How Utah Property Management Services Actually Save you Money

How Utah Property Management Services Actually Save you Money

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As any good real estate book will tell you, the formula for real estate investing success is some variation of the following: Maximize revenue + Minimize expenses = Maximum Profit. For example, a rent increase would obviously be a move to maximize revenue while price shopping maintenance vendors would be a cost cutting one. How about paying for professional property management? A cost increase, right? Wrong! In many cases, hiring a Utah property management company to manage your rental property will actually increase your revenue beyond what you pay in management fees! Here’s how:

 

Reduced Vacancy

Many owners new to rental property investing are surprised to hear that their single largest expense of ownership beyond the mortgage isn’t maintenance or repairs; it’s vacancy. Every day your unit sits vacant you lose potential rental income. So if your Salt Lake City rental property receives $1,000 per month in rent, and it takes you thirty days or more to find a tenant, you just paid for professional property management. Aggressive marketing strategies, professional leasing agents and resident retention programs are just a few of the vacancy reducing benefits offered by professional property management.

 

Placing Qualified Tenants

Statistics show that once a tenant falls two weeks behind on rent, 50% will never catch up leaving you little choice but to evict. Utah evictions can be costly, plus you have the added expense of turnover, which averages $2,500 to $3,500 in Utah! For this reason, it is vital that you conduct criminal background checks and pull credit reports in addition to qualifying tenants financially. Hiring a qualified Utah property manager will ensure that your tenants undergo rigorous screening before being allowed to occupy your rental.

 

Property Management Pays for Itself

As with other areas of life, hiring a professional is usually worth the added expense. For example, you most likely wouldn’t risk representing yourself in court without a law degree or attempt to fix your own car if you aren’t a mechanic. So, with so much as risk, why try to manage your own property without the necessary skills or training? Especially when it’s clear just how much more money you’ll make when your property is managed efficiently.

 

Want to learn more about how our property management services save you money? Download our free owner information packet that includes details on our pricing.

7 Things to Look for in a Utah Property Manager

7 Things to Look for in a Utah Property Manager

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Selecting a property manager for your Utah rental property can be a very confusing process. Almost every management company does things a little differently and you will see a wide variety of fees charged and services offered. So where should you start? Here is a list of features to look for when choosing a Utah property manager:

 

Aggressive Tenant Placement

Vacancy can be your largest expense. Look for a proven marketing system that locates Utah tenants quickly, experienced leasing agents who show property after hours, and technology that streamlines the placement process.

 

Strict Tenant Qualification and Screening

Choosing the wrong tenant can cost thousands of dollars in lost rental income, eviction expenses and damage to your property. Make sure your management company does nationwide eviction and criminal background screening as well as credit and financial qualification.

 

Groundbreaking Technology

Like many other industries, technology is changing the way Utah property managers do business. Make sure your property manager offers powerful features like online rental payments, 24/7 access to statements and reporting, ACH payment solutions, and web based marketing features.

 

Efficient and Cost Effective Maintenance

When maintenance issues arise, they need to be dealt with swiftly, effectively and with an eye toward keeping costs low. Make sure the Utah property management company you choose has strong relationships with local BBB approved vendors who are both licensed and insured.

 

Transparent Accounting and Reporting

You should demand to know how every dollar of your Utah rental property’s income was spent. In addition to detailed trust accounting, make sure your property management company can provide annual tax documents as well as key performance metrics such as rent rolls and a 12 month cash flow statement.

 

Easy to Understand and Fair Pricing Structure

Unfortunately, property management is a business where the consumer must watch out for hidden fees. Be sure to read the management agreement in full and make certain you understand the true costs of hiring your Utah property manager.

 

No Cancellation Fees

This should be obvious, but why would a Utah property management company charge a cancellation fee? Well, because they have an issue with people wanting to cancel! Make sure you can void your property management agreement at any time without penalty.

 

Want to learn more about what makes a good Utah property manager? Download our free owner information packet and receive a rental analysis for your property.

5 Questions to Answer Before Managing your Own Rental Property

5 Questions to Answer Before Managing your Own Rental Property

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Do I have time to be a good Utah landlord?

Being a good landlord is at least a part time job, and in some cases, full time employment with unpaid overtime. A good exercise is to grab a sheet of paper and write down all your current responsibilities as well as their time commitment. Make sure you include major items such as work, family and parental responsibilities, exercise, general errands and extracurricular activities. The amount left over is your free time. How much of that are you willing to give up to manage your rental property? If it’s not at least a few hours a week per unit, you will probably struggle to keep up with the demands of your rental.

Do I Know How to Effectively Manage Property in Utah?

There is so much more to property management than just collecting a rent check. A good landlord must wear many hats including: bill collector, maintenance technician, financial accountant, marketing expert, leasing agent, property inspector, and Utah eviction attorney. Evaluate your strengths and weaknesses in those areas and decide if you have the skills necessary to excel in Utah property management.

How Much Do I Know About Utah Landlord/Tenant Law?

Utah landlord/tenant law is the backbone of good property management and you must be well versed in its language to avoid expensive lawsuits. Landlords must be extremely careful to avoid breaking Fair Housing laws ($10,000 federal fine), infringing on local zoning ordinances or violating the rights of your tenants. Many landlords have learned the hard way just how serious local authorities are about enforcing Utah landlord/tenant laws.

Do I Have Access to the Tools Necessary to Manage Rental Property?

Much like a singer without a microphone, a Utah landlord cannot do his job effectively without a variety of professional resources. Tenant background and credit screening services, trusted accounting software, ACH payment providers and professional networks of licensed and insured Utah vendors are all items used regularly by Utah property managers. Make sure you have access to these powerful resources before you attempt to manage your own rental or you will soon find the cost of placing the wrong tenant will far exceed what you saved in management fees.

How Well Do I Handle Conflict?

Being a landlord means you must sometimes “be the bad guy” by enforcing the rules and this can be stressful. What will you do when your tenant continually pays late? What about when they throw multiple loud parties that force your neighbors to call the police? How will you react when they intentionally damage your property? How will you handle an angry or violent tenant who refuses to leave? These types of issues are common in property management and addressing them is certainly not a job for everyone. Make sure you are comfortable handling situations like these before attempting to manage your own Utah rental property.

 

Want to know if hiring a Utah property manager is right for you? Download our free owner information packet and you’ll have all the information you need to make the right decision.