Managing Tenants In Your Utah ADU - ADU Utah

Undoubtedly, the biggest challenge in renting your ADU in Utah is finding and managing the right tenants. Too many property owners side step this issue and are only too eager to bring in renters without proper screening or vetting.

When possible, a homeowner may want to consider hiring a professional property management company to take care of the tenant headache.

If this is a homeowners first rental property, they may not want to go that expense. They may choose to self-manage the ADU.

Potential ADU Tenant Management Headaches

Before making this decision to go solo, keep in mind the following:

Property management companies offer full service, which is an obvious advantage. They will take care of applications, screening, maintenance, collecting the monthly rent, and more. This would also include legal processes such as eviction should that become necessary.

Why would a homeowner want to go to the expense of a third party to manage their ADU?  Perhaps the greater advantage to the above mentioned benefits would be not having to deal directly with the tenant. The homeowner wouldn’t have to hear the tenants sob story as to why they can’t pay the rent on time.

If structured properly, the billing of the rental can be paid directly to an LLC, This would afford a significant tax benefits, allowing all management, maintenance, and insurance to be paid by the LLC, and not the homeowner. This would lower their adjusted gross income and allowing them to keep more of the property income in their own pocket.

The property management company can take care of all the rules which the tenants are legally obligated to live by.

Consider the following:

  • Will smokers be allowed?
  • What about the accommodation of more than one car? Motorcycles?
  • Where will the trash be taken to?
  • If the ADU is in an area with snow, how and who will be responsible for removal?
  • What grace periods, if any, would be set for when rent payments?
  • What about the charging or collecing of late fees
  • Who would handle the requests for repairs on the property?

Having a property management company tend to all these and more issues can be a huge benefit as compared to dealing with all this on your own.

Laws regarding tenants rights vary from state to state. A professional property management company is already familiar with the complexities of renting. They can take that burden off of the homeowners shoulders saving them hours of frustration.

Contact us today to discuss your ADU renting options.

Here are 5 more reasons to hire a property manager.