Is Hiring A Property Management Company Worth The Money?

Is Hiring A Property Management Company Worth The Money?

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Many people venture into rental properties unaware of the amount of time and effort it takes to actually manage them.

The truth is that sometimes, we just don’t know what we don’t know.

The larger a property is, or the more properties involved, the more complex, difficult and expensive it becomes to run them.

The main question for most property owners, “Is hiring a Salt Lake City property management company really going to be worth my money?”

Is Hiring A Property Management Company Worth The Money?

There are specific situations where having a property management company overseeing your properties can be a huge advantage for you. This will save you countless amounts of both time and money.

Here are 5 reasons why hiring a property management company makes sense:

1. Decrease Your Vacancies

A property management company can help you by advertising your property, screening prospective tenants, and placing them. But, this is not all.

A property management company makes your property more desirable in other ways, too.

Hands-on care and maintenance management along with positive tenant relations will dramatically help your property’s curb appeal and reputation.

2. Collect Rent and Process Evictions

Collections and evictions can be two of the more uncomfortable and time-consuming responsibilities of owning a property.

Hiring good property management will take those responsibilities off your plate.

Having a streamlined process for making payments and clear and open communication will make collections more successful.

In the case that rent can not be willingly collected from tenants a management company can actually process an eviction for you, saving you the time and hassle of going to court yourself.

If you are a new property owner and not familiar with all of the legalities of the rental and eviction processes, a residential property manager could literally end up saving you a fortune! 

3. Maintenance Management

Depending on the company that you choose and the agreement you make, you may find that some or all aspects of maintenance management can be handled by your property management company.

This saves you, again, both time and money.

Hiring a full-time maintenance person is costly, and that is only after a long search and screening process to find the best-qualified individual.

Hiring a private contractor for each job would not only become tedious, but the cost would certainly add up, too. 

4. Tenant Management

People are not perfect, and not too often predictable, so tenant management is a major component of having a rental property.

If you only showed up once a month to collect rent, you would have no idea what was actually happening to your property.

To be legally and fully aware of what is going on inside your property, it is necessary to have professional move-in and move-out inspections.

The outside maintenance of the property should be checked regularly as well to be sure it is properly maintained. 

If you own several units or an entire complex, tenants will interact with each other.

As much as we would hope it would never happen, tenant disputes do occur.

This is where having a property manager who is familiar with both the property and the tenants makes navigating these types of situations significantly easier. 

5. Retirement

When the time comes that you want to retire or relocate, but you want to maintain your investment property, a property management company is a perfect choice.

Yes, you may need to pay out a little more in expenses, but hiring a management company means that your property will truly become a passive investment.

Rental Property Tips

3 Key Aspects To Consider When Purchasing A Rental Property

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Investing in a rental property is a great way to create an alternate stream of revenue for yourself. This could even be a great way to supplement your retirement plan. The thing about rental properties as an investment is that only some properties actually make a good investment. What is it about a property that makes it ideal as an investment rental property? 

Defining Factors of a Successful Rental Property

Here are the key aspects that you will need to consider when purchasing a rental property. 

rental property SLC 1

Property Location

If you have even considered investing in property, you have no doubt heard how important the location is, and that is completely true. The location of a rental property will be a huge factor in its marketability, vacancy rate and much more. 

While you may find the low price of a property in a low income area very enticing, you may not find that the property will actually end up being a success. In this situation, you are likely to see a higher rate of both vacancies and evictions. If the school system is suffering or the area has a high crime rate, the cost to you may be significantly more than choosing to pay the higher property taxes of a better area. 

You have to balance what amount of rent you can charge with the amount that you need to pay out to keep the property running. You must also consider other factors as well, though, as they may dramatically influence your figures. For example if your tenant turn over rate is fairly high and you often have damage when rehabbing the unit for a new tenant, that is a large hit to what you might mistakenly consider profits on the unit.  

Property Condition

The condition of the property is only second in importance to location. If a property has been well maintained and kept in good condition, not only will this end up saving you money for years to come, but odds are, the property likely has a good reputation as well. On the flip side of that coin, a property in poor condition is a sign of many, likely far deeper problems. Not to mention a likelihood that the property has developed a bad reputation as it is in ill repair. 

When it comes to problem properties, there are actually situations where the price can not be low enough to sell the property. A distressed property can in some cases actually cost you money. If it also happens to be in a bad area, you could find yourself stuck with a property. This could take a huge upfront investment and years to turn a profit from.

Property Management

Property management is a full time job. When you purchase a rental property, you will need to either commit to running it full time or you will need to hire a property management company. Many people choose to hire a property management company. This is because it makes owning the property a passive investment as opposed to an additional responsibility. 

It is also important to note that many property owners choose to hire management companies because property management can become complicated. Especially when dealing with laws and codes specific to the city and state. 

How To Know What Type Of Landlord You Are

How To Know What Type Of Landlord You Are

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Sometimes you can tell at a glance when a property has a good or bad landlord. A good  landlord manages their property well. This means service and convenience, a well cared for property and usually happy tenants. A bad landlord manages their property poorly and it shows. At their rental property, nothing is getting done. The property looks a mess and there is a line of angry tenants. Today we will look at the factors that make up good, mediocre or bad property management.

property management SLC UT

There are many different types of property management in Utah, including large management companies, property managers and individual landlords. Any of these could be a good or bad landlord, but one thing is certain, everyone wants to live in and own a well managed property. Consider these factors and see what kind of landlord you are! 

Great Landlords

Great landlords are or employ highly effective property managers that have a well ordered system and property. Tenants know they can count on first-rate service and convenience. These properties are usually the most sought after places to live. Great landlords:

  • Respect the Business: It is easy to become passionate about your investments, however, rental properties are a business and you must make decisions about them with a calm, clear mind, not clouded by emotion. 
  • Invest in Professionals: Experienced private landlords know the value of professionals that they work with. They invest in the best high quality professionals and then trust the expertise that they are paying for. 
  • Don’t Interfere: Landlords hire property management companies for their expertise and experience and can securely take a step back. They let professional property managers do their job.
landlord

Mediocre Landlords

Mediocre Landlords keep their property up and running, they are basically doing okay. These landlords may even turn a profit, but they lack some of the needed expertise to take their property to the next level. These are the kinds of properties that people rent when they are in a pinch, while they look for something better. Mediocre Landlords:

  • Always Look for a Bargain: Finding a good deal and doing research to choose the best option is a great thing. However, taking the cheapest offer just because it is the cheapest offer, regardless of the quality of the service or product provided will almost always land you with a lesser product or service.
  • Micromanage: A need to micromanage may be a personal trait or it may come from a lack of confidence in the owner’s choice of property or management company. Whatever causes it, micromanaging paid professionals is one thing that definitely keeps a mediocre landlord from rising to be a great landlord. 
  • Don’t Save for Maintenance: When you own rental properties, maintenance is just a fact of life. Not having a viable maintenance budget and savings for emergencies is a trap that keeps mediocre landlords from being great. Sadly, this even puts some landlords into a position of trying to delay or avoid maintenance costs. Should disaster strike, it could take a mediocre landlord down to being a bad landlord. Or even worse, not even being able to keep the property at all. 

Bad Landlords

Bad landlords are the ones that inspire jokes and make people dislike landlords in general. One experience with a bad landlord can leave a renter suspicious of landlords for a long time. Some bad landlords are so bad, they even deserve the term slumlord. Bad landlords: 

  • Ignore Maintenance: These are the property owners who only do the bare minimum to keep a property running. They refuse to make repairs until there is no other choice. Even then often hire “a friend” who can provide them with a good deal. 
  • Increase Rent Blindly: It is okay to increase rent when the market has changed or the property has been upgraded. Bad landlords increase rent to increase their own capital. They’ll do this even if the area is not what it once was or no improvements have been made to the property. 
  • Go Beyond Haggling: These owners aren’t looking for a deal, they want to get everything they can for next to nothing. This kind of behavior only leads to a diminished property and diminished services. 

Why Landlords Fail

There are many specifics to any circumstance that allow things to play out the way that they do, however, when it comes to failing as a landlord, there are some common themes to what goes wrong. These are the most common reasons that landlords fail:

  • They lack preparation: Many people can see the opportunity in investing in rental properties, but unfortunately do not realize how much time and effort it takes to run them. 
  • Purchase too much too fast: Often a great businessperson can choose amazing investments, but by purchasing more than one quickly, may not have the resources in place to manage them all.
  • They ignore technology: Many landlords do not want to invest in property management software systems, but this is a necessary investment. Without this technology, your rental properties will lose out to others who have more convenient communication and payment systems.
  • They overpay for some things and underpay for others: Maintenance can make or break a landlord. Failing to do proper research can cause a landlord to overpay for maintenance items and other costs, but the danger in underpaying is poor service and lousy quality. 

Be a Successful Landlord

Commitment, capital and planning are the necessary ingredients of a great landlord in the making. You want to make sure that you maintain professionalism, stay informed, create a financial cushion and hire the very best professionals that you can find to advise you.

 

When Does a Guest Become a Tenant?

When Does a Guest Become a Tenant?

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When Does a Guest Become a Tenant?

Whether it’s a property manager or landlord, they both spend a lot of time and effort recruiting good tenants. They use expert marketing, run background checks and establish a full move-in process. One of the biggest disappointments in Salt Lake City property management can be all of that effort being wasted when a guest becomes an unscreened and often unwanted tenant.

In these types of situations it is very important for a landlord to be aware of their rights. It also helps to know the difference between a tenant who has signed a lease, a guest and an unauthorized occupant.

These are the different types of people who may occupy your property and the terms used for them:
  • Tenant: this is the person (or persons) who applied for the rental property and signed the lease for the property. The tenant is the legal resident who is responsible for paying rent and caring for the property for the duration of their lease.
  • Authorized Occupant: This is a term that describes people who legally reside in the rental property, but legally can not sign the lease. Most often this term applies to the children of someone leasing your property, but is occasionally used in other circumstances.
  • Subletter: This is a person who is added to the lease after the lease’s term has started. This can be done properly, when the original tenant makes the landlord aware of the subletter. They are then subject to the same background checks and other standards as the original tenant. However, this can also be applied to a person that has moved into a rental with the original tenant. In this situation the landlord may not be privy to the situation. The landlord may or may not be aware of the additional person’s presence in the rental property.
  • Extended Guest: Landlords must allow tenants to have guests. However guests who stay for extended periods should be reported to the landlord. If the long term guest is helping to pay rent, they become an unauthorized occupant.
  • Squatter: This is an unauthorized guest who refuses to leave the property. This can also be applied to a tenant who refuses to leave after their lease ends. A property manager can help navigate this situation in a safe and legal way.

How Unauthorized Tenants Become a Problem

There are a few reasons why someone living in your rental property without a lease or your approval can be a serious problem. 

  • There is no lease, or the lease cannot be enforced: The purpose of a lease is to set out the rules of the rental agreement, if there is no lease or it cannot be enforced, there is no way to require these persons to follow property rules. This can be incredibly detrimental in an apartment community or HOA community. It may even cause fines to be lobbied against the landlord in some cases. 
  • There is an increased risk of damage to your property: Because there is no lease, it is significantly more difficult to hold these individuals legally or financially responsible for damage that they may cause.
  • Lack of Payment: As you can guess, when these people cannot be held legally responsible for your property, they are often unwilling to pay rent. In some cases, criminals intentionally try to find these situations to scam and take advantage of a landlord. In Salt Lake City, property management companies can be a great deterrent to these types. These scammers count on finding landlords who don’t know the laws and want to avoid lengthy court cases; they know a property manager will use the court system to force them out and force payment. 

When Should you Add a Guest to the Lease?

A guest should be added to the lease, with due diligence, when they stay for more than two weeks in a six month period or if they are helping to pay for rent. That said, if you have a problem with unauthorized tenants, you will need to take legal action. If you are unsure of your rights as a landlord or you feel the situation is out of control, you may want to consider hiring a Salt Lake City property management company to help. An effective property manager can prevent most unauthorized tenants through supervision and good communication. When this fails, a property manager can handle the situation through the court system. 

Summer Maintenance Checklist for Landlords

Summer Maintenance Checklist for Landlords

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salt lake city property managers in Utah

Summer Maintenance Checklist for Landlords

As a landlord you know that two things can really affect how quickly vacancies rent and how long tenants stay. Those two things are curb appeal and your tenants overall happiness. Having a well kept property helps to take care of both of these. This is why it is always best to work with licensed property managers in Utah.

Keeping your rental properties in great shape starts with having a good seasonal maintenance schedule. This allows for inspection and upkeep of all necessary elements. Performing this kind of annual and semi annual maintenance will also save you money. It does this by preventing many unexpected maintenance concerns down the road.

Here is what a sample summer maintenance checklist should look like. (You can modify it to fit your specific rental properties):

Summer Rental Property Checklist

Exterior:

  • Clean the exterior of the home or building: A dirty building or one covered in graffiti will turn off prospective renters. So, make sure to pressure wash the home exterior every season. Remove any unsightly graffiti as soon as you notice it..
  • Service air conditioning units: At the beginning of each summer, have the air conditioning inspected and serviced. This will normally involve a thorough cleaning and a change of filters. This will save you a lot of money in emergency HVAC service calls later on.
  • Trim trees and shrubs: Being lackadaisical about landscaping can leave the backyard looking unsightly. Make sure that you trim trees, shrubs and bushes routinely throughout the summer. If you have trouble finding time for this, hire a landscaper.
  • Repair screen doors and window screens: Window screens become worn over time and tend to tear leaving an unsightly piece of screen flapping in the wind. Not only is it an eye sore, it leaves your property unprotected from bugs making a home indoors.
  • Clean decks and patios: Because they get a lot of use in the summertime, it’s a great idea to clean and reseal decks and patios before the season starts.
  • Inspect the condition of the home: Every year you should closely inspect the exterior of the home or building so that you will catch any problems early and be able to budget for future maintenance needs.

Interior:

  • Check appliances twice per year: Schedule service for appliances in need. It is far cheaper to have them serviced than it is to buy new ones.
  • Install air conditioners: If your properties use window air conditioners you should install the units early in summer. If you pay utilities for the rental it is important to remove the air conditioners in the fall and reinstall them each summer so that it is done properly. This will reduce your power bills and will also reduce the risk of damage to your property during tenant installation. Make sure to check for water damage every time you install or remove the window units.
  • Replace smoke detector and carbon monoxide batteries: Make sure this is done seasonally.
  • Inspect for signs of pests: Termites, bedbugs, cockroaches, mice and other pests can cause significant damage to your property and reputation. You should also make sure to have your properties exterminated seasonally.

Serve Notice

Outside of emergencies, Utah law requires that tenants be given at least 24 hours notice that you intend to enter the premises. If you have good rapport with your tenant, you may even want to verbally let them know a few days ahead of time.

If you are working with property managers in Utah, they will be able to serve the notice for you as well as handle your summer maintenance checklist.

Property Managers in SLC

If you are a landlord and you find yourself not familiar with all of the legalities pertaining to tenants and rental properties, it would be a good idea to hire a company that specializes in property management in Salt Lake City. Not only will they be able to handle your landlord responsibilities, they can advise you on tenant rights in Utah. A property management company can also provide your properties with property managers in Utah who can build relationships with your tenants and encourage them to report any maintenance issues they may have, saving you countless hours and dollars in emergency maintenance.

If you need a great company for property management in Salt Lake, please contact ASPM today!

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

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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.