Choosing Investment Properties in Utah

Don’t let the fear of being a landlord keep you from looking into purchasing investment properties. In fact, investment properties can generate great passive income and there are several options to managing the property that can make you a passive participant.

 

If you do not think you can manage your investment by yourself, be sure to calculate property management fees into your strategy. Be sure you learn about fair housing laws and other laws that pertain to the property you are considering purchasing.

Consider taking a landlord or Property Management class to learn how to select tenants, screen them to be sure they qualify, etc.

 

Be aware that many condo complexes have rental restrictions. You will make sure you have covered all these before proceeding.

 

If you choose a home that needs a lot of repairs you will get more phone calls from the tenants, and you may have more liability if protections like smoke detectors, safe electrical systems, etc are not in the home.

 

Choose your strategy. Generally, you get good cash flow or better appreciation. Homes in suburbs of SLC tend to cash flow better because of lower price points but do not go up in value as much as areas like downtown, sugar house, near universities, etc.

If you limit or deny pets, you will limit your pool of potential renters. If you allow pets, be sure to get pet deposits and pet rent.

How To Find & Work With a Property Manager

Making the decision to work with a property manager or management company is not one to take lightly. After all, having investment property is a big undertaking in itself, you defiantly need a reliable property manager to entrust it to. Hiring the right property manager will defiantly make the rental process much easier for you in the long run.

Here are few tips when looking for one to hire.

 

Do your research.

 

Find out how many other properties they manage and how many are vacant.

 

  • How do they advertise property that is available for rent?
  • Are there any negative reviews about them?
  • Check with the Better Business Bureau and Real Estate Commission as well.

Ask for referrals.

 

Real estate agents are a great resource when looking to hire a property manager.

Ask around to other property owners, who do you know that also has rental property? Who do they use? Check with the Better Business Bureau and Real Estate Commission for this as well.

 

Meet with them in person before hiring them.

 

Often your first impressions are the best way to decide. Meet with him/her to get a sense of their professionalism, knowledge etc. Get clarification on how they can be reached, text, phone call, email etc. There is nothing more frustrating than hiring someone to manage something and they are difficult to reach when needed.

Look over the contract with a critical eye.

 

If something seems off or unfair, ask for clarification. Do not sign anything until you are certain that this property manager best suits your needs. Also make sure the costs are in line with your expectations and other companies.

Property management is a competitive field, doing your due diligence will pay off and you will enjoy the extra income the rental property can provide by choosing the best person/company for the job.