How Utah Property Management Services Actually Save you Money
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:
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.