3 Tips For Successful Park City Property Management
Having an investment property can be both a challenging and rewarding experience. Property owners are faced with two basic choices when thinking about Park City property management: do I manage the property by myself or hire a Park City property management company? Each property owner arrives at an answer by assessing the property and their personal situation. However there are a few common pitfalls that I have seen self-managing property owners stumble into in my time as a professional property manager.
1. Knowledgeable Tenants
All too often I have had a resident, who rents directly from an owner, stop by my office with a
problem. And that problem is usually related to a lack of knowledge. From "Where is the laundry?" to "Can I have a satellite dish?" many problems that arise for a tenant can be proactively dealt with through informing the tenant about basic information related to the property. If your investment property is part of an association this could include parking rules, pet policies, or access to gym and pool facilities. In the case of renting a private home clearly spelling out any maintenance responsibilities that belong to the tenant are also very important. Setting expectations early can help a property owner avoid frustrations and make renting a positive experience for a tenant. The last thing anyone wants is a car to be towed because a tenant didn't know where they could park.
2. Background Checks
A while ago I had a conversation with a property owner who does their own Park City property management. At the time we both had a similar property we were trying to rent and they wanted to know if I had any good prospects. I said that I had a few showings but only one party had submitted an application and had been turned down. When they asked why I had turned the prospects down I indicated that a member of the party had a Social Security number that showed up as belonging to a deceased person. The property owner then asked if I would refer the prospects to them because "I don't really worry about that, I never run a background check"! Now I would hope that this is an uncommon response but when looking for prospective tenants you must take the time necessary to protect your investment. Some recommended steps are:
- Verifying employment
- Check rental history
- Run a credit and criminal background check
I have seen too many examples of poorly checked tenants that have resulted in damaged property, lost rents and even involvement from law enforcement. This can not only negatively affect the property owner but also the community. Don't just take the first person who has cash in hand, do your research and you will be glad you did.
3. Be Involved In The Community
As a property owner it is all too easy to simply let the rents come in and not think about the big picture. Do you know what is going on in the community where your investment property is located? Are there things happening that could impact your ability to rent your property, either negatively or positively? Let me give you an example. Not too long ago I was consulting with an attorney who specializes in Utah property management. We were discussing pool rules when he told me about a community he was aware of that got into a lot of trouble over their pool rules and the Fair Housing Act. The Fair Housing Act, passed in 1968, creates certain protected classes that it is then illegal to discriminate against. One of those protected classes is "familial status", which was added in an amendment to the act in 1988. Familial status can be easily understood as having children. The community that the attorney was telling me about was formed prior to 1988 and had an little known and never enforced rule that barred children from using the pool during certain hours. A family renting a property in the community, upset with something completely unrelated, found this rule and reported the community to the U.S. Department of Housing and Urban Development, the agency responsible for enforcing the Fair Housing Act. Unfortunately for this community the government levied a heavy fine which then was passed on to individual property owners for payment. In this case an involved homeowner could have easily saved the community a serious fine by knowing the rules present in their community.
Park City property management can be a positive way for owners to generate funds on their property but without some basic knowledge it can be a difficult process. Take time to further educate yourself with some of these resources: Fair Housing Act, Background Check.
If you are interested in learning more about property management Park City Utah, download our free white page "5 Questions Landlords Should Ask Themselves".
