Regardless if you call them a Rent My House, 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 Winston Salem area offer a variety of services to help you renting your home. It’s a huge punchlist of jobs that a great Rent My House will handle; in fact (if you’re a detailed follow through kind of people person, you might even want to look at 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?”
Real Estate Property Management RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Find a renter
- Deal with contracts
- Keep you legal by helping you obey Fair Housing laws
- Show your home to possible renters in order to rent your house
- Handle move in and move out
- Collect rent and get you paid!
- Handle collections if payments are timely
- Help with evictions
- Respond to renter inquiries
- And a lot on top of that.
It’s everything from soup to nuts! Issues to think about if you are wondering if you maybe should rent your house on your own or hire a Rent My House near the Winston Salem area.
IS THERE THE MONEY TO PAY A Rent My House ?
You’ve discovered that goodrental agentswho provide service to the Winston Salem area in Greensboro aren’t without cost.
Rental management companies will charge a fee, on average, between 4% and 10% of the monthly rents for the house. The customary fee for a single family rental property is estimated at 8-10%. The fee for a building of 10 units on up is on average between 5% and 7%.
If your house is vacant, it’s normal to pay a tenant finding 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 think about: Having experienced property manager input on market rents and having a professional agent deal with locating a renter can mean you can get higher rents, which means a great leasing agent may end up covering all or part of their cost because of increased rents.
DO YOU HAVE THE MINDSET TO WORK WITH TENANTS?
Is the stress of messing with evictions, renter complaints and repair issues taking a toll on you? Rental agents are skilled in resolving landlord-tenant difficulties. Rent My House have an understanding of Greensboro landlord-tenant law and can act as the middle-man for issues that arise. In addition, if the tenant is aware they are working with a third party, they may act more professionally as well.
You don’t have to employ a property management agency because you are new to real estate investing in Winston Salem, have a lot of properties or are having difficulty filling vacancies. Many people manage their own homes. Personal experience can many times be the best instructor and everyone has to begin learning somewhere. If you teach yourself about residential real estate, get the input of others and have a strong desire to manage your real estate with excellence, chances are, you will succeed.
DO YOU HAVE A HIGH VACANCY RATE?
Excellent Rent My House are capable locating and screening tenants rapidly and will have a network of reliable, affordable Greensbororepairmen to deal with difficulties. Most certified rental agents will also comprehend landlord-tenant law, thereby reducing the risk of legal issues.
HOW MANY INVESTMENT PROPERTIES IN Winston Salem DO YOU HAVE TO MANAGE?
As the number of units you own increases, so does the time it takes to manage them. The more renters you have, the more maintenance concerns, tenant complaints, and vacancies you will have to handle. On top of that, if your properties are dispersed across multiple areas, your time spent will go up as you will have to manage the cash flow of each particular rental as well as drive from property to property to resolve problems.
DOES IT MAKE FINANCIAL SENSE TO PAY A Rent My House ?
You’ve figured out that greatleasing agentswho provide services to the Winston Salem area in Greensboro aren’t without cost.
Rental agencies will charge a fee, on average, between 5% and 10% of the monthly gross income for the house. The typical fee for a single family investment is about 8-10%. The charge for a property of 10 units on up is on average between 4% and 7%.
If your house is not occupied, it’s normal to pay a tenant finding fee to procure and place a new renter in your rental property. Depending on the property management company this can fluctuate from 50%-100% of a month’s rent.
One thing to consider: Having experienced property manager input on market rents and having a professional agent deal with locating a renter might mean you get higher rents, which means a professional leasing agent may end up covering all or part of their fee because of higher rents.
HOW WILL A PROPERTY MANAGEMENT COMPANY HELP ME MANAGE MY HOUSE IN Winston Salem?
Property management companies who service the Winston Salem area may do many things for you as the home investor, which may include the following:
IN CHARGE OF OTHERS
Other Employees- if there aresome employees in the apartment, such as a desk clerk or security guard, the leasing agent is in charge of making sure they are paying attention to details. The rental manager can establish their compensation and possibly fire them.
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 occupants or home are in danger, they may move ahead to order repairs or similar without additional approvals. Upkeep of Paperwork- the rental agent is required to thorough documentation regarding the house. This might include all income and expenses; notations of all inspections, completed leases, maintenance requests, any problems noted, notation of repairs, charges for fix up, maintenance expenses, documentation of rent collected and insurance charges.
This is where a rental agent earns their money! Residential property management companies make sure you get paid by collecting rent each month on time and strictly enforcing late penalties.
PROPERTY MANAGERS HELP YOU DECIDE THE CORRECT RENTAL RATE
Property managers are responsible for establishing the initial rent level, and collecting rent from tenants. Good leasing agents know how to set the right rent level toattract renters to your investment property. They hopefully have a specific understanding of the Greensboro area, where the home is located and have examined at comparable houses in the general Greensboro market.
Most residential property managers are responsible for promoting the home to fill vacancies. Rental agentsare aware of to advertise and what to include in their ads. Residential property managers also understand what is motivating to tenants, so they may suggest making minor improvements to help improve the home.
PROPERTY MANAGERS HELP YOU DECIDE MARKET RENTAL RATE
Rental managers are responsible for determining the beginning rent level, and collecting rent from tenants. Excellent rental managers know how to set the right rent level todirect renters to your rental property. They hopefully have a specific understanding of the Greensboro area, where the home is located and have reviewed at comparable houses in the general Greensboro area.
Deliver financial management services Handle payments for the owner (Mortgage, insurance, HOA dues, etc.) Detailed records of expenses via invoices and receipts Maintain all historical documents (paid invoices, leases, inspection reports, warranties, etc.) Oversee yearly reports, structured for tax purposes as well as needed tax paperwork including a 1099 form Educate owner on legal tax deductions related to their investment property. Prepare easy to read monthly cash-flow reports which provide a detailed accounting of income and specific expenses
IN CHARGE OF OVERSEEING 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 property managermust operate within the established budget guidelines for the property. In certain emergency situations when the occupants or physical structure are in disrepair, they may take action to order fixup or likewise without additional approvals. Maintaining Documents- the rental agent should keep complete documentation regarding the home. This need to include all income and expenses; lists of all inspections, fully executed contracts, upgrade requests, any problems noted, notation of maintenance done, amount paid for fix up, maintenance expenses, record of rent collected and insurance charges.
RE-LEASE YOUR PROPERTY
Once agreement expires persuade existing renters to extend their rental agreement for another rental period
Provide financial management services Make payment for the sake of the owner (Mortgage, insurance, homeowner association dues, etc.) Specific accounting of expenditures via invoices and receipts Maintain all past records (paid invoices, agreements, inspection documentation, warranties, etc.) Deliver yearly reporting, structured for tax purposes as well as needed tax paperwork including a 1099 forms Advise owner on appropriate tax write offs related to their rental property. Provide easy to read monthly cash-flow statements which provide a detailed breakdown of income and detailed expenses
OVERSEE MAINTENANCE AND MINOR UPGRADES
Leasing agents are typically responsible for the physical oversight of the home, including consistent maintenance and unexpected repairs.
DEALING WITH EVICTIONS
When a tenant does not pay rent or in some way breaks the terms of the lease, the rental agent realizes understands the legal way to give notice and proceed ahead with an eviction.
RESIDENTIAL PROPERTY MANAGERS HELP YOU DETERMINE THE CORRECT RENTAL RATE
Leasing agents are responsible for establishing the initial rent level, and collecting rent from renters. Excellent rental managers know how to set the right rent level todirect tenants to your home. They hopefully have a specific understanding of the Greensboro area, where the home is located and have looked at comparable homes in the general Greensboro area.
Professional property managers are frequently employed to overlook empty houses to ensure there has been no vandalism and to execute routine maintenance. They also make sure contractors and other outsourced workers are completing their work in a reliable manner.
Question: What do Inspections of my home cost?
Some property management companies will bill for inspections, some will give you one or more without charge per year. This is a walk through of your property to see how the tenant is treating it. Charges can range from $75-200 for each inspection.
QUESTION: How Might a Residential Property Management Agency help an owner with the Tenant Move In Procedure?
- Prepare leasing contract
- Determine move in date with applicants
- 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 renter and have tenants sign a report verifying the condition of the property prior to move-in.
- Secure initial month’s rent and security deposit
QUESTION: How Might a Rental management Company Assist With Renter Screening and Selection?
Vetting Tenants- A residential property agent will sort through the prospective renter applications to discover the tenant that is the best fit for your house. They have a reliable vetting process, which includes running credit checks and criminal background checks, which can reduce your likelihood of being accused of breaking the law. Experienced leasing agents have seen many tenants, so they have a better idea of how to identify the correct renters; tenants who will pay their rent on time, have a longer tenancy and create much fewer problems. Perform a background check to authenticate identity, salary, credit history, rental history, etc. Assess renter according to pre-decided applicant criteria Communicate with applicants who may have been turned down
Question: How much do rental managers cost?
Answer: As you may guess, the response is “it depends.” Property management firms vary widely, and much of the response is dependent on what they do for you.. Exactly what do you want a rental manager to accomplish for you?
Usual Percentage of Monthly Rent Agreement. As a ballpark figure, expect to pay a typical Leasing agency between 7 – 12% of the monthly rental value of the home. This is referred to as management fee, or monthly management charge. Usually the greater your rent is, the lower the percentage is. To illustrate if your rent is $2,300 each month for your rental home, you will normally pay a lower percentage fee than someone else whose house rents for $1000 each month.
You do not pay this management charge until rent is collected. Look carefully at your agreement regarding whether the management charge is based on ‘rent collected’ or ‘rent due’. If the fee is tied to rent collected, it means the Property management company doesn’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 received from the tenant normally.
Flat Rate Contract
Some firms may charge, say,$75- $150 per month fixed rate. There is nothing required bylaw in this; it’s decided by the company owner.
You wouldn’t owe money on a fixed rate contract usually until rent is received.
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 visual inspection of your property to see how the tenant is keeping it up. Fees can range from $50-175 per inspection.
Question: What are Random fees made by property management companies?
In some cases, you might see some costs passed on to you – especially when the manager is charging a small monthly percentage. Illustrations might include an marketing fee in connection with placing a tenant, an annual inspection charge, and some sort of reserve, so that the management agency has some cash 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 charges (generally whomever gets stuck with the most bank fees deserves the lion’s share of this one!) Also, pay attention to 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 Fees?
At times renters pay date. Look at your agreement 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 Will a Residential Property Firm Assist an homeowner with Property Regular Maintenance?
Property managers are responsible for overseeing preventative home maintenance to keep your property in top status. Examples of what may under consideration:
- Direct and oversee company employed maintenance team
- Create a preventative maintenance plan to find and address maintenance needs
- Provide a team of licensed, bonded and completely insured vendors who have been reviewed for reasonable bidding and quality performance that is up to code.
- Delegate jobs to various parties such as (in-house employees, handyman and professional contractors) based on whom could do the best job for the lowest price.
- Maintain outdoor areas
- Debris and snow removal
- Disposing of trash and debris
- Set up and monitor a 24/7 emergency repair hotline
- Bigger renovation or remodeling projects
- Offer recommendations on how the project can maximize rental profits.
- Prepare preliminary cost estimates
- Solicit several independent quotes for the work to be done
- Act as general contractor overseeing the work
Question: What Is The Normal Term Of A Property Management Agreement?
Typically, an owner signs a contract with a residential property management firm for a certain length of time – 12 or 24 months, for example – with an option to renew. Agreements can be drawn up 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 agreement in any way.
Question: Do all property management companies charge basically the same way?
Not every fee structures are the same. Some rental agencies in the Winston Salem area might charge a flat monthly rate – which again varies according to area, duties performed, and the total value of the rental – while others charge a percentage rate, as noted above. Cost can also differ depending on the size and number of houses you own.
For example, if you own a few apartment buildings, you may get a “bulk” discount that a person with a single property or apartment might not get.
QUESTION: What types of Maintenance can property management companies help with?
Some residential property management in the Winston Salem area have their own maintenance employees, full-time. The majority of refer these jobs out to miscellaneous vendors. Some property management companies charge a fixed fee to manage any work with contractors. Many will add on to the contractors bill. Be sure you understand how it works with your home management agency!
QUESTION: Do Home Management Firms Assist With Move Out?
Yes, a Rental management Agency can Assist With Move outs. Activities might include:
- Inspect rental property. and complete a document on the house’s condition when the tenant moves out
- Give tenant with a photocopy as well as noted deductions
- Return the remainder of the damage reserves to the tenant
- Transfer remaining portion of the owner’s portion of the renter deposit to the homeowner or keep in owner reserves for work to be done.
- Turn over home and perform required repairs or upgrades
- Re-do all locks
- Re-List house back on the market for rent
QUESTION: What Inspection Services Do Rental Agents Provide?
- Perform systematic inspections (Inside and outside) on a regular schedule noting repair requirements, safety hazards, code issues, lease violations, etc.
- Send owner periodic reports on the condition of the property
Question: What Is The Normal Term Of A Property Management Agreement?
Usually, a landlord signs an agreement with a property management company for a specific length of time – 12 or 24 months, for example – with an option to renew. Agreements can be drawn up so that they automatically renew if neither party takes actionstopping it. Termination clauses allow for early termination if the leasing agency is in breach of the agreement in any way.
QUESTION: What are Marketing Fees?
Some rental agencies charge a advertising fee. This is an initial charge to market your empty home. This charge is normally $250-350. A majority of firms don’t charge this fee, so shop around!
Empty Property charge Some companies charge One month’s rent up front. You may run into this fee if you are attempting to hire the property management company while the house 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 house to prospective tenants, as well as the expense of preparing lease paperwork (which can take hours).