of the monthly rental value of the home. This is referred to as management charge, or monthly management fee. Usually the greater your rent is, the lower the percentage fee is. For example if your rental charges are $2,000 each month for your rent house, you will usually pay a lower percentage fee than another person whose unit rents for $800 per month.
You do not pay this management fee until payment is received. Look carefully at your agreement regarding whether the management fee is determined by ‘rent collected’ or ‘rent due’. If the fee is tied to rent collected, it means the Property management company doesn’t get paid if you don’t get paid. Conversely, if it’s determined by ‘rent due’, then you owe whether or not rent is received from the renter normally.
Flat Rate Agreements
Some firms may charge, say,$75- $150 per month fixed rate. There is nothing required bystatute in this; it’s determined by the firm owner.
You wouldn’t owe money on a fixed rate agreement normally until rent is collected.
QUESTION: How Might a Rental Property Agency Assist an investor with House Routine Maintenance?
Rental property management agents are responsible for overseeing preventative property maintenance to keep your house in good status. Some of things that may involved:
- Provide and oversee a company maintenance crew
- Decide on a preventative maintenance policy to identify and deal with repair concerns
- Locate a collection of licensed, bonded and legally insured vendors who have been vetted for fair pricing and good performance that is up to requirements.
- Delegate jobs to different parties such as (in-house employees, handyman and professional contractors) based on whom will do a good job for the lowest price.
- Oversee outdoor areas
- Leaf and snow removal
- Removing trash and debris
- Maintain and monitor a 24/7 emergency repair hotline
- Bigger renovation or rehab projects
- Provide suggestions on how the project can maximize rental returns.
- Prep initial cost estimates
- Secure several different bids for the project
- Act as general contractor overseeing the work
QUESTION: How Might a Property Management Company Assist an investor with Property Standard Maintenance?
Rental agents are responsible for overseeing preventative property maintenance to keep your property in top notch condition. Examples of what can be under consideration:
- Provide and oversee a company maintenance crew
- Establish a preventative maintenance approach to locate and handle maintenance needs
- Provide a team of licensed, bonded and completely insured vendors who have been vetted for reasonable pricing and good performance that is up to code.
- Assign jobs to various parties such as (in-house employees, handyman and professional contractors) based on who may do the best job for the best price.
- Maintain outdoor areas
- Leaf and snow removal
- Removing garbage and debris
- Maintain and oversee a 24/7 emergency repair hot-line
- Bigger renovation or remodeling projects
- Provide suggestions on how the project can maximize rental returns.
- Take responsibility for preliminary pricing estimates
- Solicit multiple independent quotes for the work to be done
- Perform as general contractor managing the work
QUESTION: How Might a Residential Property Management Agency Assist With Tenant Vetting and Choosing?
Screening Tenants- A rental agent will screen the prospective renter applications to find the applicant that is the best fit for your home. They have a consistent vetting 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 renters, so they have a better idea of how to choose the best renters; tenants who will pay their bills on time, have a longer tenancy and create much fewer issues. Perform a background check to confirm identity, income, credit history, rental history, etc. Assess renter per pre-defined renter standards Communicate with tenants who may have been rejected
QUESTION: Will Residential Property Management Companies Take Care of Evictions in the Downtown area?
- Preparing necessary documentation to begin and process an eviction lawsuit
- Representing owner in court
- Working with with police enforcement to evict renter and renters belongings from unit
Question What Services Are Included in A Typical Property Management Contract?
Be sure you determine precisely what maintenance services are a part of with your charges. It may be that when something needs repair, some labor charges are a part of with your monthly fixed rate or percentage charge (for illustration, changing out light bulb 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 contract. Keep in mind that these fees could require you toincrease your rents, which might make finding – and keeping – tenants harder. And remember, house management fees can be negotiable. Depending on how much you’re willing to pay, you might be able to get a lower price by sacrificing particular services and handling them on your own.
QUESTION: Will Property Management Companies Handle Evictions in the Downtown area?
- Filing necessary paperwork to start and process an eviction lawsuit
- Representing owner in court
- Coordinating with police enforcement to remove tenant and renters stuff from unit
Question: What do Inspections of my home cost?
Some leasing agencies will charge for inspections, others will give you an inspection or more without charge per year. This is a visual inspection of your home to see how the tenant is keeping it up. Charges can range from $100-175 for each inspection.
Question: What are Miscellaneous fees made by property management companies?
In some cases, you might see some charges passed on to you – especially where the agent is charging a low monthly %. Illustrations might include an advertising charge in connection with finding 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 might want to check into how you share pet deposits collected and bad check fees (generally whoever gets hit 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.
What can a RichmondRental management Agency Do to Market Your Property?
- Get house ready for renting out
- Clean home and emphasize interior appeal
- Manage yard to emphasize curb appeal
- Develop marketing materials specifically created for the house and advertising medium.
- A sample of the mediums often utilized are:
- Paid and free rental listing websites
- Print magazines
- Installing a lock box
- Multiple Listing Service listings
- Property fliers
- Partner with other professionals and property management agents to secure a renter
- Provide a 24/7 phone where prospective renters can listen to detailed information about the home
- Take phone calls from prospects for questions and appointments
- Welcome potential renters for appointments throughout the week and weekend.
- Provide potential tenants with rental applications that are legally compliant with government regulations
- Collect applications with application fee
Question: How much should I price shop the fees my property management company charges me?
Ultimately, engaging a investment property agent in the Downtown area is entering into a partnership. Over the long haul, the charges aren’t as crucial as the interaction between you and the agent and quality of the service your manager delivers. A great agency can take control of the oversight of the property, for example, and wind up providing you a lot rental value and price appreciation than you might be possible. However, you need to be willing to provide them the resources to do it.
QUESTION: What types of Maintenance can leasing agencies help with?
Some leasing agencies in the Downtown area have their own maintenance crews, full-time. Most refer this work out to various vendors. Some residential property management charge a fixed fee to manage any work done by outside vendors. Many will add on to the subcontrcontractor’s fee. Make sure you know how it operates with your investment property management firm!
Question: What are typical procedures regarding Late Payment Fees?
Occasionally renters pay after the due date. Read your paperwork to see if those late payment charges go to you as the owner, to the leasing agency, or are shared somehow.