Today, we’re talking about the rental market forecast for 2015 in the Salt Lake City valley. Anyone who lives in the area simply needs to look around and it’s easy to notice all of the cranes. Those cranes are constructing a number of multi-unit buildings. That’s good if you’re looking for a rental but not so good if you own rentals.

Multi-Unit Landlords

Ultimately, the additional inventory that this new construction produces might have the potential to drive down the price you can get on the units in your own building. Investors need to take that into account. If you have a smaller building with 10 or 12 units, make sure you concentrate on making your building appealing to potential tenants. Take good care of the property’s exterior and make sure the inside is updated and looks good. When you have a vacant unit, you’re going to have some competition for tenants. Make sure people will want to live in your property. Keep it well maintained and provide a lot of amenities such as a playground or a pool.

Single Family Homes

In the single family market, we don’t anticipate seeing any big changes throughout 2015. In Salt Lake City, there is always a strong demand for single family houses, especially those that are in good shape. Take care of the inside of the home, and when it’s vacant you’ll be able to rent it out at a good price without a problem.

This is a brief overview of this year’s rental market. If you’d like some more in depth analysis, please contact us at Advanced Solutions Property Management, and we’d be happy to tell you more.

Many landlords want to know how much it costs to hire a professional property manager in the Salt Lake City area. Generally, property management costs will run between eight and 10 percent of your monthly rental receipts. That means if you’re charging $1,000 in rent for your property, the cost of a good manager will be about $100.

Outside of the general management is the leasing process. Some property managers will charge an additional fee, which is called a leasing fee. That’s an upfront fee that you pay in order to get a tenant placed in your property. At ASPM, we don’t charge a leasing fee. We don’t think it’s fair that property owners would pay a professional to put a bad tenant in place and then have to evict the bad tenant and get paid again to put another tenant in place. Leasing fees seem counterproductive to us, so we don’t charge them to our owners. However, many companies do charge those fees, so make sure you’re comfortable paying them and be prepared for that extra cost.

As we always tell our owners, the cost of professional property management in Salt Lake City will be far outweighed by the increase in income and the decrease in vacancy over time. Really, you hire a property manager for the same reasons you hire a professional accountant or lawyer. They know the industry and they can help you increase your overall income. Don’t spend too much time worrying about what you’re going to pay in management fees every month. Instead, look at your bottom line and what you’ll get in return for what you’re paying.

Professional investors never manage their own properties. They turn them over to property managers because they know that’s how they’ll increase their rental income and the return on their investment.

If you have any questions about the fee structures for property managers, please contact us at Advanced Solutions Property Management.

 

As property managers, we do a few specific things to every rental home we manage in order to protect that asset. Today, we’re sharing some of those tips so you’ll know how your property manager is protecting your investment.

Move In Inspection

One thing we always tell our owners is that the most important thing you can do is an initial walk through. Every single time you lease a property, conduct a walk through inspection and use a form that documents the condition of the property. That way, you can hold the tenant accountable to keeping the property in that condition. Do this inspection with the tenant so you both have the opportunity to note anything that needs attention. Then, you’ll have the written documentation as evidence and they will understand their responsibility.

Drive by Inspections

We enforce the lease by conducting monthly drive bys of the property. When we pass by the property, we’re looking for strange things that catch our attention. Maybe there are too many cars in the driveway or tin foil in the windows. If everything looks fine, we don’t have to worry about it. But if we see a problem, we promptly enter the property. Your property manager will post a 24 hour notice, and then go in and check things out. Usually we find there is nothing to worry about, but it’s better to act on any problems right away if we do find them.

Internal Inspections

Not every property management company will do an internal inspection of the property, but we offer an annual inspection every spring or fall. At this point, we go in and do a 40-point inspection of the property. What we’re really looking for is evidence that the tenant is treating the property well. We also look for damage or anything that needs a repair or replacement. It’s a good time to check for leaks or wear and tear. Our presence in the property once a year keeps tenants from treating your asset poorly.

Move Out Inspection

At the end of a lease, we do an exit walk through. We use the same form we used at move in and then we’ll make any necessary deductions from the security deposit based on the condition of the property. Usually, we deduct for things such as not cleaning the carpet or taking care of the external areas of the home. This is how we hold tenants accountable.

If you have any questions about how property managers can protect your investment property, please contact us at Advanced Solutions Property Management, and we’d be glad to tell you more.