Moving Out of Salt Lake City – Should You Rent or Sell?

Moving Out of Salt Lake City – Should You Rent or Sell?

When you’re moving out of town or having trouble selling your home you face a common conundrum: should you rent it out, or sell it? Let’s look at this question and the pros and cons of each.

Building Long Term Wealth

If you want to build wealth over time holding onto your property is usually the better strategy. Here’s why:

  • Holding onto your property allows you to add value to your assets.

  • Renting out your home can help pay your mortgage and earn rental income.

  • Your property will likely increase in value over time.

Selling should only be considered when you need immediate cash flow. If you need quick access to funds selling your property can be a good solution. But for long term wealth creation holding onto your property and renting it out is usually the better option.

The Problem of DIY Property Management

Many homeowners are hesitant to be landlords because of the perceived headaches of dealing with tenants. If that’s your main concern there’s a solution: professional property management.

A property manager can:

Why Local Management Matters

Managing your property from afar can be tough and costly. Here’s why local management is key:

  • Maintenance issues need to be addressed immediately

  • Rent collection problems need to be solved quickly

  • An uninhabitable property or non-paying tenants can escalate your expenses fast

Hiring a property manager is usually more cost effective than trying to manage a property from afar. They can provide the local presence and expertise to keep your investment profitable.

Make Your Decision

Still unsure whether to sell or rent your home? Contact a professional for advice. At Advanced Solutions Property Management we’d be happy to help you weigh your options and make the best decision for your situation.

Every homeowner’s situation is different. What’s best for one person may not be best for another. By considering your long term financial goals and personal situation you can make an informed decision whether to rent or sell your Salt Lake City home.

What is the Cost of Property Management in Salt Lake City

What is the Cost of Property Management in Salt Lake City?

Many landlords wonder about the cost of hiring a professional property manager in the Salt Lake City area. Here’s what you need to know:

General Management Fees

Typically, property management costs will range between 8% and 10% of your monthly rental receipts. For example, if your property rents for $1,000 per month, you can expect to pay about $100 for property management services.

Leasing Fees

Some companies will charge an extra upfront fee for tenant placement, which is commonly known as a leasing fee. At Advanced Solutions Property Management (ASPM) we don’t charge leasing fees. We believe this approach aligns our interests with property owners, which ultimately ensures we place quality tenants.

We don’t think it’s fair for property owners to pay a fee for what could potentially be a bad tenant, only to evict them and pay another fee for a new tenant. Leasing fees seem counterproductive to us, so we don’t charge them to our clients.

The Value Proposition

As we always tell our owners, the cost of professional Salt Lake City property management will likely be far outweighed by the increase in income and decrease in vacancy over time.

Think of hiring a property manager for the same reasons you’d hire an accountant or a lawyer. They know the industry and can help you increase your overall income.

Instead of focusing only on the management fees, consider your bottom line and the potential returns on your investment.

Why Professional Investors Choose Property Managers

Professional real estate investors rarely manage their own properties. They entrust them to property managers because they understand how this can increase their rental income and return on investment.

It’s about leveraging industry expertise for better results.

Remember, the goal is to improve your financial outcome, not just minimizing your costs. We believe hiring a property manager in Salt Lake can pay for itself through better tenant selection, market knowledge, and making the operation more efficient.

If you have any questions about our fee structure, or how we can help maximize your rental property’s potential, please contact us at Advanced Solutions Property Management.

 

How Much Should I Budget For Maintenance On A Rental Property?

How Much Should I Budget For Maintenance On A Rental Property?

What are typical maintenance costs with property rentals? When owners ask what they should expect, we recommend budgeting between 5 and 10% of annual rental income for maintenance.

This covers both unscheduled and scheduled maintenance.

Property Age

Newer properties naturally require less maintenance, resulting in lower expenses. Older properties however are likely to need more frequent repairs.

Scheduled Maintenance

It’s critical to prioritize preventative maintenance. This means not postponing regularly scheduled upkeep of the property, like changing out the air filters, repainting walls when necessary, and making sure all systems are serviced annually.

This is particularly important for major systems like HVAC and plumbing, which is where the highest repair costs can occur.

Keeping these systems in good condition will save you money in the long run, and neglecting maintenance can lead to larger, more expensive problems over time.

You’ll also have a harder time renting the property, creating a snowball effect.

Vendor Relationships

Rental property managers in Salt Lake have access to reliable maintenance personnel, and highly qualified, trustworthy vendors.

This network of dependable professionals is a valuable resource for property owners, and it’s a good idea to have this pool of people that you can rely on to do good work.

They’ll give you an honest estimate, and provide quality work for your property and tenants. It’s a significant advantage of hiring a property management firm.

When managing a property yourself, contractors often come and go, but property managers develop long term relationships with vendors, and this ends up benefiting you and your property.

Property managers will have access to reliable maintenance personnel and highly qualified vendors they can trust. It’s a huge resource to have this pool of people that you can rely on to do good work at your property. They will give you an honest estimate and provide excellent work. This is a great example of why you should use a professional property manager. When you’re managing your own property, the contractors you use often come and go. Property managers develop relationships and that ends up benefitting you and your property.

If you have any questions about maintenance on your property, or how to prepare for the associated costs, please contact us at Advanced Solutions Property Management. We’re here to help!

Should My Rental Lease Include A Pet Policy? A Guide For Property Owners In Salt Lake City

Should My Rental Lease Include A Pet Policy? A Guide For Property Owners In Salt Lake City

Today we’re talking about a pet policy for rentals in Salt Lake City, and how you should protect your property from the damage and liability that can come with pets.

Many landlords ask us if they should allow pets and our answer is always: Yes. A lot of people have animals and a large percentage of renters looking for homes want to be able to move into a property that allows pets.

If you say you won’t allow dogs and cats, you’re eliminating a large portion of your potential tenant pool.

Renting to Tenants With Pets

Allowing pets will give you more tenants to choose from, but you must manage that pet relationship. Use a pet lease that sets out all the requirements of the tenant and the pet. State clearly what is allowed and what is not allowed. This is your opportunity to list the size of the pet and the breed.

Ask For a Pet Security Deposit

It’s always necessary to collect a pet deposit in addition to the regular security deposit. A lot of people grumble about this requirement, but it’s necessary. It protects your property and guarantees that your tenant and the tenant’s pet will behave. At ASPM, we usually make the deposit half refundable. At the end of the lease, we keep half of that deposit to use for a deep cleaning.

Even if the place is left spotless, we want to really clean the carpets and the surfaces to eliminate all the pet odors. The other half of the pet deposit is given back to the tenant if there is no damage left behind from the pet.

Collect Photos & Information About The Pets

Another thing we recommend is to take a picture of the pet during your walk through with the tenant. This provides you with proof that the animal is the size and breed that the tenant told you it was. A lot of times, landlords will be surprised to see a 200-pound dog in an apartment. Having documentation that demonstrates what the pet looks like, you can guard against tenants changing pets.

Pets are a good way to increase the tenant population as well as rental income. You can charge tenants an extra $50 for pet rent, and that provides an additional source of income.

If you have any questions about pets and how to develop a pet policy, please contact us at Advanced Solutions Property Management in Salt Lake.

How to Conduct a Home Rental Market Analysis For Your Property In Salt Lake

How to Conduct A Home Rental Market Analysis For Your Property In Salt Lake

Today’s blog will explain how to conduct a rental market analysis on your Salt Lake area home. This is a useful tool when you’re trying to determine how much rent to ask or if you’re wondering what kind of rent you can collect if you turn a property into a rental. A market analysis will tell you if you’re getting what the market can support for your property.

The process is similar to when you’re selling a home. You have to take a sample by doing a little research to find out what properties are renting for in your neighborhood. When comparing prices, it’s essential to compare within the same neighborhood. It doesn’t help you to look at what homes are renting for across town or in other states. Take a look at your location and then consider the number of bedrooms. From there, move on to comparing the number of bathrooms and the square footage.

When using a local online site, you can filter your search and narrow results down to your community, the number of bedrooms, bathrooms, and the size of the house. These are the primary factors people consider before anything else. With this information, you will get a good feel for what your neighbors are earning in rental income.

The more comparisons you can find, the better your data will be for an analysis. If you don’t want to do it yourself, consider calling Advanced Solutions Property Management in Salt Lake City. This is something we do all the time, and we are more than happy to come out and conduct a rental market analysis for you. If you’re wondering what your property is worth, we can help you with your rental market analysis!

Why You Should Hire a Property Management Company Before Buying Investment Property

Why You Should Hire a Property Management Company Before Buying Investment Property

Like any business, investment property does not run itself. Even if you are in the same city as your investment property, unless you intend to look after your investment full-time, you really need a property management company in Salt Lake City to handle the myriad details required to protect both you and your investment.

Why You Should Hire a Property Management Company Before Buying Investment Property

Transferring to Another City

One type of investment property comes about when you are transferred to another city, but you don’t want to give up your dream home. One day you will return. Your house becomes a rental property subject to an entire spectrum of laws governing this type of investment. You really need a property management company in Salt Lake City who is required by the state to be a fully licensed real estate agent or broker. If nothing else, the amount of time it takes to go through all the forms and requirements is probably prohibitive for the average individual.

Avoiding Putting Up a “For Rent” Sign in the Front Yard

Are you thinking about putting a “For Rent” sign in the front yard and letting people inquire? The list of objections to that goes on for pages. The major upkeep and repairs to the house are the same as when you lived there. But you had to deal with leaks, broken windows, hail damage, appliance replacement, and the like yourself. The renter will pick up the phone and turn the problems over to you. If you had a rental management company for your house, they would have all the connections to fix problems with less cost than if you did it yourself.

Buying an Investment Property

This is a good reason to start with a good property management professional. As already mentioned, in most states, a property manager is also a licensed real estate agent/broker who can help you find good investment properties, steer away from white elephants, and guide you through all the paperwork required for a real estate purchase. This is where a Salt Lake based property manager comes in handy.

Typical Services of a Salt Lake City Property Management Company

Vacancy Marketing

Vacancy Marketing is where the property management company cares for business advertisement. Investment property that is unoccupied is losing money for the owner. For example, say that one of your properties regularly gets $1,000 per month income. If that property sits vacant for even one month, your annual income from that property has gone from $12,000 to $11,000 (or $916.66 per month). Because a property management service does volume business in the area, they will be able to market your property cheaper and more efficiently than a single individual/owner.

Tenant Evaluation

Tenant Evaluation is another service a quality property manager provides in much greater depth than an average individual is able to do. You want tenants who can pay their lease and have a history of being good renters elsewhere. You want tenants who demonstrate previous care for their rented property. Experts in property management are more likely than average individuals to be able to make good tenant calls.

Property Management Expertise

This expertise includes a number of legal matters such as lease structuring tailored to fit your needs and those of the tenant within the legal requirements in Utah.

Lease Enforcement

Lease Enforcement is a vital contribution of a property management company. Everyone has heard the old phrase, “It’s a dirty job, but someone has to do it.” Whether the owner of the investment property is in the same city, across the country, or overseas, the property manager is equipped to handle lease enforcement situations where a tenant has failed to honor the terms of the lease.

Obligations of the Owner

Obligations of the owner in investment property include repairs, appliance replacements, and possibly lawn and garden services among other items. Rental property management companies may even have a regular maintenance crew to go around to inspect properties and make small repairs. Barring an in-house crew, the property manager will have several local upkeep services they can depend on to handle your property’s needs. Such things come with the territory of investment property ownership. When it comes to appliance replacement, the property manager will be able to acquire those items quickly and at less cost than an individual would have to pay.

At Advanced Solutions Property Management, our standard of service is built on a foundation that every client who deals with us will be treated with priority at all times. Our services are tailored to meet the specific needs of each individual client, no matter what their needs, and delivered in a professional, ethical, and accountable manner.