Utah's housing market has been riding high for some time. There are signs that it's starting to cool down, but with 70% of Utahns priced out of homeownership, there is strong demand in the rental market.
If you've recently made an investment in a Salt Lake City rental, tenant placement will be at the forefront of your mind. But your tenants will want to know how much they will have to pay in application fees.
Let's take a quick look at the typical cost of a rental application and what that pays for.
What Are Rental Application Fees?
Whenever tenants fill out a rental application in Salt Lake City, they have to pay some fees to cover the landlord's costs. This includes the cost of running a tenant background check, getting references, and buying a copy of their credit report. They're usually not very high, but under Utah landlord/tenant law, there is no limit to how much a landlord can charge.
That said, most landlords or property management companies will just charge enough to cover their out-of-pocket costs. This is usually between $30-75. Landlords can only charge fees for their expenses, not as a source of income.
Remember, that's per person. if there is more than one tenant applying for the rental property, you'll need to charge fees for each one. As a landlord, you also have the option of absorbing these fees yourself.
Other Fees Tenants Can Be Charged
There are other fees that tenants may incur before and during their tenancy. Some landlords choose to charge a lease origination fee. This covers the costs incurred by the rental property management company to draw up the lease and perform tenant placement activities - basically, all the behind-the-scenes work.
Lease agreements can also include certain fees, including:
- Charges for late payment of rent
- End of tenancy fees
- Month-to-month fee
The last fee is rare and is there to discourage tenants from not extending their leases for a further year. Most tenants abide by their rental agreements though and do not incur these charges.
Successful Tenant Placement
Getting tenants who pay and stay is not an easy process. You need a good knowledge of both Utah and federal law, including housing discrimination laws. You also need to have the time to show the property to potential tenants.
That's why it pays to work with a rental property management company. They can handle:
- Marketing and showing
- Tenant placement
- Lease renewals
- Rent collection
- Regular and emergency maintenance
They can also help you with rental property accounting. They'll provide details of income and expenses for your taxes.
Let Maxfield Property Management Handle Tenant Placement
At Maxfield Property Management, we have years of experience in handling tenant placement for Salt Lake City landlords. Our rental property management service includes a guarantee to find you a qualified tenant in 30 days or less!
Contact us today to learn how we can help you get the most out of your rental property.