If you are a landlord in Salt Lake City property management and your investment property is part of a condominium development there are special considerations that should be made regarding the home owners association or HOA. Many people find HOAs attractive options for both residences and investment properties. An HOA typically has shared costs for many maintenance items which alleviates some of the work associated with property ownership.
HOAs also have established community rules that are generally designed to enhance or preserve the value of the community.
If your Salt Lake City or Park City long term rentals are in an HOA then as the landlord you need to make extra effort with your tenants. Below are a few examples of HOA rules that tenants may unknowingly break and that landlords should consider their responsibility to inform tenants of.
- Length Of Stay: Of the several HOAs that I manage rental properties in this rule varies. One has a restriction that does not allow leasing for a term shorter than 30 days. Others do not have a restriction of term which essentially allows for nightly rentals. This type of property, sometimes referred to as a "condo hotel" is significantly more common to Park City property management than it is in Salt Lake City property management. Nightly rentals come with their own difficulties as well. Make sure you are aware of your HOAs restrictions on length of stay for tenants.
- Pet Rules: Again this rule will change depending on the HOA. I work with HOAs that allow owners but not tenants to have pets, HOAs that don't allow anyone to have pets and HOAs that allow both owners and tenants to have pets. There will also be restrictions on the number, size and breed of pets as well. I have seen landlords turn a blind eye or even deliberately mislead tenants. I have seen tenants who know the rules and ignore them. As a landlord make sure you follow the rules and your tenants do as well.
- General Community Rules: There are also rules established that limit certain behaviors in a community. Things like parking restrictions, use of decks or patios, common area rules, and rules for amenities like pools or gyms are just some of the restrictions you can encounter in a HOA regulated community. The best thing any landlord in Salt Lake City property management can do is make sure they first obtain a copy of all rules from the HOA. Many HOAs have a management company that will have all the rules and regulations available for all property owners. Obtain these rules and inform your tenants up front that they are obligated to obey the community rules. Most HOAs also have a fine schedule that pertains to repeated violations. An owner is responsible for the behavior of their tenants. So if your tenants are found to repeatedly violate HOA rules the fine will be assessed to you as the property owner.
My experience has been that most people, when informed of the rules, will make a reasonable effort at following them. There will always be a certain percentage of the population of any community that will feel as if the rules don't apply to them. It is the responsibility of landlords to determine which type of person their tenants are and take the appropriate action.
If you would like more information on HOAs and rentals, 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.
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One of the things that I remember most about getting my real estate license was a comment made by one of the instructors. It was something along the lines of "The two things that determine the value of any property are a willing seller and a willing buyer." What has always stuck with me about that phrase is the idea that any price set for something is ultimately an agreement between two willing parties. And for property management Salt Lake City the idea of setting rent is the same. You may feel that your property is worth $1,200 a month in rent. In fact you could feel that it is worth $12 million a month but until you find a willing party to agree to the price what you have is basically an estimate of value, not actual value.
The same can be said of a tenant who may be looking for a Park City long term rentals. They may think that the most they should pay for a property is $1,000 a month. However until they find a willing landlord to rent a property at that rate they are again just estimating. So how do you figure out market rent anyways? Well the old real estate adage location, location, location, certainly applies. Location is an important factor in determining your market rent. There are other avenues available to landlords that can help you with market rent for property management Park City.
- Do some searching online at sites like craigslist or KSL.com. These are sites that feature a high volume of available rental units so the likelihood of finding what a comparable property is being advertised for is good.
- Check what competing Salt Lake City property management companies are listing properties at. Many property management companies have a large pool of rental units and a better idea of what the market in general is doing. They can use sophisticated revenue management software that gathers copious amounts of data to set prices on rental units. As a small time landlord you can't afford this type of software but the results of using it, the prices of rental units, is available for your viewing. Take a look at what the big boys are doing.
- If you are currently vacant you should always start high. Set your new price above what the previous tenants were paying and see what kind of traffic you get. Vacancy is a great time to assess where marketplace rent has gone and if you are lagging behind comparable properties in Park City property management.
If your phone is ringing off the hook the first day you post the unit it could be one of two things. Perhaps nothing else is vacant in the area, and you should already know this after checking out your competitors. Or perhaps your rate is a bit too low. People who are scanning for available rentals will move quickly if there is a deal to be had. If you find your phone is blowing up the first day you post your property you may want to take a look at increasing the rent before committing to a new tenant. Remember it takes a willing landlord and a willing tenant to set the market rent. If you feel like you are giving the farm away you aren't all that willing.
If you would like more information about market rent, 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.
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Today's blog post comes from a conversation I had yesterday while watching my daughter's soccer game. Another parent on the team who also lives nearby asked what I did for work and I told her I was in Park City property management. She then said that she and her husband currently owned and lived in a condo but were thinking of buying a house and renting out the condo.
I think many young people sort of fall into being a landlord in this manner, I know I did. As a young couple starting out they wanted to own a property and could afford a two bedroom condominium. Then a few years pass, a child or two comes along and before you know it the two bedroom condo is getting tight and it is time to upgrade. If you aren't in a position to cash out equity from your condo it may make sense to rent it out but where do you begin? Here are some tips for new landlords in Utah property management.
Do Your Research.
Before you throw up some pictures of your property online or sticking a For Rent sign in the window you need to do a lot of research. There are a lot of free resources available to new landlords through both state and local government. You should get educated on basic landlord-tenant law that pertains to long term rentals in Park City or Utah, and Park City property management in general. Researching laws is also helpful when it comes to determining what lease you will use for youre property. Make sure it has the provisions you need to feel protected. You may also consider establishing an LLC to further limit your liability but beware there are fees and taxes associated with one. You will want to look at what comparable properties in your area are renting for. This means determining what avenues are used to market properties in your area. If you are pretty handy with tools you should plan on fixing things yourself. If not it is good to already know reputable contractors for things like plumbing, electrical, HVAC and appliance repair just to name a few. Having already established relationships means you aren't stuck trying to get a hold of a random plumber on the weekend when your tenant calls to tell you there is a leak. These are just a few of the things you will want to become knowledgeable on when it comes to Utah property management.
Hire A Property Manager.
If you feel like you don't have the time or ability to gain the knowledge you need to successfully manage your property you might want to consider hiring a property manager. For minimal monthly fees a qualified property manager will become the professional face for your rental property. Think about it this way: You will have a professional staff of experienced individuals working fulltime for you for around $100 a month! Park City property management companies have already established all the necessary components for managing a long-term rental in Utah. A Utah property management company will already be well versed in the legal aspects of property management, have established market channels, knowledgeable employees, a network of vendors, experience in finding, screening, and placing tenants, provide monthly and annual statements and tax returns, and be available for 24 emergency response so you don't have to worry about your property.
If you would like more information for first time landlords, 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.
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A crucial part of any landlord's operation in Utah property management is quality tenants. They make being a landlord a breeze, provide you a good return on your investment and are one of the best assets you can have. I have previously talked about tenant screening in my post "5 Ways Tenant Screening Helps - Park City Property Management". However if you are buying an investment property with existing tenants there are special considerations to make.
I have been the property manager for several properties either bought with a tenant already in place or sold with existing tenants. If you would like some tips the selling side of things I recently wrote "Selling An Investment Property - Park City Property Management" . Today we are going to focus on the buying side and how to deal with an investment property already occupied by tenants in Utah property management.
Tenants With A Lease
The first thing you should understand about buying an investment property with tenants is that the lease with the previous landlord survives the sale of the property. A tenant still has the same rights granted them by the original lease. You cannot change or alter the terms of the existing agreement even though the ownership of the property has changed to you. I recently was involved in the sale of a property for which I was providing rental management services in Park City. The purchaser of the property intended to keep it as an investment and function as the landlord after the sale. Naturally both the tenant and the prospective buyer had many questions about how to proceed. Both parties were informed that the existing lease that was executed between me as the property manager and the tenant would be in force through the sale and remain so until the term had ended. I informed the tenant and buyer that they would have to then negotiate a new lease once the term had expired on the current one. None of the terms of the lease could be changed after the sale, an example being the new landlord wanting to raise the rent or the current tenant claiming a different end date to the lease. This would apply for either short term or long term rentals in Park City.
Tenants Without A Lease
A tenant not having a lease on the property they are residing in can happen in a few different ways in Utah property management. Perhaps the seller of the property wants to reside in the property as a tenant after the sale. There could also have been some type of oral agreement between the tenant and the previous owner. Or the lease has expired some time prior to the sale but the tenant has not signed a new agreement with either the previous or current owner and has not vacated the property. Many of these circumstances could qualify as a "tenant at will", a specific legal term that basically amounts to an occupant of a property who does not have a current lease on the property. If you are purchasing a property and the tenant does not have a lease you should consider using an estoppel agreement prior to purchasing. An estoppel agreement is used to establish the terms of the lease agreement between the current landlord and tenant, Things like rent, deposit, term, and any other consideration can be spelled out so that you as the purchaser will know what you are getting into and a tenant cannot come back and claim different terms after the fact.
If you would like more information on buying an investment property with an existing tenant, 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.
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For Park City property management roommates are a possible scenario any landlord could face. In fact a recent report by the Insurance Information Institute indicates that "One out of every eight homes in the U.S. is now inhabited by two or more people who are not related to each other—an increase of over 5 percent from 2000 to 2010, according to the U.S. Census Bureau. In other words, there has been a significant increase in the number of housemates/roommates, roomers or boarders, and unmarried partners living together." As a landlord you need to be prepared to handle this scenario and make sure your actions are in line with Utah property management law. I have previously written about similar circumstances in my post titled "Who Is On The Lease? Park City Property Management Tips" but today I would like to deal specifically with roommate considerations.
Who Signs The Lease?
This is somewhat of a trick question; you should have every individual who is over the age of 18 residing in the property sign the lease. You should also have a clear policy regarding people visiting the property. For example a landlord can require their pemission be obtained if a person stays in the property for more than 3 consecutive days or 5 days in a month. This can cut down on individuals residing the in the property who are not on the lease. You should also be aware of the term "tenant at will" when it comes to long term rentals in Park City. A tenant at will is essentially someone who is residing in the property without a current lease agreement with the landlord. A roommate who was invited by a tenant named on the lease but without the landlords permission is considered a tenant at will. If the named tenant decides to move out leaving the unnamed tenant behind this can result in a difficult situation for all three parties. If the lease is not expired the named tenant is still responsible, and the landlord and unnamed tenant do not have a lease agreement with one another. Requiring signatures from roommates can alleviate this problem in Park City property management.
Security Deposits
When it comes to roommates there are frequently two or more parties paying rent and two or more parties contributing to a deposit. My recommendation for Park City property management is that you insert language into your lease requiring that the property be completely vacated as one of the conditions for refunding a deposit. The lease I use is structured this way and it has protected me when roommates are parting on less than amicable terms. In previous instances I have instructed roommates to determine between themselves how much the remaining party will be reimbursing the vacating party. This way there is no need on the part of the landlord to perform an inspection (although you may want to), determine damage versus wear and tear, (for more information on that subject read "Damage Or Wear And Tear? Park City Property Management Info" and refund money to the departing tenant. If the tenants are in dispute this language can also protect you legally from being forced to return some of the deposit.
If you would like more information on roommate considerations, 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.
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Eventually all investment properties will be sold. Hopefully there has been a steady stream of both income and equity built by your investment that you can liquidated and utilize elsewhere. If your investment property is a long term rental in Park City there are a few things you should consider before beginning the sales process. These tips come from my position as a property manager for investment properties and my experience dealing with sales in Park City property management. If you are also in need of real estate advice CC Realty has the contacts available to provide you with knowledge of the Park City marketplace that will aid you in your decisions. Here are a couple of tips I recommend for those looking to sell an investment property.
Wait For Vacancy
Perhaps the easiest and most pain free way of selling an investment property is to wait until it becomes vacant. I know this is not always ideal from the position of the property owner but it will definitely make for a smoother sales process. If a tenant is currently on a month to month basis you can inform them of your desire to sell the property and see if they would be interested in either buying or moving out in the next few months. Try to be as accommodating as possible and realize that asking tenants to move, especially if they have been there long term, can be an upsetting experience. If the lease is set to expire in the near future then you should notify the tenant of your intent to not renew the lease and place the property up for sale. Again giving as much notice as possible is ideal. The last thing you want to do is renew a lease or find a new tenant to move in only to turn around and sell the property in a few months. This is a poor business practice in general and definitely a hardship on tenants. Plan ahead, pay attention to the marketplace and be up front in your dealings in Park City property management.
Selling An Occupied Property
Sometimes you can sell to another property investor who is looking to slot into a property that is already set up with a quality tenant. It is still necessary to notify your tenant of your intent to list a property, as well as provide 24 hour notice for any showings or property tours. Utah property management law provides protections for tenants with regards to entering a property so make sure you abide by these laws in Park City property management. You can market the property as having a quality tenant for investors or for a move in for home buyers. Just make sure you provide proper notice to a tenant when you need to access the property.
Considerations
You should always use a lease that contains a clause regarding the sale of the property. for example the lease I use states that an owner "may terminate this lease with thirty (30) days written notice. Such notice may be given at any time after Owner has entered into a final earnest money agreement with a bona fide third party purchaser." Remember that the terms of the lease survive the change in ownership. If a new investor purchases the property they are bound by the terms of the current lease. Always review these items when making a purchase or sale in Park City property management.
If you would like more information on selling a investment property, 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.
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Anyone who has stayed in a hotel room has probably noticed a convenient little book or binder full of information about the room you are staying in, the hotel itself and the surrounding area. These guest information books are placed there for many reasons, one if which is providing any easily accessible source of information for new guests. So how does this apply to Park City property management? Well in many ways a new tenant is like a hotel guest checking in to a hotel room. They are unfamiliar with some of the functions of the property, the location of amenities, and the services and highlights of the area around the property. Providing a similar information book to tenants is a great way to make the move in process easier.
Property Information
Is there anything specific to your property that you would like incoming tenants to know? Things like a garage door code, if you have a hide-a-key or a front door lock with a keypad. Are there existing conditions on the property that require periodic maintenance like mowing the lawn, shoveling sidewalks or keeping gutters free from leaves? Or maybe you have amenities like a hot tub, water softener, gas fireplace or barbeque that are not obvious in their operation or care. For a tenant moving in to a long term rental in Park City these systems can be very unfamiliar. A simple explanation of the property features and how to operate them will make sure the tenants know how to care for the place and it will cut down on the amount of phone calls you receive when someone doesn't know how something operates. Any effort you put towards making move in a smooth transition is a big bonus for Park City property management.
Utilities
Do you want to speed up the transfer of utilities out of your name and into the tenants? Include the phone numbers for the utility companies in your information book. The new tenants will easily know what utilities they need to take care of and it can cut down on the hassle of following up, receiving bills for the tenant's usage, and generally make things run smooth. Another recommendation for landlords is to have the utilities set up on a landlord system. With this set up the utilities automatically revert to the property owner when a tenant moves out. The last thing you want to have happen is for the gas company to shut off your service in January just because the tenant moved out. Helpful tips like this for Park City property management can save you a lot of headaches and problems down the road.
Amenities
If your rental property is part of a home owners association there may be common area elements that your tenants have access to. Including information on things like pool rules, gym rules, recycling and refuse locations, and parking rules is a must for this type of rental property. I can't tell you how many frustrated tenants I have spoken to because their car was towed, they can't find the garbage and they don't know the rules for the pool or gym. Educating tenants on a property is the best way to reduce these types of problems.
If you would like more information and tips on having informed 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.
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All Park City property management companies charge a fee. But what does a property owner get when they pay that fee? What kind of value do the services a property management company provides have for your investment property? This is the basic question any Park City property management company should be able to answer if you are contemplating hiring them to manage your property. What value does the company bring to the management of your long term rental in Park City. Today I would like to share a few of the valuable services that can be provided by a property manager.
Professional Tenant Interaction
A quality Park City property management company will act as the professional face for your property. Sometimes being a landlord will place you in difficult or uncomfortable situations with your tenants. A recent incident at a home owners association I manage highlights this. Two property owners managed their own rental properties, one right above another. The upstairs tenant had a dog that peed on the patio, which of course made a mess on the patio below. The downstairs property owner notified me of the problem and how frustrated the tenants were with the situation. Per the association rules I issued the upstairs property owner a warning and when it happened again a fine. But by this point the downstairs tenants were so fed up they asked to be released from their lease and moved out of the property. And all of this was happening the week of the downstairs property owner's wedding! Had a property manager been handling both of the rental units then neither owner would have been inconvenienced, there would have been no fine by the association and the loss of a good tenant could have potentially been avoided.
Quick Response
If a prospective tenant called you at 1pm on a Tuesday to say they were in the area and would like to take a look at your property in the next 30 minutes would you be able to handle this request? Or instead of a prospective tenant wanting to tour your vacant property what if your current tenant called at the same time to say that the faucet is leaking in kitchen. The fact of the matter is there are only so many hours in the day and if you are already busy with your own job, family, etc. then you might not have time to make a quick response to these issues. Park City property management companies are able to respond immediately to these types of situations and do so in a professional manner. They will have the staff and experience to handle properties like yours in an expeditious manner.
Industry Knowledge
What can you tell me about Utah law SB 167? Is the Fit Premises Act a law about buildings with gyms in them? If a tenant is moved out and has given you a forwarding address how quickly must you return there security deposit? What about a standard of habitability and how long you have to take corrective action in regards to it? What is the market rent for a property like yours and how should the accounting be handled on your taxes? These are just a few of the things that a qualified Park City property management company should have expertise in.
If you would like more information on the value of a property management company, 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.
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When a tenant moves out of a long term rental in Park City, a landlord has several tasks to accomplish. Obviously getting a property ready to rent again is at the top of the list. Hopefully you will always have awesome tenants who leave the place better than they found it. However sometimes there may need to be maintenance performed and it may be something that was caused by the tenant and exceeds normal wear and tear. I have previously written about this situation in "Damage Or Wear And Tear? Park City Property Management Info". Today I would like to give landlords some tools for their Utah property management belts that can help move outs become a uniform, simplified process.
A Good Checklist
One of the best tools a landlord can have in their arsenal is a well thought out checklist for the property. A good checklist should be comprehensive in covering things like the condition of walls, floors, plumbing and appliances, as well as mechanical components like hot water heaters, furnaces and water softeners. Items included in the checklist should be grouped in a logical order. Interior components should be listed by room so that you aren't checking a bedroom window upstairs followed by a hot water heater downstairs. You should also test items that have a function to them, such as flushing toilets, running water in a sink and turning lights on and off. This will help you know if there are any items that will need to be addressed before a new tenant moves in and serve as an excellent preventative maintenance program. If exterior components are part of your inspection process they can be listed by the different sides or areas of the property. Having a checklist like this in place will help standardize your inspection of a property after a tenant has left. This document should also allow room for you to write notes about the condition of items contained in the list. Be thorough in your descriptions. "Grease spills and black drip pans" is better than "oven dirty" and will also be supported by the next tool in your bag, taking photos.
Take Photos
These days nearly everyone has a cell phone. Most phones have very high quality cameras that are on par with a basic digital camera. It is very easy to then email a group of photos from the phone to your computer. Take detailed photos of damage, both from far away to provide perspective, and close up to show detail, is a great way for both the landlord and the tenant to account for any conditions present in the property that could exceed reasonable wear and tear. Should the dispute ever have to go to court photographic evidence of damage will strengthen a landlords case that money should have been taken from a security deposit to enact repairs. Keep your digital photos in a file based on the move out date and periodically delete old photos if there is no disputing of charges. Don't be afraid to take a lot of photos, they can easily be deleted later. With a good checklist and photos to back up your findings you will be well on your way to avoiding potential security deposit disputes in Park City property management.
If you would like more information on quality property checklists, security deposit disputes, 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.
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Partial rent payments can happen for a few different reasons when it comes to Park City property management. Some of these reasons are backed by Utah property management law and some are not. The hard and fast rule is that a tenant is obligated to pay rent on time and per the terms of the lease. There are however situations when a tenant either may not be able to pay or can legally withhold some or all of the rent. Today I will cover both areas as well as recommendations for a landlord response in each one. As always I am not an attorney and if you need that level of expertise you should contact one who is familiar with property management in Park City, Utah.
Tenant Can't Pay
There may come a time when, for various reasons, a tenant is unable to pay the full amount of rent when it is due. Perhaps they had an expensive car repair or medical bill. I have had tenants be the unfortunate victims of online identity theft and bank account hacking. Job changes or family emergencies or even job loss can also contribute to a tenant not being able to pay the full rent at the time it is due. As a landlord in Park City property management you have a few options. As I mentioned before a tenant in this situation is legally obligated to pay rent on time. However you as a landlord can use your discretion in working something out. Perhaps the tenant gives you a portion of the rent and explains that they are paid on the 15th and can have you the rest of the rent then. If your tenant has otherwise been on time, or has been with you a long time and is generally easy to work with then you may consider allowing a late payment. If your lease is written so that a late fee can be applied you may also ask that the tenant pay the fee, per the terms of the lease, with the remainder of their rent. If the tenant is brand new to you and somewhat of an unknown variable then perhaps you consider moving ahead with an eviction and trying to find somebody new. Always weigh the costs of an eviction and vacancy first. If it turns out the tenant can pay the rest this is preferable to an eviction and vacancy.
Repair and Deduct
Utah property management law also provides for instances when a tenant may lawfully pay less than the full amount of rent. This situation is called a "repair and deduct". A repair and deduct scenario can arise when a "deficient condition" exists in a property. A deficient condition is defined as something that "violates a standard of habitability or a requirement of the rental agreement and is not caused by the renter, the renter's family, or the renter's guest". If you would like to learn more about standard of habitability take a look at my blog post "Emergency Maintenance - Park City Property Management". Depending upon whether the deficient condition is a standard of habitability or a requirement of the rental agreement the landlord has either three or 10 days to begin repairing the condition. If no action is taken a tenant can then provide the landlord a "notice of deficient condition" and choose to repair the condition and deduct the cost of the repair from the rent. A tenant may also choose rent abatement, at which point the lease agreement is terminated and the tenant can move out.
If you would like more information on partial rent payments, repair and deduct, 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.
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