3 Mistakes Costing Landlords Money In Park City Property Management
I will be the first person to admit I am not a gambler. Every time I find myself in Las Vegas, which is infrequent, I can't help but think of all the things I could by with the money I am losing. Maybe if I was better at gambling I might feel a little different but the fact is I don't like losing money. And I feel like most people in Park City property management are like me when it comes to money, they don't like losing it! So here are a few ways that I think some landlords in Park City property management are losing money in their property management business.
1. Rent
Losing money in rent? Really? Well what does the market have to say about what your property should rent for? If you are below market you are losing rent. Whenever a lease comes up for renewal it behooves a landlord to take a quick look at what the market is doing in Park City property management and adjust up if you are able. The other thing you should consider is the idea that paying a little extra each month is easier for some tenants than the prospect of moving. For example for the longest time I hated my internet and phone provider. I didn't like the service, felt like I was paying more than I should, and wanted to switch. But when I would actually look at it the process of switching seemed more of an inconvenience than the current service was. I think many cable companies rely on this concept of customer apathy. If you are considering raising the rent take a look at my post Raising Rent At Lease End In Park City Property Management for tips on dealing with tenants.
2. Vacancy
This is directly tied to rent and rent increases. If you bump the rent up too much you could be faced with some vacancy. That may be okay if the increased rent amount you can now obtain on the open market makes it worth it to have a little vacancy. As a landlord in Park City property management you should always act quickly when your tenant provides notice that they are moving out. Start advertising and marketing before the tenant has left the property. As a landlord you can enter a property for reasonable business purposes with proper notice and touring the property to a new tenant is certainly a reasonable business purpose. If there are repairs that will need to be made once the tenant has vacated act quickly to get them going and have your property returned to rentable condition. A savvy property manager in Park City will realize that the biggest single expense is the mortgage on the property but the SECOND biggest expense is vacancy.
3. Fees
If a tenant pays late are you charging them a late fee? Does your lease clearly state when rent is due and when it is late while proscribing a fee to charge for late payment? Fees really accomplish two things: First they can provide an additional income to your Park City property management operation. Second they reinforce the importance of paying on time. But this only happens if they are utilized. If you are not collecting the established fees from your tenant when they pay late (trust me, if it hasn't happened yet it will!) you are missing out and you are allowing a tenant to pay late which will create all kinds of frustration for you as the landlord.
If you would like more information or tips increasing rental rates., 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.
