Whether you call them a Rental Agency, 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 firms do exist certainly. Property rental agencies serving the Newtowne West area offer a variety of services to help you renting your home. It’s a huge punchlist of tasks that a experienced Rental Agency will deal with; in fact (if you’re a good follow through kind of people person, you may even want to investigate 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?”
Home Rental Agency RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Locate a tenant
- Oversee legal contracts
- Keep you legal by helping you obey Fair Housing laws
- Show your home to prospective renters in order to rent your house
- Handle move in and move out
- Collect rent and get you paid!
- Handle collections if payments are timely
- Help with evictions
- Respond to renter questions
- And a lot more than that.
It’s everything from A to Z! Issues to contemplate if you are wondering if you maybe should rent your house on your own or hire a Rental Agency near the Newtowne West area.
HOW FAR AWAY IS YOUR RENTAL PROPERTY?
The more distance between you and your rental home,the more stressful it is to manage. If your main address is in Texas and your property is in the Newtowne West area, it will be harder for you to find tenants,to handle constant complaints,to quickly respond to emergencies, to deal with maintenance concerns, and even to ensure rent is collected in a timely manner.
The total time it takes you to get to the property and the cost of gas will also mount. In situations such as these, hiring a goodRichmond property management firm? can make a lot of sense and will likely save you money.
DOES IT MAKE FINANCIAL SENSE TO HIRE A Rental Agency ?
You’ve discovered that greatleasing agentswho provide service to the Newtowne West area in Richmond aren’t without cost.
Rental companies will charge a fee, ballpark, between 5% and 9% of the monthly rents for the house. The usual fee for a single family rental home is about 8-10%. The charge for a property of 10 units or more is on average between 5% and 7%.
If your home is empty, 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 a month’s rent.
One thing to consider: Having expert professional input on market rents and having a certified agent deal with locating a tenant can mean you might get higher rents, which means a professional leasing agent might end up covering all or part of their charge because of higher rents.
DO YOU HAVE THE MINDSET TO DEAL WITH RENTERS?
Is the stress of messing with evictions, tenant complaints and repair issues stressful for you? Rental managers are experienced in handling landlord-tenant conflict. Rental Agency have an understanding of Richmond legal issues and can perform as the middle-man for issues that arise. In addition, if the renter knows they are dealing with a third party, they may act more professionally as well.
You don’t have to hire a property management firm because you are brand new to property investing in Newtowne West, have a lot of rental units or are having difficulty filling empty units. Many people manage their own homes. Personal experience can often be the greatest instructor and everyone has to start learning somewhere. If you teach yourself about residential property investing, get the input of others and have a clear desire to manage your home well, chances are good, you will prosper.
DO YOU HAVE THE MINDSET TO WORK WITH RENTERS?
Is the stress of dealing with evictions, tenant complaints and maintenance issues taking a toll on you? Leasing agents are experienced in dealing with landlord-tenant conflict. Rental Agency have an understanding of Richmond landlord-tenant law and can serve as go between for issues that arise. In addition, if the tenant knows they are dealing with a third party, they are likely to act more professionally as well.
You do not have to pay for a property management firm because you are a beginner to property investing in Newtowne West, have a lot of units or are having difficulty filling empty units. Many people manage their own homes. Personal experience can many times be the greatest teacher and everyone has to start learning somewhere. If you teach yourself about residential real estate, get the input of others and have a powerful desire to manage your investment with excellence, chances are good, you will prosper.
DO YOU HAVE EVEN A LITTLE BIT OF PROPERTY MANAGEMENT EXPERIENCE?
If you would like invest in Richmondinvestment homes, but don’t know anything about property management, hiring a certified Rental Agency can be a good choice for you. Learning on the job can become very costly.
For a real estate investor who is just beginning, hiring a sketchy repairman or taking too long to fill a vacancy can quickly eat into your returns. There are huge legal liability problems 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 leasing management charges!
HOW WILL A RESIDENTIAL PROPERTY MANAGEMENT COMPANY HELP ME MANAGE MY HOUSE NEAR Newtowne West?
Rental management companies who service the Newtowne West area will do many things for you as the homeowner, which can include the following:
OVERSEEING MOVE OUTS
When a renter moves out, the rental agent is in charge of inspecting the unit, looking for problems and assessing what amount of the damage deposit mayl be given to the tenant. After move out, the agent is responsible for cleaning the property, fixing any issues and finding a replacement tenant.
RE-LEASE YOUR HOME
Once contract ends get existing tenants to re-up their rental contract for one more rental period
At times when there is a problem required, the rental manager may attend to it themselves or may contract with an outside firm to handle the problem it. They frequently have a vetted network of experienced electricians,carpenters,plumbers and other vendors.
IN CHARGE OF MANAGING 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 property managermust operate within the established budget guidelines for the building. In particular emergency situations when the tenants or home are in disrepair, they may move ahead to order repairs or similar without concern for the budget. Upkeep of Paperwork- the property manager needs to thorough paperwork regarding the home. This need to include all income and expenses; records of all inspections, signed agreements, repair requests, any problems noted, records of maintenance done, amount paid for fix up, maintenance expenses, documentation of rent paid and insurance costs.
TAKE CARE OF CAREFUL INSPECTIONS
You want to be sure to take before and after photos and written documentation, so you can quickly take care of tenant deposits and differences of opinion when they move out. A good number of renters will act shocked when you remove charges from their deposit, so having careful documentation will help reduce the amount of disagreeing they do with you.
Most residential property managers are responsible for marketing the property to fill vacancies. Rental agentsare aware of to advertise and what to include in their ads. Residential property managers also have insight into what interests renters, so they may suggest making minor improvements to help makeover the house.
At times when there is a problem required, the rental manager must attend to it themselves or will hire someone to handle the issue it. They many times have a large black book full of trustworthy electricians,carpenters,plumbers and other vendors.
OVERSEE MAINTENANCE AND REPAIRS
Rental agents are typically in charge of the physical oversight of the home, including scheduled maintenance and unexpected repairs.
Provide accounting services Make payment for the sake of the owner (Mortgage, insurance, HOA dues, etc.) Detailed documentation of expenditures via invoices and receipts Manage all past records (paid invoices, leases, inspection reports, warranties, etc.) Provide annual reports, coordinated for tax purposes as well as needed tax documents including a 1099 paperwork Educate owner on appropriate tax write offs related to their rental home. Prepare formatted monthly cash-flow statements which offer a detailed breakdown of income and itemized expenses
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.
Nearly all they are paid to oversee repair situations, noise complaints and possess the needed relationships to deal with difficult situations.
HANDLING MOVE OUTS
When a tenant leaves, the property manager is in charge of inspecting the home, checking for damages and deciding what portion of the damage reserves mayl be returned to the renter. After move out, the manager is in charge of cleaning the house, fixing any issues and locating a replacement renter.
PROPERTY MANAGERS HELP YOU DECIDE MARKET RENTAL RATE
Leasing agents are responsible for establishing the beginning rent level, and collecting rent from renters. Good rental managers know how to set the right rent level todirect renters to your home. They hopefully have a specific understanding of the Richmond area, where the home is located and have reviewed at comparable houses in the general Richmond area.
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.
QUESTION: What is a New Tenant Placement or “Lease up” Charge?
Some rental agencies in the Newtowne West area may charge a new tenants placement charge or have a extra commission incentive for getting a tenant into a lease. Acharge of 50 to 100 % of the first month’s rent for any new tenant placed is not atypical. Nevertheless, you shouldn’t typically run into significant multiple up-front charges.
Normally a placement fee is not due until the renter is secured, meaning you don’t have to pay out of pocket to pay this.
Question: How much should I price shop the fees my property management company charges me?
Ultimately, engaging a investment property agent in the Newtowne West area is entering into a partnership. Over the long haul, the fees aren’t as crucial as the interaction between you and the manager and quality of the service your agent provides. A competent firm can take control of the management of the unit, for example, and turn out providing you much more rental value and price appreciation than you thought possible. That said, you need to be willing to get them the resources to do it.
QUESTION: How Would a Property Management Company Help With Tenant Screening and Selection?
Vetting Tenants- A residential property agent will review the prospective renter applications to discover the tenant that is the best fit for your home. They have a proven vetting process, which includes running credit checks and criminal background checks, which can reduce your likelihood of being accused of discrimination. Experienced leasing managers have seen hundreds, even thousands, of tenants, so they have a good idea of how to choose the best renters; those who will pay their bills on time, have a longer tenancy and create less headaches. Perform a background check to confirm identity, salary, credit history, rental history, etc. Grade renter according to pre-decided renter standards Inform tenants who may have been declined
Question: Should I try to save money by going FRBO? Or finding the least expensive leasing agent possible?
Answer: With the best property agents, paying a little bit more can be a smart investment, because it helps enhance the value of your property, and they help retain quality tenants; studies have shown hiring a unit agentcan cut your vacancy rate by 50%. Conversely, going cheap with a residential property management firm can end up being very expensive.
QUESTION: How May a Lease Management Firm help an owner with the Tenant Move In Process?
- Prep leasing contract
- Affirm 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 tenant and have tenants sign a report verifying the condition of the property prior to move-in.
- Secure initial month’s rent and security deposit
What can a RichmondProperty Management Firm Do to Market Your Home?
- Get property ready for rental
- Clean home and maximize interior attractiveness
- Take care of landscaping to maximize curb appearance
- Develop marketing materials tailored to the house and marketing channel.
- A few of the channels commonly utilized are:
- For pay and no charge rental listing websites
- Print magazines
- Installing a lock box
- Multiple Listing Service listings
- Property fliers
- Partner with other professionals and leasing agents to locate a renter
- Provide a 24-hour phone where prospective renters can listen to detailed information about the home
- Take calls from prospects for questions and appointments
- Meet potential renters for showings during the week and weekend.
- Provide prospective renters with tenant applications that are legally compliant with government regulations
- Collect applications with application fee
QUESTION: Do Property Management Firms Assist With Move Out?
Yes, a Rental management Agency can Help With Move outs. Activities might include:
- Inspect rental home. and complete a document on the property's condition when the client moves out
- Give renter with a photocopy as well as estimated deductions
- Return the remainder of the security reserves to the renter
- Mail remaining portion of the owner’s portion of the renter deposit to the homeowner or hold in owner reserves for repairs.
- Clean house and handle required repairs or upgrades
- Re-do all locks
- Re-List house back on the market for rent
QUESTION: What Inspection Services Do Rental Agents Provide?
- Handle periodic inspections (Inside and outside) on a predetermined schedule looking for upgrade needs, safety issues, code problems, lease violations, etc.
- Prepare owner periodic reports on the condition of the property
Question What Services Are Included in A Typical Property Management Contract?
Be sure you establish exactly what maintenance services are included 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 example, changing out lighting switch plates and fixing faucet handles) while others are billed individually (such as replacing broken windows and installing new sinks).
Regardless, everything should be clearly expressed in your contract. Keep in mind that these fees could require you toincrease your rents, which might make finding – and keeping – tenants harder. Keep in mind, house management charges can be negotiated. Depending on what you’re willing to pay, you may be able to get a lower price by sacrificing certain services and handling them on your own.
QUESTION: What types of Maintenance can property management companies help with?
Some property management companies in the Newtowne West area have in house maintenance crews, full-time. The majority of subcontract this work out to miscellaneous subcontractors. Some residential property management charge a fixed fee to supervise any work with outside vendors. Many will upcharge the subcontrcontractor’s fee. Be sure you understand how it operates with your house management company!
Question: What are Miscellaneous fees made by property management companies?
At times, you may see some fees passed on to you – especially where the manager is charging a low monthly %. Illustrations could include an marketing fee in connection with finding a tenant, a yearly inspection fee, and some sort of reserve, so that the management company has some cash on hand to take care of unexpected, but urgent, costs.
You may want to look into how you split up pet deposits collected and bad check fees (basically whoever gets hit with the greatest amount of 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 Take Care of Evictions in the Newtowne West area?
- Preparing relevant documentation to begin and process an eviction lawsuit
- Representing owner in court
- Coordinating with police authorities to remove renter and tenant’s belongings from house
Question: What are typical procedures regarding Late Payment Charges?
At times tenants 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: How Might a Property Management Firm assist an owner with the Tenant Move In Process?
- Draw up leasing contract
- 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 tenant and have renters sign a report verifying the condition of the property prior to move-in.
- Collect initial month’s rent and security deposit
Question: What do Inspections of my home cost?
Some leasing agencies will charge for inspections, others will give you one or more without charge per year. This is a visual inspection of your house to see how the tenant is treating it. Charges can range from $25-200 for each inspection.