What is the Cost of Property Management in Salt Lake City

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

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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?

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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!

How Much Can I Rent My House For?

How Much Can I Rent My House For?

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Today, we’re discussing rent levels and what you can expect to get for your rental property in Salt Lake City. This information is crucial for investors and owners to have before they buy a property or list it on the rental market.

Rental prices are influenced by location

Rental prices, like any other real estate or commercial business, are heavily influenced by location. When a property owner asks me how much they can charge for rent, the first question I ask is about the property’s location. It has a huge impact on how you price your rental.

Rental prices are dependent on the property’s size

Next, your price will depend on the number of bedrooms you have. The number of bathrooms is also important, but tenants primarily look for enough bedrooms to fit their families. Square footage and bedroom count are almost as important as location.

The condition of the property affects how much rent you can charge

Finally, the condition of the property affects how much you can charge in rent. Tenants look for clean, functional kitchens and expect to see some updates. As a house ages, it incurs wear and tear, which can drive your rent down. Many owners are reluctant to spend money on updates and improvements, but it’s worth it in the long term. A house that looks worn and old will rent for much less than a modern, clean one. If you don’t upgrade from time to time, you’ll lose rental income.

Take a look at what your neighbors are charging for rent. If you’re getting less than they are for a property of the same size and in the same location, it’s likely due to the home’s condition, and you should consider investing in some improvements.

If you want to discuss what you can expect for your particular property, please contact us! We are a Salt Lake City property management company, and would be happy to provide more information about current rent levels in your area.

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

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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.

Why Are Regular Property Inspections Important For Salt Lake Landlords

Why Are Regular Property Inspections Important For Salt Lake Landlords?

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If you own a rental property in Salt Lake City, we can’t stress enough how crucial it is to inspect your investment. With regular inspections, you can help maintain the value of your investment property and make sure your tenants are happy too.

There are a few different types of inspections, and in this post we’ll explain how you can identify and address potential problems before they grow into costly repairs or even legal disputes. Plus we’ll discuss how a professional property management company in Salt Lake can help streamline the entire process.

What are the different types of rental property inspections?

Move-in inspection: Before a tenant moves in, you’ll want to document your property’s condition and make a note of any existing damage.

Drive-by inspection: This is where you (or someone from your team) will literally drive by the property to identify any potential issues like unauthorized pets or occupants. A drive-by inspection won’t need advanced notification to the tenant, since nobody is entering the property.

Indoor inspection: To make sure tenants are maintaining the property and identify any repairs or replacements needed, you can schedule a quarterly, semi-annual or annual inspection of the property. This is also an opportunity to change the air filter on the property’s HVAC unit.

Move-out inspection: This should take place after a tenant vacates the property. You’ll want to assess the entire property’s condition, and then make the necessary deductions from the security deposit for any damages that occurred beyond normal wear and tear.

What are the benefits of regular rental property inspections?

Working with rental properties in Salt Lake over the years, we’ve identified some advantages for property owners:

Prevent costly repairs: If you can identify and address a maintenance issue early on, this can typically prevent the problem from turning into an expensive repair down the road.

Enhance curb appeal and keep tenants happy: It’s no surprise that a well-maintained property will attract the type of tenants you want, and keep them around longer. This reduces vacancy rates and turnover costs. Plus you could see more positive Google reviews.

Lease compliance: Regular inspections will help ensure tenants are keeping to the terms of their lease, whether it’s occupancy limits, pet policies or specific maintenance items.

Protect your investment: Of course you want to maintain and grow your property’s value, and regular inspections will help you make informed decisions about any necessary repairs or improvements.

How can rental property inspections help with difficult tenants?

It’s inevitable that despite the best efforts of rental property owners, difficult tenants will prove to be challenging. This is why we recommend having a strong and clear lease which will help address these infractions that are discovered during your inspections.

Whether it’s a late payment, or a lease violation, make sure to keep all interactions with the tenant professional and well documented. An expert rental property management company can help you with these challenging situations, and make sure everything is compliant with laws and regulations in Utah.

Seasonal maintenance checklists for Salt Lake rental property owners

Beyond those regular inspections that we talked about in this blog post, you should have seasonal maintenance performed on the property to keep it in the best condition. Check out our Summer Maintenance Checklist and Fall Maintenance Checklist for Salt Lake Rental Homes.

Why should I hire a company to manage my Salt Lake City rental property?

There are some distinct advantages to partnering with a reputable property management company in Salt Lake City like Advanced Solutions. First, we strictly adhere to proven procedures and processes to make sure we efficiently manage your property. That means on-time rent payments, better screening methods, an affordable and dependable in-house maintenance crew, and clear communication.

ASPM is experienced in landlord responsibilities and tenant rights, which ensures that all inspections comply with local regulations and laws. You can trust your property to Advanced Solutions Property Management, and have peace of mind knowing your investment is in the right hands.

“ASPM increased Net Operating Income (NOI) on the property by 13% in less than a year — AMAZING!”
– Lee G.

If you’re a property owner, let’s chat!

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

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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!