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 emphasis is typically on residential properties (but commercial property management agencies are out there certainly. Property rental agencies serving the Glenwood area offer a variety of services to help you renting your home. It’s a huge list of jobs that a great Property Management Company will oversee; in fact (if you’re a detailed follow through kind of people person, you may even want to explore 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 Management Company RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Find a renter
- Deal with contracts
- Keep you legal by helping you comply with Fair Housing laws
- Open your house to interested tenants in order to rent your house
- Deal with move in and move out
- Collect money and get you paid!
- Handle collections if payments are late
- Help with evictions
- Answer tenant inquiries
- And so much on top of that.
It’s everything from A to Z! Points to consider if you are wondering if you maybe should rent your house on your own or hire a Property Management Company near the Glenwood area.
DO YOU HAVE THE AVAILABILITY TO MANAGE YOUR INVESTMENT PROPERTY near the Glenwood area?
If you work at a full-time job while you are looking after a rental property and simply can’t give your your rental home the energy it needs, the profitability of your investment may depend on paying for a full time property management company in Greensboro
In addition, realize that time is money and taking care of a investment home takes time. If you feel like the day to day requirements of property management are impinging on time that could be more enjoyably spent making more money at your day job, or looking for other properties, hiring an outside property management agency may be the wisest move for you.
DOES IT MAKE FINANCIAL SENSE TO HIRE A Property Management Company ?
You’ve figured out that goodleasing agentswho provide service to the Glenwood area in Greensboro aren’t without cost.
Property management companies will charge a fee, roughly, between 5% and 9% of the monthly gross income for the property. The usual fee for a single family investment is estimated at 8-10%. The charge for a apartment of 10 units on up is on average between 4% and 8%.
If your house is vacant, it’s typical to pay a lease up fee to locate and place a new renter in your rental home. Depending on the property management company this can fluctuate from 50%-100% of one month’s rent.
Something to consider: Having experienced property manager input on market rents and having a pro deal with locating a renter could mean you can get higher rents, which means a great rental agent may end up covering all or part of their fee because of higher rents.
HOW FAR AWAY IS YOUR PROPERTY?
The more miles between you and your rental property,the more stressful it is to take care of. If your primary residence is in Oregon and your investment property is in the Glenwood area, it will be a lot of work for you to find tenants,to handle constant complaints,to quickly respond to difficulties, to handle maintenance concerns, and even to ensure rent is collected in a timely manner.
The amount of time it takes you to go back and forth the property and the cost of travel will also mount. In situations such as these, hiring a goodGreensboro property management company can make some sense and actually save you some cash.
HOW MANY RENTAL UNITS IN Glenwood DO YOU HAVE TO TAKE CARE OF?
As the number of units you own increases, so does your workload. The more renters you have, the more maintenance issues, tenant complaints, and vacancies you will have to handle. In addition, if your units are spread across multiple areas, your time spent will increase as you will have to manage the issues of each single property as well as travel from property to property to resolve concerns.
DO YOU HAVE LIMITED PROPERTY MANAGEMENT EXPERIENCE?
If you want to invest in Greensbororental properties, but don’t know a single thing about leasing management, hiring a certified Property Management Company can be a smart choice for you. Learning as you go can become very draining financially.
For a real estate investor who is just beginning, hiring the wrong repairman or taking too long to fill an empty home can easily eat into your profits. There are big legal liability concerns you can stumble on if you aren’t aware about Fair Housing laws or Federal real estate law. One lawsuit can pay for a lot of rental management fees!
HOW CAN A RESIDENTIAL PROPERTY MANAGEMENT COMPANY HELP ME MANAGE MY PROPERTY NEAR Glenwood?
Property management companies who service the Glenwood area will do a lot of things for you as the home investor, which can include the following areas:
IN CHARGE OF OTHERS
Other Employees- if there aresome employees in the apartment, such as a janitor or security guard, the leasing agent is in charge of being sure they are doing their job. The rental manager can establish their salaries and possibly fire them.
OFFER WISE REAL ESTATE ADVICE:
Discuss with you the pros and cons\pluses and minuses of different issues such as accepting pets, allowing smoking etc. A few things are very specific to the Greensboro area, so having a local market expert who knows the Glenwood area in particular is critical.
IN CHARGE OF OTHERS
Other Employees- if there are other employees in the unit, such as a janitor or security guard, the rental agent is in charge of making sure they are on their toes. The property manager can establish their wage rates and even fire them.
Most residential property managers are tasked with for advertising the property to fill vacancies. Residential property managersknow where to promote and what to include in their ads. leasing agents also understand what is motivating to tenants, so they may suggest making minor improvements to help improve the house.
RESPONSIBLE FOR MAINTENANCE ITEMS AND MINOR UPGRADES
Property managers are typically charged with caring for the physical oversight of the residence, including scheduled maintenance and needed work to be done.
EXPERIENCED WITH LANDLORD-TENANT LAW AND GOVERNMENT REAL ESTATE LAW
A experienced leasing agent will have a complete understanding of local and national laws regarding the ideal methods to: Reviewing the applicants. Escrow damage deposits Terminate a lease Evict a tenant Obey with home safety laws Counsel in the occasion the event of a legal action or lawsuit Send owner to a qualified attorney when needed Understand and comply with the latest local, state and federal legislation that apply to renting and maintaining rental houses.
DEALING WITH EVICTIONS
When a renter does not pay on time or in some way breaks the terms of the lease, the property manager knows understands the best method to give notice and proceed forward with an eviction.
At times when there are repairs required, the rental agent may handle it themselves or must find someone to handle the problem it. They sometimes have a big list of reliable carpenters,plumbers,electricians and other types vendors.
TAKE CARE OF PROFESSIONAL INSPECTIONS
You want to make sure to have before and after photos and written records, so you can accurately take care of renter deposits and differences of opinion when they move out. A good number of renters will act amazed when you subtract charges from their deposit, so having comprehensive files will help reduce the amount of fighting they do with you.
DEALING WITH CONTRACTS
Many managers are responsible for recommending the length of the lease and ensuring it has all the required clauses to look out for the client. This includes determining the amount of damage deposit required.
This is where a property manager earns their money! Residential property management companies make sure you get paid by collecting rent each month on time and strictly enforcing late charges.
OFFER GENERAL REAL ESTATE ADVICE:
Discuss with you the positives and negatives of different policies such as accepting various animals, permitting smoking etc. Other are very specific to the Greensboro market, so having a local area expert who knows the Glenwood area in particular is crucial.
OVERSEEING MOVE OUTS
When a renter leaves, the manager is in charge of inspecting the property, looking for damages and assessing what amount of the damage deposit willl be given to the tenant. After move out, the manager is in charge of cleaning the unit, repairing any areas of concern and finding a replacement renter.
MANAGING WRITTEN AGREEMENTS
Many they are responsible for recommending the duration of the lease and making sure it has all the required provisions to look out for the client. This includes deciding the amount of security reserves required.
QUESTION: What is a New Tenant Placement or “Lease up” Charge?
Some property management companies in the Glenwood area may charge a new renters placement fee 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 renter placed is not atypical. However, you shouldn’t generally run into significant multiple up-front fees.
Generally a placement fee is not due until the tenant is signed, which means you don’t need to pay out of pocket to pay this.
Question: Do property management companies help with evictions?
Some renters are flakes. Some lose their jobs and become unable to pay their rent, while others turn out to be irresponsible and a problem or pain in the neck at your investment property. Most certainly a house agent will levy a charge to complete the long paperwork involved with evicting a tenant which is usually around $350-$600 per eviction, not counting any relevant legal charges.And an evictionmay last a couple months, so be prepared to not get any rental monies until they are out. In addition, you might find there is repair work to do on your home.
Generally speaking, you are better off giving your tenant incentives to vacate the home early and avoid taking them to court, as aggravating as that might seem. You can skip many problem situations with painstaking tenant screening done upfront.
QUESTION: What types of Maintenance can leasing agencies help with?
Some residential property management in the Glenwood area have their own maintenance employees, full-time. The majority of subcontract this work out to various subcontractors. Some property management companies charge a flat rate to oversee any work done by outside vendors. Some will upcharge the subcontrcontractor’s fee. Make sure you know how it works with your unit management firm!
QUESTION: What are Advertising Fees?
Some property management companies charge a advertising fee. This is an initial fee to market your empty property. This fee is normally $$150-400. Most agencies don’t charge this fee, so shop around!
Empty Unit fee Some agencies charge 1 month’s payment up front. You may run into this fee if you are trying to engage the leasing agency while the house is vacant. This gives them the money to pay a realtor a commission for finding a tenant in the property, or to pay the costs of advertising, repeatedly showing the house to prospective tenants, as well as the cost of preparing lease paperwork (which can take hours).
QUESTION: How Might a Property Management Firm Help an owner with Home Standard Maintenance?
Property managers are responsible for managing preventative home maintenance to keep your house in excellent status. Examples of what may involved:
- Provide and oversee a company maintenance crew
- Decide on a preventative maintenance plan to find and handle maintenance needs
- Identify a collection of licensed, bonded and fully insured vendors who have been vetted for fair bidding and quality work that is up to code.
- Assign work to different parties such as (in-house employees, handyman and professional contractors) based on whom will do the best job for a fair price.
- Maintain outdoor areas
- Leaf and snow removal
- Removing trash and debris
- Set up and monitor a 24 hour emergency repair hotline
- Larger renovation or rehab projects
- Provide suggestions on how the project can optimize rental returns.
- Prep initial cost estimates
- Solicit multiple different estimates for the work to be done
- Act as general contractor managing the work
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 renter is treating it. Charges can range from $100-225 per inspection.
Question: How much do rental agents charge?
Answer: As you might guess, the answer is “it depends.” Property management firms vary a lot, and a lot of the answer is dependent on what a company does for you.. Just what do you want a rental agent to do for you?
Normal Percentage of Rent Agreement. As a ballpark figure, expect to pay a normal Residential property management company ranging from 8 – 11% of the monthly rental value of the unit. This is called a management charge, or monthly management payment. Generally the greater you charge for rent, the lower the percentage is. To illustrate if your rental charges are $2,100 each month for your rental house, you will usually pay a lower percentage fee than someone else whose property rents for $900 each month.
You do not pay this management fee until rent is collected. Look specifically at your agreement regarding whether the management fee is determined by ‘rent collected’ or ‘rent due’. If the charge is tied to rent received, it means the Rental management agency doesn’t get paid if you don’t get paid. On the other hand, if it’s based on ‘rent due’, then you owe whether or not rent is received from the tenant normally.
Fixed Payment Contract
Some firms may charge, say,$75- $150 per month flat rate. There is nothing dictated bystatute in this; it’s decided by the property management company owner.
You would not owe money on a fixed rate contract usually until rent is received.
Question: How much do rental managers cost?
Answer: As you may guess, the response is “it depends.” Rental management agencies vary widely, and much of the response is dependent on what they do for you.. Just what do you want a rental manager to accomplish for you?
Normal % of Monthly Rent Agreement. As a starting point, expect to pay a typical Property management company between 7 – 11% of the monthly rent of the house. This is called a management fee, or monthly management charge. Usually the greater your rent is, the lower the percentage fee is. To illustrate if your rental charges are $2,000 per month for your rent house, you will typically pay a lower percentage fee than someone else whose house rents for $900 each month.
You do not pay this management fee until payment is collected. 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 determined by ‘rent due’, then you owe whether or not rent is received from the renter typically.
Fixed Fee Agreements
Some firms may charge, say,$75- $150 per month fixed rate. There is nothing required bystatute in this; it’s decided by the company owner.
You would not owe money on a fixed rate agreement usually until rent is collected.
Question: What Is The Normal Term Of A Property Management Agreement?
Normally, a landlord signs an agreement with a leasing agency for a specific length of time – 12 or 24 months, for example – with an option to renew. Agreements can be prepared so that they automatically renew if neither party takes actionstopping it. Termination clauses allow for early termination if the property management company is in the breaking of the contract in any way.
Question: What are Other charges made by property management companies?
At times, you may see some costs passed on to you – especially where the manager is charging a low monthly percentage. Illustrations could include an marketing charge in connection with placing 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 immediate, expenses.
You may want to check into how you share pet deposits collected and bad check fees (basically whomever gets stuck with the most bank fees should get the bulk of this one!) Also, notice who gets to keep the income from vending machines and coin-operated washers and dryers, if any.
Question What Services Are Included in A Typical Property Management Contract?
Make certain you establish exactly what maintenance services are included with your charges. It might 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 light bulb and replacing faucet handles) while others are charged individually (such as replacing broken windows and installing new sinks).
Regardless, everything should be specifically stated in your agreement. Keep in mind that these charges may require you toincrease your rents, which might make finding – and keeping – tenants harder. Keep in mind, property 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 handling them on your own.
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 fees go to you as the owner, to the leasing agency, or are shared in some way.
Question: Do rental agencies help with evictions?
Some renters are deadbeats. Some become unemployed and become unable to pay their rent, while others prove to be irresponsible and a problem or nuisance at your investment property. Most certainly a unit agent will levy a fee to initiate the tedious paperwork involved with evicting a renter which is customarily ballpark cost of $350-$600 per eviction, plus any associated legal charges.And an evictionoftentimes last a couple months, so be prepared to not get any rental monies until they are out. On top of that, you could find there is fix up work to be done on your home.
Generally speaking, you are better off giving your renter cash incentives to vacate the house early and skip suing them, as maddening as that might seem. You can skip many problem situations with complete tenant screening done upfront.
QUESTION: How May a Property Management Firm help an owner with the Renter Move In Procedure?
- Prep rental contract
- Confirm move in date with renter
- 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 initial month’s rent and security deposit