My experience in Park City property management has taught me a few things about what it takes to run a property management business in a competitive market. I've also learned some of the red flags that a person looking to hire a property management company in Park City should look out for. Now individually these items shouldn't deter a person from hiring any particular property manager. And I certainly haven't perfected every item discussed here. But if you are in need of some Park City property management here are a few thing to watch out for.
- Poor At Communicating. This can manifest itself in a number of ways. I just recently had a property owner stop by to introduce himself. He lives in California and we manage a property for him here in Park City. He also owns an investment property in Evanston Wyoming of all places. He was on his way back from Evanston because he had to go there to "straighten out" his property manager! He complained that it would take multiple phone calls to this manager to ever get a response and they would not keep him updated on the condition of the property. The property had unfortunately deteriorated significantly and was in need of some serious repair. If you are looking into Park City property management check into the communication protocols of the company, you'll be glad you did.
- Haphazard Bookkeeping. How regularly do you receive a statement from your potential Park City property management company? I would submit that anything less than monthly is not adequate. I employ an outside bookkeeping company to handle the nuts and bolts financial accounting once a week. Other qualified companies will have an inhouse person dedicated to bookkeeping. This is an aspect of really any business that can unfortunately be overlooked. You are making a serious decision with your investment property and you need to have accurate and timely financial statements when it comes to that investment. Also ask about a trust account. I recently wrote about the importance of trust accounts in an article titled "Park City Property Management And Trust Accounts."
- New Company. Now obviously every company had to start somewhere and I don't think you should necessarily discount a Park City property management company just because they are new or small or just starting out. But I have unfortunately run into a few bad apples trying to start new companies. There was a previous owner in an HOA that I manage who was several thousand dollars in arrears on their HOA dues and had been turned over to an attorney. So I was very surprised to find that this person had begun operating a property management company here in Park City. Their first employee was their son who had recently be released from prison! All things equal you should go with a company that has been in business for a while. Certain things can only be learned through experience and you will be hiring a company with a proven track record.
If you would like more information on what to avoid when hiring 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
One of the first things anyone interested in Park City property management will ask is "How much does it cost?" And while this number can vary a good rule of thumb is 10% of gross rents plus maintenance costs as they occur. But I like to take that a step further and translate that into a number with some more meaning. Essentially I like to answer the question of value. Cost is easy but value is a more slippery thing to grasp. What is the value of the service provided in Park City property management? I have a pretty easy way of breaking it down into a very compelling argument.
A Little Math
Be forewarned, I am not very good at math. I struggled through algebra and to this day disagree with my math teacher's presumptions that I would use these skills later in life. But accounting I can do, and if you have a firm grasp on addition, subtracting, multiplication and division then I think you are set for life! So let's say your long term rental in Park City rents for $1000 a month. If your Park City property manager charges 10% you are paying them $100 a month. One way to look at a property management company is as a contract employee for your personal rental property business. So basically you have an employee for your business who will work for $100 a month. But the key here is that a property manager is working for you full time, 40 hours a week, 52 weeks a year. To break it down into an hourly rate you have a fulltime employee for your rental management business who works for $.62 an hour! And most Park City property management companies have multiple employees who handle tenant relations, marketing, accounting, maintenance, etc. And that $.62 an hour doesn't include after hours or emergency availability! Are we starting to see the value now? If not than think about putting a classified ad in your local paper offering a fulltime job for $.62 an hour and see how much response you get!
The Big Question
Now you have to ask yourself "Am I a 62 cent an hour employee?" You need to understand that you are running a business when you own a rental property. There has yet to be a built a home that takes care of itself and I have yet to find a tenant that is their own landlord too. You are running a business and you need to pay someone to do the work. So how much are you willing to work for? If the answer is more than $.62 an hour then perhaps you should take a look at Park City property management. Not only are our wages great for your business but we have competent and professional employees, a wealth of knowledge on managing properties, excellent contractors and vendors, and established and successful strategies and marketing. So stop being a 62 cent an hour employee and start doing better things with your time! When you really break down what you get for what you pay there really is a lot of value in Park City property management.
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.
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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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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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If you have leased a rental property as either a landlord or a tenant you are probably familiar with the term "nuisance". I would like to take some time to explain what a nuisance is legally defined as in Utah and also how the rules of a community or home owner's association can play a part in defining a nuisance.
Nuisance
Utah law defines a nuisance in two ways. The first definition describes a nuisance as "anything which is injurious to health, indecent, offensive to the senses, or an obstruction to the free use of property, so as to interfere with the comfortable enjoyment of life or property". The second description of nuisance lists several criminal activities. Let's take a look at those first.
Criminal Activity
This may seem somewhat obvious but types of criminal activity can also be classified as a nuisance. Drug dealing our property being used as a drug house; gambling; criminal activity associated, for the benefit of , or at the direction of criminal street gangs; criminal activity committed to gain membership, increased status, or acceptance in a criminal street gang; and prostitution are some of the offenses specifically mentioned in Utah law to constitute a nuisance. The law also states that nuisance may be subject to action by a landlord against a tenant. 
Non-Criminal Activity
Non-criminal activity deals more with the first definition of of nuisance: things that are injurious to health, indecent, offensive to the senses or somehow interfere with the free use and comfortable enjoyment of the property. Utah law also specifically lists two other non-criminal activities that can be considered a nuisance: party houses that frequently create the conditions mentioned above and "tobacco smoke that drifts into any residential unit a person rents, leases, or owns, from another residential or commercial unit ..... more than once in each of two or more consecutive seven-day periods" and creates the conditions described above. Partying and smoking are fairly obvious nuisances and in general things like loud music, pounding on floors, yelling, dogs barking non-stop, and general disregard for your neighbors could be considered a nuisance. However I would like to give an example of something that could be considered a nuisance but should be given some reasonable consideration. 
Let's say your upstairs neighbor has decided to tear out and replace the flooring in his property. He has decided to install tile that is in accordance with any community rules that may apply to flooring, he has pulled all necessary permits for the work and he is obeying any local quiet hours or noise ordinances. During the course of the work he uses a tile saw. Tile saws are extremely loud and could easily be described as "offensive to the senses" or can "interfere with the comfortable enjoyment" of your property. Is it reasonable to consider this a nuisance and pursue some action against it? In instances like this reasonable judgment should be used.
Community Nuisance Rules
Many communities or home owners associations also have rules about nuisances. If there is a Park City property manager they would be the first contact to get further information on nuisance rules in the community. General the governing documents of an association will contain a blanket statement that explains that any act or omission whereby any rule or provision of the governing documents is broken constitutes a nuisance. Most communities will also have specific rules regarding quiet hours, parking, pets, use restrictions on a property, etc. It is your job as a responsible landlord or tenant to make yourself aware of these rules and do your best to follow them. I would also recommend that if you think something you are doing could possibly be a nuisance reach out to your neighbors, landlord, or property manager and proactively work towards a resolution. For more information on Utah law you can click here.
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".
Park City property management can become very confusing when examining the legal aspects so I have created these 3 legal tips for landlords that cover issues I commonly see people get wrong. This is not meant to be a long or exhaustive description of the laws surrounding property but rather the basics that a landlord is likely to encounter during the usual management of a rental property. Should you need further information or more specific legal advice you can consult the sources I list at the end of this blog or contact an attorney specializing in property management.
1. Entering A Property
I have seen both extremes when it comes to entering a rental property. From a property owner who manages their own property and will go in whenever they want because "It's my property!", to owners who buy investment property, hire a Park City property management company, and never set foot in their property. Whether entering a property to perform maintenance work, touring a prospective tenant while the property is still occupied, or a general property check there are basic legal guidelines in place. In most instances a landlord is legally obligated to provide a tenant with 24 hour notice before entering a property. A best practice would be contacting a tenant directly and scheduling a time however a notice left on the door will also fulfill this requirement. The only time it is appropriate for a landlord to enter a property without notice is in the event of an emergency. As a landlord you should realize that once a lease is executed you give up the right to enter your property whenever you would like. Respect your tenants and they will respect you and your property.
2. Changing The Locks
How many times have you heard the threat "I'm going to change the locks!" made when
talking about Park City property management? Perhaps you may have even said the same, or at least
thought about it when a tenant is being problematic. If a tenant is not paying rent, is creating a nuisance in the community or engaging in illegal activity on the premises, or if the tenant is damaging the property you may feel it is your right, as a property owner, to change the locks. The truth is locks can only be changed by the landlord in very limited and specific circumstances and a court order must be obtained first. In fact, should you change the locks without a court order a tenant can contact the police and you could end up in a lot of trouble. Most landlords will not contemplate changing the locks without some cause for doing so. In this case the first step a landlord must take is a 3 day notice. This notice can take the form of a 3 day to pay or vacate in the case of unpaid rents or a 3 day to comply or vacate in the instance of behavior that violates the lease agreement. The key for a landlord is quickly posting a notice if your tenant has violated the terms of the lease agreement. At this point a tenant will either realize you are serious and get with the program or if they do not you have begun to take the proper legal steps to get them removed from the property.
3. Handling A Deposit
How quickly do you have to return a tenant's deposit? Is it upon move out? A week after move out? Never? What can and can't you charge a tenant for? These are all good questions to ask yourself when it comes time for a tenant to move out. And if you don't know the answers you should start doing some research. Utah property management law provides for a 30 day window after tenancy ends or within 15 days of receipt of the tenants new address, whichever is later. A tenant can be charged for any damages beyond reasonable wear and tear, cleaning, and other items provided for in the lease. In the event that there is damage above reasonable wear and tear then receipts for all work must be provided to the tenant explaining why this amount was deducted from their deposit.
If you would like more information about property management Park City Utah, download our free white page "5 Questions Every Landlord Should Ask Themselves".