When deciding on an investment property ROI is one of the primary considerations. With any given property there are ways to maximize your ROI and make your investment a more profitable endeavor. As I have written before in "Maximize Your Property - Tips For Park City Property Management" one of the biggest ways a property loses money is through vacancy and turnover. There are several things you can do to reduce vacancy, like working to keep good tenants, making requested repairs or upgrades to the property, etc. But what if the property by it's nature encourages short term tenancy and yearly turnover?
Single Family Homes
A recent survey of national rental properties found that 52% of all rental properties in the United States are single family homes. 3.6 million of those homes were originally built as owner-occupied properties that passed into rentals when the original owners lost the property in foreclosure. During the recent of the housing boom and bust, from 2005 to 2010, single family home rentals increased by 21%, versus a 4% increase in total housing units. While the purchase price of a single family home can be initially prohibitive there are substantial reasons why renting a home can make sense for Park City property management
Length Of Stay
When compared with multi-family rental properties such as condominiums or apartments the tenants of single family homes indicated they plan on staying longer than 5 years about 26% of the time. This represents an 18% increase from the average apartment or condominium tenant. As far as stable, long-term investments go this represents a great number for property investors. As I have mentioned turnover and vacancy are costly for any landlord. If your property attracts tenants who are looking to stay long term you can minimize the potential for loss and maximize your rental income.
Demographics
Another appealing aspect of single family rentals is the demographics of people searching for these properties. The majority (53%) of single family tenants are between the ages of 35 and 44. 66% of single family tenants make between $75,000-$100,000/year, versus 51% of multi-family tenants making between $50,000-$75,000. Also 65% of single family renters have a household of three or more members and 63% include children. For a landlord this means that the largest pool of interested people are older, stable families with a healthy income. With the potential for longer tenancy and prosperous tenants a single family rental may be the way to go in Park City property management.
Reasons For Renting
The survey also included some interesting reasons for renting that I think apply to Park City property management. Most people view the ability or inability to qualify for a home mortgage and the primary reason for either buying or renting. However this was given as only the third most popular reason by current tenants. While 60% of single family tenants and 44% of multi-family tenants plan on being a home owner within the next 5 years of the tenants who do not plan on owning a home the biggest reason offered was they prefer being a renter. The next most common reason given by people who prefer to rent is they do not want to own a home. For many of these people renting is a preferred choice rather than the only available option.
If you would like more information about single family or multi-family rental properties, 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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In my experience most people, when made aware of the rules, will make an honest effort at doing the right thing. As a Park City property managment company I try and arm tenants will all the knowledge necessary to make their rental experience an enjoyable one. I've created these few tips to help tenants maintain a positive relationship with their landlord or property manager. These are a few of the common mistakes or misunderstandings I see tenants make through the course of renting a property and I hope that by making this information available it can be of benefit to both tenants and landlords.
Pay On Time
If rent is due on the 1st and late on the 5th then when should you pay rent by? This is somewhat of a trick question because I gave you the answer. If rent is due on the 1st then pay on the 1st. Or better yet pay before the first. From the perspective of a landlord on time payment is huge and paying ahead of time is even better. The last thing a landlord or property management company wants to do is chase rent, post notices and fees, and hound tenants every month to pay rent. In today's rental environment there are so many methods of payment, from online payment portals, credit or debit cards, and auto deposit, to banks automatically sending checks out each month there really isn't an excuse for not paying on time. I put this tip first because it is the biggest. Paying on time makes landlords happy, you can rest easy knowing your bills are paid, and a sense of trust will develop beyond the bounds of a simple lease agreement.
Written Requests
If the property you reside in is in need of some maintenance one of the best ways to submit your request is in writing. Many leases require this and it will help your landlord track and 
manage maintenance requests so they may be quickly completed. A phone call is also useful and can be done in conjunction with a written request, especially if there is more or new information about the maintenance that needs to occur. However writing should always be the primary means of communicating a request. Stopping a maintenance technician while you are on your way out and asking them to take care of a long list of items is a sure way to create less than adequate results and multiple visits. Just take a moment to let your landlord or rental property manager know in writing what is required and you will be much happier with the results.
Rent Deduction
Most leases clearly spell out any parameters for rent deduction but if they do not you should
never, without your landlord's permission, deduct from your rent the cost of any maintenance repairs or any other item you feel should be paid for by the landlord. If you are willing to enact a repair on your own and you are qualified to do so always check with your landlord first. Submitting the request for maintenance and your proposal to fix it in writing is always the way to go. Please do not go out and buy a new microwave when the old one decides to die. Always run this by the landlord first to see what their plans are for the property. In my experience some landlords will want to replace some or all of the appliances to update the property. So check with your landlord first before making a purchase on their behalf.
Lots Of Notice
Sometimes life can throw you a curve ball requiring you to pick up your life and move somewhere else. But most of the time you will have a pretty good idea of if and when you will need to move. Most leases have specific requirements on the amount of notice that must be provided at the end of a lease. There are also state laws that you should also be aware of. But the best practice is to give as much notice as possible to your landlord. If it is January and you know you will be moving when your lease is up at the end of March don't wait. Be a courteous tenant and give advanced notice of your move. This leaves a great impression with your landlord and they will be a stellar rental history reference going forward.
If you are interested in learning more about Park City property management download our free white page "5 Questions Every Landlord Should Ask Themselves".
There have been significant developments in light technology over the last few years. We are all familiar with CFLs (compact flourescent lights) and the energy savings that can be found in their use. However there is another type of lighting option making itself available to landlords and property management companies; LED or light-emitting diode. These small and efficient lights can have a big impact for Park City property management in several areas. While the initial cost of an LED is significant when compared to a standard incandescent bulb the costs of LEDs are continual dropping through improvements in manufacturing. Lets take a look at potential savings.
Energy Savings
A typical incandescent light bulb that you might find in a rental property would be a 60
watt bulb. On a side note a "watt" is a measure of energy usage over time, specifically joules per second. So while an average incandescent bulb is rated at 60 watts an LED bulb of comparable lumens, or brightness, is rated at 12.5 watts. This is nearly an 80% decrease in energy consumption! To calculate a potential savings lets assume that the energy costs for your area are 15 cents/kWh. Over 10 years a single incandescent bulb will cost $197 in electricity alone, assuming an average of 6 hours of use a day. With our energy efficient LED bulbs the electricity cost is $44, again a near 80% decrease in cost! Some property managers may raise the point that electricity is a separately metered expense that a tenant pays. I would counter that thought by saying that installing LEDs is a significant sales pitch that translates into actual dollars saved by tenants. Utility costs are a frequently asked question when it comes time for a tenant to compare rental properties. Having a leg up on the competition when it comes to utility costs is very beneficial for Park City property management.
Maintenance Savings
Imagine not having to change a light bulb for 11 years! No this is not science fiction, this is the reality of LEDs. You average incandescent light is capable of lasting around 1000 hours. LEDs on the other hand have lifespans from 25,000 to 50,000 hours or more. Most current information on LED lifespan indicates that experts really don't know how long the bulbs could last. LEDs don't actually burn out either. The lifespan given for LEDs is measured in the time it takes a bulb to reduce its light output by 30%. This was decided as the point at which an average person would notice a difference and change the bulb. Who exactly can remember how bright a bulb was 11 years ago is beyond me! Also in fluorescent light fixtures an LED does not always require a ballast. This can dramatically cut down on the complexity of the fixture and means you would never be subject to flickering lights, annoying buzzing, and the necessity of replacing a ballast every so often. 
Going Green
Operating a business in as green a manner, whether a Utah property management company or a one property landlord, is beneficial for you, your tenants, and the environment as a whole. As I have shown traditional incandescent bulbs require significantly more energy over the lifespan of the bulb to operate. CLFs also have a reduced energy cost however all fluorescent lights contain mercury and lead, elements that can be very damaging to an individual and the environment and require that bulbs be disposed of at appropriate facilities. LEDs on the other hand do not contain mercury, lead, or other dangerous elements, are almost completely recyclable, last for over a decade and provide efficient lighting for home or business. To find out more about LED lighting you can visit energy.gov or All American LED, a local Utah company specializing in LED lighting.
If you are interested in learning more about Park City property management download our free white page "5 Questions Every Landlord Should Ask Themselves".
All good things must come to an end. In Park City property management tenants move on and new tenants must be found. I recently wrote a blog about property turnover that can help you be aware of some crucial time periods relating to lease end: Park City Property Management - 3 Key Time Periods For Lease End. In this post I would like share some tips and information on advertising and marketplace that can help property owners find great tenants and optimize rental income.
Evaluate The Marketplace
The first step in determining what you property should rent for is marketplace evaluation. Is your property part of a condominium development or is it a single family home? What price are similar properties in the area advertised at and how long have they been advertised at that price? What condition is your property in and will this affect the amount of rent you can charge? Are there features to your property that add value when compared with similar properties? These are some of the basic questions you should ask yourself when attempting to determine an appropriate amount of rent. There are many resources available to help you answer these questions. If you are a veteran landlord you probably already have some
marketing channels established that have helped you secure tenants in the past. Take some time to review other offers available on these and other channels to determine if the price you have in mind is in line with the market value of comparable properties. Places like craigslist, local newspapers, and other property listing services are a great place to gather information on your market and what direction rents are trending. Be honest in evaluating your property against other offerings you find. Also look at the inventory available and how your property compares. If you have a three bedroom condo to rent and there are only two bedrooms available you can try advertising at a slight premium and see what traffic you receive.
Property Description
"Condo for rent" may be an accurate description but let's be honest, it's a little bland. Be creative in your description and highlight the features of your property. Listing the number bedrooms, bathrooms, and other basic information is important but spice it up with words that have some feeling or emotion attached to them. Is your rental property a home or a quaint bungalow? Are you trying to rent a large condo or a spacious condominium with high ceilings and an open floor plan? Using words that catch the eye and help you stand out from other offerings are a big step towards. Don't be afraid to stray from the norm in your descriptions.
If you are looking for an example of a hilarious and eye catching description then Google "nissan xterra for sale ninja". The owner of an average SUV describes his vehicle as "engineered by 3rd degree super ninja warriors", that the automatic transmission will help you "shoot your machine gun out the window" when you are being chased by Libyan terrorists, and that there are only "69,000 miles on this four-wheeled hellcat from Planet Kickass." Now you probably shouldn't describe your property in such hilariously over-the-top terms but you can't argue that the vehicle owner's description definitely helped him stand out of the crowd.
Offering Incentives
People like free stuff; it's as simple as that. Coming up with valuable incentives can help a vacant property become an occupied one quickly. An example of a great incentive would be offering a week's free rent with immediate move in. This way a prospective tenant feels like they are getting a deal and you are getting your property rented. Make sure there is some type of restriction or sense of urgency tied to your incentive. This way a potential tenant will need to act quickly in order to obtain the offer. If you are interested in learning more about Park City property management download our free white page "5 Questions Every Landlord Should Ask Themselves".
I would like to share an experience that can apply to both landlords and tenants regarding who is on a lease. Whether you are a tenant or landlord you hopefully are using a written lease prepared by an attorney. But a sometimes overlooked area is the named parties in the lease; specifically all individuals, over the age of 18, who will be occupying the property. In Park City roperty management having every adult who will reside in the property named on the lease is a very important step to take for both landlords and tenants.
Tenant At Will
Tenancy at will can arise from a few different sources. For example a tenant named on the lease has allowed another person to reside in the property without permission of the landlord. This person who does not have permission from the landlord is a tenant at will. A guest at the property who refuses to leave or a tenant named in a lease whose lease has expired would also be termed a tenant at will. A final example would be a prior owner who continues to reside in a home that was purchased by another party in a foreclosure. For this post the important examples are the first two, a resident without permission for the landlord and a guest who won't leave. 
A perfect example of how things can go wrong in these situations would be a tenant named on the lease invites a person to live with them, either as a roommate, boyfriend/girlfriend, or similar arrangement. For whatever reason the living arrangement doesn't work and the tenant named in the lease decides to move out. This leaves the tenant, the landlord, and the current resident in a difficult situation. The tenant is still responsible for the terms of their lease, the landlord now has a property that is occupied by a person without a lease and the resident does not have any written agreement about their rights to the property.
Unlawful Detainer
A tenant moves from a state of tenant at will to unlawful detainer when a landlord takes action to have them removed from the property. Possible causes for action on the part of the landlord can come from a tenant not paying rent, or the landlord not wanting to renew a lease to a
tenant or allow them to rent on a month to month basis. The landlord must then post either a 3 day pay or vacate notice in the case of unpaid rent or a 5 day notice to tenant at will in the case of a landlord not wanting to renew. Once the notice has been posted and the alloted amount of time has passed if the tenant still remains in the property they are considered to be in unlawful detainer. In the example I shared above perhaps the landlord has determined that the individual remaining in the property would not make a suitable tenant or the tenant named in the lease or the remaining person are not willing or able to pay rent. The remaining individual would then be in a state of unlawful detainer.
Treble Damage
I know what you're thinking and yes, "treble damage" would make a good name for a punk rock band. However treble, in this case, has nothing to do with music. Under Utah law a landlord is able to claim treble (or triple) damage in an unlawful detainer. Damages that can be trebled, or tripled, include rent, damage caused by the tenant (in court these damages are refered to as "waste"), and the abatement (getting rid of) of any nuisance caused by the tenant. Attorney's fees can also be included in a judgement however they cannot be trebled. If you, as a tenant, find yourself in an unlawful detainer the best decision you could make is to quickly pack up your belongings and leave. Don't put holes in the walls or an other unnecessary damage as this can come back to hurt you in a court case. For landlords in an unlawful detainer it is recommended to keep accurate records for rent, waste and abatement in the event your case does go to court. Mistakes on a landlord's part could lead to a case being thrown out. In eviction cases it is always recommended that you consult an attorney familiar with your state laws or engage the services of a Utah property manager who has a working relationship with an attorney.
If you are interested in learning more about Park City property management download our free white page "5 Questions Every Landlord Should Ask Themselves".
There comes a time with every rental property when a lease ends. Hopefully the lease has been a positive experience for both landlord and tenant and the parting of ways is somewhat of a fond farewell. There are a few crucial time periods to remember when a lease is ending that, when adhered to, will make the transition for both parties as smoothly as possible for your Park City property management.
Notice of Termination
A lease should have a clearly defined time requirement for when a notice of termination must
be given. Ideally the lease would require the notice be in writing and the notice be given 30 days prior to termination. For example the lease we use, which is prepaired by an attorney, states that a lease can only end on the last day of the month and once the term of the lease is complete a 30 day notice must be submitted in writing. Utah law provides for a minium of 15 days notice when a tenant is on a month-to-month tenancy, unless a lease indicates otherwise. I would also suggest that going to Google, typing in "free lease agreement", and using whatever you find is not the best way to protect yourself, your property and your tenants. Make sure your lease has at least a 30 day notice requirement and that the penalties for not meeting the requirement have some teeth to them. Making a deposit refund contingent on meeting this requirement is one way to ensure a tenant will have an interest in fulfilling their obligations. Our lease has this, along with several other requirements for a deposit refund.
24 Hour Notice Of Tour
So your tenant has provided you with the appropriate notice that they will be moving out and you are wanting to find a new tenant to take their place. If you are a proactive landlord you've already got an enticing description of the property posted on various websites to help you attract a new tenant. Now an interested party is wanting to take a look at the property that is still occupied and you have to let your current tenant know. In Utah a landlord is required, by law, to provide a tenant with a 24 hour notice before entering the property, except in the case of emergency. This notice can be provided by contacting the tenant directly or leaving a notice at the property. A best practice in this scenario is to give a tenant great than 24 hours notice, if possible. Moving is a hectic ordeal at best and many tenants may feel embarrassed at the state of the property that is full of boxes and in a general state of disarray. Giving them notice to make a property more presentable can go a long way towards landing a new tenant.
30 Days Or A Forwarding Address
Now that the old tenant has left, the condo has been prepared for a new tenant and any
maintenance or cleaning items have been dealt with it is time to deal with the deposit. First and foremost you must provide a receipt to a tenant for any work done that is being subtracted from their deposit. There are also some guidelines on when any monies left from the deposit must be returned to the tenant. Utah law dictates that any portion of a security deposit to be refunded must be returned within 30 days of the lease ending or when the forwarding address is received, whichever is later. If it has been past 30 days and a tenant has not yet provided a forwarding address you as a landlord are not under an obligation to return any monies, you wouldn't have a place to return them to anyways! And if a tenant provides a forwarding address upon move out a landlord still has 30 days to determine what must be done to the property to return it to a rentable condition, assess if anything in the property could be considered damage and not wear and tear, and receive invoices from any outside contractors that may have been brought in to make repairs.
You can find more information by clicking here to visit a landlord and tenant FAQ by the Utah State Courts. If you are interested in learning more about Park City property management download our free white page "5 Questions Every Landlord Should Ask Themselves".
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".