Utah County Property Management 101

Typical Rental Scenario:

What you were sold:

Many times, I've come into a management situation where the landlord I'm helping worked with an agent that did not have a background in Property Management.  Many of these clients were sold a property that they were told would cash-flow from the get-go, without any true understanding of the rental market.  

As a first-time investor, you're still learning the ins and outs of property investing.  If you're very prepared, you know what a CAP Rate is, and how to calculate it.  If you're not as well prepared, you're typically relying on the information that is provided to you by your sales agent.  

Often, your agent is trying to get you the best home they can find for you, regardless of whether or not it's the best investment for you!   This is a critical difference.  As a first-time investor, you want a property that you can be proud of, and may not be finding the property that will be the most profitable.

What you bought:

In this scenario, what you actually bought is a nice enough property, perhaps without some of the frills like expensive landscaping.  The home itself is in good condition and will provide a more than adequate home for renters going forward.  

Your plans are to invest in the property over time, utilizing portions of the rental proceeds to do improvements over time.  

Quickly you realize that management isn't all it was cracked up to be.  Sorting through dozens of rental applications, structuring leases, dealing with tenant issues, coordinating maintenance... it's all a bit too much.

So, you do what most investors do after they break their teeth on their first investment - You hire a manager.

Hiring a manager (the right one) is a great investment in your property!  It could impact your cash-flow, but that's okay because your tax situation is actually better, and you're able to write off all of the expenses including the management fees.   You think to yourself, why didn't I do this before?

The big question is, did you do it right?   What is the company or person you retained doing to meet your initial objectives of improving the property over time, and maximizing your investment?

Standard management typically includes placing tenants, collecting rents, and coordinating necessary maintenance.   It typically does not address what the manager will do to meet your goals to improve the property.  

Over time, when only the basics are done, your property begins to deteriorate - it can happen much more quickly than you could imagine.  If basics like lawn maintenance, exterior maintenance, painting, concrete repair, updates and other improvement concerns aren't addressed, PROACTIVELY, by the property manager you're interviewing - move on to the next!

Your property manager is being retained to help you MAXIMIZE YOUR INVESTMENT!!!  They should have a plan to do that.  That plan should include:

Maximizing Rental Income 

Managing Maintenance Funds

Creating Maintenance/Improvement Funds

Ensuring the Integrity of the Property

Delivering Top-of-Market Earnings

Diligence on Tenant Screening

One of the most costly mistakes an investor/landord can make is to amplify the negative effects of getting a poor manager, who attracts worse tenants.  The cost of a bad tenant, combined with an incompetent manager can be fatal to the profitability of your investment.  Don't let your pride and joy investment begin to look like this:

Call me today for your FREE consultation - let's figure out how your property is positioned, what areas could be improved, and how to get the BEST RETURN ON INVESTMENT WITH YOUR RENTAL.

Looking forward to helping.  

Respectfully,

Brian C. Andersen

801.687.1812

bcaproperties@gmail.com