No matter if you call them a Rental Agency, home management firms, or rental property management agencies….it all means the same thing. The emphasis is usually on residential properties (but commercial property management companies are out there of course. Property rental agencies serving the The Fan District area offer a variety of services to help you renting your home. It’s an overwhelming list of jobs that a experienced Rental Agency will oversee; 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 a quick list of what property managers do if they are asked “will you help me rent my house?”
Letting Agency RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Find a tenant
- Handle contracts
- Keep you legal by helping you obey Fair Housing laws
- Open your home to interested renters in order to rent your house
- Oversee move in and move out
- Collect money and get you paid!
- Handle follow up if payments are not on time
- Assist with evictions
- Respond to renter questions
- And a lot more.
It’s everything from A to Z! Factors to think about if you are asking if you should rent your home on your own or hire a Rental Agency near the The Fan District area.
CAN YOU AFFORD TO HIRE A Rental Agency ?
You’ve figured out that greatproperty managerswho provide services to the The Fan District area in Richmond aren’t free.
Rental management companies will charge a fee, roughly, between 5% and 10% of the monthly gross income for the house. The usual fee for a single family rental property is estimated at 8-10%. The fee for a property of 10 units on up is usually between 3% and 7%.
If your investment property is empty, it’s normal to pay a lease up fee to find and place a new renter in your rental property. Depending on the property management company this can range from 50%-100% of a month’s rent.
One thing to think about: Having experienced property manager input on market rents and having a professional agent handle locating a tenant could mean you can get higher rents, which means a good property manager may end up covering all or part of their cost because of higher rents.
IS YOUR VACANCY RATE HIGH?
Excellent Rental Agency are skilled at locating and reviewing renters rapidly and will have a network of capable, cost effective Richmondrepairmen to deal with emergencies. Most certified leasing agents will also understand landlord-tenant law, thereby reducing the risk of legal problems.
DO YOU HAVE THE MINDSET TO WORK WITH RENTERS?
Is the pressure of messing with evictions, tenant complaints and repair concerns stressful for you? Property managers are skilled in dealing with landlord-tenant conflict. Rental Agency have an understanding of Richmond landlord-tenant law and can act as the middle-man for problems. Additionally, if the renter is aware they are dealing with a third party, they could behave more professionally as well.
You do not have to hire a property management firm because you are new to property investing in The Fan District, have a lot of units or are having trouble filling vacancies. Many people manage their own homes. Personal experience can often be the best instructor and everyone has to start learning somewhere. If you teach yourself about residential real estate, get the input of others and have a clear desire to manage your home with excellence, its very likely, you will come out on top.
DO YOU HAVE A HIGH VACANCY RATE?
Great Rental Agency are capable finding and screening renters rapidly and will have a network of reliable, affordable Richmondrepairmen to deal with difficulties. Most experienced rental managers will also understand landlord-tenant law, thereby reducing the risk of a lawsuit.
DO YOU HAVE THE TEMPERAMENT TO WORK WITH RENTERS?
Is the stress of messing with evictions, renter complaints and repair concerns stressful for you? Rental agents are skilled in resolving landlord-tenant difficulties. Rental Agency have an understanding of Richmond landlord-tenant law and can act as the middle-man for problems. In addition, if the renter knows they are dealing with a third party, they could behave more civilly as well.
You do not have to employ a property management company because you are new to real estate investing in The Fan District, have a lot of rental units or are having trouble filling empty units. Many people manage their own homes. Personal experience can often be the greatest teacher and everyone has to start learning somewhere. If you teach yourself about residential property investing, get the input of others and have a strong desire to manage your home with excellence, chances are good, you will come out on top.
HOW CAN A PROPERTY MANAGER HELP ME MANAGE MY HOME IN The Fan District?
Residential property managers who service the The Fan District area will do a lot of things for you as the homeowner, which may include the following:
CONTENDING WITH EVICTIONS
When a tenant does not pay on time or otherwise breaks the terms of the contract, the leasing agent realizes understands the best approach to give notice and move ahead with an eviction.
Nearly all managers are paid to address repair requests, noise disturbances and have the necessary contacts to handle emergency situations.
When a renter does not pay rent or otherwise breaches the terms of the agreement, the rental agent realizes is experienced with the proper approach to legally respond and move ahead with an eviction.
Most leasing agents are responsible for promoting the house to fill vacancies. leasing agentsknow where to promote and what to include in their advertisements. Rental agents also understand what attracts renters, so they may suggest making cosmetic improvements to help improve the home.
SUGGEST AND SUPERVISE VENDORS
Residential property management professionals should be capable to offer recommendations on maintenance and cosmetic work that maximize profitability while providing excellent ROI.
Deliver financial management services Handle payments on behalf of the owner (Mortgage, insurance, homeowner association dues, etc.) Specific records of expenses via invoices and receipts Maintain all past records (paid invoices, leases, inspection documentation, warranties, etc.) Oversee yearly reporting, organized for tax needs as well as mandatory tax documents including a 1099 forms Counsel owner on legal tax deductions related to their rental property. Provide formatted monthly cash-flow documents which specify a detailed accounting of income and detailed expenses
IN CHARGE OF MANAGING THE BUDGET/MAINTAINING DOCUMENTATION
In most situations leasing agents are responsible for managing the budget for the building and maintaining all pertinent records. Overseeing Budget- the leasing agentmust operate within the established budget guidelines for the building. In particular emergency situations when the occupants or property are in danger, they may take action to order fixup or likewise without additional approvals. Maintenance of Records- the rental agent needs to thorough records related to the property. This might include all income and expenses; records of all inspections, fully executed agreements, maintenance requests, any problems noted, notation of maintenance done, charges for fix up, maintenance charges, documentation of rent paid and insurance charges.
Professional rental agents are many times employed to observe vacant homes to ensure there has been no vandalism and to perform routine maintenance. They also make sure vendors and other outsourced workers are finishing their work in a timely manner.
COLLECTING RENTAL PAYMENTS:
This is where a leasing agent earns their keep. Residential property management companies make sure you get your money by collecting rent each month on time and strictly enforcing late penalties.
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. Managing Budget- the property managermust operate within the established budget guidelines for the unit. In particular emergency situations when the occupants or home are in need of upgrade, they may use their discretion to order fixup or likewise without additional approvals. Upkeep of Documents- the rental agent should keep thorough documentation regarding the home. This might include all income and expenses; notations of all inspections, signed leases, upgrade requests, any complaints, records of maintenance done, costs of fix up, maintenance expenses, record of rent collected and insurance charges.
RESPONSIBLE FOR MANAGING THE BUDGET/MAINTAINING DOCUMENTATION
In most situations property managers are responsible for managing the budget for the building and maintaining all pertinent records. Managing Budget- the property managermust operate within the established budget guidelines for the building. In particular emergency situations when the tenants or house are in need of upgrade, they may use their discretion to order repairs or similar without additional approvals. Maintenance of Documents- the rental agent is required to complete documentation related to the home. This might include all income and expenses; lists of all inspections, completed contracts, upgrade requests, any problems noted, documentation of maintenance done, costs of repairs, maintenance charges, record of rent collection and insurance fees.
One of the main responsibilities of the property managers is to manage renters. They are engaged in many capacities, from identifying the renters and addressing complaints to initiating evictions.
Other Employees- if there are other employees in the property, such as a concierge\desk manager or security personnel, the rental agent is responsible for making sure they are doing their job. The leasing agent can set their wage rates and possibly terminate them.
PROPERTY MANAGEMENT COMPANIES HELP YOU DETERMINE MARKET RENTAL RATE
Rental managers are responsible for setting the initial rent level, and collecting rent from renters. Great rental managers know how to set the correct rent level todirect renters to your rental property. They hopefully have a specific understanding of the Richmond area, where the home is located and have reviewed at comparable properties in the general Richmond market.
QUESTION: How May a Property Management Company help an owner with the Tenant Move In Procedure?
- Prepare leasing documents
- Affirm 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 tenants sign a report verifying the condition of the property prior to move-in.
- Collect first month’s rent and security deposit
Question: What are Other fees made by property management companies?
In some cases, you might see some fees passed on to you – especially when the manager is charging a small monthly percentage. Illustrations could include an advertising charge in connection with placing a tenant, a yearly inspection fee, and some sort of reserve, so that the management agency has some money on hand to take care of unexpected, but urgent, expenses.
You might want to look into how you divide pet deposits collected and bad check fees (basically whoever gets stuck with the greatest amount of bank costs should get the bulk of this one!) Also, notice who gets to hang onto the income from vending machines and coin-operated washers and dryers, if any.
Question: What are typical procedures regarding Late Payment Charges?
Sometimes renters pay date. Look at your contract 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 Might a Rental management Company Help With Tenant Screening and Selection?
Vetting Tenants- A rental agent will review the prospective renter applications to discover the tenant that is the best fit for your house. They have a reliable vetting process, including running credit checks and criminal background checks, which can decrease your chances of being accused of discrimination. Experienced property managers have seen many renters, so they have a better concept of how to identify the correct renters; those who will pay their rent on time, have a longer tenancy and create much fewer headaches. Perform a background check to confirm identity, salary, credit history, rental history, etc. Grade tenant in relation to pre-defined applicant criteria Inform applicants who were declined
Question: What do Inspections of my home cost?
Some leasing agencies will bill for inspections, others will give you an inspection or more free per year. This is a visual inspection of your property to see how the tenant is treating it. Charges can range from $25-200 for each inspection.
QUESTION: What are Advertising Fees?
Some property management companies charge a marketing fee. This is an upfront fee to advertise your vacant investment property. This charge is normally $$150-450. Many companies don’t charge this fee, so shop around!
Vacant House charge Some agencies charge 1 month’s payment up front. You could run into this fee if you’re trying to hire the leasing agency while the investment property is vacant. This gives them the money to pay a realtor a commission for finding a tenant in the home, or to pay the costs of advertising, repeatedly showing the property to potential renters, as well as the expense of preparing lease documents (which can take a long time).
QUESTION: What are Marketing Charges?
Some leasing agencies charge a advertising fee. This is an upfront fee to advertise your vacant house. This charge is typically $$150-450. Most firms don’t charge this charge, so shop around!
Vacant House fee Some firms charge 1 month’s rent up front. You may run into this charge if you are attempting to hire the leasing agency while the property is empty. This gives them the money to pay a realtor a commission for finding a renter in the property, or to pay the costs of advertising, repeatedly showing the investment property to potential renters, as well as the cost of preparing lease documents (which can take a long time).
Question: How much should I price shop the fees my property management company charges me?
Ultimately, hiring a home manager in the The Fan District area is creating into a partnership. In the long run, the charges aren’t as critical as the interaction between you and the agent and quality of the service your agent provides. A great agency can take charge of the oversight of the home, for example, and wind up getting you a lot rental value and price appreciation than you thought possible. However, you need to be willing to provide them the resources to accomplish.
QUESTION: How Can a Residential Property Management Agency Assist With Tenant Screening and Selection?
Screening Applicants- A leasing agent will screen the potential tenant applications to discover the tenant that is the ideal fit for your home. They have a proven vetting process, which includes running credit checks and criminal background checks, which can decrease your possibility of being accused of bias. Professional leasing agents have seen many tenants, so they have a better concept of how to select the correct renters; those who will pay their bills on time, have a longer tenancy and create less problems. Perform a background check to confirm identity, salary, credit history, rental history, etc. Evaluate tenant in relation to pre-decided tenant criteria Inform tenants who may have been declined
QUESTION: What are Advertising Fees?
Some residential property management charge a advertising fee. This is an upfront fee to advertise your empty home. This fee is normally $250-400. A majority of firms don’t charge this charge, so shop around!
Vacant House charge Some agencies charge 1 month’s payment up front. You might run into this fee if you are trying to engage the residential property management firm while the house is empty. This gives them the money to pay a real estate agent a commission for placing a tenant in the unit, or to pay the costs of marketing, repeatedly showing the house to potential tenants, as well as the cost of preparing lease documents (which can take a long time).
QUESTION: What is a New Renter Placement or “Lease up” Charge?
Some residential property management companies in the The Fan District area could charge a new tenants placement charge or have a bonus structure for getting a renter into a lease. Acharge of 50 to 100 % of the first month’s rent for any new tenant placed is not abnormal. However, you shouldn’t typically run into high multiple up-front charges.
Generally a lease up fee is not paid until the renter is secured, meaning you don’t need to pay out of pocket to pay this.
Question: What do do property managers cost?
Answer: As you may guess, the response is “it depends.” Leasing agencies vary a lot, and much of the response is dependent on what they do for you.. Exactly what do you want a rental agent to do for you?
Normal % of Monthly Rent Contract. As a starting point, expect to be charged a normal Property management company between 6 – 12% of the monthly rent of the unit. This is referred to as management charge, or monthly management charge. Generally the greater your rent is, the lower the percentage fee is. For example if your rent is $2,300 per month for your rent house, you will usually pay a lower percentage fee than another person whose property rents for $900 per month.
You do not pay this percentage fee until rent is received. Look specifically at your contract regarding whether the management charge is based on ‘rent collected’ or ‘rent due’. If the fee is based on rent received, it means the Residential property management company doesn’t get paid if you don’t get paid. On the other hand, if it’s based on ‘rent due’, then you pay whether or not rent is received from the tenant typically.
Fixed Fee Agreements
Some companies 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 flat rate agreement usually until rent is received.
Question: What do Inspections of my home cost?
Some rental agencies will bill for inspections, others will give you one or more free annually. This is a visual inspection of your house to see how the tenant is keeping it up. Charges can range from $100-200 per inspection.
What can a RichmondResidential Property Management Company Do to Market Your Investment Property?
- Get house ready for renting out
- Clean home and maximize interior appeal
- Take care of landscaping to increase street appearance
- Prepare ads specifically created for the home and marketing medium.
- A sample of the platforms normally utilized are:
- Paid and no fee rental listing websites
- Print publications
- Install a lock box
- Multiple Listing Service listings
- Partner with other agents and leasing agents to secure a tenant
- Provide a 24/7 hot-line where interested tenant can listen to specific information about the home
- FieldAnswer calls from prospects for questions and appointments
- Greet prospective renters for showings throughout the week and weekend.
- Provide interested renters with rental applications that are legally compliant with government regulations
- Gather applications with application payment