Developments in the housing market in recent years created a perfect storm of growth in the Utah rental market. Economic factors and the 2020 pandemic have pushed heavy migration into the state; 2022 alone saw over 91,000 new residents move here. The rising cost of mortgages has pushed those new residents into the rental market.
Steady growth into 2024 has made the Utah real estate market highly competitive. If you’re a new property investor or someone whose portfolio is growing faster than expected, you might find yourself considering a Utah property manager for your rental. But how much will that property manager cost you?
We’re here to answer that question with a detailed breakdown of property management cost structures and what you get for your money.
What is a Property Manager?
A property manager in Utah is a company you hire to oversee the operations of your rental property. They can handle tenant relations, property upkeep, accounting, marketing, and more to ensure the success of your rental. Managing a rental can be a full-time job; property managers do the hard work so investors can focus on building their portfolios or other business ventures.
Property management companies come in different shapes and sizes as well. Full-service companies are great for an investor looking to have every aspect of their business handled for them. You can also look for tailored services if you only want part of the operations handled for you. There are even leasing-only companies that purely handle tenant placement.
Typical Fee Structures
If you enter into a contract with a property manager, you’ll agree to pay them certain fees for their services. These fees will typically be structured in one of two ways:
Percentage-based structures: This type of fee structure takes a percentage of monthly rent collected from tenants for payment to the property manager. These fees are typically 8-12% of the monthly rent collected. Percentage-based fee structures are usually utilized when full service is needed on the property monthly.
Flat-fee structures: This type of fee structure charges a flat fee for services rendered. You’ll often find flat fees charged for individual services offered outside of a service package. For instance, if you use a leasing-only service, the property manager might charge a flat fee for each lease secured. You also might pay a flat fee if you want an additional service not included in the package you’re paying for.
When searching for a property manager in Utah, you’ll find that the cost of a property manager will often be adjusted based on the different packages they offer. These packages will differ depending on the services offered and the type of property being managed.
Factors Influencing Property Management Costs
Several factors can influence property manager costs in Utah. This can extend beyond just the standard services offered and be influenced by aspects of your rental property itself. These factors include:
- Location within Utah (For example, if your property is in a suburb like Ogden or in the metropolitan area of Salt Lake)
- The type of property being managed (e.g. residential, multi-family, commercial etc.)
- The size and complexity of your rental property
- Any additional services needed for your rental that are outside of the normal packages offered
It’s important to get a detailed quote and have a consultation to go over your specific needs with any property managers you field. Property management costs are dependent on what you want out of it and your property’s unique features, so talk with any candidates in detail. We here at Wolfnest offer free quotes and details on our packages on our pricing page.
Additional Costs and Considerations
During your consultations with potential property managers, there’s more to weigh in property management costs than just the standard monthly fees. For instance, some property managers will have upfront costs associated commonly known as setup fees. Other property managers in Utah, like Wolfnest, will forgo these as a courtesy to their clients.
Other contract terms can be negotiated. Things like property inspections, eviction protection, and advanced marketing are common add-on features that you can pay for separately or get included in higher packages. Consider what you want for your property when deciding if you should pay extra for a few of these options or if it’s worth it for the higher package.
What Do I Get From a Property Manager?
With all the costs associated with property management, what do you actually get for your money? When you find the right fit for your investment property, you’re going to see a lift in your life as an investor and your property’s performance. Here’s a few of the best benefits of hiring a Utah property manager:
- Expertise and Local Knowledge: Property managers in Utah offer valuable expertise in navigating local rental laws, market trends, and tenant expectations, ensuring compliance and maximizing rental income.
- Tenant Management: They handle tenant screening, lease agreements, and communication, ensuring a smooth tenant experience and minimizing vacancies.
- Maintenance and Repairs: Property managers oversee maintenance and repairs, utilizing their network of reliable contractors to promptly address issues and maintain property value.
- Financial Management: They handle rent collection, budgeting, and financial reporting, providing transparency and ensuring consistent cash flow for property owners.
- Legal Compliance: Property managers ensure compliance with local and state regulations, handling eviction processes if necessary, and reducing legal risks for property owners.
- Peace of Mind: Ultimately, property managers provide peace of mind by handling day-to-day operations and emergencies, allowing property owners to focus on other investments or personal endeavors.
Find a Reliable Property Manager in Utah
Finding a reliable property manager is the most important step of the evaluation process. Once you’ve navigated through the services, packages, and fees that are right for you, you also have to make sure that your choice in Utah property management is going to make your investment better. For this, you have to pick a company with local experience and a track record of improving properties.
In Utah property management, there’s no one better than Wolfnest. We’ve made it our priority to stay at the cutting edge of property management to grow our client’s investments and stay ahead of the competition. We approach property management with an investor’s mindset, and the results from our clients make that clear.
Feel free to learn more about our exceptional services and schedule a consultation with us.
