Making the wrong decision when it comes to tenants in Park City property management can be one of the worst decisions you will ever make. You have spent a considerable amount of money and time on your investment property and the last thing you want is to get the wrong person in there. Understand that it is very EASY to deny a person from renting your property before they have taken occupancy. But once they are in it can be very HARD to get them out. So in the spirit of saving everyone some headaches here are some great questions to ask future tenants.
- Why Are You Moving? This is the first question you should ask. Is the person new to the area or are they moving up or down market? Or where the kicked out of their previous place? Once when I was interviewing a person for a maintenance position I asked them about their previous job. They proceeded to tell me how stupid everyone was at that place and they couldn't wait to get out of there. Needless to say they didn't get the job. Watch what they say about their landlord, this will give you a clue as to how they will act towards you.
- Have You Ever Been Evicted? For obvious reasons you want to know the answer to this question. This is actually something we ask on our application in a couple of different ways, including disclosure. If they answer yes or hesitate follow up with a few questions about the circumstances.
- Who Will Be Living In The Property? This should include all adults and minors. We require that everyone over the age of 18 have a background check and sign the lease. Minors are listed on the lease as well. This way there are no questions about who is living in the property. Be careful about how you ask questions as you don't want to run into any type of Fair Housing discrimination in Park City property management.
- Do You Have Any Pets? Park City is a very interesting town. While seemingly very pet-friendly there are few condominium communities that will allow tenants to have pets. If your long term rental in Park City is in a community that doesn't allow tenants with pets you need to make sure you don't run afoul of your community rules.
- Where Do You Work? Park City is becoming less of a winter and more of a year round destination. But there is still a busy season and a less busy season. If your prospective tenants have jobs that are only seasonal and nothing lined up for the summer this should be a concern. Always ask for employment information and a supervisor's name and phone number.
- How Long Will You Be In Park City? Again the last thing you want is to settle on a year lease with tenants who will only be around for the ski season. If you are looking for a seasonal rental they are a great option for some people and you will have no trouble finding that for winter. Summer is a different animal though so if you are considering year round leasing in Park City be clear about it with prospective tenants.
- Will You Be Able To Pay On Time? Perhaps you shouldn't phrase this so bluntly but being clear about when rent is due and when it is late is a great way to gauge a prospective tenant's ability to pay. If they balk about the timing then perhaps they are not the right fit for you.
- What Questions Do They Have For You? This is just a general catch all and a good way to see where the prospective tenant's mind is at. You can gain a lot of insight by these types of open-ended questions.
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.
I've written a few posts for Park City property management about tenant screening, most recently "Tenant Screening Tips for Park City Property Management" if you are interested in reading further on the subject. Today I would like to offer up a few things that I have learned about what you should not do when it comes time to find yourself a new tenant. There are all kinds of people in this world and many of them are looking to rent a place. You want to make sure you get somebody who is great and will both protect your investment and be an integral part of your Park City property management operation. Without good tenants we would be in a world of hurt so let's try and find the best!
Don't Put Yourself In A Tight Spot
The last place you want to be is one where you feel like you don't have a choice and must take the first tenant that comes your way. That's not to say that the first tenant won't be great, but you do not want to be desperate to fill your property. Set aside money for your Park City property management operation to weather a few months of vacancy, large repairs, etc. You do not want to be so tight on things that you can't take even a month without a new renter. Sure it is painful to lose money on your investment property during vacancy but you should realize that this will happen from time to time and have some pain tolerance when it comes to these losses. The idea is to think and plan ahead so that you do not fine yourself in a difficult position or feel forced to take on a less-than ideal tenant. Work from a position of strength and you will be much happier with your results.
Don't Wing It
When it comes time to find a new tenant you should have an effective plan in place to deal with vacancy. You should already have a network of contractors and service providers who can take care of whatever work you need to get your property into rentable condition. You should have established channels and methods for marketing your property that have proven themselves effective at finding good tenants. Your application process, including background checks, should also be established and repeatable. If you can't perform the same process then you can't expect the same results. Keep to your plan and take the guess work out of finding a qualified tenant.
Don't Say Something Stupid
Hopefully you know this by now but there are certain things you cannot ask a prospective tenant. You must always deal fairly and equally with any prospect that comes your way. If you need to reject a person there must be a valid reason for doing so, which is another reason why an established application process is so important. The things you can't ask or say to a person are related to fair housing discrimination laws. I have covered this topic before, you can take a further look in "Discrimination Testing - Park City Property Management" or you can look up state and federal laws on the internet. There is a wealth of information and tips available to landlords and unfortunately ignorance is not a defense. Don't get caught saying something that could get you in serious trouble.
If you would like more information on how to find great 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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Properly screening a potential tenant is not an option, it is a necessity in Park City property management. You can get a pretty good feel for the type of person you are renting to during a tour or other face-to-face meeting but past behavior can be a very accurate predictor of future performance. I've put together a list of 5 ways in which screening a prospective tenant can save you from major headaches and lost money. I think these are great tips for Park City property management that will help landlords make informed decisions when renting their properties.
1. Pets
I my experience as a property manager I have never had a prospective tenant say to me "My dog is not house broken at all. It chews on anything and will use every corner of the condo as a bathroom." Even if this is actually true unfortunately no one will ever admit it. Every potential tenant with a pet tells me they are well behaved, never goes potty inside, etc. Based on that you would think there has never been any damaged caused by a pet in the history of rentals. But we both know this is not true so how can you protect yourself? Requiring potential tenants to provide their previous landlord's contact information is a great way to find out if they had a good pet or a four-legged machine of destruction.
2. Criminal Activity
Properties that are involved in criminal activity suffer in many ways. I have seen doors kicked in during a domestic violence episode. Meth labs can practically ruin a property and cost an owner thousands of dollars in repair. Multiple police visits are a serious detractor for any property and can cause neighbors to want to move out of the area. Other types of illegal drug use can also bring dangerous or unsavory individuals into a community. Things like burglary and arson can also create major damage costing landlords significant amounts for repair and lost rents. While people can always change any type of criminal history should be a cause for concern to a landlord in Park City property management. Protect yourself by running a credit and criminal background check on prospective tenants.
3. Late Payments
One of the most frustrating and time consuming aspects of being a landlord is chasing down a late rent payment. Making phone calls, posting notices, tracking down shifty tenants and dealing with bounced checks can make things difficult in a hurry. The last thing you want is a tenant who is habitually late on their rent payments. By checking with their previous landlord you can get an idea of how on time they are with payments, if they ever had any checks bounce, or if they are always calling at the first of the month to work out a deal and pay late. Some people go through rough patches but if this is a consistent thing you should stay away from these potential tenants.
4. Breaking The Lease
If you find out, either from the potential tenant or their previous landlord, that the previous lease was broken then you should take a good look at the situation. I have rented to tenants who have broken their prior lease and it is not something that should outright disqualify someone. The circumstances surrounding the breaking of the lease are important. I have rented to people who broke a lease due to job transfer, a previous landlord not maintaining or properly fixing things, and even a tenant who was told they could have a dog by the landlord when the HOA did not allow tenants to have pets!
5. Property Maintenance
If your rental property has certain maintenance obligations, like changing air filters or keeping the water softener full of salt, you need a tenant who has a history of doing these things. Clogged air filters and non-functioning water softeners can put unnecessary wear and tear on expensive items like water heaters and furnaces. Having a responsible tenant is an important part of Park City property management.
If you would like more information about tenant screening, 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.
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".
