Utah Property Management – Filling Units in a Tough Rental Market

Utah Property Management – Filling Units in a Tough Rental Market

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Minimizing a vacancy is the single largest cost cutting move a rental property owner can make. If an owner is not able to fill a rental quickly, it can affect the bottom line and adversely impact the cash flow generated. When an owner hires a property management company, he/she expects the vacancy to be reduced and a qualified tenant to be placed in the property ASAP.

So what measures does a property management company take to get your property occupied in the shortest amount of time? Below are different tactics that a property manager will use to fill your property in the shortest amount of time:

 

  1. Reduce the security deposit  – Although it is always prudent to collect a sizable security deposit, requiring too much may limit the pool of prospective tenants. Instead of requiring a tenant to pay a security deposit in addition to first and last months rent, a property management company may consider only collecting a security deposit equal to 1 months rent. This will increase the number of potential tenants interested in renting your property.

 

  1. Lower rent to slightly below market value – Although renting your property for less than market value will net you less money each month, having your property vacant for 2-3 months is a loss that you will never make up. Renting your property for slightly less than market value will also generate more qualified applicants, in addition to enticing a tenant to remain renting your property for longer as they are receiving a good deal.

 

  1. Utilize good property management software – A comprehensive property management software will allow the property manager to stay on top of all vacancies and have them processed in a timely manor. This also allows the manager to track all rent related costs including marketing, maintenance repairs, and cleaning.

 

Although paying a property management company to manage your rental property may seems like a cost you would rather not pay, if the company is able to significantly minimize your vacancy, you may want to consider hiring one. If the company can save you 2-3 months of vacancy a year, they have more than covered the fees you will pay.

 

Having trouble filling your vacant rental? Download our free owner information packet and find out how we guarantee you a new tenant in 30-days.

Tips for Handling Problems with Your Rental

Tips for Handling Problems with Your Rental

I always advocate addressing problems proactively, especially when it comes to rental properties. However, no matter how much you plan ahead, unexpected issues will arise and require swift action. Here are some tips on how to deal with bad tenants, local government and even the police.

Respond immediately – It’s human nature to hope that problems will just go away, but ignoring most problems will only make them worse. Instead, make immediate contact with whoever brought the issue to your attention and let them know that you will deal with the problem swiftly.

Understand expectations – The same way there are two sides to every story, there can often be two versions of what “fixing the problem” means. Make sure that you understand what the other party expects of you to correct the issue and always share your concerns as well.

Communicate effectively – Problems can quickly become emotional and escalate, so it’s critical that you remain calm when addressing issues with your rental property. You will often find that the other party will adopt your calm demeanor as well, making a mutual resolution easier. Also, don’t think that a single call or email is all that is needed. Be sure to follow up and make sure your resolution is acceptable.

Be professional – This may seem obvious, but it is the single most important element in dispute resolution. Treat the other party respectfully and commit yourself to a resolution. A good way to think of professionalism is to imagine you are at work. People often handle problems in the workplace much better than those in their personal lives.

Whether you are talking with a troublesome tenant or a city inspector, it is important that you deal with every issue swiftly and respectfully. Applying these simple steps to your conflict resolution will make the problem easier to solve and will ensure the long term profitability of your income property.

Advertising Tips for your Utah Rental

Advertising Tips for your Utah Rental

Nothing puts a landlord on edge quite like a vacant unit. With no income coming in and expenses piling up, most want nothing more than a phone call from a qualified prospect to put their mind at ease. Sometimes getting your property rented quickly is as simple as well written ad copy and strong sales skills. Use these tips when marketing your vacancies.

 

Start with the basics – Good copywriting is certainly an acquired skill, but you’d be surprised how often even basic information is missing from Utah rental property listings. Always include the rental amount, property address, and property specifics like bed/bath and square footage.

 

Highlight features and benefits – Even the least desirable unit has some benefits and it’s your job to discover and highlight these. Top floor units typically have views, ground floor units are easily accessible without stairs, and homes on a busy street are closer to bus lines and freeway entrances. Every property has something that makes it unique and attractive.

 

Provide lots of information – The more details your provide, the more a prospect knows if your unit is the right fit for them. Items you should provide include detailed photos, lease terms and deposits, application process details, etc. Being this specific may limit your total number of showings, but you’ll find that the prospects who do contact you are much more qualified.

 

Sell to your audience – When showing your vacancies, try to point out features that will be important to each individual prospect. If you are showing the home to parents with young children, point out safety features like a fenced in yard. If your prospect is a student, highlight how close the unit is to public transportation that goes by the university. By tailoring your presentation to your audience, you will find your vacancies being filled faster.

 

Having unoccupied rental units can be very stressful for Utah landlords, but there are some simple things you can do to help fill them quickly. Follow these tips next time you post your vacancy and watch how quickly it gets filled.

Why Should I Hire a Property Management Company?

Why Should I Hire a Property Management Company?

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One of the first questions you may ask yourself once you have purchased an investment property is “Should I hire a property manager or manage the property myself?”.

While many owners may feel that the monthly management fee is just a waste of money, the truth is a great property management company can be worth their weight in gold and save the owner a substantial amount of money in the long run.

Once an owner has invested in a rental property, the responsibilities associated with managing the property can become quickly become overwhelming. Furthermore, the owner may realize that he/she just does not have the time to handle all of the issues that arise when managing a rental property.

So what can an owner expect to receive for the management fee that they pay each month? Below are some of the benefits you can expect to receive by working with a property manager:

  • The number one advantage to using a Utah property management company is the time the owner will be saving. There is a lot of work that goes into finding a tenant for a property and getting it rented out, including marketing the home, showing prospective tenants through the home, running a qualified background and credit check, following up with past references for the applicant, and signing the lease agreements. After the tenant has moved in, there is a substantial amount of work required, including: collecting rent each month, handling all maintenance issues associated with the property, and performing periodic inspections.
  • Property Management companies are also very valuable resources with regards to knowledge of the industry. A good property management company will be well versed in local, state, and federal regulations. By keeping the property in compliance with these rules and regulations, a property manager will help protect the owner from any lawsuits. In addition, a great property management company will have an expertise on rental rates within that market. If an owner has not completed the proper research, he/she may cost themselves thousands of dollars in potential rental income.

You may think that you do not need to hire a property management company and that this will not require a lot of effort, but I implore you to ask yourself these questions:

 

  1. Do I have the time the required to manage this property and dedicate the effort that this will require?
  2. Do I have an understanding of all of the rules and regulations that are associated with managing my rental?
  3. Do I know the maximum rental rates for my property?

 

If you answered “no” to any of these questions, you may consider employing a property manager. Download our free owner information packet to find out how we can help.

Is Your Property Management Company Doing Their Job?

Is Your Property Management Company Doing Their Job?

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If you have hired a property management company to handle all issues relating to your investment property, you always hope that you have employed the best company for the job. This company should handle the leasing, maintenance, and tenant issues relating to your property and always ensure that your best interests are included in every decision made.

Unfortunately, not all property management companies are created equal. Often times a property management company will promise an owner the world to lock them into a long term agreement and then proceed to neglect his/her needs.

So how can you tell if your Utah property management company is doing their job? One of the primary indicators is your tenants. If they are constantly contacting you instead of the management company with regards to paying rent or having maintenance issues resolved, your property management may not be managing your investment to the best of their ability.

You will want to have a conversation with the tenant to determine if they are contacting the management company first with these issues. If they are not, you will need to explain the process to them. If they are contacting the management company and are not receiving a response, you may want to re-evaluate the manager you are employing.

The second indicator if a property management company is doing their job is your neighbors. If they are contacting you about the lawn not being maintained or the weeds being overgrown, you may want to reach out to your manager. These are issues that would be easily discovered if the management company was performing routine inspections.

I always try to give the property management company the benefit of the doubt until they give me a reason to do otherwise. It is very prudent to communicate your issues to your property manager and always try to get his/her side of the story before jumping to conclusions. If the issues persist, never be afraid to look for another company. You pay a lot of money to have someone manage your investment and deserve to be completely satisfied.

 

Want to know if your property manager is doing a good job? Download our free owner information packet and compare the level of service we provide with that of your current management company.

How Property Managers Find the Best Tenants

How Property Managers Find the Best Tenants

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Anyone that has ever owned a rental property will tell you that the tenant that they entered into a lease agreement with has often defined their experience as a landlord. I wish I could say that every tenant paid rent on time every month, always kept the home clean, and never broke anything, but unfortunately this is not always the case.

If you have ever been in the position of having to evict a tenant, you know that dealing with a bad tenant can be very painful experience. The process can drag out over the course of several months and you may find that your property was not taken care of.

So what can you do to ensure that your property is only rented to quality tenants? Hiring a good Property Management Company can help to eliminate the risk of renting to a bad tenant.  Many people feel that they should not pay someone to do a job that they could do themselves, but the truth is, if a property management company can help an owner avoid entering into an agreement with a bad tenant, they are worth every penny that you will pay them.

So how will a property management company find me a quality tenant? Property managers will complete due diligence on every potential tenant that may rent your property. Three of the most common checks are:

  1. Background Check – A good property manager will perform a thorough background check on anyone that is interested in renting your property. This will help you to identify anyone that is a convicted criminal and avoid entering into an agreement with such individuals.
  2. Credit Check – Reviewing a potential tenant’s credit report may be one of the most important actions you take before entering into a lease agreement. If the potential tenant has a poor FICO score and has had past issues paying his/her bills on time, you will probably not want to enter into an agreement with this individual. A good property manager will review these credit reports and advise of any issues.
  3. Landlord References – It is always prudent to follow up with a potential tenants past landlords to determine if he/she had any issue with other properties that they have rented. If the tenant broke belongings in the previous unit, you may be hesitant to rent to this person for fear that they may destroy your property. A good property manager will reach out to all former references of the potential tenant.

No one can ever guarantee that a tenant will be good or bad, but you can take steps to reduce the risk of renting to a bad tenant. You may want to consider using a property management company to help you do the necessary research in finding a quality tenant.

 

Learn more about the steps we take to find you a qualified tenant by downloading our free owner information packet.