When you think of the answer to the question “what is a property manager?”, you might believe that it is pretty simple —someone who looks after your asset on your behalf. However, as you dig deeper, you'll realize that property management is far from a commodity. With distinct services and varying pricing structures, there are four primary types of managers that may fit your specific needs. Knowing what type of manager you are interviewing will make it easier to find a perfect match.
What is property management?
Property management is the oversight and administration of a variety of residential and commercial real estate properties. This entails managing all aspects of a property's everyday operations, such as collecting rent, handling maintenance issues, dealing with tenant complaints, and more. In essence, a property manager acts as a link between a landlord and tenant.
Is it worth hiring a property manager?
The fact is that hiring a Utah property manager can be worthwhile. Although being a do-it-yourself landlord can save you money, it is a significant responsibility that can take up a considerable amount of your time. If you own a rental property but lack the time or expertise to undertake the business-related activities needed, then it’s probably time to hire a Utah property management company.
With a professional Utah property manager, you will get comprehensive knowledge of the local real estate market, as well as the peace of mind of knowing that your rental is being well cared for. The truth of the matter is that your investment is likely to perform at its highest financial potential if you hire a trustworthy company to manage the property on your behalf.
The four types of property managers
There are typically four types of property managers. Each has their strengths and weaknesses and it is up to the landlord to determine which type fits his/her Utah property management needs. By becoming familiar with the various models, you can choose wisely and better understand what to expect. They include the following:
1. The “Friend” Type
This type of property manager is equal parts friend and business partner. It is someone you already know who doesn't necessarily work for a property management company in Utah, but has at least some experience managing rentals.
This type of property manager typically has an informal partnership with the owners of the properties they manage. There isn't really a contract; it's more akin to requesting a favor from a friend.
Sadly, this type of manager can be very unreliable. Since you don’t pay much (or any) in fees, you are typically not the main priority and there could be a lag in services being performed for your rental.
2. The One-Person Band Property Manager
The one-person team is a careful, hands-on property manager who is highly driven. They are usually working alone (or with a small team) and may be just starting out in business with plans to grow eventually. This property manager is experienced and seeks to provide more individualized service to all clients.
While this type of manager can be excellent, their pricing structure may be higher due to the customized service offered. They may also not yet have refined systems in place, which could result in decreased performance of your rental property.
3. Departmental or Large Property Management Company
Most national property management companies fall into this category, with an average of 500 to over 1000 properties in their portfolio. These big firms have rigid processes in place to coordinate the efforts of different departments and teams responsible for multiple aspects of property management.
These larger companies will have several property managers responsible for many management-related tasks. Due to economies of scale, this option is one of the most cost-effective and works well for everyday demands.
With that said, a lack of individual attention to each property is a potential drawback for the large property management companies. Furthermore, due to their already refined processes, these companies may lag on innovative problem-solving and cutting edge technological advances in the industry.
4. Small to Medium Portfolio Property Manager
This type of manager often focuses on the local or regional market. They offer hands-on service with a support team that assists in the management of your Utah rental property. This team may be split into various specialized departments to focus on one particular aspect of property management in order to streamline processes.
These property managers will typically be more efficient than the one-person band, which may result in a lower cost service. Furthermore, if they are well-organized, they can provide more individualized attention to each property with consistent communication and accountability.
Looking For a Tested/Trusted Property Management Company in Utah? Wolfnest is Your Best Bet.
At Wolfnest Real Estate & Property Management, we distinguish ourselves from the competition with managers that have a narrow focus and skillset centered around their job functions. We take pride in our integrity, honesty, and adherence to the highest standards in our industry because we believe that exceptional Salt Lake City property management is a moving target.
Innovation is the cornerstone of our unique approach to managing rental properties in Utah.
Therefore, if you're searching for a reliable and reputable property management company in Utah, you’re at the right place. Please get in touch with us immediately to learn more about what we offer and why Wolfnest is the perfect choice for your needs.