Regardless if you describe them as a Property Management Company, home management firms, or rental property management agencies….it all means the same thing. The focus is usually on residential properties (but commercial property management companies are out there of course. Property rental agencies serving the 27204 area offer a multiplicity of services to help you renting your home. It’s an overwhelming list of tasks that a great Property Management Company will deal with; in fact (if you’re a good follow through kind of people person, you may even want to look at 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 Management Companies RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Locate a tenant
- Deal with legal contracts
- Keep you legal by helping you comply with government housing laws
- Open your house to prospective tenants in order to rent your house
- Oversee move in and move out
- Collect money and get you paid!
- Handle collections if payments are late
- Assist with evictions
- Answer tenant questions
- And a lot more.
It’s everything from A to Z! Items to contemplate if you are wondering if you should rent your house on your own or hire a Property Management Company near the 27204 area.
IS THERE THE MONEY TO PAY A Property Management Company ?
You’ve discovered that goodrental agentswho provide service to the 27204 area in Greensboro aren’t free.
Rental firms will charge a fee, ballpark, between 4% and 9% of the monthly gross income for the house. The usual fee for a single family rental property is closer to 8-10%. The cost for a property of 10 units on up is typically between 4% and 7%.
If your investment property is empty, it’s not unusual to pay a lease up fee to find and place a new tenant in your rental property. Depending on the property management company this can fluctuate from 50%-100% of a single month’s rent.
Something to keep in mind: Having expert professional input on market rents and having a professional agent handle locating a tenant can mean you might get higher rents, which means a great property manager might end up covering all or part of their cost because of increased rents.
DO YOU HAVE A HIGH VACANCY RATE?
Excellent Property Management Company are capable finding and reviewing renters rapidly and will have a network of reliable, cost effective Greensboromaintenance companies to deal with difficulties. Most experienced leasing agents will also understand landlord-tenant law, thereby reducing the risk of legal problems.
CAN YOU AFFORD TO HIRE A Property Management Company ?
You’ve discovered that top notchrental agentswho provide services to the 27204 area in Greensboro aren’t without cost.
Property management agencies will charge a fee, on average, between 4% and 9% of the monthly gross income for the home. The usual fee for a single family rental property is estimated at 8-10%. The fee for a apartment of 10 units or more is on average between 3% and 8%.
If your investment property is not occupied, it’s normal to pay a lease up 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 a single month’s rent.
Something to think about: Having expert professional input on market rents and having a certified agent handle locating a renter can mean you might get higher rents, which means a professional property manager likely will end up covering all or part of their charge because of increased rents.
WILL YOU HAVE THE TIME TO CARE FOR YOUR RENTAL HOME near the 27204 area?
If you work at a full-time job while you are dealing with a rental home and simply cannot give your your rental property the time it requires, the success of your investment may depend on paying for a full time property management company in Greensboro
In addition, realize that time is definitely money and taking care of a rental home takes effort. If you feel like the real life duties of residential property management are impinging on time that could be more profitably spent making more money at your day job, or looking for other property to buy, paying for an outside property management agency may be the best move for you.
HOW CLOSE IS YOUR INVESTMENT PROPERTY?
The more distance between you and your property,the more difficult it is to look after. If your primary residence is in Florida and your investment property is in the 27204 area, it will be more difficult for you to find tenants,to handle tenant complaints,to quickly respond to problems, to take care of maintenance issues, and even to make sure payment is collected by due date.
The total time it takes you to travel to the property and the expense of getting there will also start to bite. In situations like these, hiring a goodGreensboro property management agency? can make some sense and will likely save you some cash.
HOW WILL A PROPERTY MANAGER HELP ME MANAGE MY HOUSE NEAR 27204?
Property management companies who service the 27204 area will do a lot of things for you as the homeowner, which could include the following areas:
RESPONSIBLE FOR OVERSIGHT OF OTHERS
Other Employees- if there are other employees in the unit, such as a concierge\desk manager or security guard, the leasing agent is responsible for being sure they are paying attention to details. The leasing agent may set their salaries and possibly let them go.
MANAGE MAINTENANCE AND MINOR UPGRADES
Leasing agents are oftentimes responsible for the physical management of the residence, including consistent maintenance and needed repairs.
TAKES CARE OF TAXES
The rental agent will provide the home owner with understanding on how to file taxes for the house. The rental manager can additionally mail in taxes for the house
SUGGEST AND SUPERVISE VENDORS
Home management professionals should be able to recommend vendors to do maintenance and small work that maximize profitability while providing excellent return on investment.
Deliver financial management services Make payment on behalf of the owner (Mortgage, insurance, HOA dues, etc.) Detailed accounting of expenses via invoices and receipts Manage all historical paperwork (paid invoices, paperworks, inspection reports, warranties, etc.) Deliver yearly reports, structured for tax purposes as well as mandatory tax paperwork including a 1099 form Advise owner on appropriate tax write offs related to their rental home. Provide formatted monthly cash-flow reports which specify a detailed accounting of income and specific expenses
DEALING WITH EVICTIONS
When a tenant does not pay as agreed or in some way breaches the terms of the lease, the leasing agent realizes is experienced with the best way to file and proceed ahead with an eviction.
OFFER SOUND REAL ESTATE ADVICE:
Discuss with you the pros and cons\pluses and minuses of different issues such as accepting various animals, allowing smoking etc. A few things are very particular to the Greensboro market, so having a local area expert who knows the 27204 area in particular is important.
KNOWLEDGE OF LANDLORD-TENANT LAW AND FEDERAL REAL ESTATE LAW
A professional rental manager may have a complete understanding of state and federal laws referencing the ideal methods to: Screen potential renters. Escrow damage deposits Terminate a lease Evict a renter Obey with home safety regulations Give input in case of of a legal dispute or litigation Refer owner to an experienced attorney when needed Understand and comply with the latest local, state and federal laws that relate to renting and maintaining rental properties.
Provide accounting services Handle payment on behalf of the owner (Mortgage, insurance, homeowner association dues, etc.) Specific accounting of expenses via invoices and receipts Manage all historical documents (paid invoices, leases, inspection reports, warranties, etc.) Deliver annual reports, organized for tax purposes as well as needed tax paperwork including a 1099 paperwork Advise owner on appropriate tax deductions related to their rental home. Prepare simple monthly cash-flow statements which specify a detailed breakdown of income and specific expenses
RESIDENTIAL PROPERTY MANAGERS HELP YOU DECIDE THE CORRECT RENT LEVELS
Leasing agents are responsible for establishing the initial rent level, and collecting payment from tenants. Great leasing agents know how to set the correct rent level todirect tenants to your home. They hopefully have a specific understanding of the Greensboro area, where the property is located and have examined at comparable homes in the general Greensboro market.
Many managers are responsible for setting the length of the agreement and ensuring it has all the needed clauses to protect the client. This includes deciding the total of security deposit needed.
DEALING WITH MOVE OUTS
If a tenant ends his tenancy, the manager is in charge of inspecting the home, looking for issues and assessing what amount of the security reserves mayl be returned to the tenant. After move out, the rental agent is in charge of cleaning the house, fixing any damages and finding a replacement renter.
Provide financial management services Handle payment for the sake of the owner (Mortgage, insurance, HOA dues, etc.) Specific documentation of expenditures via invoices and receipts Manage all past documents (paid invoices, paperworks, inspection reports, warranties, etc.) Oversee yearly reporting, coordinated for tax needs as well as mandatory tax paperwork including a 1099 forms Advise owner on appropriate tax deductions related to their investment home. Prepare formatted monthly cash-flow statements which specify a detailed breakdown of income and specific expenses
RESPONSIBLE FOR MANAGING THE BUDGET/MAINTAINING DOCUMENTATION
In most situations rental 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 unit. In certain emergency situations when the tenants or house are in need of upgrade, they may take action to order repairs or similar without additional approvals. Maintenance of Records- the rental agent should keep complete paperwork about the the property. This need to include all income and expenses; records of all inspections, completed leases, maintenance requests, any complaints, documentation of maintenance done, costs of repairs, maintenance charges, documentation of rent paid and insurance costs.
Question: How much should I price shop the fees my property management company charges me?
Ultimately, hiring a house agent in the 27204 area is creating into a partnership. Over the long haul, the fees aren’t as critical as the interaction between you and the manager and quality of the service your manager delivers. A great agency can take charge of the maintenance of the home, for example, and wind up getting you much more rental value and price appreciation than you might be possible. That said, you need to be prepared to provide them the resources to accomplish.
QUESTION: What are Advertising Charges?
Some residential property management charge a advertising fee. This is an upfront charge to advertise your vacant house. This fee is typically $250-500. Many agencies 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 hire the residential property management firm while the unit is empty. This gives them the cash to pay a real estate agent a commission for placing a tenant in the house, or to pay the costs of advertising, repeatedly showing the house to prospective renters, as well as the cost of preparing lease documents (which can take hours).
QUESTION: Do Home Management Firms Assist With Move Out?
Yes, a Home Management Firm can Help With Move outs. Actions might include:
- Inspect rental property. and complete a document on the house’s condition when the client moves out
- Provide tenant with a photocopy as well as estimated deductions
- Return the remainder of the damage deposit to the tenant
- Forward any amount of the owner’s share of the tenant deposit to the owner or hold in owner reserves for work to be done.
- Turn over unit and handle needed repairs or upgrades
- Re-key the locks
- Put the house back on the market for rent
QUESTION: What Inspection Services Do Rental Managers Provide?
- Perform systematic inspections (Inside and outside) on a predefined schedule watching out for repair needs, safety hazards, code issues, lease violations, etc.
- Send owner periodic reports on the condition of the property
Question: How much do rental agents charge?
Answer: As you might guess, the answer is “it depends.” Leasing agencies vary quite a bit, and a lot of the response depends on what a company does for you.. Just what do you want a rental manager to do for you?
Typical % of Rent Contract. As a ballpark figure, expect to pay a typical Rental management agency ranging from 6 – 10% of the monthly rental value of the unit. This is called a management charge, or monthly management fee. Generally the higher your rent is, the lower the percentage is. To illustrate if your rent is $2,500 each month for your rental home, you will usually pay a lower percentage fee than someone else whose unit rents for $900 each month.
You do not pay this management charge until rent is received. Look carefully at your agreement regarding whether the management charge is determined by ‘rent collected’ or ‘rent due’. If the charge is based on rent collected, it means the Residential property management company won’t get paid if you don’t get paid. Conversely, if it’s based on ‘rent due’, then you owe whether or not rent is collected from the tenant normally.
Flat Rate Agreements
Some firms may charge, say,$75- $150 each month flat rate. There is nothing required bylaw in this; it’s determined by the property management company owner.
You wouldn’t owe money on a fixed rate contract normally until rent is received.
QUESTION: Do Home Management Companies Assist With Move Out?
Yes, a Property Management Firm can Assist With Move outs. Actions might include:
- Inspect investment home. and fill out a report on the house’s condition when the renter moves out
- Deliver renter with a version as well as noted damages
- Return the balance of the damage deposit to the tenant
- Mail left over amount of the owner’s portion of the tenant deposit to the homeowner or keep in owner reserves for work to be done.
- Clean home and handle required repairs or upgrades
- Re-do the locks
- Put the home back on the market for rent
QUESTION: What Inspection Services Do Rental Agents Provide?
- Perform periodic inspections (Inside and outside) on a predetermined schedule looking for maintenance needs, safety issues, code issues, lease infractions, etc.
- Prepare owner periodic reports on the condition of the property
QUESTION: What are Advertising Charges?
Some leasing agencies charge a advertising fee. This is an upfront charge to advertise your vacant house. This fee is normally $250-450. A majority of agencies don’t charge this fee, so shop around!
Empty House fee Some firms charge One month’s rent up front. You may run into this fee if you are attempting to engage the property management company while the unit is vacant. This gives them the money to pay a realtor a commission for placing a tenant in the investment property, or to pay the costs of advertising, repeatedly showing the unit to prospective tenants, as well as the expense of preparing lease documents (which can take a long time).
QUESTION: Do Property Management Companies Deal With Evictions in the 27204 area?
- Filing necessary paperwork to begin and process an eviction action
- Representing owner in court
- Working with with law enforcement to evict tenant and tenant’s possessions from house
Question: Do all rental agencies charge basically the same way?
Not every pricing structures are the same. Some rental agencies in the 27204 area may charge a flat per-month rate – which again differs according to area, duties performed, and the total value of the home – while others charge a percentage rate, as noted above. Price can also differ depending on the size and number of houses you own.
For example, if you own several homes, you may get a quantity discount that a person with a single home or apartment might not get.
What can a GreensboroProperty Management Firm Do to Market Your Home?
- Get house ready for rental
- Clean house and maximize interior appeal
- Manage landscaping to optimize street appeal
- Prepare marketing materials customized for the house and advertising platform.
- A few of the mediums commonly utilized are:
- Paid and no fee rental listing websites
- Print publications
- Installing a lock box
- Multiple Listing Service listings
- Property fliers
- Work with other agents and property management agents to locate a renter
- Provide a 24/7 hot-line where interested tenant can hear to detailed information about the home
- Take phone calls from prospects for questions and appointments
- Greet prospective tenants for showings during the week and weekend.
- Provide interested renters with rental applications that are legally compliant with government regulations
- Collect applications with application fee
QUESTION: How Can a Residential Property Company Assist an owner with Property Routine Maintenance?
Leasing agents are in charge of managing preventative home maintenance to keep your property in top notch status. Examples of what may involved:
- Direct and oversee a company maintenance crew
- Decide on a preventative maintenance plan to locate and handle repair issues
- Identify a team of licensed, bonded and completely insured vendors who have been vetted for fair pricing and quality performance that is up to code.
- Assign work to various parties such as (in-house employees, handyman and professional contractors) based on who will do an excellent job for the best price.
- Maintain outdoor areas
- Debris and snow removal
- Disposing of trash and debris
- Maintain and monitor a 24/7 emergency repair hotline
- Bigger renovation or rehab projects
- Offer suggestions on how the project can maximize rental returns.
- Prepare preliminary cost estimates
- Solicit several independent quotes for the project
- Perform as general contractor managing the work
Question: How much should I price shop the fees my property management company charges me?
Ultimately, hiring a investment property manager in the 27204 area is creating into a partnership. Over the long haul, the charges aren’t as crucial as the communication between you and the agent and quality of the service your agent provides. A competent agency can take charge of the oversight of the home, for example, and turn out getting you a lot rental value and price appreciation than you thought possible. However, you need to be prepared to get them the resources to accomplish.
Question What Services Are Included in A Typical Property Management Contract?
Be sure you determine precisely what maintenance services are included with your charges. It might be that when something needs repair, certain labor charges are included with your monthly flat rate or percentage charge (for illustration, changing out light bulb and fixing faucet handles) while others are billed individually (such as replacing broken window panes and installing new sinks).
No matter what, everything should be specifically stated in your contract. Keep in mind that these fees could require you toraise your rents, which could make finding – and keeping – renters more difficult. And remember, property management charges can be negotiable. 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 are Miscellaneous charges made by property management companies?
In some cases, you may see some fees passed on to you – especially when the agent is charging a small monthly percentage. Examples could include an advertising fee in connection with finding a tenant, an annual inspection fee, and some sort of reserve, so that the management company has some money on hand to take care of unexpected, but immediate, costs.
You might want to check into how you share pet deposits collected and bad check fees (generally whomever gets stuck with the most bank costs deserves the lion’s share of this one!) Also, pay attention to who gets to keep the income from vending machines and coin-operated washers and dryers, if any.
QUESTION: What types of Maintenance can rental agencies help with?
Some property management companies in the 27204 area have in house maintenance employees, full-time. The majority of refer this work out to miscellaneous vendors. Some property management companies charge a fixed fee to supervise any work with contractors. A few will add margin to the subcontrcontractor’s invoice. Be sure you know how it operates with your property management agency!