In my experience there are many different types of property owners when it comes to Park City property management. They range between the complete do-it-yourself property owner who enjoys handling all aspects of their long term rentals in Park City, all the way to the completely absentee owner who you never hear from and who relies completely on a property manager. Whether you fall at one end of the spectrum or the other I feel it is a good idea to understand the basics of what a Park City property management company can do for you. This will help if you are looking to hire a company to manage your rental properties, if you are new to being a landlord and need some help getting started, or if you are an old hat when it comes to managing your rental properties but can still learn a thing or two.
Tenants
In order to find qualified tenants, tour a property, and place a tenant your average Park City property management company is going to charge a fee. Typically this fee is charged to the tenant in the form of a "lease initiation fee" and can vary in amount. This fee is beyond the average fee that a Park City property management company charges a property owner for management services. This will cover things like:
- Marketing vacant properties
- Touring interested parties
- Application processing
- Background checks
- Rental history verification
If you are interviewing a prospective company ask them about their procedure for qualifying applicants. Methods for marketing, scheduling tours, and their current vacancy rate are all good questions to ask.
Management Fee & Services
So the big question, how much is this going to cost right? A standard management fee is 10% of gross rents. I prefer this fee rather than a set monthly fee as this puts motivation on the property manager to maximize the rental income and thereby maximize their fee. This also serves as a good motivator to get a property rented as they are not making money when it is vacant. The next question to ask is what do you get for this fee. A good Park City property management company will do the following:
- Process monthly rents
- Provide monthly and annual statements and accounting
- Serve as point of contact for all tenant requests
- Provide professional face of your rental property
- Employ knowledgeable staff to manage property
- Respond to all owner requests/concerns
- Resolve tenant problems or concerns
- Enforce property specific rules
Maintenance
Having a capable maintenance staff is one of the best things a property manager can bring to the table. You will want to know the hourly rate at which maintenance is billed, are there any service call charges and what are they. A property manager will also have a maximum dollar amount of repairs that they may enact without informing the property owner. This helps a property manager quickly handle small maintenance requests and keeps the property owner from constantly being called for small repairs or maintenance items.
If you would like more information or tips on property management, 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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By nature an investment property will at some point be sold. Hopefully you have planned successfully, done your leg work, and purchased a property that provides you with some positive cash flow over the term of your ownership and through appreciation you are able to sell when the time is right rather than dump a property just to get out of it. In my experience in Park City property management I have been through several sales of Park City long term rentals. I have seen many different ways of handling the sale of an investment property and I would like to share a few does and don'ts for property owners.
Do
be the first person to talk to your tenants about the sale. Obviously you have talked to a realtor and probably signed a contract. But the tenant should hear about the sale from you, not some realtor they know nothing about. If you use a Park City property management company to handle all of your tenant relations then you should speak to them directly, not through your realtor. They can then contact the tenant and get everyone on the same page. There are many quality realtors in Park City property management but the notice of a property being sold should come through an already established relationship.
Don't
sign a new lease if you are thinking about selling. I have unfortunately seen this go both ways. I had a new tenant move herself and her two daughters into a place only to have the owner turn around and put it up for sale six weeks later. I then had to inform the tenant and she broke down and cried. She had just gotten settled and would have to move all over again. Moving is a difficult prospect for anyone, so consider your tenants during the sale. If a lease is coming up for renewal and you are thinking about selling then allow the tenant to go month to month rather than sign up for another year. This will give the tenant some flexibility in finding a new place. Otherwise they can be stuck until a buyer comes along.
Do
give a minimum of 24 hour notice to your tenants whenever you need to enter the property for showings. Always be respectful of the tenant's right to privacy and remember that 24 hour notice is the law when it comes to Park City property management.
Don't
assume that if you sell the property that the lease ends. Unless your lease specifically has a clause regarding the sale of the property you should know that the buyer can be obligated to fulfill the terms of the lease. Disclose the terms of the lease to the buyer and let them know they will have to honor it. Once a tenant takes possession of a property they have certain rights under Utah law. Don't get yourself in a legal bind by not honoring the terms of your Park City property management lease agreement.
If you would like more information about selling a rental 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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A crucial part of any landlord's operation in Utah property management is quality tenants. They make being a landlord a breeze, provide you a good return on your investment and are one of the best assets you can have. I have previously talked about tenant screening in my post "5 Ways Tenant Screening Helps - Park City Property Management". However if you are buying an investment property with existing tenants there are special considerations to make.
I have been the property manager for several properties either bought with a tenant already in place or sold with existing tenants. If you would like some tips the selling side of things I recently wrote "Selling An Investment Property - Park City Property Management" . Today we are going to focus on the buying side and how to deal with an investment property already occupied by tenants in Utah property management.
Tenants With A Lease
The first thing you should understand about buying an investment property with tenants is that the lease with the previous landlord survives the sale of the property. A tenant still has the same rights granted them by the original lease. You cannot change or alter the terms of the existing agreement even though the ownership of the property has changed to you. I recently was involved in the sale of a property for which I was providing rental management services in Park City. The purchaser of the property intended to keep it as an investment and function as the landlord after the sale. Naturally both the tenant and the prospective buyer had many questions about how to proceed. Both parties were informed that the existing lease that was executed between me as the property manager and the tenant would be in force through the sale and remain so until the term had ended. I informed the tenant and buyer that they would have to then negotiate a new lease once the term had expired on the current one. None of the terms of the lease could be changed after the sale, an example being the new landlord wanting to raise the rent or the current tenant claiming a different end date to the lease. This would apply for either short term or long term rentals in Park City.
Tenants Without A Lease
A tenant not having a lease on the property they are residing in can happen in a few different ways in Utah property management. Perhaps the seller of the property wants to reside in the property as a tenant after the sale. There could also have been some type of oral agreement between the tenant and the previous owner. Or the lease has expired some time prior to the sale but the tenant has not signed a new agreement with either the previous or current owner and has not vacated the property. Many of these circumstances could qualify as a "tenant at will", a specific legal term that basically amounts to an occupant of a property who does not have a current lease on the property. If you are purchasing a property and the tenant does not have a lease you should consider using an estoppel agreement prior to purchasing. An estoppel agreement is used to establish the terms of the lease agreement between the current landlord and tenant, Things like rent, deposit, term, and any other consideration can be spelled out so that you as the purchaser will know what you are getting into and a tenant cannot come back and claim different terms after the fact.
If you would like more information on buying an investment property with an existing tenant, 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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In Park City property management, as in many things, an ounce of prevention is better than a pound of cure. Many complaints can be mitigated by being a proactive property manager or landlord. Complaints are also a great opportunity to strengthen landlord-tenant relations through effective communication and problem solving. I firmly believe in the idea that good landlords make for good tenants so take some time to review the following complaints I have listed as well as possible solutions. They will help your forays into property management to be successful endeavors.
1. Something is Broken
Any property owner can testify that eventually something will break. Plumbing will develop a
leak, appliances will fail, components like door knobs and window latches wear out. Everything in a property has an expected useful life and will eventually need to be repaired or replaced. Rather than viewing a maintenance item as an annoying problem it should be viewed as an opportunity to reconnect with tenants, view the condition of the property, and grow the relationship of trust that should exist between property managers and tenants. Respond quickly to a request, no matter how small, and let the tenant know how quickly it can be addressed. Even if you are not able to get to the request within a few days staying in communication with a tenant will let them know you are invested in solving the problem and concerned about the condition of the property. You will find that most tenants are reasonable to work with if they know action is being taken. If you would like more information about handling maintenance requests, legal requirements, and best practices check out my blog post Maintenance Laws For Park City Property Management.
2. The Neighbors are Noisy
Unless the property you rent is a cabin in the middle of nowhere you will eventually hear from your tenants complaining that the neighbors are doing something annoying. The first step in solving the problem, similar to a maintenance request, is a timely response acknowledging the tenant's complaint and letting them know you are working on a resolution. Are you beginning to see a theme here? Whether the property is part of a condominium or apartment community with specific quiet hours or a single family home that is subject to local noise ordinances this is an instance where knowledge is the best weapon for a landlord. Get educated on what constitutes an actionable nuisance with the community where your property is located and what are the steps that can be taken to resolve the problem. If the complaint submitted by your tenant does not qualify as a nuisance an honest conversation about expectations is in order. If there is a legitimate nuisance asking your tenant if they have attempted to have a conversation with their neighbors about the problem is the first step you should take. Encourage them to open a dialogue with their neighbors if they are willing. If the problem persists it may be necessary to get a home owner's association or local law enforcement involved. For more information and resources on Utah nuisance laws check out my blog post Nuisance! Definition And Info For Park City Property Management.
3. It Was Like That When I Moved In
This could also be described as a tenant excuse depending upon the situation but when it
comes up a smart landlord should have a few tools at his disposal. If the problem being brought to your attention was legitimately present when the tenant moved in then making a good faith effort at fixing the problem is the only course you should pursue. If not there should be two things you can fall back on to determine how the situation occurred. The first thing a landlord should do is inspect a property before a tenant moves in. When the tenant moves in they should be provided with a move in form where they can make note of any conditions present in the property that existed upon move in. These two items can help landlords and tenants avoid misunderstandings.
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".
All good things must come to an end. In Park City property management tenants move on and new tenants must be found. I recently wrote a blog about property turnover that can help you be aware of some crucial time periods relating to lease end: Park City Property Management - 3 Key Time Periods For Lease End. In this post I would like share some tips and information on advertising and marketplace that can help property owners find great tenants and optimize rental income.
Evaluate The Marketplace
The first step in determining what you property should rent for is marketplace evaluation. Is your property part of a condominium development or is it a single family home? What price are similar properties in the area advertised at and how long have they been advertised at that price? What condition is your property in and will this affect the amount of rent you can charge? Are there features to your property that add value when compared with similar properties? These are some of the basic questions you should ask yourself when attempting to determine an appropriate amount of rent. There are many resources available to help you answer these questions. If you are a veteran landlord you probably already have some
marketing channels established that have helped you secure tenants in the past. Take some time to review other offers available on these and other channels to determine if the price you have in mind is in line with the market value of comparable properties. Places like craigslist, local newspapers, and other property listing services are a great place to gather information on your market and what direction rents are trending. Be honest in evaluating your property against other offerings you find. Also look at the inventory available and how your property compares. If you have a three bedroom condo to rent and there are only two bedrooms available you can try advertising at a slight premium and see what traffic you receive.
Property Description
"Condo for rent" may be an accurate description but let's be honest, it's a little bland. Be creative in your description and highlight the features of your property. Listing the number bedrooms, bathrooms, and other basic information is important but spice it up with words that have some feeling or emotion attached to them. Is your rental property a home or a quaint bungalow? Are you trying to rent a large condo or a spacious condominium with high ceilings and an open floor plan? Using words that catch the eye and help you stand out from other offerings are a big step towards. Don't be afraid to stray from the norm in your descriptions.
If you are looking for an example of a hilarious and eye catching description then Google "nissan xterra for sale ninja". The owner of an average SUV describes his vehicle as "engineered by 3rd degree super ninja warriors", that the automatic transmission will help you "shoot your machine gun out the window" when you are being chased by Libyan terrorists, and that there are only "69,000 miles on this four-wheeled hellcat from Planet Kickass." Now you probably shouldn't describe your property in such hilariously over-the-top terms but you can't argue that the vehicle owner's description definitely helped him stand out of the crowd.
Offering Incentives
People like free stuff; it's as simple as that. Coming up with valuable incentives can help a vacant property become an occupied one quickly. An example of a great incentive would be offering a week's free rent with immediate move in. This way a prospective tenant feels like they are getting a deal and you are getting your property rented. Make sure there is some type of restriction or sense of urgency tied to your incentive. This way a potential tenant will need to act quickly in order to obtain the offer. 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 often like to tell my friends or associates who are renting a property if they have too much time on their hands they should buy a house. With any property comes maintenance, whether you manage a property on your own or use a Park City property management company. And knowing that every renter or owner will come across this issue at some point I feel it is a good idea to cover the legal requirements as well as best practices when it comes to handling maintenance requests for rental properties.
Owner's Responsibility
In Utah the most complete definitions of responsibility for both an owner and a renter can be found in the Utah Fit Premises Act, adopted by the Utah legislature in 1990. Generally the law requires that an owner "shall maintain that unit in a condition fit for human habitation and in accordance with local ordinances and the rules of the board of health having jurisdiction in the area in which the residential rental unit is located." The act also spells out specific items that an owner is responsible for maintaining, these items are sometimes called habitability items or items that are essential to a standard of habitability. The owner may not rent a property
unless it is "safe, sanitary, and fit for human occupancy" and is specifically required to maintain electrical systems, plumbing, heating, hot and cold water, and air conditioning systems if they are installed in the property. The act calls for maintaining of any appliances or facilities specifically mentioned in a lease and common areas of a residential property. However if the property is a condominium this may be taken care of by a Utah property management company and paid through HOA fees. As long as these conditions are not caused by the renter, their family or guests, or a use of the property that violates the rental agreement or applicable laws the condition is legally termed a "deficient condition". If a deficient condition exists in the standards of habitability a corrective period of three days is given for an owner to take substantial action towards a repair once the owner has been notified. If the maintenance item poses a risk of loss of life or physical harm the corrective period is shortened to 24 hours. The Fit Premises Act also states that it (the act) does not apply to "breakage, malfunctions, or other conditions which do not materially affect the physical health or safety of the ordinary renter." This is not to say that if something doesn't affect the safety of a renter then an owner is not responsible for fixing it!
Renter's Responsibility
The Fit Premises Act also spells out specific requirements for renters when inhabiting rental properties. A renter is required to "maintain the premises occupied in a clean and safe condition", properly dispose of garbage and waste in a safe manner, use all electrical, heating, plumbing, and other facilities in a responsible matter. A renter is also required to maintain plumbing fixtures in as sanitary a condition as the fixtures will allow. A renter may not "intentionally or negligently destroy, deface, damage, impair, or remove any part of the residential rental unit or knowingly permit any person to do so". A renter cannot unreasonably deny access or refuse entry to an owner or their agent who is attempting to make repairs. Also specifically mentioned are a renter’s requirements to remain current on rent payments and to not interfere with the peaceful enjoyment of the rental property or other renter's enjoyment. I cover the idea of peaceful enjoyment in another blog post: Nuisance! Definition And Info For Rental Property Management.
Best Practices
When it comes to maintaining a property there are a few simple steps that can go a long way towards creating and maintaining good renter/owner relations. As an owner you should keep in contact with your tenant through the repair process and provide them with updates as the situation progresses. This lets the renter know the problem is being taken care of and that you are a responsible landlord. For tenants being willing to undertake small repairs on your own time and at your own cost lets a landlord know you are interested in the upkeep of their property. If you are interested in learning more about Park City l property management download our free white page "5 Questions Every Landlord Should Ask Themselves".
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".
There comes a time with every rental property when a lease ends. Hopefully the lease has been a positive experience for both landlord and tenant and the parting of ways is somewhat of a fond farewell. There are a few crucial time periods to remember when a lease is ending that, when adhered to, will make the transition for both parties as smoothly as possible for your Park City property management.
Notice of Termination
A lease should have a clearly defined time requirement for when a notice of termination must
be given. Ideally the lease would require the notice be in writing and the notice be given 30 days prior to termination. For example the lease we use, which is prepaired by an attorney, states that a lease can only end on the last day of the month and once the term of the lease is complete a 30 day notice must be submitted in writing. Utah law provides for a minium of 15 days notice when a tenant is on a month-to-month tenancy, unless a lease indicates otherwise. I would also suggest that going to Google, typing in "free lease agreement", and using whatever you find is not the best way to protect yourself, your property and your tenants. Make sure your lease has at least a 30 day notice requirement and that the penalties for not meeting the requirement have some teeth to them. Making a deposit refund contingent on meeting this requirement is one way to ensure a tenant will have an interest in fulfilling their obligations. Our lease has this, along with several other requirements for a deposit refund.
24 Hour Notice Of Tour
So your tenant has provided you with the appropriate notice that they will be moving out and you are wanting to find a new tenant to take their place. If you are a proactive landlord you've already got an enticing description of the property posted on various websites to help you attract a new tenant. Now an interested party is wanting to take a look at the property that is still occupied and you have to let your current tenant know. In Utah a landlord is required, by law, to provide a tenant with a 24 hour notice before entering the property, except in the case of emergency. This notice can be provided by contacting the tenant directly or leaving a notice at the property. A best practice in this scenario is to give a tenant great than 24 hours notice, if possible. Moving is a hectic ordeal at best and many tenants may feel embarrassed at the state of the property that is full of boxes and in a general state of disarray. Giving them notice to make a property more presentable can go a long way towards landing a new tenant.
30 Days Or A Forwarding Address
Now that the old tenant has left, the condo has been prepared for a new tenant and any
maintenance or cleaning items have been dealt with it is time to deal with the deposit. First and foremost you must provide a receipt to a tenant for any work done that is being subtracted from their deposit. There are also some guidelines on when any monies left from the deposit must be returned to the tenant. Utah law dictates that any portion of a security deposit to be refunded must be returned within 30 days of the lease ending or when the forwarding address is received, whichever is later. If it has been past 30 days and a tenant has not yet provided a forwarding address you as a landlord are not under an obligation to return any monies, you wouldn't have a place to return them to anyways! And if a tenant provides a forwarding address upon move out a landlord still has 30 days to determine what must be done to the property to return it to a rentable condition, assess if anything in the property could be considered damage and not wear and tear, and receive invoices from any outside contractors that may have been brought in to make repairs.
You can find more information by clicking here to visit a landlord and tenant FAQ by the Utah State Courts. If you are interested in learning more about Park City property management download our free white page "5 Questions Every Landlord Should Ask Themselves".
In a previous blog, 3 Tips For Successful Residential Property Management, I briefly touched on the Fair Housing Act and some possible consequences to getting sideways with Uncle Sam. In this blog I would like to go over the act in a little better detail as I feel this is something that many people have heard of but know little about. In particular how this act relates to rental property management is something every landlord should be aware of.
The Fair Housing Act
Passed in 1968 the act prohibits discrimination in the sale, rental, and financing of property to any individual based on race, religion and national origin. An update to the law in 1974 included gender to this list. Most people would view the discrimination against these four classes as an obvious no-no but an update to the law in 1988 created two new classes you might not know about.
Handicap
We are all familiar with the ubiquitous handicap parking signs but handicap or disability is also a protected class when it comes to rental properties. For example if you set a no pets policy at your rental property, or if your property is part of a condominium association that does not allow pets, you cannot refuse to rent to a blind person who uses a Seeing Eye dog. Also a landlord cannot prohibit a disabled tenant from making, at their own expense, reasonable modifications to the property that will allow them to use it. However if a modification is made the disabled tenant is obligated to restore the property to original condition upon their moving. And finally if there are any rules or policies that inhibit a disabled person from using the housing then reasonable accommodations must be made for the tenant.
Familial Status
Familial status, a somewhat confusing term, can easily be understood as having kids. Discrimination against this type of protected class can be somewhat difficult to understand but I have found a simple way to determine if a rule or policy is discriminatory. A posted rule stating "No kids in the pool from 10-2" may see innocuous enough but if "kids" were to be replaced with "Asians" or "Catholics" then it becomes clear that the rule is discriminatory. I recently had a resident stop by my office concerned about the prospect of having a new neighbor move in above them. They were concerned about the noise and asked that I would only rent to a single person, preferably a woman with no kids who worked as a flight attendant! Not only was the request a little extreme but it would also be a discriminatory practice. As a professional property manager I cannot even engage in what is called "steering", the act of suggesting only certain properties to a family or other protected class.
What Does This Mean For Me?
Great question, glad you asked! There are rules regarding what housing is covered by the Act and what is not. Generally most housing is covered but under certain circumstances a single-family home rented without the use of a broker is not covered, as long as the owner of the property does not also own more than four rental properties at a time. For reference you can take a look at an overview of the Fair Housing Act or, if you are really suffering from insomnia, you can take a look at the entire text of the Act here. Now if I could make a recommendation to anyone it would be to follow the requirements of the Act whether you think you should or not. While it is always best to error on the side of caution you can be certain that your actions in managing a rental property are ethical and honest.