As a top vacation destination, many Park City and Deer Valley homes are rental properties either used to generate income full-time or as a part-time rental when the owner isn’t vacationing here themselves.
Many park city vacation property owners don’t actually live here, and instead split their time across the US, and even the world. This makes running a successful rental property venture slightly challenging.
This is why many homeowners choose to work with a property management company. These intermediaries handle all the logistical elements of operating a rental property. However, in a market like Park City, there are many companies to choose from and many things to consider before making your final decision.
How do you know if you are hiring the right property management rental company? Keep reading for the top questions to ask potential property managers in Park City.
What are the Room Rates for the Year?
While you may have an idea of how much you’d like to charge for your rental property, an experienced property manager can provide you with a much better estimate of the current market room rate. This should help give you a baseline idea of the revenue you could generate from your rental for the year. Property owners usually do not get a say in the room rate when working with a property manager. Room rates also change from year to year, and in some cases, room rate discounts are offered. (More on that later!)
Get help buying your next property in Park City, read these blog posts next:
- How to Buy a Ski-In, Ski-Out Home in Park City
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- Benefits of Owning a Vacation Property in Park City
Are there Any Extra Reductions to the Room Rate?
It would make sense that a property management company would take a portion of the proceeds from your rental to cover the cost of the services they are providing. However, some rental properties may charge a fee for credit card commissions, resort tax, or other fees that may or may not be expected by the owner.
Does the Property Manager Offer Room Rate Deals?
There could be times when you want to offer special promotions for your vacation property. For example, during slower seasons, it could be beneficial to offer reduced room rates for groups, multi-day stays, or conventions visiting the city. Working with a property manager that offers that type of flexibility is essential for attracting clients during slow times.
Get more insights on what it’s really like to own a home in Park City with these posts.
- What to Know about Park City HOAs
- How to Get Property Insurance in Park City
- How to Prepare for Ski Season in Park City
What Other Fees Do Property Managers Charge?
Depending on the property manager, there may be different fees or charges you need to consider. Some examples of additional fees charged by some property managers include:
- Contract setup fees – This would include details such as bookkeeping, setting up specific bank accounts for the rental, if needed, property inspections, tax preparation assistance, etc.
- Late payment fees – If your tenant is late paying their rent, your property manager may charge a late payment fee. However, these fees are not always directly translated to the owner, as some property managers take a greater percentage from late fees.
- Vacant property fees – If your property is currently vacant, the management company could charge a fee to manage the vacant property.
This is just a short example of potential charges. Every property management company in Park City is different, so it’s important to know exactly what is charged to the property owner.
What is the Rate for Housekeeping?
Having the property cleaned between tenants is essential. In some cases, property management companies may include housekeeping fees in their basic fees, while other companies may charge extra. Additionally, it’s important to find out if the same housekeeping fee is charged when the property owner or your guests use the home.
What is Split Between the Owner and the Property Management Company?
In addition to considering the fees charged, you should also have, in writing, the duties that the property management company will perform for you. For example, will they clean the unit between rentals? Will they remove snow? Will they provide maintenance or emergency services? Before you commit to working with a property manager, make sure you are crystal clear about how duties and responsibilities are split between the owner and the company.
Can You Get a Copy of the Contract?
As with any binding agreement, it’s important to request a copy before you sign anything. Review the contract in detail so that you understand each clause and all fees. Only when you are completely satisfied with the contents should you sign it.
Thinking about buying a home in Park City? Read our Ultimate Guide to Buying a Home in Park City FAQ Part 1 right here. And then read Part 2 right here!
How Much Notice Is Needed for Owner Use?
If you’re planning a stay at your rental property, you may need to let the property manager know months in advance. By blocking out the days you will be staying at your vacation home early, the rental company can make sure there is no overlap with tenants.
Should You Have a Home Warranty?
A home warranty contract covers your home systems if they break down due to wear and tear. For a rental property, this eliminates a big headache when it comes to maintaining the property. If something breaks down, all that is required is a quick call to a preferred contractor and the appliance will be repaired or replaced as needed. Home warranties are something you can obtain independently, however, some management companies could also include it in their services or recommend the right warranty provider for you.
On the fence about buying a home in Park City? Get to know how Park City and Deer Valley stack up against other ski towns here:
- Deer Valley Vs. Aspen: Which Resort Town is Better?
- Deer Valley Vs. Park City: What Homeowners Need to Know
What is Required to Be in the Rental Program?
Park City is full of beautiful, exclusive, luxury condos and vacation homes. Visiting the area is all about the lifestyle, the aesthetics, and the amenities. As such, some property rental management companies may choose to specialize in one type of property over another. For example, some management companies may only work in specific neighborhoods or they may choose to work with condos rather than detached homes. Ensure that the management company you are engaging actually does work with your specific property type.
Bonus Tip: If you’re thinking about buying a vacation home in Park City to rent when you’re not using it. Make sure the property in question qualifies for a rental. There are some neighborhoods or condo buildings that do not allow for rentals. You can see a map of rental zoning in Park City right here.
Does the Property Management Provide Transportation?
In a town like Park City or Deer Valley where proximity to the slopes is key, many vacationers want to spend as little time in traffic as possible. Shuttles from the airport are popular and some rental property management companies offer shuttle services. When discussing this with prospective companies, try to find out where the shuttle goes, how much it costs, and the frequency at which it leaves. This will be an important value-add for renters.
Do you have more questions about buying or renting in Park City? Check out these posts next:
- Is Park City Good for Investors?
- Is it Better to Buy or Rent in Park City?
- How to Buy a Second Home in Park City Remotely
Planning to Rent on AirBnb in Park City? Read This First
If you’re thinking about listing your vacation property on sites like AirBnb, there are a few things you need to consider before doing so.
In addition to making sure that AirBnb rentals are permitted in your area, you should also consider whether or not onsite management companies allow those types of guests to use the same amenities as regular guests.
For example, some management companies do not allow AirBnb guests to use the same pool, gym, spa, or shuttle service as guests that book via the hotel. Since these amenities are huge selling features for renters, it’s essential that you know the full scope of what is allowed and what is not.
Learn more about the benefits of owning a vacation property in Park City right here.
Pros and Cons of Working with a Property Management Company in Park City
We’ve covered the basic questions you should ask potential property management companies in Park City, but what about if you’re on the fence about using a property manager to begin with? Here are some of the pros and cons of delegating your property management:
Pros of Working with a Rental Property Manager
- Less work – You don’t need to worry about the day-to-day management of your property.
- Finding guests – With a rental management company on your side, you won’t have to worry about finding guests or tenants for your rental property.
- Compliance – Rental regulations can change quickly. With a professional managing your property, you can be assured that your rental business is always in compliance with local regulations.
- Less stress – Rental management companies will also typically handle emergencies and time-senstive issues that could arise.
Cons of Working with a Rental Property Manager
- Fees – When you work with a rental property manager, you will need to pay fees for the service. This comes out of your rental income.
- Dealing with a third-party – Some homeowners prefer to have full control over their property and who is responsible for it. If you prefer to be “hands-on” a property manager might not be right for you.
See how we help buyers find the perfect resort home for their needs. Learn more here.
How to Find the Right Rental Property Management Company in Park City
Finding the right property manager is more than just picking the first name that comes up after a quick Google search. We’re talking about a significant investment. You deserve peace of mind knowing that your rental property is being well-managed and your rental income is in good hands.
Here are a few quick tips to help choose the right property management company for your rental property:
- Talk to your friends and neighbors – If you’re thinking about renting out your vacation property, talk to some of your friends, neighbors, and colleagues who may have gone this route in the past. They could provide you with excellent first-hand experience.
- Check Google reviews – Not only should you look for positive reviews, but also look for review replies from the company. This will give a great indication of how they respond to clients and handle specific situations.
- Interview potential candidates – It’s worth having a conversation with a few property managers to better understand their unique offerings, fees, and workflow. During the interview, you should think about the data they are providing as well as the overall impressions you get from talking to them. Chances are, you will connect with some more than others.
- Ask questions – Don’t be afraid to ask pressing questions. This business relationship is significant, so it’s important to learn everything you can.
- Get a copy of the contract – We mentioned this above, but it bears repeating! Get a copy of the contract so you can review everything in writing before signing anything.
Can Your Park City Real Estate Team Help Find a Property Manager for Your Vacation Rental?
When you’re buying a Park City property to use as a vacation rental, it’s imperative that you work with an experienced, local Park City real estate agent. In addition to providing you the best market insight and community information, a Park City local can also recommend a variety of service professionals to make sure your investment ROI is high.
From contractors to housekeepers, lawyers, mortgage brokers, and even rental property management companies, we have a rolodex of the best service providers in Park City, and we aren’t afraid to share it!
At CMFH, we have helped countless homeowners invest wisely in the Park City and Deer Valley market. Whether you’re looking for a second home to rent out, a place to relax on holiday, or if you’re looking to make the permanent move to Park City, we can help!
Thinking about investing in Park City real estate? Get in touch with us today, call us directly at 435-647-8035 or email info@cmfhparkcity.com.
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