Utah Property Management – Communication Matters
When an investor is looking for a Utah property management company, they typically will look at the numbers only and wonder, “How much will this cost me?”Which is an important question to ask, but a better one is “What value will I get in return for the cost?” I can go to a burger joint and buy a hamburger for $1. Just because it’s the cheapest, it doesn’t make it a good hamburger.
No matter if you own one property or many units, as a real estate investor, it’s crucial to select a Utah property management company that has excellent communication. As you’re going through the process of choosing a company, allow some time to pass for you to get a feel for how well a property management company communicates. Keep in mind the following questions: Is it difficult it is to get in contact with your property manager? How long does it take them to respond to a voicemail? How long does it take them to respond to an email? If you’re getting poor results early on in the selection process, these red flags can spell a disaster later when it really matters.
Solid follow through to your questions and concerns is necessary, and it should be done in a timely manner. If the only time you hear from your Utah property management company is when you call them, you may want to consider another company. If you find yourself anxiously waiting for answers, this may be a red flag to switch companies as well.
What type of communication do you prefer? And does your property management company cater to your needs? Do you prefer email, text, phone calls, letters, or faxes? When selecting a Utah property management company, establish early on how you would prefer to communicate and ensure that the management company is capable and willing to work with your preferred form of communication. Getting this squared away upfront, will help eliminate potential headaches or growing pains that you may experience when you have questions or concerns with your property.
Utah tends to attract a large number of investors and owners who live out of the state, and many also live out of the country. This is due to Utah being home to several Military bases as well as a family oriented atmosphere that encourages people to leave roots here while they may move away for a time. High-value real estate in neighboring states also contributes to the high number of out-of-state investors. As a result, it’s absolutely vital for a Utah property management company to be current with technology. Especially, technology that promotes the most-convenient and quickest communication.
Communication is obviously just one facet of choosing a Utah property management company. Don’t forget to check out our other valuable property management tips and ideas.
Utah Property Management Fees
Don’t Get Fooled!
The Truth About Utah Property Management Fees
There are many different ways that property management companies in Utah may charge fees. Just because you have compared the property management fees charged on monthly rental amounts, whether a percentage or a flat fee, you can’t assume that you are making a true comparison. Most Utah property management companies break up their fees so that they can increase their income while being able to say they charge 8% or 10% when in reality they are really making closer to 12%-15% once you add up all their fees. In this article we will discuss the most common property management fees that you will encounter in Utah.
Utah Property Management Fees – The management fee
This is the main property management fee that is charged each month as rent is collected on your property.
Things to watch out for: is this fee collected whether the property management company collects rent or not? Or, is it only charged when your property manager actually receives rent?
Utah Property Management Fees – Tenant leasing fees
This is a fee that is often charged by property management companies and is generally 25%-50% of the first months rent. It’s meant to cover things like lease signing and tenant procurement.
Things to watch out for: not all property management companies charge this fee. Here’s an example: If your tenant moves out after 1 year, you were charged a 25% tenant leasing fee, and you are paying your property management company 8% each month, that is the equivalent of paying a 10% management fee each month. The tenant leasing fee is viewed by some as encouraging a property manager to sign shorter term leases or have a higher rate of turnover.
Utah Property Management Fees – Tenant administrative fee
This is a property management fee that is charged to the tenant each month and is typically between 2%-5% each month. This adds to the tenant’s rental amount each month. For example, if they are paying $1000, their rent really becomes $1020 to $1050. In the end it may be better to add this to the management fee that you are paying each month since it is coming out of your rent.
Things to watch out for: This is a management fee, which may not be disclosed to the property owner by the Utah management company since it is being charged to the tenant and not to the owner.
Utah Property Management Fees – Rental property marketing charges
Some property management companies will charge $0, and some will charge over $500 to fill your property! The important issue here is value – how much are they charging you to rent your place? Is it worth it?
Things to watch out for: most property management companies do not have a good system in place for advertising. They will stick a sign in the yard and place your property on their Utah property management company website. Unless you are getting full exposure on websites that people actually use, out-of-state customers and in-state customers, it is difficult to know if you need to lower your price or if you are actually getting applications from the most qualified tenants that you can.
All of these fees can add up quickly to a lot of money one way or another and really make the difference between your property having a positive ROI or a negative one. It is important when considering a Utah property management company to know all the details and look out for the things mentioned here. Please let us know if you have any other questions or if you need help with your Utah property management issues.