Timing and Benefits
Hire a property management company, we often hear two complaints regarding property management in Utah. Reputable property management can make your life easier, more comfortable, and it’s a definite asset for growing your business to the next level. But if you can’t find the right property management firm, then starting the rental company can prove to be a difficult choice. Most landlords spend around 8%-15% on property management services in Utah. And this is the most important investment you’ll ever make in your business.
- So when is the right time to hire a property manager for your rental business?
- And what are the benefits if you invest in a property management service?
The Right Time to Invest in a Home Management Service
First of all, let’s map the journey of being a newbie landlord. Renting a home is often considered a straightforward way to “pay your mortgage” and earn some money on the side. Let’s say you finance a property worth $250k with a monthly mortgage amount of $2,000. Now, if you can rent out the same property for $2,750, the chances are that you can pay your mortgage and still be able to save a little on the go. (The rest of the money will go toward unexpected repairs, maintenance charges, and taxes, but still, the saving is possible. )
Now that stage of business isn’t the best time to hire a property management company. If you’re a newbie, you need to get a personal understanding of the rental business. How do you handle complaints from your tenants? Which types of repairs are requested the most? Did you choose the wrong people?
By not spending on a property management firm, you can better prepare your cash flow and see if you have structured your mortgage the right way.
Most people start renting homes as a part-time job. You might have a 9-5 job, and along the road, you want to become a landlord. Still, it would be best to familiarize yourself with the basics of the rental business in Utah. That way, you can be a better negotiator when you seek a management service, and you can see if this strategy is profitable for you.
Let’s say after a few months, you have understood how the entire game works. You know how much it costs to repair the property and how much personal time, effort, and communication is required to handle the process. Now you know whether hiring a property manager is best or not. Suppose you’re spending 5-10 hours a month for home repairs, late payments, tenant calls, and a few hours stressing about the journey. You’re spending money out of your pocket. It’s a good deal if a property manager can take away all that stress and save you time by requesting a small portion of the rental income.
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Benefits of Working with a Reputable Property Manager in Utah
- Laws and regulations are different in every state. Avoid getting into legal trouble and have a manager review your contracts.
- Shield yourself against heated/difficult conversations. If you don’t like calling your tenants about the due payments, then hire a property manager. Let them collect the rent and deal with late fees.
- Most often, property managers are great at keeping your home occupied for extended periods. And they are quick to find new tenants if the lease expires without renewal. Property management fees are tax-deductible, so this can be an advantage.
If you’re looking for a property management firm in Utah, contact us here. Our team can give recommendations on the best property managers in Utah who will help you excel in your newly found business.