Regardless if 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 companies do exist of course. Property rental agencies serving the North Side area offer a long list of services to help you renting your home. It’s an overwhelming list of jobs that a great Rental Agency will handle; in fact (if you’re a great follow through kind of people person, you may even want to investigate 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 Rental Agency RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Find a tenant
- Deal with legal paperwork
- Keep you out of jail by helping you obey Fair Housing laws
- Show your property to interested tenants in order to rent your house
- Deal with move in and move out
- Collect monies and get you paid!
- Handle follow up if payments are not on time
- Assist with evictions
- Respond to tenant questions
- And so much on top of that.
It’s everything but the kitchen sink! Areas to think about if you are wondering if you should rent your home on your own or hire a Rental Agency near the North Side area.
WILL YOU HAVE THE AVAILABILITY TO MANAGE YOUR INVESTMENT PROPERTY near the North Side area?
If you work at a full-time job while you are investing in a rental property and simply cannot give your investment home the attention it requires, the profitability of your investment might depend on paying for a full time property management company in Richmond
Also, realize that time is money and managing a rental home takes energy. If you feel like the real life obligations of residential property management are stepping on on time that could be more enjoyably spent making more money at your full time job, or hunting down other property to buy, employing an outside property management company may be the smartest move for you.
HOW MANY RENTAL UNITS IN North Side DO YOU HAVE TO MANAGE?
As the number of units you own multiplies, so does your workload. The more tenants you have, the more repair issues, tenant complaints, and vacancies you will have to handle. In addition, if your units are dispersed across multiple cities, your energies committed will go up as you will have to take care of the cash flow of each particular property as well as drive from property to property to deal with issues.
HOW HIGH IS YOUR VACANCY RATE?
Great Rental Agency are skilled at locating and reviewing renters rapidly and will have a network of reliable, affordable Richmondrepairmen to deal with emergencies. Most professional property managers will also understand landlord-tenant law, thereby reducing the risk of legal issues.
IS THERE THE MONEY TO HIRE A Rental Agency ?
You’ve discovered that top notchproperty managerswho provide service to the North Side area in Richmond aren’t without cost.
Rental agencies will charge a fee, ballpark, between 5% and 10% of the monthly gross income for the house. The normal fee for a single family investment is about 8-10%. The fee for a apartment of 10 units or more is usually between 3% and 7%.
If your home is not occupied, it’s not unusual to pay a lease up fee to find and place a new renter in your rental home. Depending on the property management company this can range from 50%-100% of a single month’s rent.
Something to consider: Having expert professional input on market rents and having a pro deal with locating a tenant can mean you get higher rents, which means a great rental agent might end up covering all or part of their fee because of increased rents.
HOW CLOSE IS YOUR INVESTMENT PROPERTY?
The more distance between you and your rental home,the harder it is to look after. If your primary residence is in Georgia and your investment property is in the North Side area, it will be a lot of work for you to find renters,to handle tenant complaints,to quickly respond to issues, to address maintenance concerns, and even to guarantee payment is collected by due date.
The amount of time it takes you to go back and forth the property and the expense of gas will also mount. In situations such as these, hiring a professionalRichmond property management agency? can make good sense and actually save you money.
HOW CAN A RENTAL MANAGEMENT COMPANY HELP ME MANAGE MY HOUSE IN North Side?
Property managers who service the North Side area may do a number of things for you as the home investor, which could include the following:
TAKE CARE OF CAREFUL INSPECTIONS
You want to make sure to have before and after photos and written documentation, so you can accurately handle damage deposits and disputes when they move out. A lot of tenants will act shocked when you subtract charges from their deposit, so having accurate documentation will help reduce the amount of fighting they do with you.
KNOWLEDGE OF LANDLORD-TENANT LAW AND FEDERAL REAL ESTATE LAW
A trained property manager may have a complete knowledge of state and federal laws relating to the best methods to: Screening the applicants. Escrow damage deposits End a rental agreement Oversee evicting a renter Obey with house safety protocols Advise in the occasion the event of a legal action or litigation Send owner to a qualified lawyer when necessary Be knowledgeable about and follow the latest local, state and federal legislation that are applicable to renting and maintaining investment properties.
Nearly all they are paid to oversee repair requests, noise issues and possess the needed relationships to take care of emergency situations.
MANAGE MAINTENANCE AND MINOR UPGRADES
Property managers are usually in charge of the physical oversight of the home, including consistent maintenance and unexpected repairs.
This is where a leasing agent earns their money! Residential property management agencies make sure you get your money by collecting rent every month on time and strictly enforcing late fees.
Provide accounting services Handle payments for the owner (Mortgage, insurance, homeowner association dues, etc.) Specific records of expenditures via invoices and receipts Manage all historical paperwork (paid invoices, agreements, inspection documentation, warranties, etc.) Provide yearly reporting, structured for tax needs as well as required tax paperwork including a 1099 form Counsel owner on appropriate tax deductions related to their rental property. Provide simple monthly cash-flow statements which provide a detailed breakdown of income and itemized expenses
DEALING WITH CONTRACTS
Many managers are responsible for determining the duration of the agreement and making sure it has all the required provisions to protect the owner. This includes deciding the total of damage reserves required.
TAKES CARE OF HANDLING TAXES
The rental manager may assist the property owner with understanding on how to complete taxes for the property. The leasing agent might additionally file taxes for the house
OVERSEEING MOVE OUTS
When a tenant ends his tenancy, the manager is in charge of inspecting the home, looking for problems and deciding what portion of the damage reserves mightl be refunded to the tenant. After move out, the manager is responsible for cleaning the unit, fixing any areas of concern and finding a replacement renter.
Professional property managers are frequently engaged to overlook vacant houses to make sure there has been no vandalism and to oversee standard maintenance. They also make certain vendors and other outsourced workers are completing their work in a reliable manner.
OVERSEE MAINTENANCE ITEMS AND REPAIRS
Leasing agents are customarily in charge of the physical care of the property, including regular maintenance and emergency repairs.
Other Employees- if there aresome employees in the unit, such as a concierge\desk manager or security guard, the rental manager is in charge of being sure they are on their toes. The property manager can determine their compensation and even terminate them.
At times when there are repairs required, the rental agent may handle it themselves or will contract with an outside firm to handle the problem it. They many times have a screened team of trustworthy electricians,carpenters,plumbers and other contractors.
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 are Marketing Fees?
Some leasing agencies charge a marketing fee. This is an upfront charge to market your vacant home. This charge is typically $200-450. Many agencies don’t charge this fee, so shop around!
Empty Home charge Some agencies charge One month’s payment up front. You could run into this charge if you are trying to engage the leasing agency while the house is vacant. This gives them the cash to pay a real estate agent a commission for finding a tenant in the property, or to pay the costs of advertising, repeatedly showing the property to prospective renters, as well as the cost of preparing lease paperwork (which can take a long time).
What can a RichmondRental management Company Do to Market Your House?
- Get house ready for renting out
- Clean home and maximize interior appeal
- Manage yard to emphasize curb appeal
- Create marketing materials customized for the house and advertising channel.
- Some of the channels commonly used are:
- Paid and no fee rental listing websites
- Print publications
- Install a lock box
- MLS listings
- Partner with other professionals and property management agents to find a tenant
- Provide a 24/7 phone where interested renters can hear to specific information about the property
- FieldAnswer calls from prospects for questions and viewings
- Meet potential tenants for showings during the week and weekend.
- Provide potential renters with tenant applications that are legally compliant with government regulations
- Gather applications with application payment
Question: How much do property managers cost?
Answer: As you might guess, the response is “it depends.” Residential property management companies vary widely, and a good deal of the answer depends on what they do for you.. Just what do you want a rental agent to do for you?
Usual % of Rent Agreement. As a ballpark figure, expect to be charged a normal Property management company between 8 – 12% of the monthly rent of the house. This is referred to as management fee, or monthly management payment. Typically the higher you charge for rent, the lower the percentage is. For example if your rent is $2,100 per month for your property, you will normally pay a lower percentage fee than someone else whose house rents for $1000 per month.
You do not pay this percentage charge until payment is received. Look carefully at your contract regarding whether the management fee is based on ‘rent collected’ or ‘rent due’. If the fee is based on rent collected, it means the Rental management agency won’t get paid if you don’t get paid. On the other hand, if it’s determined by ‘rent due’, then you owe whether or not rent is collected from the renter normally.
Fixed Fee Agreements
Some companies may charge, say,$75- $150 per month fixed rate. There is nothing required bylaw in this; it’s determined by the company owner.
You wouldn’t owe money on a flat rate agreement typically until rent is collected.
What can a RichmondHome Management Company Do to Market Your Home?
- Get property ready for rental
- Clean property and maximize interior attractiveness
- Manicure landscaping to optimize curb appeal
- Prepare marketing materials specifically created for the property and marketing platform.
- Some of the mediums often used are:
- Paid and no fee rental listing websites
- Print magazines
- Install a lock box
- MLS listings
- Property fliers
- Work with other professionals and property management agents to secure a renter
- Provide a 24/7 hot-line where prospective tenant can listen to specific information about the house
- Take phone calls from prospects for questions and appointments
- Greet interested renters for appointments throughout the week and weekend.
- Provide interested renters with tenant applications that are legally in line with fair housing laws
- Collect applications with application fee
QUESTION: How Can a Property Management Firm Assist With Renter Vetting and Selection?
Screening Applicants- A leasing agent will screen the potential renter applications to discover the tenant that is the ideal fit for your house. They have a consistent screening process, which includes running credit checks and criminal background checks, which can decrease your possibility of being charged with bias. Experienced leasing managers have seen hundreds, even thousands, of renters, so they have a good idea of how to select the correct renters; tenants who will pay their rent on time, have a longer tenancy and create fewer problems. Perform a background check to authenticate identity, wages, credit history, rental history, etc. Grade tenant in relation to pre-defined renter criteria Inform applicants who may have been rejected
Question What Services Are Included in A Typical Property Management Contract?
Make certain you establish exactly what maintenance services are included with your fees. It could be that when something needs fixing, some labor costs are included 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 specifically stated in your contract. Keep in mind that these charges could require you toraise your rental rate, which might make finding – and keeping – tenants harder. And remember, home management charges can be negotiated. Depending on what you’re willing to pay, you may be able to get a lower price by giving up particular services and dealing with them on your own.
Question: How much should I price shop the fees my property management company charges me?
Ultimately, hiring a house agent in the North Side area is creating into a partnership. Over the long haul, the charges aren’t as crucial as the communication between you and the manager and quality of the service your manager delivers. A good company can take control of the management of the home, for example, and turn out getting you much more rental value and price appreciation than you thought possible. That said, you need to be prepared to get them the resources to accomplish.
Question: What are typical procedures regarding Late Payment Fees?
At times tenants pay after the due date. Read your contract to see if those late payment charges go to you as the owner, to the residential property management, or are shared somehow.
Question: What do do rental agents cost?
Answer: As you might guess, the answer is “it depends.” Property management firms vary widely, 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 Percentage of Rent Contract. As a baseline, expect to pay a usual Leasing agency between 7 – 10% of the monthly rent of the unit. This is referred to as management fee, or monthly management fee. Typically the greater your rent is, the lower the percentage fee is. To illustrate if your rent is $2,000 each month for your rent house, you will usually pay a lower percentage fee than another person whose unit rents for $800 each month.
You do not pay this percentage fee until rent is collected. Look carefully at your contract regarding whether the management fee is based on ‘rent collected’ or ‘rent due’. If the charge is based on 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 usually.
Fixed Payment Contract
Some firms may charge, say,$75- $150 per month flat rate. There is nothing dictated bylaw in this; it’s decided by the company owner.
You would not owe money on a flat rate agreement usually until rent is collected.
QUESTION: What are Advertising Fees?
Some leasing agencies charge a advertising fee. This is an initial charge to market your vacant investment property. This charge is typically $250-400. Many agencies don’t charge this fee, so shop around!
Vacant House fee Some companies charge One month’s payment up front. You might run into this charge if you’re attempting to engage the rental agency while the unit is vacant. This gives them the money to pay a real estate agent a commission for placing a tenant in the home, or to pay the costs of marketing, repeatedly showing the house to potential renters, as well as the expense of preparing lease documents (which can take hours).
QUESTION: What are Advertising Fees?
Some residential property management charge a advertising fee. This is an upfront charge to advertise your empty property. This fee is usually $250-400. Most companies don’t charge this fee, so shop around!
Vacant House charge Some companies charge 1 month’s rent up front. You could run into this fee if you’re trying to engage the rental agency while the house is empty. This gives them the cash to pay a realtor a commission for placing a tenant in the home, or to pay the costs of marketing, repeatedly showing the property to prospective tenants, as well as the cost of preparing lease documents (which can take hours).
QUESTION: What types of Maintenance can rental agencies help with?
Some leasing agencies in the North Side area have in house maintenance crews, full-time. Most refer these jobs out to various vendors. Some leasing agencies charge a fixed fee to manage any work done by contractors. Some will upcharge the subcontrcontractor’s invoice. Make sure you understand how it works with your property management agency!
Question What Services Are Included in A Typical Property Management Contract?
Be sure you determine exactly what maintenance services are a part of with your charges. It may be that when something needs repair, certain labor charges are included with your monthly fixed rate or percentage charge (for illustration, 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 specifically stated in your agreement. Consider that these charges may require you toraise your rental rate, which might make finding – and keeping – tenants harder. And remember, investment property management charges can be negotiated. Depending on how much you’re willing to pay, you might be able to get a better price by giving up particular services and handling them on your own.
QUESTION: How Would a Residential Property Management Agency Assist With Tenant Vetting and Choosing?
Screening Applicants- A rental agent will sort through the potential renter applications to find the tenant that is the best fit for your house. They have a proven screening process, which includes running credit checks and criminal background checks, which can decrease your likelihood of being accused of breaking the law. Experienced property managers have seen many tenants, so they have a good concept of how to choose the ideal tenants; those who will pay their obligations on time, have a longer tenancy and create much fewer problems. Perform a background check to authenticate identity, wages, credit history, rental history, etc. Evaluate applicant per pre-defined renter criteria Inform applicants who were declined