How Rental Property Owners In Salt Lake Should Be Navigating During COVID-19

How Rental Property Owners In Salt Lake Should Be Navigating During COVID-19

The fallout from the pandemic has many landlords worried and needing property management assistance to navigate the unknown.

For well beyond a year the United States government has stopped residential evictions.

This solution has sent many landlords into their own crisis.

How Rental Property Owners In Salt Lake Should Be Navigating During COVID-19

More than 8 million households are now behind more than $5,000 in rent payments- and that number continues to grow.

Sadly, half of that rent is owed to small landlords, or those who own just one or a few properties.

In some cases the problem is further compounded when the tenants utilities are included in the lease.

In some cases, landlords are not making enough money in rental payments to pay the utility bills.

As a result, landlords are now having to pay them out of pocket.

A few landlords have gotten lucky and have tenants who can see that in the long term allowing their rent arrearages to build up will only leave them in a bad position.

In some cases, property management was able to keep open lines of communication with tenants and make payment arrangements.

This made sure that rent arrearages are at least being kept at bay. 

Good property managers have the skills to be part negotiator and part social worker as well.

During the pandemic, many property managers were able to step in and help residents get public or private assistance paying their rent.

In some cases property managers have even helped tenants to get jobs or find medical aid during this crisis. 

Property managers are highly trained professionals who take care of the daily running of your properties so you can spend your time on other pursuits.

As we move past the COVID-19 pandemic, there are a lot of services that a property manager can offer you. 

Collection of Rent and Arrearages 

Getting tenants to pay and pay on time is never easy, but after the pandemic it seems even harder.

Many tenants have not paid rent in months with very little communication.

A property rental company will be able to open lines of communication with tenants and get them back on track paying their rent. 

You can enlist a company for property management and in most cases they will be able to help you set up online payments.

This is just another easy way to encourage tenants to pay on time. 

Property Upkeep

Another sad aspect of the pandemic is some tenants feel that because they can live for free they don’t have to care for your property.

A property manager will be able to help you navigate this situation. 

If the manager is unable to correct the problem by negotiating with the tenant they will be able to document the situation so that the tenant will be held legally responsible for any damages. 

Eviction and Court Processes

At some point, likely sooner than later the federal eviction moratorium will end.

As a result, tenants will again be responsible for paying their rent in a timely fashion.

In many cases tenants will also be returning to work and will be hoping to pay their rental arrearages.

Unfortunately, in other cases tenants will have to be evicted.

Since property management is trained on legal documents regarding rentals, they can stand in for you in court.

However, property management is in no way legal counsel. 

Do I Need a Property Management Company?

Real estate is a great investment. However, it is important to understand that real estate in and of itself is anything but passive income. In order to generate passive income from a real estate investment it is crucial that you hire an effective property management company in Salt Lake City

Real Estate Investments as Passive Income

Real estate investments, especially any type of rental property, is not going to generate passive income without effective management. Trying to effectively manage a rental property is a full time job. Ineffective management can drain you of time and money. 

The solution is a great property management company. A property management company will handle the day to day running of your property so that you are free to invest your time elsewhere.

What Does a Property Management Company Do? 

A property management company will help you maximize your revenue. Your properties will be more fully occupied and your tenants will be happier. A good full service company should be able to:

  • Advertise property on multiple platforms.
  • Properly place tenants after thorough background checks.
  • Complete extensive move-in inspections.
  • Provide comprehensive leases.
  • Provide reports of monthly and year-end accounting that are easy to read and understand.
  • An online login for real-time information, maintenance requests and financial statements.
  • Full administration of your property.

Property Management Companies and HOAs

Home Owner Association (HOA) governed communities give residents many amenities and are very attractive to the home buyer. However, due to Covenants, Conditions and Restrictions (CC and Rs), administering these communities can become difficult for the governing board. Many HOAs find it helpful to hire a property management company to help them stay ahead of the game when trying to meet all of the necessary items for the CC and Rs as well as maintaining their monthly and annual budget. 

If your HOA is having trouble handling maintenance issues, homeowner disputes, or vacancies, it may be time to enlist the help of a professional property management team. Strong property management will have your HOA neighborhood desirable and back on top in no time! 

A Property Management Company Protects Your Interests

The most important reason that a property owner should hire a property management company is because it is the job of the company to protect your interests. It’s hard to be a property management guru all by yourself, and keeping your eyes on all the issues of multiple properties would be practically impossible. Effective management will provide tenants with support, help to better the building or community by renting to properly screen tenants and diminishing vacancies. 

The right property management company can fully administer your properties and allow you to invest in real estate as truly passive income. 

Having a property management company can also help to protect you from expensive legal entanglements because they can provide you with comprehensive leases and help to make sure that your properties meet all local and state guidelines, thereby avoiding fines and most legal issues. 

If you are interested in investing in rental properties or you have already made an investment consider hiring a professional management company to help you protect your interests and increase your profits. 

How To Hire A Great Property Manager

Most people who own any type of rental property, from commercial spaces to rental homes, find that hiring a property manager becomes necessary. Hiring the right manager for your property can be a make or break decision. 

What a Property Manager Does

A property manager usually handles the day to day running of a rental property. They collect and record rents as well as pursue delinquencies. They advertise vacancies and assure that all maintenance is in order before vacancies are rented. They provide both the tenant and the owner with a prompt and thorough move-in and move-out process and inspection. An effective property manager will be able to screen prospective tenants and place them upon signing a proper lease and documentation. While property managers do not generally handle maintenance concerns personally, they do oversee these types of issues to ensure that they are taken care of, and oftentimes it is the property manager who hires outside contractors for maintenance when that is necessary. 

How to Hire a Property Manager

Many property owners, especially those on a tight budget, may try to find a cheaper alternative than hiring a professional property manager. One commonly tried idea is the DIY method of property management. Many owners have tried this only to find themselves with angry tenants, empty units and leases that don’t even hold up in court. 

Another bad idea that is often tried is hiring a tenant either in an apartment complex or commercial building to be the property manager. This almost always fails because as a tenant they have a conflict of interest with being the property manager. More unscrupulous types of people may even abuse privileges and power when put into this position. 

You will want to hire a professional property manager that comes with a strong resume of proven, effective management and years of experience within the industry. Of course a thorough background check will be necessary and in many cases, the property manager may need to be bonded. 

It is important to note that depending on the size and type of property you own, you may need to hire a maintenance manager as well. Again, you will need to be very thorough in investigating the background and skills of anyone you consider for this position. 

Advantages of a Property Management Company 

A property management company provides you with great property management with no fuss. You will be able to choose exactly how much involvement you need from this kind of company. You may only feel like you need help with tenant placement or you may be in need of more comprehensive services. For those who need more comprehensive services,a property management company can alleviate the need to deal with doing background checks yourself, or personally take care of hiring individuals and trying to manage their performance. Property management companies can often even provide you with maintenance services or connections to contractors when needed. 

To streamline how your rental properties run, hire a professional property management company and get the most out of your investment.

Why You Should Treat Your Rental Property Like A Business

Managing your rental property may not be your primary job, but it is still a business and a source of extra income. It’s important to remain professional with your tenants, keep your finances intact, and perform a thorough tenant screening prior to renter move in.

In order to conduct good business, you need to comply with federal, state, and local laws. It’s important to make sure your business follows all necessary laws in order to maintain a positive reputation and avoid potential legal problems. Real estate and rental investments often come with regulations, so be sure to take the time to conduct research and understand all federal and state specific laws before plunging in.

It’s also important to protect yourself from potential accidents or liability claims: one way to do so is by purchasing landlord insurance. If an unfortunate situation arises, like a pipe bursts or theft occurs, landlord insurance can protect you from bearing the loss. This means you won’t have to pay thousands of dollars if a tenant should sue you.

Conducting good business also means preventing problems before they happen. The best way to avoid problems is to keep your unit and building in good condition.

Before renting to tenants, double check that your rental property is a safe place to live. It’s worthwhile to spend money to make sure everything is up-to-code and all utilities work. For example:

  • Test smoke and carbon monoxide detectors
  • Make sure all vents are free of buildup (debris, moisture, etc.)
  • Check internal and external pipes for combustion

Once you have tenants living in your unit, you should have a plan as to how you will fix dangerous problems immediately. For example, how will you fix the furnace if it breaks, or help a tenant who locks himself out? The best way to prepare for problems like these is to have a plumber, locksmith, and contractor on call.

Being professional, keeping your finances in mind, following your city and state’s laws, protecting yourself from liability, and preventing tenant problems are the best ways to manage a good rental property business.

How To Set The Right Rent Price

To set the right rent price, we recommend researching your market to learn what the fair market rent price is in your area. Pricing your rental at the rent price that makes sense in your location can mean the difference between vacancies and attracting good tenants so you can rent your property quickly. You can also use online applications such as Rentometer to help guide your rental rates.

As you set your rent price, you should keep in mind how it affects your financials. After all, rent payments are your main source of income on your rental property. To compare your rental income to your rental expenses, you should list your fixed and estimated expenses. Fixed expenses are your mortgage payment, property taxes, insurance fee, and HOA fees. Your variable expenses are utilities, repairs, and property improvements. By comparing income to expenses, it’s easier to see how rent price affects your monthly revenue.

There’s no point in setting the right rent price if you have tenants who don’t pay on time, which is why the next tip is critical.

Property Management Salt Lake City

Why You Should Hire A Property Management Co. Before Buying Investment Property

Older couple enjoying retirement while a good property manager handles rentals

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 property management in Salt Lake City to handle the myriad details required to protect both you and your investment.

Transfer 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 most states 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.

Why Not Just Put a “For Rent” Sign in the Front Yard?

Are you thinking about putting a “For Rent” sign in the front yard and let 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 Salt Lake City property management company for your house, they would have all the connections to fix problems with less cost than if you did it yourself.

Buying 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 property management in Salt Lake City will be really helpful.

Services Typical of a Salt Lake City Utah 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 your Salt Lake City property management company 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 in the Salt Lake City area 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 of your state.

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 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.  A property management company in Salt Lake City 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 she or he 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 that deals with us will be treated at all times with priority. 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.

Please follow this link to learn more about why we are the best property management in Salt Lake City for your investment property.