The security deposit is a standby of property management in Park City. It can also be a source of contention between a tenant and landlord when it comes time to assess damage caused by a tenant versus normal wear and tear that a tenant is not responsible for. If you are new to Park City property management or have been managing long term rentals in Park City for some time these tips are designed to take some of the guess work out of security deposits, provide protection for you as a landlord, and make the process easier to deal with in general.
- Know Your State Laws. This is really the first step when it comes to handling a security deposit in Park City property management. For example did you know that landlords are obligated by law to refund a security deposit, minus any expenses, within a certain amount of time? And that an explaination of charges or final statement is to be included with the security deposit? The last thing any competent property manager wants to go is get on the wrong side of the law. And in the case of Utah the laws regarding security deposits are solid, common sense applications that equally weigh the concerns of both landlords and tenants.
- Use A Trust Account. One of the worst errors I think a property manager in Park City can make is to not have a trust account. This account should be a non-interest baring account establish separate from any operating account you have for your property management business. This is truly the proper way to account for a security deposit; it eliminates the potential for comingling of funds and ensures you never spend a deposit by accident.
- Familiarize Yourself With The Market. A good rule of thumb for a security deposit is a month's rent. Hopefully you have an accurate understanding of what your property would rent for in Park City property management so that you can properly establish a security deposit. I have found that in some instances a large security deposit can protect a landlord but also provide a barrier to entry for a tenant that would otherwise be qualified. If you have a strong system in place and a potential tenant passes with flying colors you as a smart landlord have the ability to adjust the deposit to kick start business.
- Hire A Park City Property Management Company. Sometimes if you want it done right you SHOULDN'T do it yourself! If you are looking to acquire some expertise in property management then look no further. CC Realty has been operating in the Park City area for over 10 years as the property manager of choice for many local and out-of-state property owners.
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.
