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

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

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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.

How to Maximize Your Rental Property's ROI in Salt Lake City

How to Maximize Your Rental Property’s ROI in Salt Lake City

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If you’re a rental property owner here in Salt Lake City, there’s a good chance you’re interested in learning how to increase your return on investment. This means profitability for you, and also making sure that managing the properties is efficient and effective. In this guide, we’ll look at 6 strategies that you can implement to get the most out of your rental property’s profitability.

How to Maximize Your Rental Property's ROI in Salt Lake City

1. Hire a property manager

You might be thinking, “What a coincidence that a blog post on a property management company’s website is telling me to hire a property manager!”. Yes there’s definitely a reason why we put this point first on the list. There are a few reasons why we believe property management services can benefit your portfolio, including expertise in Salt Lake’s rental market, legal compliance, maintenance coordination and tenant screening.

Our experience managing rental homes can help you avoid mistakes that can eat into your profits, and ultimately make sure your property is efficient by reducing vacancy rates and increasing your rental income.

2. Screen your tenants carefully

It goes without saying that if you have low quality tenants in your property, it can impact your income stream and your property’s value. This is why it’s important to have a comprehensive tenant screening process that includes rental history, references, employment verification and a credit check.

Responsible tenants in your rental can reduce the risk of property damage, late payments and evictions, which all impact your return on investment.

3. Reduce tenant turnover

Reducing tenant turnover is a big factor in your ROI. Every time you have a tenant move out, you’re looking at cleaning costs, repairs and marketing the property to get new renters in. Plus if the property is sitting vacant, you’re losing out on rental income. Make sure you’re keeping good tenants in the property longer by responding to their maintenance needs quickly, and even offering incentives for longer term leases and renewals.

4. Adjust your rental rates

What are the market trends in Salt Lake, and should you be adjusting your rental rates accordingly? This should include reviewing comparable properties in the area to ensure your rates are competitive, and looking at broader economic factors like interest rates which can impact demand.

Of course you’ll want to be fair with your rental rates, but consider increasing rent when it’s justified by improvements to your property or overall market conditions.

5. Invest in property upgrades

You’d be surprised at how strategic updates to your property can attract better tenants and even justify higher rental rates. Improvements like updating the kitchen and bathroom, adding a washer and dryer, landscaping and energy efficient appliances can make your property more appealing and also lower maintenance costs.

6. Protect your asset with regular inspections

Start with an initial walk through. When you lease your property, document the condition of the property so you can hold the tenant accountable for keeping the property in that condition. Everybody is on the same page. Then we recommend enforcing the terms of the lease by conducting monthly drive-by inspections, spring and fall internal inspections, and an end-of-lease move out inspection. This is where we make any necessary deductions from the security deposit.

Interested in how Advanced Solutions can help protect your investment property and generate a positive ROI? Contact us for a free rental market analysis!

What is the Cost of Property Management in Salt Lake City

What is the Cost of PM 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.