Maximize Your Property - Tips For Park City Property Management
If you've decided to take the plunge and invest in some property there are a few things you should know that can help that investment from becoming a bust. If you've ever bought or sold your own home you understand the sometimes difficult process of getting a place ready for sale. However if you've purchased a property as an investment you should also be making the right decisions in running the property so when the time comes to sell you aren't stuck with an unsellable investment. Each investor probably has a few methods they use for managing their investments but I would like to share a few tips of my own.
Hire A Property Manager
It may cost a little money but what a property management company can do for you more than makes up for this cost. If you are new to property investing, busy with your current employment, or lack the knowledge to effectively manage your investment then a Park City property management company is a wise decision. Park City property management companies take the legwork and guesswork out of your investment. A good property manager is available during business hours to respond to regular tenant needs and 24/7 for emergency responses. They are knowledgeable in their rental market and have already established channels and methods for quickly finding the right tenants for your property. They will take care of maintenance requests, produce monthly statements, and provide your property with a professional face that interacts with tenants. This creates a better tenant experience resulting in greater length of stay and decreased turnover. Every day your property sits vacant is money you lose out on. Hiring a property manager will keep your property rented and you happy.
Buy During Construction
Often times developers will offer incentives to purchase a property before it is complete. I know of many instances where an investor has bought into a condo before the entire building is completed and by the time he closes values have gone up and there is already decent equity in the property. Make sure to complete your due diligence in researching this investment. Is the property in a desirable location, not just for you but for potential tenants? What amenities are there both in the property and the neighborhood? Is the specific unit you purchase near an elevator or stairs? These may seem like basic questions be these are things prospective tenants will ask themselves when looking for a place to rent. I find it really helps to put yourself in the mind of a tenant and consider the draw your property may have.
Vacancy Equals Money Lost
Every tenant moves on. If you have a great property to rent and you take care of your tenants then hopefully your turnover is minimal. But when the time comes to get a property ready for new tenants you need to act fast. The first step is to require current tenants to provide you with a 30 day notice before ending a lease. Stick to this requirement and give it some teeth. Making a refund of the deposit contingent on providing this notice will make sure tenants comply. Once the tenant provides you with notice the first step you should take is to advertise the property. This will give you some time to tour prospective tenants (you must provide 24 hour notice to your current tenants for any tour) and hopefully secure a deposit before the property is even vacant. Once the current tenants move out and baring any excessive damage you should look to have your property ready for move in within a week. There is a simple calculation you should make when considering how long your property will sit vacant. If your property rent's for $900/month and there are 30 days in the month then every day your property sits vacant is costing you $30. Every week is costing you $210 and it just goes up from there. Establish a quick timeline to reduce vacant days. Not only will you save yourself money but prospective tenants are eager to move in and most will not want to wait weeks or months for a property.
If you are interested in learning more about property management Park City Utah, download our free white page "5 Questions Every Landlord Should Ask Themselves".
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