Park City Property Management Firms Cleared of Wrongdoing

By Todd Anderson

Feb 26, 2011

Two years ago two leading property management companies doing business in Park City went out of business. Their downfall led to many unpaid bills to local vendors and to the owners of the properties that the companies managed. Recently the Summit County attorney has determined that according to the laws of the state, the firms did nothing illegal in not paying home and condominium owners their share of rental revenues. He was quoted as saying "It was bad business practices. Horrible decisions were made, but it was not fraud." Utah law and the contracts signed by owners allow for the co-mingling of funds and code leaves the oversight of nightly rental managers to local authorities. Other states require that the owners revenue share of nightly rentals be places in a trust account. Local Park City authorities as well as Utah lawmakers have no plans in changing the current laws. One of the local property management companies quietly went away while the other has been the object of much ill will and speculation as to where the money went. The bankruptcy of Premier Resorts of Utah dba Deer Valley Lodging (not associated with Deer Valley Resort) left creditors and homeowners with unpaid bills totaling about $13 million. Since the company did not hold real property or many assets, it appears that most of the creditors will go unpaid as the bankruptcy concludes. Premier Resorts owners have been "tight lipped" about where all of the money went. It appears that while what happened was criminal, it was not illegal. The YouInParkCity.com group encourages Park City home and condominium owners to carefully read property management and nightly rental contracts before placing their properties into rental pools. Make sure you understand not only splits, fees, rental rotations and possible revenue sharing or equalization strategies; but also how the property will be marketed and how and when revenues will be dispersed.

Tags: business, condominium, crimes, home, nightly rental, Park City, property management
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Rental Income and VRBO

By Todd Anderson

Apr 15, 2008

VRBO.com is: Vacation Rentals by Owner a web portal for rentals. The site allows you to advertise and rent out your property on your own. For a relatively small price ($300-$500 for a year) you can advertise your property online and find short term renters. The site is well known amongst vacationers and is gaining popularity and available listings all the time. Many Park City real estate owners and investors look to this site to increase their exposure and rental income. I have often been asked by prospective property Buyers "Can I increase the net rental dollars if I put it on VRBO?" The answer is: "maybe". VRBO is an option and when you consider that property management companies in Park City take up to 50% of the rental revenue in return for their services, VRBO's advertising costs are fairly insignificant. There are however many hidden or unspecified costs. There are cleaning services that need to be factored into the equation. Some VRBO users add in a cleaning fee to the rental price to handle this. There is also the question of checking in and picking up a key. Key-boxes at the door can handle this and some rental companies provide this service for a nominal fee. Maintenance can also be a factor: if the plumbing backs up, who is going to respond? Small per service or hourly companies can take care of this issue. The most daunting tasks though are answering the questions (both when guests are "in-house" and before they arrive) and dealing with problems that occur during the stay. Being a small operator, you do not have the luxury of moving guests to another unit if they aren't satisfied with their accommodations (this is an advantage property management companies have). You also become the one that answers the late night phone calls. Finally you need to set up the ability to take credit card payment (this can be handled via Paypal) and be ready to do battle with guests over their charges. The question becomes; "Is it worth it for the added revenue?" Once again, the answer is "maybe". Finally, many owners have taken it upon themselves to use this service to find renters and then use an "owner usage block" with the management company they work with; thus increasing their revenue and still maintaining the benefits of a company to handle all the problems. Beware; this will undoubtedly put you in violation of your contract with your Park City property management company. While it may appear that fees for management are high, most property management companies in Park City provide many services that justify their fees. These services include websites, advertising, reservationists, shuttles and drivers, front desk personnel and answering services, breakfast, concierge services, cleaning and laundry, maintenance and more. The dates that the VRBO works best for the property owner are often the easiest to book and most desirable. By removing these from the property management company inventory it only increases their costs and it is reasonable when looking form their side that this would be a violation of their contract with the owner and that the owner should be removed from their rental pool altogether. It's a case of "you can't have your cake and eat it too". So, in terms of what you can do in Park City to increase your nightly rental revenue, VRBO may or may not be a good resource. You may make more money, but it will cost you time and effort. If you want more information about VRBO and property management in Park City, Utah go to Click Here and to contact one of our agents.

Tags: income, Park City, property management, rental, Utah, vacation property, VRBO
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