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.
Today's blog post is for the property owner who is considering Park City property management to take care of their property. If you already have a management company this can be a good guide for you in assessing if they are the right management company for you to use. I've put together a few questions that summarize things I have learned over the years about what I think it takes to succeed in Park City property management. There are a lot of things that go into handling long term rentals in Park City so really this list could go a lot longer. But I wanted to boil it down to 4 big things that I think are crucial for property owners to know about their prospective management companies.
1. Do They Use A Trust Account?
Does your Park City property management company use a trust account to handle rent payments? Let me explain how it should work and then you can be armed with some knowledge. When a property manager takes in a check or some form of rent payment this money should be deposited into a non-interest bearing account called a trust account. At that point there should only be two types of debits made from that account, one to you the property owner and one to the property manager for their commission and fees. Any bills that a property manager has to pay to operate their business should not come out of this account. If your property manager is deposit rent payments into the same account they are paying their own bills out of this is called commingling of funds and is a big red flag. Make sure your Park City property management company is using a trust account for rental income disbursements and commission and fees only, anything less can lead to trouble.
2. Are Their Documents Prepared By An Attorney?
And I'm talking a real attorney in the state in which they operate, not one with the name "Google" or "Wikipedia". Every state has particular laws and regulations for property managers, tenants, basically everything you can think if related to property management. The lease and addenda used by your property manager should be specific to the state in which the property is located and drafted by an attorney knowledgeable in state law. This will provide the highest level of protection for you and your property. Attorneys that practice in property management are also up to date on changes to state law and keep their clients informed. Hopefully you will never need to utilize all the provisions and protections this type of service can bring but it is nice to know that should something occur you will be well represented.
3. How Do They Market To And Screen Tenants?
What process does your potential Park City property management company use for finding and screening tenants? Quality tenants are the life blood of your operation. Getting and keeping good people in your rental property is the key to long term success. A good property manager will have established and successful methods for finding good tenants, including a positive reputation and good word of mouth. They will also have a standard set of procedures for screening tenants. Putting an ad in the classifieds and taking the first person who can put down a month's rent is not going to cut it.
4. How Do They Handle Emergency Maintenance?
Emergency maintenance, while infrequent, can be a crucial time for a property owner, tenant, and Park City property management company. You want to make sure that your prospective property manager has an established avenue for responding to afterhours or emergency service calls. How quickly they are able to respond can be the difference between a small leak and a large flood. Make sure they have the capability to respond quickly with experienced employees.
If you would like more information about choosing the right 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.
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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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There are many property investors who take care of the management of their property on their own. I recently wrote a blog post dealing with my own frustrations of managing my rental property in a post titled "I Need Some Park City Property Management Help". If you are interested in reading about my experiences, and perhaps relating to them, you can click here. Today I would like to cover a few of the key points to consider when asking the question "Should I hire a property manager?" You can respond to these points honestly and decide for yourself if a Park City property management company is right for you.
How Close Is Your Property?
Are we talking a couple of blocks, on the other side of the city or in another state? As a rule of thumb if you can't get to the property quickly your ability to manage it yourself is seriously degraded. Every step in the management process from touring prospective tenants, handling maintenance problems, and collecting rent becomes more difficult as distance increases. If you are out of state or live a decent distance from your rental property you should seriously consider Park City property management.
How Much Time Do You Have?
Perhaps your idea of managing a property is taking a few phone calls throughout the year and cashing those rent checks. The reality can be far different. I often like to joke that most emergencies happen between 3-5pm on a Friday afternoon. Unless you are going out of town before the weekend, then the emergencies will adjust their schedule to your last day in the office. Property management can be chasing down late rent payments, fixing broken toilets and lighting pilot lights, responding to emergencies, doing something about noisy neighbors, and the occasional bounced check. If you don't have the time to deal with these types of problems it might be a good idea to bring in a pro.
Can You Deal Directly With Tenants?
If you are a proactive landlord who takes care of their property then a good portion of the interactions with your tenants will be positive. But even the best landlords have problems with tenants. In my time as a property manager I've had the nicest tenants who never pay rent on time. I've had to step into the middle of tense domestic disputes involving law enforcement and act as a mediator to solve the problem. I've had to tell tenants that the rent is going up and that new carpet isn't a possibility. If you are going to manage your own property you should realize that you will find yourself in tough situations where you will have to be the bad guy. Having a Park City property management company can put some distance between you and your tenants.
How Handy Are You?
A maintenance request is probably the most common type of call you will receive as a landlord. Having the knowledge and ability to repair all the many types of requests you receive does not automatically come with property ownership. You will need to either handle these types of requests or spend time coordinating with a reputable contractor who can.
If you would like more information about the benefits of hiring CC Realty to manage your 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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If you've decided to take the plunge and invest in some property there are a few things you should know that can help that investment from becoming a bust. If you've ever bought or sold your own home you understand the sometimes difficult process of getting a place ready for sale. However if you've purchased a property as an investment you should also be making the right decisions in running the property so when the time comes to sell you aren't stuck with an unsellable investment. Each investor probably has a few methods they use for managing their investments but I would like to share a few tips of my own.
Hire A Property Manager
It may cost a little money but what a property management company can do for you more than makes up for this cost. If you are new to property investing, busy with your current employment, or lack the knowledge to effectively manage your investment then a Park City property management company is a wise decision. Park City property management companies take the legwork and guesswork out of your investment. A good property manager is available during business hours to respond to regular tenant needs and 24/7 for emergency responses. They are knowledgeable in their rental market and have already established channels and methods for quickly finding the right tenants for your property. They will take care of maintenance requests, produce monthly statements, and provide your property with a professional face that interacts with tenants. This creates a better tenant experience resulting in greater length of stay and decreased turnover. Every day your property sits vacant is money you lose out on. Hiring a property manager will keep your property rented and you happy.
Buy During Construction
Often times developers will offer incentives to purchase a property before it is complete. I know of many instances where an investor has bought into a condo before the entire building is completed and by the time he closes values have gone up and there is already decent equity in the property. Make sure to complete your due diligence in researching this investment. Is the property in a desirable location, not just for you but for potential tenants? What amenities are there both in the property and the neighborhood? Is the specific unit you purchase near an elevator or stairs? These may seem like basic questions be these are things prospective tenants will ask themselves when looking for a place to rent. I find it really helps to put yourself in the mind of a tenant and consider the draw your property may have.
Vacancy Equals Money Lost
Every tenant moves on. If you have a great property to rent and you take care of your tenants then hopefully your turnover is minimal. But when the time comes to get a property ready for new tenants you need to act fast. The first step is to require current tenants to provide you with a 30 day notice before ending a lease. Stick to this requirement and give it some teeth. Making a refund of the deposit contingent on providing this notice will make sure tenants comply. Once the tenant provides you with notice the first step you should take is to advertise the property. This will give you some time to tour prospective tenants (you must provide 24 hour notice to your current tenants for any tour) and hopefully secure a deposit before the property is even vacant. Once the current tenants move out and baring any excessive damage you should look to have your property ready for move in within a week. There is a simple calculation you should make when considering how long your property will sit vacant. If your property rent's for $900/month and there are 30 days in the month then every day your property sits vacant is costing you $30. Every week is costing you $210 and it just goes up from there. Establish a quick timeline to reduce vacant days. Not only will you save yourself money but prospective tenants are eager to move in and most will not want to wait weeks or months for a property.
If you are interested in learning more about property management Park City Utah, download our free white page "5 Questions Every Landlord Should Ask Themselves".
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