Owners of rental properties rely on property managers to help them find good residents, conduct background checks, and take care of maintenance issues. Having rental properties can be rewarding, but most landlords don’t realize how much time and work it takes. If you hire a property manager, you’ll have more time to focus on other ways to grow your business.
With a property manager, you can also invest in markets with strong growth potential, even if you don’t live there. For example, you could invest in a growing market like Richmond, Virginia, where home prices were up 3.7% from last year (as of September 2022), as long as you choose a property manager that is local to the area.
A question that many owners and landlords in the Richmond market have is this: how much should I expect to pay for property management?
Several factors will affect your total cost, including location, the type of rental unit, and the number of services provided. In this article, we’ll compare the fees for five different property management companies in Richmond to help you figure out what to expect regarding leasing and property management fees in this area.
Leasing Fees for Richmond Landlords
How much does it cost to hire a property manager in Richmond? The price depends on more than just where you live. It also depends on things like the type of property and how many services are included. These can include:
marketing the property,
screening applicants, and
preparing the lease agreement.
Some landlords hire a property manager temporarily to help them find a renter, but they do the day-to-day management themselves.
Fixed vs. Percentage-based Fees in Richmond
Most property managers will charge you a fee every month to keep your rental in good shape. But don’t simply go with the cheapest option; you should look at what services are included in the price to see if it’s a good investment for your business.
Depending on the company, the property management fee may be a flat fee or a percentage of the rent. A flat fee is a set amount of money you pay each month; a percentage fee is a percentage of your monthly rent.
Repairs and Maintenance Fees
Property management companies will take care of repairs and general upkeep of your property. It may be cheaper to hire a property manager because they will likely have relationships with local vendors and contractors, allowing them to get a better deal than you could.
Property management companies typically coordinate how these problems are fixed regarding specific repairs. Most companies require landlords to keep at least a certain amount of money set aside for repairs. Your property management agreement will say how much you need to keep in your reserve repair fund and how you can give permission to use these funds.
Leasing Renewal Fees
A lease renewal fee pays for negotiating with current residents and filling out the paperwork for additional lease terms. Again, this fee can be a flat amount or a certain percentage of the monthly rent. Some property managers will not charge you to renew your lease.
Vacant Unit Fees
If your unit is vacant, your property manager may still charge you a monthly fee. This fee for a vacant unit pays for regular checks on your property while it is empty. This is because a property that isn’t being used has to be inspected regularly by law to keep insurance policies in line and make sure the building stays safe and in good shape.
Unfortunately, you may have to evict a resident at some point as a landlord. Your property manager can help you through this process. Some will charge an extra fee, while others will give you an eviction guarantee if you pay for a higher membership tier.
For example, at Evernest, eviction protection is included in our Platinum pricing plan. Alternately, landlords can buy an eviction protection plan as an add-on for $200 per year.
Routine Inspection Fees
Routine inspections are important to make sure that your resident is keeping your rental in good shape and to find problems before they get worse and cost more to fix. Most property management companies will charge a fee for inspections that are done regularly or when a resident moves out.
At Evernest, each pricing plan includes move-in inspections, move-out inspections, and monthly vacancy inspections at no extra cost. With our investor and gold pricing plans, extra annual inspections cost $149, but they are included in our platinum plan ($199/month).
Contract Termination Fees
Note that many companies will charge you an early termination fee if you break your contract with your property manager before it’s over. These fees can be very different, so include that in your contract.
At Evernest, we think you should be allowed to end your contract with your property manager at any time you want if you’re not satisfied. We call it our 100% Happiness Guarantee.
Factors Affecting Property Management Fees in Richmond
Many of the fees listed above are given as ranges because the final cost of property management fees depends on many different things. These can include:
Type of property: Whether your rental property is a single family home, a multi-family apartment complex, or commercial property can affect the fees your property manager charges.
Size of property: Property size can also affect fees because larger properties require more maintenance than smaller ones.
Condition of property: A newer or renovated property can have fewer maintenance issues than an older property.
Neighborhood rating: If your rental property is located in a neighborhood that commands higher rents, your property manager may charge more than if your rental property is located in a neighborhood that commands lower rents.
Market competition: If there is less competition for property managers in your market, they may charge higher fees than if there is more competition.
Extent of services: Ultimately, the extent of services your property manager provides greatly affects the fees they charge. Handling rent collection is a much smaller investment for a property manager than offering 24/7 resident communication, maintenance management, and financial reports.
Hire Evernest As Your Richmond Property Manager
The Richmond market is an exciting place to be a real estate investor, and choosing the right property manager can help you build your business and achieve your goals.
Have we convinced you to dive in? If you’re ready to work with a property manager, we’ve made it our mission at Evernest to provide hassle-free property management and deliver a steady return on investment to our property owners.
Plus, we can guarantee that we’ll place a well-qualified resident in your rental in Richmond in 21 days or less, or your first two months of management are free.
What are you waiting for? Reach out today, and let’s get started.
Source: This content was originally written and published for Evernest at Evernest.co.