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 normally on residential properties (but commercial property management agencies are out there of course. Property rental agencies serving the Stokes area provide a long list of services to help you renting your home. It’s an overwhelming list of jobs that a great Property Management Company will deal with; in fact (if you’re a great follow through kind of people person, you may even want to explore 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?”
Home Rental Company RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Locate a tenant
- Deal with legal contracts
- Keep you out of jail by helping you follow government housing laws
- Open your home to prospective renters in order to rent your house
- Oversee move in and move out
- Collect rental payments and get you paid!
- Handle collections if payments are late
- Help with evictions
- Deal with renter questions
- And a lot more.
It’s everything but the kitchen sink! Issues to contemplate if you are wondering if you maybe should rent your house on your own or hire a Property Management Company near the Stokes area.
HOW FAR AWAY IS YOUR INVESTMENT PROPERTY?
The more distance between you and your property,the more difficult it is to take care of. If your primary residence is in New York and your property is in the Stokes area, it will be harder for you to find tenants,to handle constant complaints,to quickly respond to issues, to deal with maintenance concerns, and even to ensure rent is collected by due date.
The amount of time it takes you to travel to the property and the expense of getting there will also mount. In situations such as these, hiring a greatGreensboro property management firm? can make a lot of sense and may actually save you money.
DOES IT MAKE FINANCIAL SENSE TO PAY A Property Management Company ?
You’ve figured out that top notchrental agentswho provide services to the Stokes area in Greensboro aren’t without cost.
Rental firms will charge a fee, ballpark, between 4% and 10% of the monthly gross income for the property. The normal fee for a single family rental home is closer to 8-10%. The cost for a property of 10 units on up is typically between 4% and 8%.
If your house is not occupied, it’s not unusual to pay a lease up fee to find and place a new tenant in your rental home. Depending on the property management company this can range from 50%-100% of a month’s rent.
One thing to keep in mind: Having expert professional input on market rents and having a pro handle locating a renter could mean you can get higher rents, which means a good rental agent might end up covering all or part of their fee because of higher rents.
IS THERE THE MONEY TO PAY A Property Management Company ?
You’ve figured out that goodproperty managerswho provide services to the Stokes area in Greensboro aren’t free.
Rental agencies will charge a fee, roughly, between 4% and 10% of the monthly rents for the house. The normal fee for a single family rental property is estimated at 8-10%. The cost for a apartment of 10 units on up is on average between 4% and 8%.
If your home is not occupied, it’s typical to pay a lease up fee to procure 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.
One thing to think about: Having experienced property manager input on market rents and having a professional handle locating a tenant can mean you can get higher rents, which means a good rental agent may end up covering all or part of their fee because of higher rents.
DO YOU HAVE THE TIME TO OVERSEE YOUR RENTAL HOME near the Stokes area?
If you have a full-time job while you are dealing with a rental home and simply can’t give your your rental home the time it demands, the viability of your investment might depend on hiring a full time property management company in Greensboro
Additionally, realize that time is definitely money and overseeing a investment home takes time. If you feel like the every day obligations of property management are impinging on time that could be more profitably spent making more money at your full time job, or searching for other property to buy, paying for an outside property management agency may be the right move for you.
WILL YOU HAVE THE TIME TO MANAGE YOUR RENTAL HOME in the Stokes area?
If you have a full-time job while you are looking after a rental home and simply can’t give your your rental home the energy it requires, the success of your investment might depend on paying for a full time property management company in Greensboro
Also, realize that time is definitely money and overseeing a rental property takes energy. If you feel like the real life obligations of leasing management are impinging on time that could be better spent making more money at your day job, or searching for other investments, hiring an outside property management firm may be the smartest move for you.
HOW CAN A RESIDENTIAL PROPERTY MANAGEMENT COMPANY HELP ME MANAGE MY PROPERTY IN Stokes?
Property management companies who service the Stokes area may do a number of things for you as the homeowner, which may include the following:
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 rental managermust operate within the set budget guidelines for the unit. In particular emergency situations when the occupants or house are in danger, they may use their discretion to order repairs or likewise without additional approvals. Upkeep of Documents- the property manager should keep thorough documentation about the the property. This need to include all income and expenses; notations of all inspections, completed contracts, maintenance requests, any problems noted, records of work done, charges for fix up, maintenance charges, record of rent collected and insurance charges.
At times when there are repairs required, the rental agent may handle it themselves or may employ someone to handle the issue it. They sometimes have a big network of reliable plumbers, electricians, carpenters and other types vendors.
OVERSEEING MOVE OUTS
When a renter leaves, the agent is responsible for inspecting the house, looking for damages and determining what portion of the damage reserves willl be refunded to the renter. After move out, the manager is in charge of cleaning the home, fixing any issues and finding a new tenant.
OFFER SOLID REAL ESTATE ADVICE:
Chat with you about the positives and negatives of different policies such as accepting various animals, permitting smoking etc. A few things are very specific to the Greensboro area, so having a local market expert who knows the Stokes area in particular is important.
Other Employees- if there are other employees in the unit, such as a desk clerk or security guard, the rental manager is responsible for being certain they are doing their job. The rental manager can determine their compensation and possibly terminate them.
TAKES CARE OF TAXES
The property manager can assist the property owner with education on how to handle taxes for the investment property. The rental manager can additionally file taxes for the home
Most residential property managers are responsible for marketing the home to fill vacancies. Residential property managersare aware of to advertise and what to include in their ads. leasing agents also have insight into what interests tenants, so they can suggest making minor improvements to help makeover the home.
RESPONSIBLE FOR OVERSIGHT OF OTHERS
Other Employees- if there are other employees in the property, such as a desk clerk or security guard, the property manager is responsible for being certain they are on their toes. The rental manager often will set their salaries and possibly let them go.
COLLECTING RENTAL PAYMENTS:
This is where a property manager earns their keep. Home management firms make sure you get your money by collecting rent every month on time and strictly enforcing late fees.
One of the more important duties of the property managers is to manage tenants. Managers are engaged in all capacities, from locating the tenants and addressing problems to beginning evictions.
RE-LEASE YOUR HOUSE
Once contract terminates get current tenants to continue their rental contract for one more rental period
RESPONSIBLE FOR OVERSIGHT OF OTHERS
Other Employees- if there are other employees in the apartment, such as a concierge\desk manager or security personnel, the leasing agent is in charge of making sure they are on their toes. The rental agent can set their compensation and even terminate them.
OVERSEEING MOVE OUTS
If a tenant ends his tenancy, the rental agent is in charge of inspecting the home, checking for damages and assessing what amount of the damage reserves mayl be refunded to the renter. After move out, the rental agent is responsible for cleaning the property, repairing any areas of concern and finding a replacement renter.
HANDLING MOVE OUTS
When a renter moves out, the agent is in charge of inspecting the home, checking for problems and assessing what portion of the damage deposit willl be returned to the renter. After move out, the manager is in charge of cleaning the unit, repairing any areas of concern and locating a replacement tenant.
Question: Should I attempt to save money by managing my home myself? Or finding the cheapest rental agent possible?
Answer: With the best house agents, paying a little bit more is a wise investment, because it helps increase the value of your investment property, and they help retain quality tenants; studies have proven hiring a investment property agentcan reduce your vacancy rate in half. On the other hand, going lowball with a leasing agency can end up being very costly.
Question: What do do rental agents cost?
Answer: As you may guess, the answer is “it depends.” Leasing agencies vary widely, and a good deal of the response is dependent on what a firm does for you.. Just what do you want a rental manager to accomplish for you?
Typical Percentage of Rent Contract. As a ballpark figure, expect to pay a typical Property management company between 8 – 12% of the monthly rent of the unit. This is called a management charge, or monthly management fee. Generally the greater you charge for rent, the lower the percentage fee is. For example if your rent is $2,500 each month for your property, you will usually pay a lower percentage fee than another person whose property rents for $1000 per month.
You are not charged this management charge until payment is received. Look specifically at your agreement regarding whether the management charge is determined by ‘rent collected’ or ‘rent due’. If the fee is tied to rent received, it means the Rental management agency 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 renter usually.
Fixed Payment Agreements
Some agencies may charge, say,$75- $150 per month flat rate. There is nothing dictated bylaw in this; it’s decided by the firm owner.
You would not owe money on a fixed rate contract typically until rent is collected.
Question: What do Inspections of my home cost?
Some residential property management will bill for inspections, some will give you one or more without charge per year. This is a walk through of your house to see how the tenant is keeping it up. Charges can range from $75-225 for each inspection.
QUESTION: What are Advertising Charges?
Some property management companies charge a marketing fee. This is an upfront charge to market your empty unit. This charge is usually $$150-500. A majority of companies don’t charge this fee, so shop around!
Empty Property fee Some firms charge 1 month’s rent up front. You may run into this charge if you’re trying to engage 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 unit, or to pay the costs of advertising, repeatedly showing the house to potential tenants, as well as the expense of preparing lease documents (which can take a long time).
QUESTION: What is a New Tenant Placement or “Lease up” Fee?
Some rental agencies in the Stokes area may charge a new renters placement charge or have a bonus structure for getting a tenant into a lease. Acharge of 50 to 100 percent of the first month’s rent for any new tenant placed is not abnormal. Nevertheless, you should not generally run into unreasonable multiple up-front charges.
Typically a placement charge is not paid until the tenant is signed, which means you don’t need to pay out of pocket to pay this.
QUESTION: How Would a Rental management Agency Assist With Tenant Screening and Choosing?
Screening Applicants- A property manager will screen the prospective tenant applications to find 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 charged with breaking the law. Experienced rental agents have seen hundreds, even thousands, of renters, so they have a better idea of how to choose the best applicants; those who will pay their bills on time, have a longer tenancy and create less problems. Perform a background check to verify identity, income, credit history, rental history, etc. Grade applicant per pre-defined applicant standards Inform tenants who were declined
QUESTION: How Can a Rental Property Company Assist an owner with Property Routine Maintenance?
Leasing agents are in charge of managing preventative home maintenance to keep your house in top notch condition. Examples of what can be involved:
- Direct and oversee a company maintenance crew
- Decide on a preventative maintenance policy to find and address maintenance needs
- Provide a collection of licensed, bonded and completely insured vendors who have been reviewed for good pricing and good work that is up to requirements.
- Delegate jobs to various parties such as (in-house employees, handyman and professional contractors) based on whom could do an excellent job for a fair price.
- Oversee outdoor areas
- Debris and snow removal
- Removing garbage and debris
- Maintain and oversee a 24 hour emergency repair hot-line
- Larger renovation or remodeling projects
- Provide recommendations on how the project can optimize rental income.
- Prepare preliminary cost estimates
- Secure multiple different estimates for the work to be done
- Perform as general contractor overseeing the work
QUESTION: What are Advertising Charges?
Some property management companies charge a marketing fee. This is an upfront charge to market your vacant unit. This charge is usually $$150-450. Many agencies don’t charge this charge, so shop around!
Empty Home fee Some firms charge 1 month’s payment up front. You might run into this charge if you are trying to engage the leasing agency while the unit is empty. This gives them the cash to pay a real estate agent a commission for finding a renter in the investment property, or to pay the costs of marketing, repeatedly showing the investment property to prospective tenants, as well as the expense of preparing lease paperwork (which can take a long time).
Question: Do all leasing agencies charge basically the same way?
Not every fee structures are identical. Some property management companies in the Stokes area may charge a fixed monthly rate – which again varies according to area, duties performed, and the total value of the house – while others charge a percentage rate, as noted above. Cost can also change depending on the size and number of units you own.
For example, if you own several homes, you may get a “bulk” discount that a person with a single unit or apartment might not get.
Question: Do all residential property management charge basically the same way?
Not every pricing structures are the same. Some property management companies in the Stokes area might charge a fixed monthly rate – which again differs according to area, activities performed, and the total value of the house – while others charge a percentage rate, as noted above. Price can also differ depending on the size and number of properties you own.
For example, if you own a few apartment buildings, you might get a quantity discount that a person with a single home or apartment might not receive.
Question: How much should I price shop the fees my property management company charges me?
Ultimately, engaging a house manager in the Stokes area is creating into a partnership. Over the long haul, the fees aren’t as crucial as the communication between you and the manager and quality of the service your manager provides. A competent firm can take charge of the maintenance of the property, for example, and turn out getting you much more rental value and price appreciation than you thought possible. However, you need to be prepared to provide them the resources to accomplish.
Question: What Is The Normal Term Of A Property Management Agreement?
Usually, an owner signs a contract with a leasing agency for a specific length of time – 12 or 24 months, for example – with an option to renew. Contracts can be prepared so that they automatically renew if neither party takes actionstopping it. Termination clauses allow for early termination if the rental agency is in the breaking of the contract in any way.
QUESTION: What are Advertising Fees?
Some rental agencies charge a advertising fee. This is an initial charge to advertise your empty home. This fee is normally $$150-350. A majority of 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 fee if you’re attempting to hire the leasing agency while the investment property is empty. This gives them the money to pay a realtor a commission for finding a tenant in the house, or to pay the costs of advertising, repeatedly showing the unit to prospective renters, as well as the expense of preparing lease paperwork (which can take a long time).
Question: Do rental agencies help with evictions?
Some renters are deadbeats. Some lose their jobs and become unable to pay their rent, while others prove to be irresponsible and a problem or nuisance at your unit. Most certainly a investment property manager will levy a fee to complete the laborious process of evicting a renter which is customarily around $350-$600 for each eviction, plus any relevant courtroom costs.And an evictionoftentimes go on for a few months, so be ready to not get any rental monies until they the legal action is complete. In addition, you may find there is fix up work to do on your home.
Generally speaking, you are better off providing your tenant cash incentives to leave the house early and avoid taking them to court, as aggravating as that is. You can skip many problem situations with painstaking renter vetting done beforehand.