Real Estate Services Company (renting out my house) (Fairfax: renter, mortgage)

[Panu16]

I am preparing to rent out my townhouse in Sterling (20165). I have been thinking about using a real estate service company instead of doing it myself. Would anyone have a recommendation on such company? And how much do these companies typically charge? I have heard 10% of rent. Is that correct?

[spencgr]

Originally Posted by Panu16

I am preparing to rent out my townhouse in Sterling (20165). I have been thinking about using a real estate service company instead of doing it myself. Would anyone have a recommendation on such company? And how much do these companies typically charge? I have heard 10% of rent. Is that correct?

Are you referring to a Property Management company to manage the property during the term of the lease or a service just to find a renter? We use McGrath Real Estate for both services. We pay 9% (I think - it's my husband's bill to pay) for the month to month management and one month's rent for the finding and processing of a new tenant.

We are very happy with our service and think the value is well worth the cost.

[FCNova]

I've always thought one months rent was steep for finding a renter, especially when you're talking about a townhouse or house in the $2500+ range. A relative of mine is a realtor and charges that to place renters. All that entails is posting an ad online and then running background checks, and having them sign a rental agreement right? The 9% seems very reasonable for management.

[spencgr]

Originally Posted by FCNova

All that entails is posting an ad online and then running background checks, and having them sign a rental agreement right? The 9% seems very reasonable for management.

It entails the time spent touring people though the house. You could have 20 differnt people tour the house and five or so separate applications.

[newnewsmama]

You can do it yourself.

If you have a lot of properties, maybe it's worth hiring a property management company. Otherwise, economically, it won't be worth it. Also, who will have the best interest in finding you a great tenant? Yourself.

I checked out a property management company based on the recommendations obtained in this forum a few years ago. The person I talked with clearly had no interest talking with me. If he's not even interested in selling his business, I wonder how much more devoted he'd be in finding a good tenant for me.

I used Craigslist just like my realtor friend did with her own rental properties. She uses Craig's List all the time to save the one month rent she has to pay to the renter's agent if going through MLS. I received a few applications and found a great tenant. For house touring, I scheduled the applicants in groups in one single afternoon with 30 minutes between each family. You can check a person's credit score/background using specialized website and contact the tenant's previous landlord or employer yourself.

There are rental agreement templates you can buy or download for free to draw up the contract.

[SophieDaphne]

Do not, under any circumstances, use Weichert Property Management (esp. the one in Fairfax). Their operation is an utter trainwreck!

[Panu16]

Thanks for the replies. I have already posted my house to rent online. One prospective renter said that she prefers renting through a property management company. She was talking about a two year lease so it could be worth it if I can negotiate with the company to forego the one month rent since I found the renter. I have four people coming to see the (empty) house this weekend. Will see how all of this workout.

[TheWatchmen]

Originally Posted by Panu16

Thanks for the replies. I have already posted my house to rent online. One prospective renter said that she prefers renting through a property management company. She was talking about a two year lease so it could be worth it if I can negotiate with the company to forego the one month rent since I found the renter. I have four people coming to see the (empty) house this weekend. Will see how all of this workout.

That prospective renter sounds difficult already, and hasn't even signed a lease.

Personally, I've had not great experiences with a handful of my landlords - property management companies were no exception. They dragged their feet fixing things just as much as individual landlords did. I had ONE good experience with a property management company that bought houses, and rented them out.

I once rented from a guy who lived overseas, and used a property management company to deal with finding tenants/repairs/anything else. That was a nightmare, as they had to run everything by him and he was rarely available.

I'm happily paying a mortgage now, and just knowing that I won't have a landlord who will drag their feet when the water heater breaks beyond repair (yes, I've had this happen) is worth a lot to me.