Owners of rental properties rely on property managers to help them find good tenants, 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.
Disclaimer: it’s important to know there are instances when a property manager (specifically, Evernest) might not be a great fit for you. In this video, we lay out a few ways to know for sure.
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:
Some landlords hire a property manager temporarily to help them find a renter, but they do the day-to-day management themselves.
Leasing fees can be a flat rate, but most of the time they are figured as a percentage of the first month’s rent. The Richmond area’s average leasing fee ranges from $299-800 or 50-75% of the first month’s rent.
Many property management companies offer discounts on the leasing fee if you choose a higher membership tier that offers more services. For example, Evernest doesn’t charge a leasing fee for the Platinum tier.
|Company||Fee (% of first month’s rent)|
|Renters Warehouse Richmond||$299|
|Keyrenter Property Management Richmond||$800, or 75%|
|Evernest||Call for pricing|
|Real Property Management Richmond Metro||50%|
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.
In Richmond, flat monthly fees are usually between $99 and $120, and percentage fees are usually between 9 and 12%. These fees can be different depending on your rental rate, the type of property you have, and the services you need.
|Renters Warehouse Richmond||$99-119|
|Keyrenter Property Management Richmond||$120, or 10% (whichever is higher)|
|Evernest||Call for pricing|
|Real Property Management Richmond Metro||8.9-11.9%|
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.
A lease renewal fee pays for negotiating with current tenants 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.
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 tenant 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.
Further reading: How To Navigate The Eviction Process As A Landlord
Routine inspections are important to make sure that your tenant 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 tenant 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).
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.
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:
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 tenant 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. >>
All claims result from an industry-wide audit done by our in-house team. If we missed something or have provided incorrect information, please let us know at [email protected]
McKenna is an Evernest Content Strategist based in Denver, Colorado. Her expertise spans the real estate and home financing sectors. When not writing, she enjoys picnics, yoga, and antiquing.
Start the conversation!