Are you a new investment property owner in Salt Lake City looking to save money? Unfortunately, many who are new to overseeing a rental property can also witness the money drain on their bank accounts. That’s because some mistakes can have you spending more money than is necessary, or even cause you to lose money.
Luckily, you don’t have to spend your days as a landlord being broke and wondering where the money has gone. We’ll show you the top 5 costly mistakes that new landlords make… and how to prevent them from happening in the first place.
1. Missing the Mark on Monthly Rental Rates
How much are you charging your tenant to rent your property? This is the number you should not arrive at randomly. It’s important to do research and discover the most profitable number you can get for rent. If you don’t, you will make less money while the competition thrives.
So, how much is the going rate for rental properties in Salt Lake City? The answer depends on several factors.
The average rent in Salt Lake City is $1,269. Keep in mind that this average rent is influenced by the following factors:
- Square footage
- Number of bedrooms
- Outdoor space
- An area to work at home
- Access to amenities
Before you offer your income property for rent, make sure you do your research and charge accordingly. Otherwise, this can result in an instant loss of money.
2. Investing in the Wrong Remodeling Projects
It’s no secret that remodeling a rental property can cost a lot of money. After all, the average kitchen remodel can cost between $12,000 and $34,000.
But do you really need that kitchen remodel for your rental?
The good news is that a mid-range remodeling project can bring a great return on investment. This means you don’t have to go all out with top-of-the-line appliances and upgrades.
However, If your kitchen is functional and at least somewhat visually appealing, this doesn’t mean you have to do an entire remodel. There are some inexpensive ways to make home remodeling improvements without having to do a full-blown renovation.
For example, if you are focusing on the kitchen, consider adding some floating shelves for extra storage. This is going to be much cheaper than installing new cabinets, which can cost between $4,000 and $13,000.
Furthermore, don’t underestimate the power of paint and new light fixtures. These are cost-effective areas where you can instantly upgrade your rental for an affordable amount of money.
3. Not Marketing Your Property
“Build it and they will come.” Not so much when it comes to rental properties.
Sure, you can stick a for rent sign in the front yard and then walk away. There’s a chance you will get some calls simply by luck with potential tenants driving by.
The truth is that this can be a largely ineffective approach to marketing your property. Not to mention, who knows what caliber of applicants you are going to attract by relying on a yard sign.
New landlords in Salt Lake City might decide to skip over the marketing portion and wait for tenants to knock on their door. You might be saving money by not needing to pay for marketing. But remember, you are losing money every day your property remains vacant.
When marketing your property, you will have to pay for certain skill sets such as photography and even videography. You also need to get those properties listed on the most popular and recommended rental websites.
There are many different approaches and techniques for effective property marketing. If you are going to cut corners, it should not be in your marketing budget.
4. DIY Repairs and Maintenance
If you are an incredible handyman with a lot of time on your hands, you might not necessarily be losing money. But many new rental property owners in Salt Lake City don’t have a large arsenal of repair and maintenance skills to offer. Even if the skills are there, you might not have time to tend to repair problems that pop up.
This leads to many DIY attempts at repairs and property maintenance, which comes at a cost.
For example, your rental property has drafty windows. You decide to buy new replacement windows from a big box store and install them yourself. You then spend several hours trying to install just one window.
You may have only spent about $200 on that window but think about the hours spent trying to install it. Not to mention, if you don’t install it correctly, it can accumulate hundreds of dollars in lost energy (heating and cooling) over the years.
Don’t be too proud to admit when you are over your head with repairs and maintenance. That is exactly what a professional company like Keyrenter Property Management in Salt Lake City is here to do.
5. Foregoing Professional Property Management
This is perhaps one of the biggest mistakes made by new landlords in Salt Lake City. New landlords can feel confident about managing their properties at first, but the truth is that it is not for the faint-hearted.
That is because there is so much involved with property management, repair, and maintenance. Then there is the task of 24/7 emergency maintenance, making sure your tenants pay rent on time, and even dealing with dreaded evictions.
If you think that property management in Salt Lake City is unaffordable, think again. Take a look at our pricing list, where we offer full-service property management with fees that won’t break the bank.
Not only will our property management help save you money, but it also gives you peace of mind. And let’s be honest, you cannot put a price on your peace.
Keyrenter Property Management: The Key to Saving Money
Keep more money in your wallet by contacting Keyrenter Property Management in Salt Lake City. We can guide you through the process of being a landlord and effective property/tenant management giving you more time to do the things you love to do.
If you’re a new landlord in Salt Lake City, contact us now to discuss our topnotch property management services.