Following the pandemic, we have seen rental rates increase in Utah by 10-15% in some cities. We have a 15% growth rate in luxury community lease agreements, one of the most significant increases in the last three decades. If you own a Park City property, now may be a great time to consider renting your property to high-income tenants.
While a property management company can assist in finding and managing tenants, many homeowners are finding success on their own. If you are planning to rent your Park City home, here are some tips to help you get started:
- Strict Tenant Criteria
- Professional Photography
- Property Maintenance and Upkeep
- Effective Communication
- Proper Organization
High Income Tenant Criteria
As an independent landlord, it is critical to know payment problems, evictions, and property upkeep can be among the most challenging aspects. Doing your research ahead of time can reduce the risk of property damage, late rental payments, and evictions. Make sure you put each tenant through a strict tenant screening process.
Each tenant must undergo a screening process that includes background checks employment checks to verify high income and credit history. When reviewing credit history, look at any warning signs, including a history of late payments, judgments on a credit report, or past rent-related collections. Jensen and Company recommend pulling an eviction report when screening tenants.
Safety is one of the essential elements when selecting a tenant. It is necessary to run background checks to identify any criminal offenses that could put the neighbors and your property at risk. Perform a criminal check at the state and national level and review the National Sex Offender Public Registry and the Most Wanted Database.
Eviction history is another element that needs to be reviewed. If individuals have a prior rental collection record, they are three times as likely to have rental-related concerns. Prior evictions are a warning sign that landlords need to consider carefully before allowing anyone to rent. Another way to learn about their rental history is by contacting previous landlords to ensure their behavior and agreements meet their contract standards.
Employment history is a vital component of checking high-income tenant backgrounds. Stable employment history demonstrates consistency and shows the tenant is likely to pay their rent on time and in full. We recommend using Income Insights from Experian to determine if your applicant has enough income to afford their lifestyle.
Listing Your Property
To attract the right tenant, you need to use high-income listing services and hire a professional photographer to do the shoot. Offering virtual property tours can assist renters across the country looking for Utah properties to rent. Use our tips when renting your home:
- Prepare your house for sale. Hire a good cleaning company to come in and do a move-in rental cleaning. Make the home look shiny and new to attract the right tenants.
- Pay for professional photography. A picture says a thousand words, and visuals are everything when promoting your high-income property for rent.
- Craft an engaging listing description. People need to know what to expect when they rent your home. Provide information about things to do in Park City, so they know there is a unique, fun lifestyle to enjoy.
- Landscaping your property is another essential element of marketing your home. Curb appeal is the first thing a potential tenant will see when they come for a home tour.
- Invest in marketing and advertising. Hiring an experienced realtor is the best option to find rental tenants as they have the resources, tools, and network needed to put your home in front of the right prospects.
Property Maintenance and Upkeep
Keeping the property well-maintained is essential in high-income brackets. Hire a landscaper to maintain the property’s exterior and experienced cleaners to maintain the inside. Renovate the property if some of the designs are starting to age and make the property less appealing to renters. Consider hiring a property manager to help with some of these issues.
When the property has an issue, who will the tenants call? Respond to tenants promptly, and focus on doing your part to uphold your end of the rental or lease agreements. Tenants need to clearly understand what they need to do in an emergency or have concerns about the property, neighborhood, or rent payments.
Staying organized when renting your luxury Park City home is one of the most important things you can do for yourself. Small things like forgetting to meet your tenant in person or failing to send out timely statements can send your tenants messages that you do not care about the property or their needs. Take proactive steps to keep your tenants informed about the property and the community. Finding the right tenant is one thing, but keeping the right tenant is another.
If you are looking to invest in a Park City property you can rent, contact the experts at Jensen and Company today. We can help you find the best property to meet your real estate investing goals.