The real estate industry in Utah has changed dramatically over the last 5 years. One of the unforeseen changes to the market has been the explosion of property management companies. Many real estate professionals have tried to find creative ways to maintain clientele or to create a supplemental income to offset diminished annual commissions.
As a result, many real estate agents and brokerages have jumped haphazardly into the professional arena of Utah property management. In many of these situations, a real estate agent can bite off more than they can chew and can actually damage the relationships they have with clients that they were trying to protect by getting into the Utah property management industry in the first place. Like any job, there is a right way and a wrong way to approach it. If you are looking into Utah property management as a possibility for yourself or your property, there are a few questions you will want to answer first before making a decision:
Are you familiar with the different advertising methods that will allow your property to be seen both locally and nationally? The longer a rental property sits vacant the more likely you will have an angry owner and less chances of keeping them as a client. It is very important to know what marketing channels and mediums you have available to make sure your client’s property gets maximum exposure locally, and nationally.
Do you have a well-written legal agreement that will protect you in worst case scenarios? If not, you may be able to slip by with many of your dealings. It’s the deal that goes terribly wrong, and you have no paperwork to back up your actions, that will cause you to regret you didn’t take care of a proper management contract. Spend the extra money, and have a good attorney put together a contract that protects you and your client.
What other options are out there besides you doing the property management for your clients? There are many professional property management companies in Utah that have been in the business for many years, and many of these property managers offer a referral fee back to an agent for a new property management account and will keep that agent’s information on file for when the client looks to sell the property. This can be a great option – if you are not feeling equipped to handle the property management needs of your client, this may be a better option for you. If you have clients with Utah property management needs, this is a quick and easy way to get involved in the business profitably, and serve the needs of your client.
Over the last 5 years, Utah property management has definitely grown due to home prices decreasing, the ability for new buyers to get a loan has become more difficult, and the need for housing has continued to grow. Finding a solution that fits your needs and those of your clients will be essential to growing your real estate business in the future, and for many, it’s the difference of staying in business or not.
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