Every now and then, despite your best efforts at tenant screening and being a quality landlord in Park City property management, you will have a tenant that abandons a property. Sometimes they may tell you they are leaving, sometimes they may not. There are some differences between the two types of abandonment but there are also a lot of similarities. So what can you as a landlord do when a tenant bails? Let's take a look at the two different scenarios and what a landlord can do in Park City property management.
Abandoned Premises
Utah law has specific provisions for a tenant abandoning a premises, if you want to read the code yourself you can go here. As will all legal matters if you are unsure you should consult an attorney and I am not an attorney. The key first step in determining an abandon premises is if the rent is 15 days late. Once the 15 days has lapsed and there is either no reasonable evidence that the tenant is occupying the premises, whether they have left personal property behind or not, a property can be considered abandoned in Park City property management. If there is personal property left behind a landlord can have the property removed and must store it. If the property has not been claimed by the tenant after 15 days the landlord may sell the property to offset costs for moving and storage or donate the property to a charity. Once the personal property has been removed the landlord can attempt to re-rent the property. A tenant would be liable for the term of the lease, any unpaid rent up until a new tenant is found, reasonable commission or fee for renting property, plus any storage or moving fees and any damaged done ot the property.
Tenant Provides Notice
Sometimes in Park City property management when a tenant unexpectedly moves before the lease is up they may notify you beforehand. Hopefully this is done with enough time for you to begin touring the property and securing a new tenant before the current tenant moves out. This can really help make the best of a bad situation. If they tenant does not notify you ahead of time that they are leaving they are really making things worse on themselves. As in the situation with an abandoned premises the tenant is still responsible for rent up until the day a new tenant is found. If they are smart they will give you as much time as possible to find a new tenant or better yet refer a good tenant to you. If a tenant has an unexpected job transfer or family emergency that causes them to move and they proactively contact you about their situation you can really minimize costs for both yourself and the tenant.
Collection Options
If a tenant is left with unpaid rent I would recommend you turn the matter over to a collection agency once a total cost has been established. In order to do this you will need to keep accurate records and have proper lease and application information to provide to the agency. Submitting a collection my cost nothing or you may be required to pay a small fee. But trust me you are better off focusing on moving forward with your Park City property management operation and allowing the dirty work of collecting from former tenants be left to those who understand the legal aspect of collections.
If you would like more information on dealing with tenant abandonment, or further information about Park City property management in general click the link below for a free consultation. You will receive valuable information specific to your property that will help you make an informed decision. You will also receive a free, no-obligation quote on our property management services. At CC Realty we specialize in making investment property ownership a trouble free experience. Please contact us today for your free consultation
My experience in Park City property management has taught me a few things about what it takes to run a property management business in a competitive market. I've also learned some of the red flags that a person looking to hire a property management company in Park City should look out for. Now individually these items shouldn't deter a person from hiring any particular property manager. And I certainly haven't perfected every item discussed here. But if you are in need of some Park City property management here are a few thing to watch out for.
- Poor At Communicating. This can manifest itself in a number of ways. I just recently had a property owner stop by to introduce himself. He lives in California and we manage a property for him here in Park City. He also owns an investment property in Evanston Wyoming of all places. He was on his way back from Evanston because he had to go there to "straighten out" his property manager! He complained that it would take multiple phone calls to this manager to ever get a response and they would not keep him updated on the condition of the property. The property had unfortunately deteriorated significantly and was in need of some serious repair. If you are looking into Park City property management check into the communication protocols of the company, you'll be glad you did.
- Haphazard Bookkeeping. How regularly do you receive a statement from your potential Park City property management company? I would submit that anything less than monthly is not adequate. I employ an outside bookkeeping company to handle the nuts and bolts financial accounting once a week. Other qualified companies will have an inhouse person dedicated to bookkeeping. This is an aspect of really any business that can unfortunately be overlooked. You are making a serious decision with your investment property and you need to have accurate and timely financial statements when it comes to that investment. Also ask about a trust account. I recently wrote about the importance of trust accounts in an article titled "Park City Property Management And Trust Accounts."
- New Company. Now obviously every company had to start somewhere and I don't think you should necessarily discount a Park City property management company just because they are new or small or just starting out. But I have unfortunately run into a few bad apples trying to start new companies. There was a previous owner in an HOA that I manage who was several thousand dollars in arrears on their HOA dues and had been turned over to an attorney. So I was very surprised to find that this person had begun operating a property management company here in Park City. Their first employee was their son who had recently be released from prison! All things equal you should go with a company that has been in business for a while. Certain things can only be learned through experience and you will be hiring a company with a proven track record.
If you would like more information on what to avoid when hiring a property manager, or further information about Park City property management in general click the link below for a free consultation. You will receive valuable information specific to your property that will help you make an informed decision. You will also receive a free, no-obligation quote on our property management services. At CC Realty we specialize in making investment property ownership a trouble free experience. Please contact us today for your free consultation
A happy tenant is a tenant who stays. This could almost serve as a mantra for Park City property management. Now this doesn't mean we cater to every tenant's whim, some people just can never be pleased. If you are wondering how to separate the great tenants from the difficult ones check out my post "Park City Property Management: 10 Warning Signs When Finding Tenants". But for the sake of today's blog let's assume you've got great tenants, your long term rentals in Park City are being well cared for and rent is at or above the market rate. Basically things are good and you want them to stay that way. So how do you keep a tenant happy? Here are some tips I've shared with others or learned from landlords.
Handling A Problem
I recently had some friends who own a rental property ask me a question. The fridge in their condo had gone out and the tenant's food had spoiled. The fridge simply broke, there was no negligence on the part of the property owner and they fixed the fridge in a timely manner. But as you know food can go bad quickly and the tenant was upset and wanting some compensation for the lost food. My friend was inquiring what, if any, legal obligation he had to provide some compensation for the spoiled food. The short answer I gave them was no, in Park City property management the landlord is not under any obligation to cover the cost of food that spoiled through no fault of the landlord. But the long answer is a little more tricky. I told them that they should consider whether the current tenants have been good tenants, if they are wanting to keep them in the property, and if they are interested in maintaining a good relationship. Because even $100 reduced rent as compensation for the food is significantly less expensive than a tenant moving out at the end of a lease because they are unhappy with you and the property. Factor in costs to return the property to rentable condition, marketing and touring new tenants, and of course the biggest cost of vacancy. When looked at from that angle it is well worth it to keep good tenants happy and take a little less rent for one month.
Tenant Rewards
My brother had a single family rental for a number of years. He had the same tenants the entire time and one of the reasons were his "tenant appreciation nights". My brother would randomly stop by every so often with a case of beer for his tenants. Now they weren't partiers. They took care of the property, paid on time, and there were never any complaints. But the tenants go a kick out of it, my brother got to keep an eye on his property, and everyone was happy. A case of beer is pretty inexpensive and the time commitment from my brother was pretty minimal. But from this simple tenant rewards he never had any vacancy over the course of a few years. When you look at it in those terms it just makes sense to show a little appreciation to your tenants in whatever form you think works best for them. In my own rental property we usually do a little holiday gift for my tenants and they are very appreciative. They have been there several years and have no intentions of moving. Simple things like this can really help your tenant relations in Park City property management. And good tenant relations translates into happy tenants, less vacancy and better maintained properties.
If you would like more information on how to retain tenants, or further information about Park City property management in general click the link below for a free consultation. You will receive valuable information specific to your property that will help you make an informed decision. You will also receive a free, no-obligation quote on our property management services. At CC Realty we specialize in making investment property ownership a trouble free experience. Please contact us today for your free consultation.
When a lease comes up for renewal raising the rent can sometimes be a difficult subject to broach with tenants in Park City property management. If you are wondering what your property should rent for you can check out an earlier post I have on that subject titled "What Should My Rent Be In Park City Property Management?". If you have already established a market rent but during the term of the current lease the market has changed you may want to increase the rent. Right now in Park City property values are climbing back up. This also results in an increase in rental rates. As the properties I manage are coming available I am increasing rates, either with renewals or vacant units. So here are some tips for approaching a tenant about raising the rent.
- Make the increase reasonable: This number should be a reflection of the rental rate. A $200/month increase might be completely reasonable for a single family home but not for a studio. Do your research on what similar vacant units are renting for and try to match that rate. If it ends up being a significant increase you may want to scale back. The goal is to keep the tenant while pricing the property for the market, not raise rent to unreasonable levels.
- Let The Tenant Know You Want Them To Stay: Some people may interpret the increase in rent as a desire to have them leave. You should be careful as a landlord to avoid being accused of retaliation by a tenant in Park City property management. Make it clear to them you want them to stay and that the increase is no punitive or designed to force them out. If they are resistant it may also be useful to explain all the costs of money, time and effort that go into moving. Some tenants may have a gut reaction without actually thinking through what moving will require. Things like deposits and first month's rent, moving trucks, etc. are just some of the costs of moving.
- Explain The Reason For The Increase: In general as a property ages it will require more money to maintain. Property taxes also typically go up. If you are paying any utilities or HOA fees these also tend to go up. Other outside factors can also warrant an increase in rent such as increasing property values, new property or business development in the area, etc. Explain your reasons behind the increase to your tenants so they will hopefully understand where you are coming from. Long term tenants are valuable for long term rentals in Park City.
As a landlord you need to balance your goal of maximizing revenue through rental rate increase with the potential costs associated with vacancy. Talk this through with your tenants and be willing to work out an amicable compromise.
If you would like more information or tips increasing rental rates., or further information about Park City property management in general click the link below for a free consultation. You will receive valuable information specific to your property that will help you make an informed decision. You will also receive a free, no-obligation quote on our property management services. At CC Realty we specialize in making investment property ownership a trouble free experience. Please contact us today for your free consultation.
Some people just seem to be born to do the job they are in. They fit it and it fits them. Many of us however aren't in a job that perfectly fits us. Sure we get things done, do a good job, and find success in life. But not many people are in the position to say that their job fits them perfectly. But as long as you have the qualities necessary to succeed in a certain field you will do just fine. The same is true for Park City property management. There are certain qualities you need as a landlord to succeed in Park City property management. I've put together a list of a few I think are the most important. If you are looking at becoming a landlord take some time to decide if you have it in you to succeed.
1. A People Person
Ultimately being a landlord in Park City property management means dealing with people. Sure properties have issues you must solve, and knowledge of how to fix and maintain your investment is crucial. But more than that being a landlord means interacting with people. I have seen the good, the bad, and the ugly in my time as a property manager. I have had wonderful relationships with tenants who would stop by my office just to say hello. I've had tenants screaming and cursing about this, that and the other. I've had to step in the middle of tense situations and domestic disputes. And I have sadly been involved in worse situations as well. If you are thinking about stepping into property management in Park City Utah you must be able to deal with people professionally.
2. Does Not Procrastinate
In Park City property management you cannot procrastinate. A small leak under a faucet can cause big damage in a property. Not posting the property notice when rent is late can give deadbeat tenants more time in your property. If your tenant has a complaint about the neighbors it will usually get worse if it is ignored, not better. Putting off small tenant requests creates frustrations that can result in a tenant leaving rather than renewing. If a maintenance problem occurs be quick to fix it. Respond quickly to your tenants. In general don't procrastinate!
3. Comfortable With Expenses
There has never been a rental property in the history of Park City property management that didn't have some expenses. And sometimes they seem to come in waves. It is also fairly common for there to be new expenses associated with a new tenant moving in. You can't always plan for expenses but you should be aware that they happen. If you want to rent for a premium and retain the best tenants then you must be willing to maintain your property. Some of the worst landlords are those who penny pinch or band aid repairs. Nothing will encourage a tenant to treat a property poorly than a landlord who treats a property poorly.
4. Good Judge Of Character
Like Kenny Rogers said: you gotta know when to hold'em, know when to fold'em, know when to walk away, know when to run. You will meet people from all walks of life in Park City property management. Some will make great tenants and some are nightmares. You will need to make a sound judgment based on limited information.
If you would like more information on being a landlord, or further information about Park City property management in general click the link below for a free consultation. You will receive valuable information specific to your property that will help you make an informed decision. You will also receive a free, no-obligation quote on our property management services. At CC Realty we specialize in making investment property ownership a trouble free experience. Please contact us today for your free consultation.
Many of you involved in Park City property management have probably heard the phrase "trust account" used before. You may think if it in terms of a trust fund which is essentially a bank account administered by a trustee for the benefit of another party. This is not dissimilar to how a trust account is utilized in property management. But why is it necessary for a property manager to have a trust account? Let me share with you a personal story about trust accounts and their implications.
The Wrong Way
I previously worked for a Park City property management company that I came to find out was grossly mismanaging its accounting. First they did not have a trust account established. All money paid to the company for the rental of a property went into one giant account. And from this account they would pay the property owner's portion of money collected but also the bills, expenses, and commissions due to the company. There is a fun little term for this type of thing, it's called comingling. And it is bad! Unfortunately for all the employees of this company, including myself, these funds that had to be paid to owners were also being utilized while they were being held in an account. The company was directly funds to business ventures outside of the state and then relying on lines of credit from banks to pay the owner's portion of rental income when it was due. And when the economy took a dump in 2008 and banks tightened their lending restrictions there was no money to pay the owners, the company went bankrupt and a lot of people lost their jobs.
The Right Way
For Park City property management a trust account is a necessity. All money received from a tenant by a property management company should be placed directly into a trust account. There should then only be two types of payments made from that trust account: the commission and fees due to the management company per their agreement and rental income due to the property owner. Trust accounts should also be reconciled frequently. This should be a standard part of the bookkeeping practices for any property management company. Any bills a property manager receives should be paid from their own operating account and never comingled with trust account money. If you are looking at hiring a Park City property management company ask them detailed questions about how monies received from a tenant for rent payment are handled. If that money isn't put directly into a trust account then you should look elsewhere.
If you would like more information on trust accounts, or further information about Park City property management in general click the link below for a free consultation. You will receive valuable information specific to your property that will help you make an informed decision. You will also receive a free, no-obligation quote on our property management services. At CC Realty we specialize in making investment property ownership a trouble free experience. Please contact us today for your free consultation.
For some people the concept of value is closely related to the concept of a "deal". If you feel you are receiving a good or service at a below-market price then you might consider there to be value in the transaction. But there is more to value than simply getting a good price. When it comes to Park City property management there must be an understanding of what services are provided for a given commission or fee.
"Well I don't need to pay somebody to just collect rent."
This idea, or some variation of it, is one commonly used to dismiss the value a property manager provides to a property owner. But I view this as an opportunity to explain exactly what a property manager can do for you at a very reasonable cost. If you are looking for a good breakdown of cost then you can check out a post I wrote titled "Park City Property Management For 62 Cents An Hour." That posts succinctly explains the cost in relatable terms. But when talking about value the basic question is what do I get for the money I pay? Is there any worth for a property owner in the services provided by a Park City property management company?
Landlord Grief
I recently spoke with a woman who was having trouble with her tenant. The tenant was two months behind on rent, was supposed to have done some work for her in the property but had not and she was now facing the prospect of evicting the tenant. And she was attempting to manage all of this from Arizona. No local contacts in Park City property management, other then myself, to look after the place, find a good tenant, serve proper notices for late payment or lease violations, inspect the property, perform maintenance, etc. She didn't know or understand the basics of Utah eviction laws or what was necessary for her as a landlord to do when beginning the eviction process. And now she was in a bad spot with a bad tenant and not sure where to turn. This is a classic example of what I like to refer to as "landlord grief". Being a landlord is all sunny beaches and margaritas, waiting for a rent check to show up. Sometimes it is time consuming, stressful, ugly and just plain work. These are things that a Park City property management company will take care of for you. Know more hassles and dirty work, you actually can sit on the beach and enjoy your margarita!
Asset Manager
A property manager is really an asset manager. Your investment property is a substantial asset. For most people a home is the single largest expense they will have in their entire lives. If you aren't taking care of it then who will? Property managers charge a reasonable fee and have a particular set of skills related to maintaining and protecting a very expensive asset. Far from just sitting back and collecting rent checks and property manager will place qualified tenants into a property who will also help to maintain and even enhance the value of your long term rentals in Park City. A property manager should be a trusted component of your wealth-building goals and work with you to maximize the short and long term goals you have with your investment property.
If you would like more information on the value of a property manager, or further information about Park City property management in general click the link below for a free consultation. You will receive valuable information specific to your property that will help you make an informed decision. You will also receive a free, no-obligation quote on our property management services. At CC Realty we specialize in making investment property ownership a trouble free experience. Please contact us today for your free consultation.
The subject of renting furnished or unfurnished in Park City property management comes up fairly often when talking about long term rentals in Park City. Often times a property that was previously used as a vacation rental has undergone new ownership who would like to utilize the property in a different manner. Or a property owner finds themselves no longer able to use a property they had purchased as a vacation or second home and would like to generate some income off the investment.
So how do you determine whether you should rent a property furnished or not? There are a couple of key things to consider when making this decision that I think a property owner in Park City property management should consider. Let's a take a look at a few items I've compiled based on my experience.
- Your Intended Use Of The Property: What is your end game with this particular property? Do you want to utilize it periodically during the year? Are you looking to eventually retire here or have this property as a vacation home a few years down the road? I have one property owner who likes to come stay in Park City a few times a year in the spring and summer. We rent his property furnished during the winter as this is the peak time for rentals in Park City. It rents for a premium and he enjoys it the rest of the year. Consider what your plan is with the property when it comes to furnishings.
- The Condition of The Furniture: If the property you have just purchased has been a rental for some time, or if it was your vacation property and you threw a hodge-podge of items together to make it livable then perhaps you should consider removing the furniture. Damaged or mismatching items do not command a premium in Park City property management.
- Most Long Term Tenants Have Furniture: When renting a property you want to cast the widest net possible. That way you create the largest pool from which to pick a qualified applicant. It really is a numbers game in many ways. And experience has taught me that the majority of people looking for a long term rental in Park City have their own furniture. Sure they may lack an item or two but the generally do not want or need another person's furniture.
These are just some of the things you should consider when dealing with a furnished property in Park City property management. But as a general rule of thumb if you want to rent seasonally then keep it furnished. If you want to rent long term then get rid of the furniture. In Park City a seasonal tenant will most likely need furniture as they may just be here for the ski season while a long term tenant is someone moving to the area more or less permanently and will bring their own items with you. This does not mean you must get rid of your furniture if you rent long term. But again it you are trying to cast the widest net possible don't limit yourself to a long term tenant who needs furniture.
If you would like more information on rental management, or further information about Park City property management in general click the link below for a free consultation. You will receive valuable information specific to your property that will help you make an informed decision. You will also receive a free, no-obligation quote on our property management services. At CC Realty we specialize in making investment property ownership a trouble free experience. Please contact us today for your free consultation.
As spring finally shows up in Park City there is a definite shift in the population and it has its effects on Park City property management. The majority of the properties I rent and managed are leased long term. There are always seasonal rentals in Park City; this is the nature of the ski industry and subsequently the housing industry. But even with most of my properties being long term rentals it seems that I have more lease expirations and subsequently more properties coming available in the summer and fall. And with turnover in a tenant comes additional expenses that normally don't occur. As a landlord you are looking to maximize the cash flow of your investment and when no one is paying rent your cash flow is gone too! So what can those of us in Park City property management do about turnover? Here are a few tips:
Minimize Turnover
The less turnover the better right? So what can you as a landlord do to keep good tenants paying rent in your long term rentals in Park City? Well the first step is making sure you get good tenants. Doing proper background and reference checks is a great place to start. I recently wrote a post titled "Park City Property Management: 10 Warning Signs When Finding Tenants." This is a great list of things to watch out prior to a tenant signing a lease and moving in.
Another thing you can do as a landlord is respond quickly and professionally to requests from tenants or maintenance items at your property. By responding quickly you are letting your tenants know that their concerns are a priority and that you will act quickly to maintain your property.
Keeping rent competitive within your market is another way to keep tenants long term. If a good tenant feels like they are paying a fair price to live in the property they are less likely to jump ship in Park City property management.
Plan Ahead
If your tenant is moving for an unavoidable reason such as job transfer or family matters then you should act quickly to minimize the time your property is vacant. Hopefully your lease is structured to require a 30 day notice if your tenant is moving at the end of the lease. If so this 30 day window is when you should kick your marketing into high gear, tour the property with proper notice to the current tenant, and try to secure a new tenant before the old one has even moved on. In looking back I cannot recall a time in the last few years where a property we manage has sat vacant for lack of a tenant. It takes time to build up to this level of performance but when you get there it makes Park City property management great!
Get Some Professional Help
If all this sounds like too much for you then you should look for some Park City property management help. A competent property manager will have already established pipelines and marketing tools to attract quality tenants, structures and employees in place to provide excellent customer service to current tenants, and processes that will reduce vacancy and keep your cash flow nice and steady.
If you would like more information on managing tenant turnover, or further information about Park City property management in general click the link below for a free consultation. You will receive valuable information specific to your property that will help you make an informed decision. You will also receive a free, no-obligation quote on our property management services. At CC Realty we specialize in making investment property ownership a trouble free experience. Please contact us today for your free consultation.
When it comes to screening potential tenants in Park City property management you need to use every tool at your disposal. You have probably invested a significant amount of time and money into being a landlord and owning a long term rental in Park City. You want to make sure that you are taking the right steps so you don't end up with a problem down the road. If you would like some information on basic tenant screening check out "Tenant Screening Tips For Park City Property Management." This will get you started in the right direction when it comes to selecting tenants and placing them into your rental property.
If you've already got an application process in place but are just looking for a few extra methods of determining the suitability of a tenant then take a look at this list I've compiled. While any one of these items taken on their own may not be enough to disqualify a person if you have a few of these come up during the application process it may be time to look elsewhere.
- Asks about getting out of the lease early before the lease is even signed. This can be an even bigger warning sign of you are starting a year lease in November/December as this person may want to bail at the end of the ski season. You don't want to rent to someone who is already looking to move again.
- Lying on an application. Be up front that you are going to run a background check. If something comes up on the check that they didn't disclose you could be in trouble. Also lying about things like pets, number of people that will be living in the property, etc. are all problems in Park City property management.
- Complains about the property before even moving in. You don't want to rent to someone who doesn't want to live there! Having a few items that need to be addressed during move in is fairly standard. But if a prospective tenant is already unhappy with the property you could end up with a year's worth of headaches.
- Can't keep an appointment or show up on time. If they can't make it to a showing in time they might not be all that interested in paying rent on time either. You don't want to spend the next year chasing down rent checks.
- Asking if they can pay full rent or deposit after moving in rather then up front. An inability to pay rent or deposit is not good and starting off being unable to do so is also a big warning when it comes to Park City property management.
- If they appear to be intoxicated, high, etc. You really don't want to rent to a person who attempts to do normal activities under the influence of any type of substance.
- If they are first-time tenants who have just moved from home. Again nothing on this list by itself could disqualify a person but you also don't want your long term rentals in Park City to turn into a party house either. Check all references and maybe get mom or dad to cosign.
- If their current landlord has problems with them or if they have problems with their current landlord. This situation deserves a little detective work if the tenants seem otherwise great. I have seen it go both ways and you should use your best judgment in Park City property management.
- They reek of cigarette smoke and you do not want to rent to a smoker. They may say they will never smoke in the property but they will most certainly be in the property along with all their person effects that smell like smoke. And on those cold, snowy winter nights when they need a smoke who knows if they will actually go outside.
- They own a lot of vehicles. You don't want your property looking like a parking lot.
If you would like more information on how to screen tenants, or further information about Park City property management in general click the link below for a free consultation. You will receive valuable information specific to your property that will help you make an informed decision. You will also receive a free, no-obligation quote on our property management services. At CC Realty we specialize in making investment property ownership a trouble free experience. Please contact us today for your free consultation.