Questions to Ask a Property Manager Before Hiring In Utah

Questions to Ask a Property Manager Before Hiring In Utah

Questions to ask a property manager before hiring

Hiring a property manager or company is a big investment. Property management is complicated and fast-paced. It takes talent, dedication, and a unique skill set to succeed in the industry. Because of this, you’ll want to make sure you are choosing the right manager for your properties. In order to be completely confident in your choice, it is important to put together a list of questions to ask a property manager before hiring them.

Through these interview questions, you will be able to determine a little bit more about the property manager’s experience, knowledge, and ways of doing business.

Types of Interview Questions for a Property Management Company

There are a few main categories of questions to ask a potential management company for your Utah rental property. You will want to find out about their experience, including their understanding of Utah landlord-tenant law. Each state has different regulations and laws, so you will want to make sure the property manager you choose knows the area well.

You will also want to ask about their methods for managing rental property. The way a property manager chooses to operate will help you foresee what types of tenants will be living in your rental property, how maintenance will be handled, and how vacancies will be filled. It’s important to know these things before signing an agreement so that you and your property manager are on the same page about your property.

Understanding any additional fees they may charge, and how termination works is also important when choosing a property manager. You never want to be stuck in a contract with no way out.

Lastly, communication is the key to any great relationship, so you will also want to know how often and through what methods you will be contacting your property manager. Through these questions, hopefully, you will be able to better determine what kind of property manager is the right fit for you.

Property Management Experience Questions

Experience is about more than just how many units are managed. Ask about any formal training, applicable state licenses, the Utah eviction process, Fair Housing restrictions, what industry associations they are a part of, or how long they have been managing rentals. These types of questions will help you identify if your property manager has a solid foundation of experience to draw from when facing challenges.

Keep in mind, however, that the oldest property management company isn’t always the best. You want a property manager who keeps up with the industry’s best practices and is always on the lookout for what’s new and innovative. For example, Google wasn’t the first search engine, but their groundbreaking features and increasing market share indicate they are the one people prefer to use.

Here are some examples of questions to ask a potential property management company that will help you gain an understanding of their experience and commitment to their clients:

  1. Are you a licensed property manager?
  2. Do you have any certifications?
  3. How long have you been managing properties?
  4. How many properties are you currently managing?
  5. What types of properties are you currently managing?

Interview questions for property management company

Property Management Method Questions

Once you understand the experience level of a property manager or property management company, you’ll want to know the methods in which they manage their properties. This will help you further decide if it is a good fit, or if you should keep looking. Ask open-ended questions about how they manage rental properties. A few examples might include:

  1. What do you see as the key factors in keeping a rental property profitable?
  2. How do you determine a property’s rental amount?
  3. What systems do you have in place to effectively handle maintenance issues?
  4. Who handles the maintenance work?
  5. How do you collect rent from tenants?
  6. How do you market vacant properties?
  7. What are the income and screening requirements for applicants?

Answering questions like these will take some thought on the part of your property manager and you will quickly see how well your Utah property management company knows their industry.

Property Management Termination Questions

One other important question to ask a property manager before hiring is whether the management agreement will include a termination clause. Many property management companies offer a “satisfaction guarantee” that will allow you to cancel the agreement if you are not happy with the service. This helps prevent you from entering into a long-term agreement only to find out you are unhappy with the service.

Property Management Contact Questions

Communication is another important management issues to inquire about. Ask about office hours, how long before they return phone calls, or what type of regular communication you can expect. Typically, a property manager who communicates well will also manage your Utah rental property effectively.

Finding the Perfect Fit

In the end, it’s all about finding the property manager that is right for you. These interview questions for a property management company will help you gain a little more insight into how the manager or company run their business and if it’s a good fit. At Wolfnest, we understand how important this relationship is, and that’s why we pride ourselves on giving owners what they want and need for a successful rental property. With Wolfnest, you can customize your management plan by picking and choosing the specific services that you need. If you are looking for a Utah property management company who will work with you and create a lasting relationship, contact us today.

Why Every Landlord Should Charge Rental Application Fees

Why Every Landlord Should Charge Rental Application Fees

Why Every Landlord Should Charge Rental Application Fees

Once thought to be a tool to price-gouge future residents, rental application fees have actually proven their worth. In 2006, Utah’s Rent Control Prohibition Act was amended to add a list of fees that are set by the market and cannot be regulated or prohibited by the local government. To renters and non-landlords, this change could be seen as a potential money grab by landlords and property management companies. However, in the years following the amended act, rental fees have proven to be well worth it. There a variety of reasons landlords should be charging rental application fees. Overall, it is only beneficial for you as a landlord to begin requiring this fee and we have a few simple reasons as to why.

Why Do Apartments Have Application Fees?

The most common reasoning for this type of fee is generally to cover the expense of conducting a thorough background check. This typically includes:

Pulling a credit report

Reviewing any criminal history

Checking the sex offender registry

Conducting financial qualification

Reviewing any rental history

Background checks may not seem that important, but they are actually extremely helpful to landlords and beneficial to renters. When proper and thorough background checks are conducted the result is lower crime rates. Landlords are more likely to conduct these background checks if they charge fees that cover the cost. If renters are hesitant to pay this fee, it’s good business practice to inform them what this payment is going towards and that if they are rejected, it is refundable. The purpose of rental application fees is not to provide additional income to the landlord, but to screen applicants to ensure responsible tenants.

What is the average application fee for an apartment?

How Much is the Average Application Fee for an Apartment?

While this fee varies from state to state, renters can expect to pay anywhere from $30 to $60. As stated earlier, this pricing is determined by the market and is not dictated by the local government. That means this price can and should fluctuate as necessary. However, it’s in a landlord’s best interest to make it well-known to future renters that this fee is typically per renter over the age of 18, and is not a flat fee for everyone who will be living in the home. Being upfront about all upcoming and existing fees is best practice for successfully managing a property.

Why Are Rental Application Fees a Good Idea?

While there are many benefits for charging application fees, we have three top reasons for this extra charge.

Reduce Risk

This is a broad reason that encompasses many things, but it is important. By placing qualified tenants, you reduce the risk of damage to your property and the property of your other tenants. A successful background screening will bring up reasons why you wouldn’t want an individual renting from you. If they have a poor renting history, you can find this out before it’s too late and your property ends up being ruined. With a criminal background check, you can also reduce the risk of anything happening to your other tenants. A simple fee can save you thousands in damages later on down the road and gives you peace of mind from the first day a new tenant starts renting from you.

Reduce Costs

Unfortunately, thorough background checks aren’t free. Requiring one for every prospective tenant can add up very quickly and you’ll be the one footing the bill. Unexpected fees happen in property management, but this is a cost you can prevent. Requiring future renters to pay for their own screening makes running your business more cost-effective and will save you money in the long run.

Deter Unqualified Renters

Sometimes the rental application fee can serve as a qualifying process by itself. This ultimately saves you time by weeding out potential tenants who don’t think they will qualify before they even fill out the application. Not only do you save money, but this also makes you renter screening process more efficient. When you’re upfront with all prospective renters about the fees that will be required, you gain the trust of those who will qualify and give unqualified renters a chance to find another home.

Why do apartments have application fees

Rental Application Fees Are Important and Necessary

So, by now you should see why application fees are critical to successfully managing any property. At Wolfnest, we take care of the screening, fees, and everything else in between for you. This gives you less time to worry about your rental property and more free time to spend with family, take vacations, and pursue other hobbies. We require an application fee for all future renters and look into a variety of other types of criteria such as employment, income, and credit history. Our goal is to keep your rental property or apartment in prime condition with tenants who feel the same way. We want you to get the most from your investment and we’re here to help achieve that goal. At Wolfnest, we take care of all the small details you may not have time to look into and ensure that your property will be well taken care of. So, a great place to start is requiring a rental application fee and finding the perfect renters for your building or home. Learn more about other property management services we provide and contact us today!

5 Essential Qualities of a Rental Property Management Company

5 Essential Qualities of a Rental Property Management Company

rental property management

While some property and homeowners may believe that all residential property management companies are created equal, this is not the case. Any owner that has had a bad experience with property management can attest to this. It may seem like an owner may save money by employing the management company with the lowest rates, but they risk losing so much more in the long run. That’s why it’s important to put your rental property management in the best hands from the beginning. At Wolfnest, we believe in transparency and exceeding expectations. So, we’ve compiled the top five qualities you should look for when hiring a rental property management company.

Qualities to Look for in Rental Property Management

There are a lot of different factors to consider when choosing who will handle your rental property. While all are important, we have narrowed down the top five that we consider the most important and that will make the biggest difference in your property management experience.

Good Communication Skills

This may not seem that important, but good communication is very important in property management. A great property management company should be able to articulate what is happening with your property at any given time. The property manager interacts with many different people, including tenants, owners, and maintenance partners. So, the manager must be able to keep all parties on the same page. This is especially critical since many times these individuals might be frustrated or angry about something happening at the property. When dealing with these types of situations, it is imperative that the property manager remains calm and respond in a professional manner. If you feel like you can’t talk to your manager, why would you want to put them in charge of the day-to-day of your property? Open and easy communication is the first attribute to look for in a rental property management company.

Honest and Ethical

Since the property management company is collecting rent, security deposits, and other expenses, owners have to put a great deal of trust that the manager will always look out for their best interest. When the management company is hired, they are agreeing to uphold their fiduciary duty and perform the job with the highest level of integrity. This is why it is crucial that the property manager you hire will always consider your needs when making a decision about your property. With good communication skills, you should be able to establish the level of trust needed between you and your rental property management company.

Excellent Follow-Up Skills

In business, it’s extremely important to stay true to your word and do what you say you will. Unfortunately, this is not always the case. If a property manager says they will look into a maintenance issue and get back to you later that day, you expect them to follow-up. When you’re putting your property into the hands of someone else, you expect to be kept in the loop. It can be difficult to let go of control of your property, but sometimes it’s necessary when you have a busy schedule. So, always determine how efficient the company’s follow-up skills are before hiring them. This way, you’ll know what you’re getting into and can find the best property management company for your rental.

Valuable Maintenance Partner Relationships

Unfortunately, something will break and inevitably need to be fixed with every rental property. As an owner, you should have peace of mind knowing your property management company has relationships in place to have these issues resolved correctly and in a timely manner. You should also feel confident enough in the property management company to keep existing relationships you may already have. Maintenance is simply a part of owning any rental property, and part of hiring a management company is transferring the responsibility to them. So, just as you should trust your manager to be honest and ethical, you should also trust them when it comes to valuable maintenance partner relationships.

Knowledgeable on Rules and Regulations

Many owners may not realize there are many local, state, and federal regulations you must adhere to when renting a property. If these are not compiled within the leasing agreement, an owner may be opening themselves up to future lawsuits. One of the perks of hiring a rental property management company is they have knowledge of these regulations. At least, they should. This is an important factor to consider when choosing your property management company. They should already know about these regulations, and how to adhere to them. So, in order to protect yourself in the long run, find a property management company that knows all the ins and outs of the different renting regulations.

Rental Property Management Company

Finding the Right Rental Property Management

While these are the top five qualities to look for, these aren’t the only things to consider. The most important part of finding the right property management is doing your research. It is critical to know what you’re getting into before going into business with a property management company. However, keep these top five qualities in mind:

  • Good communication skills
  • Honest and ethical
  • Excellent follow-up skills
  • Valuable maintenance partner relationships
  • Knowledgeable on rules and regulations

These are a great starting point for anyone looking for a property management company for the first time or reevaluating your current management. So, if these qualities do not describe your current property manager, Wolfnest is here to help. Download our free information packet to find out how we can improve the performance of your rental property.

Remodeling Your Rental Property in Utah

Remodeling Your Rental Property in Utah

remodeling rental property

“You have to spend money to make money.” This is an old, common phrase you have probably heard several times. While this can apply to a variety of different businesses and ventures, it is especially true when you begin investing in rental properties. Prospective renters are looking for reasonable rent, especially in Utah, but that doesn’t mean they want to sacrifice amenities like new appliances or hardwood floors. Before you start listing your property for rent, you may want to consider how you can improve your rental.

At Wolfnest, we understand that it can be difficult to dedicate funds to improving an investment that may already be producing for you. However, this can be one of the most important decisions you can make. If you spend your money wisely and remodel your property the right way, you could cover the cost of the remodel in a few short months while increasing your cash flow.

Let’s break this down with an example. Last year, I spent $2,000 on upgrading features and overall remodeling my rental property. As a direct result of renovating the rental property, the monthly rent of my property went from $1,000 to $1,250. By increasing my monthly cash flow by $250, I was able to cover the cost of the property remodeling in eight months, and pocket an extra $1,000 for the remaining four months of the year. So, taking the time to renovate your property can pay off big in the long run.

Remodeling Your Rental Property Inexpensively

While a total overhaul may be necessary in some cases, other times simple, inexpensive upgrades can be sufficient. So, what are some ways you can upgrade your rental property and maximize your rental income?

Replace Door Handles

It’s no surprise that home trends come and go. Some can be difficult to keep up with, but others are a relatively quick fix. One of these is simply upgrading your door handles from an outdated brass to a more contemporary brushed nickel. Brass door handles are typically found in older properties but have fallen out of style and use in new homes. Since you need to change the lock from tenant to tenant anyway, replacing all the handles throughout a property is a simple additional task. Brushed nickel will automatically give the home a fresher look, and update the property overall.

Upgrade Light Fixtures

Depending on what kind of lighting your property already has, this can be a quick fix or a slightly more intensive project. However, lighting can make all the difference. Replacing dated light fixtures with a more modern look can brighten up particular areas within the home. This can help to showcase great accents that you want to be noticed, such as a breakfast nook or other architectural features. Make any property more modern with a simple light fixture upgrade.

Apply a Fresh Coat of Paint

A new paint job is one of the simplest methods of property remodeling. Whether it’s a brand new color or an upgrade of the existing paint, a fresh coat of paint can bring life to any rental property. In addition, you can install new crown molding and instantly give the property a higher-end look. Another option is simply painting the existing crown molding to brighten it up, and draw attention to this particular feature. When it’s as simple as applying some fresh paint, remodeling your rental property is a no brainer.

Completely Renovating a Rental Property

If your property needs a little more intensive remodeling, you can start with small renovations. There are two major areas of the home that we recommend renovating first: the kitchen and the bathroom. These are two areas of the home that are important to renters and can help bring your property to the next level.

The Kitchen

When you start renovating the kitchen, there are a few areas we suggest focusing on first. These include:

        • Replacing laminate flooring with tile
        • Painting the cabinets
        • Upgrading appliances to stainless steel

Upgrading and replacing a few of these things can easily transform a kitchen and make it look brand new. This is a great option for older properties that may not have other amenities available.

property remodeling

The Bathroom

The bathroom can make or break a property for some renters. Cleanliness is very important, and it’s no secret that the older some features are, the dirtier they can look. A few easy upgrades for this section of the home include:

        • Re-tiling the bathtub/shower
        • Replacing laminate countertops with granite
        • Upgrading the showerhead

There are many different things you can do to transform a bathroom, and this is just the beginning. Upgrading parts of the bathroom over a longer period of time helps lower the initial cost. However, some updates are so simple you could have them done in an afternoon.

Why Property Remodeling is Important

Spending the money to remodel a rental property may seem impractical, but I assure you it can be very beneficial if you upgrade the right areas. Whether it’s a simple upgrade or a complete overhaul, any and all updates will only benefit you in the long run. Start with seeing what other owners have done to homes in the area, so you know what is important to renters in your neighborhood. This will also give you a great starting point, and you can plan your renovations well ahead of time. Keeping your property up-to-date will also be lower maintenance requests since you’ll be getting ahead of any broken appliances or other similar issues. As your property management company, Wolfnest is happy to help you decide what to upgrade while running your day-to-day operations. Learn more about our property management services and how Wolfnest can help you transform your rental property.

5 Questions for Your Property Manager

5 Questions for Your Property Manager

Man searching online about property management and questions for property managers.

Finding a good property manager is a difficult task, but it may be one of the most important decisions that you will make after purchasing your rental property. Renting a property can be a significant investment, so you want to hire someone that you can trust completely.

Responsibilities of a Property Manager

Before you begin your journey of finding a good property manager or considering various questions for property managers, you should understand what the responsibilities of a good property manager are.

Rent

First, the property manager oversees rent collected from tenants. With their knowledge of the market where the property is located, they can set the rent at an appropriate level for the property type and location. They will also set the date that rent will be collected and make sure tenants are paying their rent each month. Finding a good property manager will mean that you don’t have to worry about setting or collecting rent from your tenants unless you want to.

Tenants

Property managers are in charge of finding and screening potential tenants. This includes running ads for any vacancies at the property, running credit checks and criminal background checks on potential tenants, setting and handling lease terms, and more. Property managers must have the time and commitment to stay on top of all of these tasks for a successful rental property.

Maintenance and Repairs

Your rental property needs to be kept in safe and habitable conditions and your property manager is the one to determine if this objective is being met. They will see to any maintenance or repairs that need to be handled. However, various property managers operate differently when it comes to maintenance, so pay attention to our questions for property managers below to make sure you and your property manager are on the same page.

Property managers have many other responsibilities, but these are a few of the main ones. Now that you know what your property manager will be handling, the process of finding a good property manager can actually start. Often, finding a good property manager begins by interviewing various property managers and property management companies.

A smiling woman in a business suit representing a property manager.

Interview Questions for a Property Management Company or Manager

So once you begin the process of setting up interviews for potential property managers, what are the most important questions that you should ask in the interviews? Below are five questions to ask property managers before hiring.

1. What do you charge for a management fee?

This may seem like the most obvious question, but it is one of the most important questions for property managers. Property management companies typically charge between 4-10% of the gross monthly rents collected. Some companies charge additional fees, while others only charge the monthly management fee. You will want to discover exactly how much the property management company will be charging you. You don’t want to be hit with unexpected fees after you have entered into a contract with a manager or company. Make sure you are very clear with your property manager on how much you will be paying for their services.

2. What screening is done on potential tenants?

One of the main reasons to hire a property management company is to mitigate the risk associated with entering into a lease with a bad tenant. A good property management company will conduct a thorough background and credit check, as well as verifying all references. This will help ensure that only quality tenants will be living in your property. So, make sure that you ask potential managers how they screen potential tenants. Finding a good property manager means making sure that the tenant screening process is extensive and up to your standards.

3. Does your management agreement include a termination clause?

The last thing that you want to do is enter into a long-term agreement with a property management company only to find out that the property manager is not holding up to their side of the agreement. A quality property management company is confident in their service and will offer a “satisfaction guarantee” that will allow you to cancel the agreement if you are not happy with the service. Without a termination clause, you may be stuck in a contract that you are unhappy with. Don’t let this happen to you- make sure you understand the type of contract you will be entering into before you decide to hire.

4. How many properties does your company manage?

Keep in mind, there is no right or wrong answer to this question for a property manager or company. If the property management company manages several hundred properties, you will know they are successful and have been in business for some time. If the company is smaller, you can expect superior customer service and a more personal relationship with your property manager. You will need to decide which is most important for you as an owner, but the most important thing is that the company has adequate staff to handle their inventory. If the company has a large number of properties you will want to make sure that their firm has the time and resources to handle your property. You never want a property manager who isn’t fully committed to your rental.

5. Will the property management company authorize maintenance requests without consulting the owner?

A good property management company will authorize maintenance requests under a certain dollar amount, without consulting the owner. This allows the management company to maintain the property without having to bother the owner every time there is an issue. Obviously, the company will obtain permission from the owner anytime there is an issue that is going to cost the owner a significant amount of money. When interviewing potential property managers, make sure you understand when they will handle a maintenance request without consulting you. If you have a specific dollar amount in mind, know that they will abide by that number. This will ensure that your property is kept safe and habitable without you having to worry about too much of the maintenance.

Finding a Good Property Manager

These questions will help you find a good property manager that is clear and transparent in his or her services. It is important to find a property manager who you will work well with and that you trust. Your rental property was a large investment, so make sure that it is being cared for in the exact way that you want. Here at Wolfnest, we pride ourselves on giving rental property owners what they want. We let you customize your management plant by picking and choosing only the services you need. This separates us from other Utah property managers, so contact us today to learn more about how we can help manage your rental property.

How To Guarantee The Best Property Management Company

How To Guarantee The Best Property Management Company

Not every property management company is created equally and finding a good manager can be tricky. Here are three simple interview questions on which you can ask a qualified Salt Lake City property manager that most people wouldn’t think to ask. You can always add more as you continue your screening process but asking these questions will help you learn a lot about the person you are hiring so that you can make the best choice possible.

rental properties in utah

1. Does your Salt Lake City property management agent own rentals themselves?:

If the answer to this question is no, then be cautious. Effective rental property management is about blending knowledge with experience, and if someone isn’t committed enough to “own their own product” so to speak – then that should be a giant red flag.

2. What technology does your Salt Lake City property management agent use?:

Like many industries, the management industry has been revolutionized by new technology that improves efficiency and reduces costs. Managers who use services like management software, advertising syndication, and automated showing systems are providing their clients with a level of service that old school managers simply can’t match. This will help you save money and time.

3. Is your Salt Lake City property management agent lenient with tenants?:

If so, I promise their leniency will soon become a problem for you. Tenants will start to pay at their convenience, violate the rules, and generally do what they please if there are not strict consequences for bad behavior. For example, it’s common for a manager to waive a late fee, in order to “be nice”. The problem is that by doing so, they are really only encouraging additional late payments because the tenant has faced no consequences. Stop the problem before it even begins by enforcing rules.

These are only a few of the questions you can ask your potential property manager but these ones are arguably the most important. It is essential to have an understanding of who your property management company is before signing any contracts. Your home is one of the most important aspects of your life and it is advisable to hire the most trusted property management company. If you’d like to learn more about how to qualify a Salt Lake City property management company, then contact us today.

How Salt Lake City Property Managers Screen Tenants

How Salt Lake City Property Managers Screen Tenants

How Salt Lake City Property Managers Screen Tenants - Wolfnest Property Management - Salt Lake City Property Management

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When interviewing Salt Lake City property management firms to decide who will take the best care of your rental, make sure you inquire about their tenant screening process. Taking the time to thoroughly investigate the credit worthiness and rental history of prospective tenants is essential to operating a profitable rental property, and the manager you choose should be able to explain the process to you. Salt lake City property managers should do all of the following when screening tenants:
property management utah

1. Criminal Background Check – A good first step when investigating potential tenants is to check for a criminal history. The opinions of Salt Lake City property managers will vary about what types of offenses are the most relevant, but cases involving drugs or violence have a tendency to repeat themselves.

2. Credit Check – Credit history is another important area to review during the application process. Some property managers in Salt Lake City go strictly by the score, others will look beyond the score and check payment history, amounts past due, and the ratio between outstanding balances and credit limits to estimate the monthly debt service. Make sure the rental property manager you hire has a policy in place and follows it.

3. Income and Employment Verification – It sounds obvious, but making sure your tenant has a verifiable source of income and can reasonably afford their monthly rental payment is the most important part of the screening process. Most Salt Lake City property management companies follow the 3x rent rule and require residents to have at least one year of employment at their current job.

4. Rental History Check – Ask any Salt Lake City rental property manager and they’ll confirm that accurately verifying rental history is difficult. Tenants don’t provide contact information unless they know a reference will be positive, and as a result, many routinely provide false information. If however, you can speak with a former landlord, the reference will provide valuable insight into what type of tenant you can expect.

Most professional property managers in Salt Lake City will investigate these four areas with prospective tenants because doing so will drastically reduce the number of “bad tenants” they place. Make sure the management company you choose places an emphasis on tenant screening, or you’ll be learning the most valuable lesson in owning rentals: There is no substitute for a good tenant.

 

If you’d like more tips on how to avoid placing bad tenants in your Salt Lake City Rental property, then contact us today!

Types of Salt Lake City property management companies

Types of Salt Lake City property management companies

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Salt Lake City property management company pricing structures

 

While every Salt Lake City property management company sets their own pricing, most companies tend to fall into one of two categories. They will either charge a flat rate to cover a variety of services or they will charge you a fee for each unique task performed. Let’s examine the pro’s and con’s of each type.

Flat fee pricing structure

Advantages: With flat fee pricing, you know exactly what you will be charged every month. You can take comfort knowing that all of the necessary tasks are being handled and that the cost to you won’t change based on the amount of work being done.

Disadvantages: You are paying the same amount each month regardless of what work is being done. Salt Lake City property management companies know that most of the “work” takes place when the property is vacant. Once a tenant move in, your manager is probably doing little more than processing payments and fielding the occasional maintenance call.

Fee based pricing structure

Advantages: With a fee-based structure, you only pay for work that is actually being done on your behalf. You don’t need to worry that you overpaid for the services you actually received. If you have a “low maintenance” property with good tenants, then you will likely benefit from this type of pricing.

Disadvantages: Your Salt Lake City property management costs will fluctuate based on the work required for your property. If your property requires a lot of attention or you have problem tenants, then your management costs could get out of hand.

As you can see, there are advantages and disadvantages to each type of pricing structure. The option that’s best for you will depend on the specifics of your rental property and your unique management needs. Learn more about how our pricing structure can meet your needs by clicking here.

Salt Lake City Property Management Costs

Salt Lake City Property Management Costs

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How much should you pay your Salt Lake City property management company?

 

This is a common question, and if you talk to 10 different managers you’ll likely get 10 different answers. Pricing structures will vary and the answer usually lies in what services they are providing. Let’s review a few common services provided by Salt Lake City property management companies.

Basic Services – Basic Salt Lake City property management services include advertising, conducting showings, screening applicants, providing legal forms, negotiating the lease with your tenant, collecting rent, providing statements and coordinating maintenance. These services are usually categorized as “management fees” and you can expect to pay 7-10% of collected rents. Make sure you ask exactly what services you’ll be receiving and get everything in writing.

Fees – Most Salt Lake City property management companies will have additional fees above whatever their management fee percentage may be. These fees are typically charged for signing up or setting up your account, placing or renewing tenants, marketing, performing inspections or annual charges. Fees may range from $30 to $500 or more for some leasing charges. Make sure you know exactly what fees your property manager charges and how much they cost you.

Other Charges – There are a lot of different scenarios that can occur during a lease term and most Salt Lake City property management companies will include language in their agreements to cover them if work is required that goes beyond the scope of their management agreement. These include evictions, court appearances, cases of abandonment, and other reasons. Be sure to read the entire agreement before you sign so these types of charges don’t catch you by surprise.

At the end of the day, management costs will vary between companies and the key is to hire whichever manager makes you the most comfortable. A few extra dollars per month is a small price to pay for quality management. If you want to discuss our pricing structure, please contact us today.

What will demand look like for Salt Lake City Rental Property Owners in 2015?

What will demand look like for Salt Lake City Rental Property Owners in 2015?

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Salt Lake City rental property demand projections for 2015.

While predicting the future can be a humbling experience, the experts at real estate investment firm Marcus and Millichap are always willing to give it a shot. They recently released their 2015 outlook for the Salt Lake City multi-family rental market and have good news for Salt Lake City rental property owners. Here are their forecasts for several key metrics:

Rental Rates: According to their analysts, “Following a 3.0 percent rise last year owners will lift rents an additional 2.8 percent in 2015 to $892 per month.” This is music to the ears of Salt Lake City rental property owners. 2014 was a great year to own rental property, and if their projections hold true, 2015 should be similar and owners can expect even more rent increases.

Vacancy: Their experts said, “Supply will edge out demand this year, pushing up vacancy 40 basis points to 4.4 percent. In 2014 vacancy fell 70 basis points.” Salt Lake City rental property owners enjoyed near record low vacancy rates in 2014 as strong job growth brought many new residents to Salt Lake. However they estimate that while rates will remain low, owners can expect an uptick in vacancy due to excess supply. Approximately 2,700 new rentals came online in 2014 and they project another 2,500 in 2015.

Employment: Their report predicts, “Payrolls will expand by 30,000 positions this year, a 2.7 percent increase. Last year, 28,000 jobs were created.” This might be the best news yet for Salt Lake City rental property owners as a strong job market is one of the best economic indicators for a stable rental market. Even more importantly, they project “The population of 20- to 34-year-olds, the primary renting cohort, is anticipated to increase 1.6 percent by year end, four times the national average.”

In conclusion, their report indicates that 2015 will likely be another great year to own rental properties in Salt Lake City. In fact, Salt Lake ranked 21 nationally on the NAI index for 2014, and will remain one spot outside of the top-20 in 2015. This means that their experts predict there are only a handful of “better” markets in which to own rental property than Salt Lake City.

If you’d like to learn more about the Salt Lake City rental market, then contact us today.