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.

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!

If you own a rental property, you know it can sometimes be challenging to distinguish between regular wear and damage by the tenant. That’s why Advanced Solutions Property Management in Salt Lake City has been helping property owners with strategies to protect their investment.

We put this guide together based on our combined 65 years of experience managing properties around the Salt Lake valley.

What is considered wear and tear?

According to the Department of Housing and Urban Development (HUD), there are a few examples of normal wear and tear:

• Faded, cracked or peeling paint
• Torn wallpaper
• Small nail holes in wall
• Faded or worn carpet
• Loose grout or tiles
• Worn or scratched enamel in bathtub, sink or toilet
• Rusty shower rod
• Dirty or faded window coverings

We know that these issues are just part of renting out your property. If you work with us to manage your rental, we’ll address these issues immediately during tenant turnover, and make sure your property stays in good condition.

What is considered tenant damage in Salt Lake City?

Tenant damage in a rental property typically goes beyond normal wear and tear, and is often the result of accidental damage, neglect, or even intentional damage.

Here are examples of tenant damage:

• Holes in the walls
• Drawings, wallpaper or crayon/marker on the walls
• Chipped wood floors
• Broken door hinges
• Broken windows
• Broken or missing light fixtures
• Holes in the ceiling from removed fixtures
• Damage to carpet
• Missing or cracked tile

At Advanced Solutions, we have detailed and thorough move-in inspections processes designed to identify pre-existing conditions, which makes it easy to identify any tenant caused damage at the conclusion of the lease.

Security Deposits

A security deposit is a safeguard against potential damages for property owners. We manage these and ensure compliance with Utah laws to protect your interests, and provide an itemized list of any possible deductions to avoid disputes and maintain a positive relationship with tenants.

Preventive Steps

We believe that a thorough screening process for potential tenants helps to identify those renters who are more likely to respect your property. We also conduct regular inspections and have a maintenance team who can address any issues before they become bigger problems.

How does ASPM handle tenant damage?

Even the best preventive measures won’t help you avoid future tenant damage. If this occurs, we have a well defined protocol that includes assessing the damage, communicating with tenants about their responsibility, and coordinating the repairs. We also have a client dashboard that provides real-time info and updates, to keep you informed about the condition of your rental property.

What is the financial impact of tenant damage?

When you own rental properties, it’s no surprise that damage can impact your return on investment. We have a data-driven approach to mitigating this financial impact– in fact one of our clients has seen an increase in Net Operating Income (NOI) of 13% in less than a year.

Legal considerations

The difference between tenant damage and wear and tear can sometimes be difficult to determine, and Utah has specific laws that impact these issues. At ASPM we have a team of Certified Commercial Advisors to make sure all of our practices are compliant with local regulations.

We’re proud of our ability to efficiently manage properties in Salt Lake City, minimize tenant damages, and maximize the ROI for our clients, and our proven track record speaks for itself! Just ask our client Russ, who says, “”ASPM has done a great job of managing my 30 Unit Apartment complex. I would recommend them to anyone.”

Have more questions about how Advanced Solutions can manage your property? Check out our Property Owner FAQ here.

Don’t stress about property management. Our team is here to take care of the details so you can focus on being a property owner, not a landlord. Reach out to see how we can help you exceed your real estate investment goals!

When it comes to inspections, we always tell property owners that the most important interaction with tenants is the walk through inspection.

This happens once you have collected the security deposit and the lease is signed.

Most property owners miss this important step, but without a complete move-in inspection report, it’s difficult to hold your tenants accountable for the condition of the property at the end of their lease.

The Move-In Inspection

Make sure to have a standardized inspection form for this part of the process. It helps to make sure you’re consistent with each of your properties, and that the record of the property’s condition is well documented at the start of the tenancy. This form also serves as a reference point throughout the lease and during the move-out inspection.

What happens during a move-in inspection?

The move-in inspection is where you’ll walk through the property with the tenant, and allow them to actively participate in the process. This collaborative approach will ensure both parties come to agreement on the property’s condition.

When you go through each area, document any existing damage or issues. If you find minor problems during this part of the inspection, you may want to address them soon. Creating a work order and fixing the issues immediately can actually go a long way to build respect and trust with your new tenant.

How often should a landlord inspect a rental property in Salt Lake City?

This is a question we often hear at Advanced Solutions Property Management, and our standard response is this: regular inspections throughout the lease period are important to ensure lease compliance, and maintain the good condition of the property.

There are a few quick external checks you can complete during a monthly drive-by inspection:

• A large number of cars parked outside the property
• Visible damage to the exterior of the property
• General cleanliness and maintenance of the landscaping
• Aluminum foil on the windows

These quick inspections will help you find potential problems early and address them with the tenant quickly.

The Move-Out Inspection

When the lease is finished, this is when you’ll want to conduct a full move-out inspection, using the same form you used during the move-in inspection.

However, this time the landlord or property manager will hold the form and lead the inspection process.

Note any changes between the current condition and the state of the property during move-in, and indicate damages and cleaning issues on the checklist. Be as detailed and thorough as possible, documenting everything from the cleanliness of the carpet to the condition of the window coverings.

What are some common issues found during move-out inspections?

We recommend having a standardized price list for the common damages and cleaning issues during the move-out process, which can help streamline the process of deducting the costs from the security deposit.

This list should be incorporated into your inspection form, and help tenants understand the costs incurred from damage or inadequate cleaning.

Here are some of the common issues we find:

• Carpet damage and stains
• Wall damage like scuffs, holes and unapproved paint
• Broken window blinds
• Broken light fixtures

By clearly documenting any of these issues (or others you discover) and having the costs for repairs and cleaning recorded, you create a clear process that can help reduce any disputes or misunderstandings with tenants.

What are the benefits of rental property inspections for landlords in SLC?

There are several advantages we see with thorough and regular inspections:

• Helps to maintain the property’s good condition
• Reduces the chance of disputes over deductions to the deposit
• Sets clear and realistic expectations for tenants over care of the property
• Allows for quick identification and resolution of problems

How can a property management company help with rental inspections?

While it’s true that individual rental property owners can implement all of the above inspections, we think the expertise that a Salt Lake City property management company can offer is invaluable. They will typically have:

• Established inspection procedures
• Standardized checklists and forms
• Knowledge of Utah rental laws and regulations, especially concerning inspections and security deposits
• Experience with assessing the property’s condition

Also, because we’re a third party, a property manager can provide a completely objective perspective, which helps in keeping a professional relationship between you the property owner, and then tenant.

Implementing standardized inspection practices can help property owners better protect their investments, ensure fair treatment of each tenant, and hopefully leave a great rental experience for all parties involved.