The lure of being a landlord, despite all the stress that goes with it, is primarily due to the rental income it offers the property owner. Of course, if you have hired the services of qualified and experienced rental property managers, the stress gets taken care of as well. However, before you decide to go ahead with putting your rental home listed, you should know how to set and collect rent in the most efficient way.
How Fremont Property Management Firms Set the Rent
Yes, we would all love to charge as much as possible for our rental property. However, the first thing that helps a Fremont-based property management firm understand reasonable rent is knowledge of the local market. With experience of the market, strong research and the ability to compare and analyze similar properties that have recently been rented out in the area, property managers determine the rental rate that is ideal for your rental real estate. In some areas, the rule of thumb is that 1% of the rental home’s property value is charged as rent.
Once the rent amount is agreed upon and the property is let out, the amount can be raised on a regular basis. In Fremont, property management firms recommend raising the rent at least each time the lease is renewed, which is usually on an annual basis.
Recommendations from Fremont Property Managers on Rent Collection
To ensure that a landlord never has to worry about collecting rent each month, Fremont property management firms ensure that rent is collected on time and in a way that is convenient for both the tenant and the landlord.
In the event that a check bounces, the property manager ensures that the tenant does not pay rent via check until at least six months of regular and on time payment. In fact, some include a clause related to the maximum number of delinquent payments in the lease agreement itself.
Most Fremont-based property managers follow a stringent process for delinquent rent. They monitor all payments and keep a close eye on any tenant who tends to delay payment. Usually, a grace period of three to five days from the due date is allowed for payment. The only time that this period is extended is if a holiday or long weekend falls within the grace period. Following the lapse of the grace period, a pre-determined amount is charged as late fee. This could be anywhere between 5% and 10% of the monthly rental amount and is usually mentioned in the lease agreement.
Continued delinquency could lead to eviction, which will also be handled by the property manager, so that the landlord does not have to face such unpleasant circumstances.
