Are you feeling overwhelmed and frustrated taking on the responsibilities of being a landlord?

Maybe you’ve added another property to your portfolio and realize there is just too much on your plate.

Or maybe you’ve become an accidental landlord by inheriting a property you don’t necessarily know what to do with yet. 34.7% of accidental landlords of accidental landlords use this inherited property as a passive stream of income, adding to their wealth.

No matter what your situation may be, if you own a rental property, you know how difficult it can be to manage. With plenty of responsibilities on your plate  including acquiring tenants, maintaining the property, and learning landlord-tenant laws, you may feel ready to give up.

Fortunately, you don’t have to manage your rental property alone. You can find a great property management company near you to help!

What Can a Property Management Company Do for You?

If you’re a new landlord, you may not be aware of just how beneficial finding a property management company near you can be for your real estate investment.

One of the main benefits of hiring a property manager is that you no longer have to maintain your property. You can say good-bye to late night texts and calls from your tenants letting you know the dishwasher is broken. In fact, 81.2% of landlords work with management companies for this reason alone!

From maintenance to tenant acquisition to bookkeeping, a property management company can handle virtually every aspect of your rental property.

Not to mention, many landlords see an increase in their revenue after hiring a property management company.

So, to sum up, finding a property management company near you means you spend less time managing and maintaining your rental property and more time enjoying your passive income.

Before You Begin Your Search

Before you start searching for a property management company near you, consider what types of services you’re looking for.

Write a list of the services you need and prioritize them. Is it essential that the company screen prospective tenants and prepare papers for your annual taxes? How important is property owner/manager communication and being able to have online access to information about your property?

This list of prioritized services will help you narrow down the property management companies you find in your search.

Where to Find a Property Management Company Near You

There are three main ways you can find a property management company near you in Davis County or Webster County, UT.  

1. Ask Your Network

There is nothing more trustworthy than a glowing recommendation from a friend or colleague. Before even taking your search online, ask your friends who are landlords, friends who are renters, or real estate agents if they can recommend a property management company near you.

From friends who rent their homes, you can get an idea of how the company treats tenants. From your landlord friends, you will get an idea of how the company treats their clients.

From real estate agents, you’ll receive a more professional overview of the company and how they conduct real estate business.

A recommendation from someone you trust who has actually interacted with the company before is better than reading a stranger’s testimonial online.

2. Search Online

Once you’ve asked your network for recommendations, it’s time to broaden your search. Simply doing a Google search with the phrase “find a property management company near me” will literally give you millions of results.

All these results can be overwhelming and make you feel like you don’t know where to start. The best thing to do is research the companies you’re drawn to. Click around their websites and get as much information as you can.

Some companies even have chat features on their websites where you can ask questions and receive answers quickly.

While an online search can give you plenty of options for property management companies near you, you may not see all of them. Some companies may not have a website or don’t come up on the first or second page of your search.

3. Look Around the Neighborhood

Bring your online search into real life. Take a walk or drive around the neighborhood where your rental property is located and search for property management signs outside of homes and buildings.

Write the names and contact information down and look them up online or make a phone call when you get home. Finding a property management company who already knows the neighborhood is beneficial because they are aware of the market and area.

What to Do Before Hiring a Property Management Company

Now that you’ve narrowed down your options of property management companies, it’s time to make a decision. There are some important things you must do before signing a contract to know you’re hiring the right one.

Conduct an Interview

Just as if you were to hire an employee for a company, you should interview the property management companies you have your eye on. You’ve reviewed their websites — like an employer would review a candidate’s resume — and you want to have a face-to-face conversation with them.

This is the time to ask questions and really get a feel for the company and its culture.

How do they treat you during your questioning? Is the office clean and professional? Do they seem prompt and organized?

Read the Fine Print

Always — always — read the fine print of a contract or agreement! Before hiring a property management company, read your agreement closely and look for any limitations, restrictions, and hidden fees.

You want to fully understand their fee structure and have a good idea of how much you’ll pay them monthly and annually. This could be your deciding factor on whether or not to hire them.

Look at Reviews & Testimonials

Go back to the web and search for reviews and testimonials on the company. Read reviews from both tenants and landlords for a well-rounded look at how the company operates.

It’s important to always take these testimonials with a grain of salt. Stay objective when reading them and don’t get too hung up on them. This is the first thing you should do before interviewing them in person.

Need a Property Management Company in Davis or Webster County?

Are you looking for a property management company in Davis County or Webster County, UT?

Key Renter Property Management Elite is here to help!

With an experienced team of professionals, state of the art technology, and genuine care for our owners and tenants, your rental property is in good hands.

Contact us to see how we can help take those stressful landlord responsibilities off your hands once and for all.

Now that you’ve found tenants who are interested in renting your property in Layton, Utah, it’s time to collect their deposits. Many landlords struggle with deciding whether to collect last month’s rent upon signing the lease.

There are both pros and cons to collecting last month’s rent before a tenant moves in. It can make you feel secure in your decision to rent out your property. But it can also confuse your tenants, especially if they are first-time renters.

By the end of this article, you can decide whether you want to collect last month’s rent before your tenants move in or not.

Why Collect Last Month’s Rent?

Why would you want to collect last month’s rent? Some local landlords in Layton may view this practice as unnecessary, while others deem it essential.

The main reason landlords collect it before tenants move in is to provide additional security. This money can be used to cover any unpaid rent throughout the lease term or if the tenant terminates the agreement.

It can be difficult to find the right tenants for your rental property in Layton, UT. So, some additional security can make you feel better about renting your property.  You may also find that you trust your tenants more if they pay this rent upfront.

Clearing Up the Confusion

There is often some confusion when landlords ask for last month’s rent before their tenants move in.

Since the security deposit is usually equal to one month’s rent, tenants may be under the impression that it serves as last month’s rent. Therefore, they may feel that they are paying three month’s of rent in advance.

It’s essential to explain the difference between the security deposit and last month’s rent to your tenants. This will clear up their confusion and help them understand why you’re asking for last month’s rent.

Last Month’s Rent

The purpose of collecting last month’s rent upfront is because then the last month of the lease is already paid for. This could be beneficial to your tenant because they don’t have to send you a rent check for the last month of their lease.

This money does not have to be returned to the tenant as it is for the landlord to keep.

Security Deposit

The security deposit is usually equal to one month’s rent. However, in Utah, there is no limit to how much a landlord can charge. This money serves as protection from damages done to the property.

If your tenants leave damages when they move out, you can then use the security deposit to cover the cost of repairs. Keep in mind that you will have to provide an itemized list of the repairs to the tenant when returning the remaining deposit.

If your tenants leave no damages, then you may return the security deposit back in full. This deposit should be kept in a separate bank account, usually in escrow, and remains untouched throughout the duration of your tenant’s lease.

How to Collect Last Month’s Rent

Some tenants may be wary of paying the last month’s rent upfront. The best way to legally collect this rent is to add it to your lease agreement.

Under the clause that states what is owed upon signing the agreement, simply add a line for last month’s rent. Make sure to also provide the date that it is due. If forgotten, this could cause problems and arguments in the future.

Pros of Collecting Last Month’s Rent

Now that you understand the reason landlords collect last month’s rent, it’s time to learn the pros of collecting it.

Verify High-Quality Tenants

You should never underestimate the importance of finding reliable tenants for your rental property. Usually, when tenants are willing to pay last month’s rent upfront, it’s a sign that they will be good tenants.

This also means your tenants can afford to pay the rent. This should make you feel more secure and trust that you’ll receive rent each month. It’s also a sign that your tenants plan to stay the entire length of their lease.

Rent Protection

If your tenant turns out to be unreliable and misses a month of rent, you can use the last month’s rent to cover it. While it’s still a blow to your income missing a month, this can make it a little better.

This is also good protection if your tenant decides to terminate the lease early. You should have some penalties in the lease for this type of situation already. However, in this instance, you can keep the last month’s rent as a way to recover. 

It Benefits the Tenant

While you as a landlord benefit from collecting last month’s rent upfront, your tenant does too. Once the last month of their lease rolls around and they don’t have to pay rent, it feels like they’re getting a “free” month.

Having already paid the rent a year ago, they’ve probably already made up for the loss. So, they don’t miss the money when their lease ends.

Cons of Collecting Last Month’s Rent

So, you’ve heard the good things about collecting last month’s rent; now it’s time to consider some of the cons.

Decreases the Tenant Pool

Not all renters can pay three month’s of rent before moving into an apartment. Many can only make the first month’s rent and security deposit. Asking for last month’s rent will deter these tenants from renting your property, leaving it vacant longer.

Now, because they can’t afford to pay last month’s rent upfront does not necessarily mean they aren’t good tenants. Some may be waiting for their security deposit from their previous apartment to be returned to them.

Could Lead to Arguments

A year is a long time. When you have a lot going on and may not be as organized as you would like, you could forget that you already collected last month’s rent. This is why it’s so important to stay organized and keep your books up-to-date.

Arguments can also arise if your tenant decides to renew his lease. The last month’s rent is then used for the last month of the new lease. Again, you or your tenant could forget that it was already paid when yet another year passes.

Rent Increases

If you decide to increase the rent for any reason during your tenant’s lease or when they renew their lease, you will have to collect the remaining rent owed for the last month.

While this may only be a couple hundred dollars, it’s still important to collect it. Tenants may argue about it, saying they already paid last month’s rent, giving you even more stress and problems.

Get Help Acquiring New Tenants and Collecting Move-In Deposits

Chasing down people for money is not the best use of your time as a landlord. Why not let a professional management company do it for you?

Key Renter Elite is Layton’s leading property management company. Our professional team can fill your vacancies faster with quality tenants, fully manage and maintain your rental properties, and organize your finances.

Contact us to speak to one of our team members about managing your Layton rental property today!