If you are considering hiring a Park City property management company for your long term rentals in Park City there are a few questions you should definitely ask. Hiring a property management company is an important decision for your investment property and you want to make sure you are comfortable with your choice. These are a few of the question you should ask that will help you get a better feel for the company.
- Besides a management fee what other fees do you charge? A typical management fee for a Park City property management company is 10% of gross rents. This applies to long term rentals, if you are looking at nightly rentals you should be prepared for 50% and up. This fee will not typically cover things like maintenance and repairs so you should know what rates are charged for those services. You want to look for any other type of fee and leasing, inspections, etc.
- How are maintenance calls handled? Along the lines of additional charges you want to know how maintenance calls are handled and billed. For example our contract requires that any repair in excess of $300 be approved by the property owner. This serves two purposes. First it allows maintenance to quickly handle any small repairs and keep tenants happy. Second it let's owners know to expect larger repairs and allow our company to provide a quote for services.
- Do you have a trust account? I've written a previous post entirely about the importance of a trust account titled "Park City Property Management And Trust Accounts". Click the link for a more in depth explanation but basically if they don't have a trust account then don't use them. There are far too many opportunities for a mismanagement of your funds so just stay away.
- How do you screen potential tenants? You might want to ask to take a look at their application as well to see how thorough it is and what questions are asked. They should be running a criminal, credit, and eviction background check as well as checking rental references. A great tenant is a very valuable component of your Park City property management operation and should never be underestimated. Conversely a bad tenant can cause you a nightmare's worth of problems.
- How long have you been in business? You shouldn't necessarily discount a company because they are new to Park City property management. Steve Jobs had to start somewhere and you could end up with a great property manager. But with an established company there are certain benefits that come with having seen or done it before. A proven track record is perhaps one of the best references any company can provide. If they've been around for a while they probably know what they are doing!
- Do you have references? This is along the same lines as how long a company has been in business. If a company can reference customers they've had for a few years or more then you can have peace of mind that at least SOMEONE has been willing to do business with them for an extended amount of time! I know from personal experience that a quality reference can go a long way.
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
Some people are cut out for Park City property management and some aren't. I've always felt that to be successful in this business you need to be a jack-of-all-trades. You need to know property maintenance and care, legal aspects to managing a property, be a good judge of character, have a handle on basic accounting, be a good salesman, and be able to make tough decisions and sometimes have a thick skin. Not everybody is built this way and not everyone has the resources available to make a Park City property management operation work. Let me tell you a story about a former client who tried to go it on their own with disastrous results.
The Beginning
As I mentioned this person, we'll call him Bill, was a former client. Bill lives out of state and we provided property management services to his property in Park City. We had done so for several years and felt like the relationship was a great one. We had always had really great tenants in Bill's property and it was a great example of how a long term rental in Park City should function. Bill would occasionally come out to Park City to visit and would even pick up a few items from Home Depot to spruce the property up. A new faucet here, some new light fixtures there, in general an owner who was interested in maintaining their property. On one of these trips Bill informed me that he would be taking over management of his property. He felt he could handle it from his home and wanted to save a little money by not using our services. We had a good conversation but Bill ultimately felt this was the best course of action for him. He took over management of the tenant we had placed in there and I wished him the best.
The Middle
As always happens the tenant we had placed in Bill's property decided to move. Bill took out and ad and was able to find another tenant. Bill also decided to do some more upgrades to the property because he felt it would help him sell it in a few years. The tenant Bill found in Park City property management was a nice person. She had a pet and as near as I can tell reasonable references. I don't know how much Bill looked into her background but the tenant moved in and things went fairly well. However after less than a year the tenant moved out unexpectedly and left the place a mess. No serious damage but she did not fulfill the terms of her lease and there was some clean up that needed to be done. Bill decided to do some more serious renovation, again thinking this would help the property sell in a few years, and went looking for a new tenant. Each time the place became vacant Bill had to take a few days off work, fly in from out of town, get the place ready and meet with prospective tenants. Between you and me this probably cost more than our management services would but this was Bill's decision.
The End
Bill eventually found a tenant, a gentleman who was going to school at nights, said he had a healthy trust fund to pay rent, and could even do some work around the condo that Bill wanted to have done. Again I have no idea how much effort Bill went to in checking this man's background. It wasn't long after this man moved in that I started receiving complaints from the neighbors about him letting his dog out for potty time and not cleaning up after the dog or walking him on a leash. Maintenance was called for problems with the dishwasher, disposal and kitchen sink. They found a property that was absolutely trashed, all kinds of gunk down the sink including a fork, and the tenant claiming that maintenance hadn't installed the dishwasher properly. Then the rent payments quit coming in.
Bill had to make several trips to Park City to initiate an eviction with the courts, is out thousands of dollars in rent, money for travel, and time. Bill's property, just recently renovated, has been trashed. Now all Bill wants to do is get this guy out and sell because he is so tired of the headaches. I had to shake my head and ask myself "What was Bill thinking?"
The Moral
Some people are cut out for Park City property management and some aren't. If you think it might not be the best fit for you then you should consider hiring some property management in Park City. If you are thinking of handling it on your own because you don't want to "waste money" paying for a professional management company then realize you could be saving a little money but end up paying thousands more down the line.
If you would like more information or tips, 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.
Hopefully all of you have had an enjoyable holiday season, full of good times with family and friends. I know it was good for me to take a step back from Park City property management during the holidays to spend time with my wife and children. The holidays truly are about family and I value the time I get to spend with them. But now the New Year has come and as we welcome in 2014 it is a time for us to reflect on what we accomplish in 2013 and set our sights on goals for the new year. I would like to share a few things I've learned in 2013 and what I want to improve upon for 2014.
Year In Review
2013 marked the first year that I jumped headfirst into inbound marketing, blogging, and joining the wider online community to promote CC Realty as an excellent option for Park City property management. I redesigned the CC Realty website and created significant functionality improvements to bolster our online presence. I drafted new content to flesh out the site and began my new career as a thought leader in property management in Park City Utah. It has been a very interesting experience and I have learned a lot along the way. I have enjoyed my time as an online marketer and have seen some success through my efforts. Certainly there have been many starts and stops along the way and times when I questioned if what I was doing would actually succeed. And I am not even close to where I want to end up in this process, and it is certainly a process! Online marketing is truly a full time job and it has been a balancing act for me to complete the demands of this new venture along with everything else I normally do. But ultimately I have enjoyed the process.
The New Year Ahead
Now that 2014 has rolled around it is time to make some new goals for the new year. For me, looking at Park City property management, one of my goals is really a continuation of my 2013 goal to become an online marketer. I've really just gotten my feet wet with online marketing and for 2014 I want to continue to pursue this goal. I would like to learn more about content management and how I can optimize search results through thought leadership on my website. I want to increase my social reach and engage interested people through various channels available to me. I want to increase my digital foot print and ranking for keywords relative to this business. Outside of online marketing I am looking to improve inefficiencies in the business through procedural changes. I want to maximize my time more efficiently. I plan to follow up on leads more aggressively with the goal of increasing the business as a whole. Ultimately when a person thinks "Park City property management" I want them to think "CC Realty."
So what are your goals for 2014? What areas of your work and personal life do you want to improve? I used to be the guy who would never set goals for me for the New Year. But when I actually thought about the concept and had an honest desire to improve myself I found that setting realistic goals has been a rewarding experience.
If you would like more information on goal setting, 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 it comes to Park City property management there is always more to learn and room to improve. One of my very first posts when I began blogging was "3 Tips For Successful Park City Property Management". As we approach the end of the year I thought I would offer up some additional tips that I feel really help any landlord who is involved in Park City long term rentals. These are some basic tips and by no means meant to be an exhaustive list. They are just a few things that I have found to be beneficial for landlords.
Quality Vendors
I happen to own my one rental property. And I am fairly handy around the house so I often do my own repairs. I recently replaced a dishwasher and before that a new garbage disposal. But everyone will eventually run into a repair or other type of replacement work that they are incapable of completing. Sometimes you just don't know how to fix the problem. Sometimes you do but lack the necessary equipment to do so. And sometimes you are just too busy taking care of things in your own life and don't have time to fix what is going wrong at your rental property. This is where a trusted vendor can save you time, money, and a lot of frustration for you and your tenants. Build a list of contacts for each type of trade you need. This should include plumbing, electrical, HVAC, appliance repair, carpet and flooring installation, windows and doors, and a general handyman if you are not the type of person to make repairs on your own. A good vendor does things right the first time, charges a fair rate and makes you look like an all star with your tenants.
Proper Procedures
At times Park City property management is the coordination of many moving parts in order to produce a superior result. One of the best ways to make sure that you get the right result every time is to have well-thought-out procedures in place for common things like tenant move ins and outs, tenant screening, and maintenance requests. These are things you are likely to encounter in property management and having an already established process for handling these requests takes the guess work out of sometimes complex issues. Things like move in and out forms, leasing applications for tenants, requiring maintenance requests be submitted in writing, list of house or property rules, contact lists, etc. are just some things that can help either avoid problems or solve them quickly.
Hire A Property Manager
Maybe the one thing that is keeping your Park City property management operation from running smoothly is you. Knowing if you have the skills, ability and time to handle a long term rental in Park City is the first step in deciding whether a property manager makes sense. A competent property manager brings with them a host of skills and abilities that the average person does not have. Things like property management laws and regulations, industry and market knowledge, and a professional staff only scratch the surface. A property management company takes the hassle out of managing a property and provides a professional face to your rental operation.
If you would like more information tips 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.
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Anyone who has owned rental properties has probably asked themselves "Should I Hire A Park City Property Management Company?" at some point. Whether they were struggling to find a new tenant, taking a phone call about leaking pipes in the middle of the night, or having to deal with the unfortunate process of eviction, having a rental property can take up both your time and patience. I have put together a few key points to analyze when asking this question.
1. Do You Live Near The Property?
The Princeton economist Alan Blinder put it best when he said "You can't hammer a nail over the Internet." This simple phrase succinctly explains the problems that can arise from managing a property from a distance. At some point, something will happen that requires direct action to solve. Touring a potential tenant through a property, posting a notice of late rent, and of course maintenance requests are just a few examples of the different tasks carried out in the usual course of managing a property. If you don't live close enough to respond to these and other types of issues in a timely manner then a property management company may be right for you. Along with being able to respond quickly to the needs of your property a quality property manager brings with them comprehensive knowledge of the rental market and housing industry. They will also have important connections within the industry to assure that your property is cared for in the best way possible. Park City property management companies can be a trusted and valued asset in managing your property.
2. Do You Have The Time And How Do You Value It?
Do you have the time to properly manage your rental property? We have established that Park City property management is a hands on enterprise so if you feel that you don't have enough time to devote to the demands of a rental property then consider your alternatives. Murphy's Law definitely applies to property management so if your life is already full with work, family commitments, taking care of your own home, and trying to find a little R&R in between the last thing you need is to fix a leaking sink or chase down some late rent payments. Everyone values their time but I most people don't try to put a dollar amount on that value.
Let me give you an example. Let's assume, on average, managing your property requires 5 hours every month. Those 5 hours can be anything from talking to your tenant about a maintenance call to depositing the rent check into your bank. Let's also assume that you can hire a property manager to do all the things you do, plus some things you either can't or won't, for $100 a month. Now you have a decision to make. You can either hire a property manager at $20/hour to take care of your property, or you can hire yourself to work as a property manager for $20/hour. If you feel that $20/hour is the going rate for your time then a property manager might not be the answer. If not then you have some things to consider.
3. Do You Have Multiple Properties?
If you have purchased more than one investment property you should definitely consider a property manager. Obviously time is a factor in this but the other point to consider is the hiring of an employee. If your investment properties keep you busy to the point that you are thinking about hiring an employee then an easier solution is to hire a Park City property management company. This saves you the necessity of establishing yourself as an employer, hiring and managing employees, and all the legal requirements that go along with this. In several ways outsourcing the management of your investment property to a professional can save you time, provide you with peace of mind, and allow you to pursue the more important aspects of your life.
If you would like to learn more about property management Park City Utah, download our free white page "5 Questions Every Landlord Should Ask Themselves".
