- Non-refundable portion of security deposit:On all of the properties that I manage I charge a non-refundable portion of the security deposit-typically $100 if the rent is less than $1,000 and $200 if the rent is over $1,000. This is to cover my overhead in filling the vacancy. Because it is a fairly nominal fee, I have never had a problem with the tenants not willing to pay it. Depending on what rents you receive per month we could nearly be a quarter of the way to creating that extra month.
- Late fee’s:You always want to charge late fees. Your mortgage company, your bank and nearly every other institution out there charges them. The reason why is twofold: You want the tenant to have a motivation for paying rent on time and it is also a great way to increase your income for the year. I typically charge a percentage amount when the rent is not received by the 5th. After that, there is a daily fee amount for each day the rent is not paid. If you are a tenant you want to make sure you pay on time as this late fee can be very expensive. If you are a landlord you want to make sure you always charge-no exceptions.
- Application Fee:Many property managers and landlords do not charge an application fee. I highly recommend it. Not only do you weed out the non motivated applicants but you also are able to compensate yourself for the time and money it takes to process the application. My application fee is $25.00 per adult. I feel if the tenant does not have the money to pay the application fee than most likely they won’t have the money to pay the rent and therefore, I do not want to rent to them.
- Pet Deposit/Smoking Deposit:These deposits are critical if you rent to smokers or people who own pets. These items cause excessive wear and tear to the property and as a property owner you have right to be reimbursed for those damages. Personally, I do not allow either on any property I own. Typically, I charge a $200.00 non-refundable for either deposit.
- Tenant Utility Billing:Tenant utility billing is another way to generate some extra money. Unless the rental market is so competitive that you have to subsidize some of the utilities I always recommend that you bill the tenants a proportionate amount for utilities that you pay for.
The ideas above should be followed if you are interested in maximizing your rents and increasing your properties value. If need a Property Manager in Utah Please follow the links on this page. Whether you decide to implement the ideas above is your choice, but as a Salt Lake City Property Manager I would recommend you follow them.
About the Author
David Frank is a seasoned Real Estate Professional in Salt Lake City, Utah. He is the President/Broker of Frank & Company, LLC. He specializes in Salt Lake City Property Management, Real Estate Sales, Real Property financing and FHA Refinance Loans.
Article Source: http://www.goarticles.com/cgi-bin/showa.cgi?C=2113771
Tags: Find Tenants, Increase Rents, Low Fee Property Management, Property Management, Real Property Management, Salt Lake City Property Management, Salt Lake City Property Manager, Utah Property Management
