Property Management
April 15th may still seem like a long way off, but it will arrive before you know it. Filing income tax returns can be complex for someone who works one job and files the easy form, so if you own investment properties and find it daunting, you’re not alone.
The first challenge is knowing what is tax-deductible. You’ll need to get specific guidelines for your state, but in general, the following items are deductible:
- Interest paid
- Insurance
- Legal services
- Property management fees
- Losses due to theft or casualty
- Repairs
- Depreciation
- Some travel expenses, both local or long-distance
- Some home office or workshop expenses
The next issue is keeping track of all of these expenses. If you’re like many income property owners, you might have a shoebox somewhere that may or may not have receipts from the year. You may have started out strong and organized, but as time goes by, they get stuffed in a pocket, your car, or even thrown out.
While a property management company will not do your taxes for you, having them on your team will help you when tax season arrives. They keep track of your rent income as well as any expenses directly involving them, including maintenance and management fees. Plus, because those property management costs are deductible, it makes even more sense to use their service.
Every deduction you can claim makes your investment property more profitable. If you find it difficult to keep track of income and expenses, let us help you with your property in the Denver area, including the Centennial & Aurora areas, as well as, Parker & more. For more information on how Legacy Properties-PM can help you with keeping records as well as the day-to-day operation of your investment, please call 720.989.1996 or contact us.
Property Management
Those who own investment properties know things come in waves. Sometimes all is quiet and you think this is the easiest gig ever, and other times you just want to throw your phone off the nearest bridge because it won’t stop ringing. Unfortunately it comes with the territory, and landlords may relate to a day like this:
The property owner woke up on a cold winter morning to a text message informing him that the heat wasn’t working in the downstairs unit. This 2-unit apartment has a double boiler system, and unfortunately, that one was at the end of its life. Knowing the time was approaching, the landlord had already purchased a boiler and had it in the basement and it was just a matter of installing it. So, after a call to a plumber, the landlord went off to his regular job, satisfied that the problem would be taken care of, even if the tenant still calls every hour to complain.
Mid-morning he gets a call from the upstairs tenant complaining about the downstairs tenant. It’s not about something important, such as an aggressive dog, or suspicion of drug activity. He’s complaining that she talks too loud when she’s on the phone and it’s interrupting his sleep. At 10AM. And this guy doesn’t work the night shift. After telling the guy to work it out himself, and a reminder that he will be stopping by at 5:00 for the rent that is past due, the landlord gets back to work.
5:00 arrives and the property owner leaves his regular job to stop at the apartment. The first task is to collect the late rent from the upstairs tenant who assured him he would have it ready. But despite a lot of knocking and phone calls, Mr. Upstairs is conveniently not home. Then, he heads to the basement to see the progress on the boiler job. He’s thankful to find out the plumber is just finishing up, but has a hefty bill for him due to the pricey materials needed to hook up the new system. As he shows him the work he has done they hear the shower turn on in the downstairs apartment and water starts to drain through the pipes. The landlord starts to write the plumber a check and as he’s signing it they hear an odd noise, turn to investigate and at that moment, the valve from the shower drain gives way, covering them both with dirty, soapy water.
If there was anything good from the situation, the plumber was already there and willing to fix it immediately. At that time, the landlord got a text message from the upstairs tenant saying his car broke down, and that is, of course, the reason he wasn’t there to pay the rent. The landlord heads home without the rent, another plumbing bill to pay, and the saga continues the next day.
This is a true story, of a landlord with just one 2-unit property. If this landlord had taken advantage of property management services, he wouldn’t have had to deal with any of this. Maintenance calls, rent collection, and finding better tenants to begin with are just a few of the perks that a property management company provides. If you own investment property in Denver, Aurora, Centennial, Parker, Littleton or Highlands Ranch area, don’t be like this landlord. To avoid hassles like this, please call Legacy Properties-PM @ 720.989.1996 or contact us.
Property Management
Investing in real estate in the Denver or Aurora area can surpass other financial strategies for supplementing your income whether you are starting out or retired. With tax time just around the corner, it’s time to consider the tax advantages of using reputable property management in Denver. Not only are the real estate services provided by a property manager tax-deductible, but your property manager can keep your records better organized. According to an article by the Houston Chronicle, people who own rental properties can’t usually take time away from their occupations to manage and maintain their properties. In addition to allowing you to continue working in a full-time career or enjoying retirement, hiring a property management company in gives you tax advantages.
According to the Houston Chronicle, you can deduct professional services such as property management. Typically, you can deduct the expenses of hiring a tax preparer as well. Using a property manager should lower your tax bill or increase your refund. Keep your invoices and statements for your tax preparer.
Some people have a shoe-box organization system, which means they bring a shoebox full of receipts to their tax preparer. By using a good property manager, you will likely have a well-organized record of the income you made from tenants as well as the expenses that went out to pay for maintenance and repairs. You won’t miss any tax deductions if bookkeeping is not your strong suit. Most property managers keep an electronic copy of records.
- Qualifying for depreciation
Owning a rental property also qualifies you for rental property depreciation. A publication by the IRS points out you can recover the cost of your rental property that generates you income by “depreciating the property.” To depreciate your property you have to own the property, use it as a rental property and expect the property to last for more than one year and have a useful life. When you make major improvements to your rental property, it often counts under depreciation whereas maintenance is a deduction. Your tax adviser can help you with any complicated figures to determine the correct amount.
At Legacy Properties-PM, we are members of the NARPM, the National Association of Residential Property Managers. For more information on the tax advantages of using property management in Denver, please call 720.989.1996 or contact us.
Free Property Assessment
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Property Management
From the time children are very little, parents are told to start saving for college. It’s true that the cost of higher education continues to rise, and financial aid isn’t as generous as it once was, so it is important to plan ahead. To avoid suffocating amounts of student loans, saving is essential. Unfortunately, even with the best intentions, many families don’t have anything left over after paying monthly bills to start a nest egg for education. This is where an investment property can make a big difference.
A wise investment in residential property will provide you with some extra funds that will grow if put in a college savings account. It’s true that even a little bit every month will add up, so if you jump into real estate while your kids are young, you’ll be able to really watch your investment grow. Even if your children are teenagers, you still have the potential to realize some significant savings before they graduate.
With the right property and healthy management, you will probably see your savings grow from month-to-month profit, but you’ll also gain equity in the property. After many years, you could even sell the property and use that money towards college bills, or possibly take out a home equity loan if needed.
In the Denver & Aurora area, Legacy Properties-PM knows the importance of family. We’re a successful third generation family business that exists because of the wisdom our grandfather saw in investing in real estate. Now we want to help other families build their legacies and realize financial stability by using the things we’ve learned.
Our property management services can help you find a property to invest in, as well as take care of a lot of the responsibilities along the way, so it won’t be a burden on you. We screen tenants, take care of leasing and licensing paperwork, collect rent, deal with maintenance problems and even evict tenants if necessary.
If you’re concerned because you haven’t been able to start saving for your children’s college education, you’re not alone. You may need additional income to set aside for the future. To find out more about doing that through investing in real estate, please call 720 989 1996 or contact us.
Property Management
The numbers are really indisputable. Wise investors know that putting some money into real estate will bring a return on investment that’s better than any bank account, and, in many cases, better than traditional CD’s or mutual funds. Maybe you have the money to invest, but you’re not sure if you have what it takes to be a landlord. There are situations when you can’t be nice. Business requires a certain level of assertiveness and if that’s holding you back, a residential property management service such as Legacy Properties-PM can help.
A property management company can help owners in several areas, but if being tough is one of your weaknesses, consider what you would do in any of these situations:
- You’re trying to find a quality renter, but need more information to make the best decision. Would you ask prospective tenants for social security numbers to do background and credit checks? Will you call previous landlords and employers to verify their information?
- A tenant hasn’t paid the rent on time, and keeps asking for extensions or won’t answer calls.
- You discover there has been damage to the property that goes beyond normal wear and tear.
- Tenants are keeping pets that are not permitted according to the lease.
- It appears that the tenant’s extended family came for a visit and has decided to move in permanently.
- You need to evict a tenant.
The last situation, evictions, can be especially tricky. For a property owner who is too nice, a bad situation usually goes on way too long before eviction is considered, leaving the owner with loss of income and other problems. Eviction also requires legal knowledge of policy and procedure which must be followed closely for a successful decision in favor of the property owner.
If you’d like to invest in residential property, but feel like some of these situations would be hard for you to handle due to your kind and forgiving nature, let us be the bad guy. Our experience in dealing with tenants who don’t follow the rules will serve you well when unpleasant circumstances arise. For more information on property management services, look to Legacy Properties-PM in the Denver or Aurora area, call 720 989 1996 or contact us.
Free Property Assessment
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Property Management
When discussing investment properties, one of the most common comments that comes up is “I’d like to buy an income property, but I’m not handy.” Many people seem to have a phobia about jumping into real estate investment because of their inability to take care of maintenance needs, but you shouldn’t let that hold you back.
When you partner with Legacy Properties-PM in the Denver, Aurora, Centennial, or Parker areas, you don’t have to break out into a sweat whenever you get a call that something needs to be fixed. First, you won’t even get the call. Tenants will call us directly and we will evaluate the situation. Second, we’ll take care of getting it fixed. Whether we use someone on our staff to take care of the repair, or we need to call in one of our trusted contractors, you don’t need to worry about it.
Does the thought of paying for maintenance leave you concerned about finances? We understand. After all, you are in it for the investment. When things break, it does cost money to fix them, but we make every effort to keep costs down. Our experience gives us the advantage of being able to fix common issues quickly, and for larger jobs, we have relationships with local contractors who will do the job right at a fair price. Many people make a great profit on their rental properties without ever lifting a hammer, so don’t let it stop you.
What else is holding you back when it comes to jumping into real estate investment? The idea of finding responsible tenants for your property? Collecting rent? Dealing with needy tenants? Or possibly having to go through an eviction process? We can take care of all of these issues, so don’t let small issues get in your way. Whether you’re a current property owner who is struggling, or someone who is just starting out, please call 720.989.1996 or contact us. We would love to be part of your team.
Property Management, Real Estate Investing
For many retirees, rental properties in Denver provide much-needed income to supplement withdrawals from a retirement account and Social Security. Real estate investing can help you now as well as help your descendents through an inheritance. You can educate your children and grandchildren about the Denver rental market so they can have financial security even after you have passed away. If your children aren’t handy, they can rely on the expertise of professional landlords or property managers. When your children inherit your Denver rental properties, they will have something more tangible and meaningful than money.
- Understanding tax ramifications
According to an article by The Nest, your benefactors will be eligible for depreciation of the property to offset the rental income and decrease taxes owed on the rental income. A tax advisor will help your beneficiary figure out all the tax ramifications as well as the cost basis. The value of the rental home is the fair market value when you died minus the land value.
- Lining up a property manager
Even if you prefer being a DIY landlord, you can help your beneficiary by having a reputable Denver property manager take over your responsibilities. Once you are free of having to chase down the rent payment every month, you will have more time to enjoy retirement. Your children won’t have to worry about how to market the property, get market rent, screen prospective tenants or respond to maintenance requests. Also, if a bad apple ever gets in the mix, they won’t have to worry about the legal hassles of evicting a tenant.
Your financial planner can help you figure out the best way to go about buying more rental properties in Denver if you want to expand your real estate portfolio. Some people like to use a self-directed IRA to buy real estate, while others buy with cash with the future generations in mind. With rent costs escalating, it’s a good time to own rental properties. Your children can use the rental income to pay their own mortgages or help them run a business. At Legacy Properties-PM, we believe in treating our clients like family. We are proud members of the NARPM, the National Association of Residential Property Managers. For more information on leaving an estate with savvy real estate investing in Aurora, Denver, Highlands Ranch and more, please call 720 989 1996 or contact us.
Property Management
Any Denver-area property owner who has had a perfect tenant knows it’s an enviable situation. Although some quality tenants leave because of job transfers or to buy a home, there are ways to motivate conscientious tenants so they renew their leases. With quality property management to look after your tenants’ maintenance needs and solve other problems, you can greatly reduce the amount of time your home sits vacant. Also, having a property manager screen potential tenants improves your chances of finding that stellar tenants. Some novice property owners wonder how far they should go to keep a good tenant. According to an article by About Money, there are a few simple tips to follow when you want a tenant to review a lease.
Be prompt about home rental tenant requests
DIY landlords who aren’t handy may have the best of intentions, but it’s not always easy to line up a plumber or electrician on the weekend or holidays. A good property management company immediately responds to requests for repairs. According to About Money, the goal is for a tenant to feel as though they are a top priority. By hiring a property manager, you are showing your tenants that you think they are worth it. For property owners who live out-of-state, the need for property management is even greater.
Keep up with the curb appeal of your Colorado Home Rental
Some real estate investors neglect curb appeal when they aren’t trying to sell a property or flip it for a profit. Landlords may not care as much about the aesthetic appeal of a rental when it’s already leased out. If you want to keep a good tenant happy, rely on your property management company to maintain the yard and entryway. Cleaning or painting the mailbox, filling in mulch, planting native Colorado trees or plants can work wonders on the curb appeal so your tenant feels proud when pulling into the driveway.
Update the interior of your Colorado Home for Rent
If you have owned your rental property for many years or bought an investment property that hasn’t been updated since 1970, invest some money in improvements. The top priorities for your Colorado rental property include safety and energy-efficiency. Next on your list is to make the space more contemporary. You don’t need to completely gut the kitchen to keep a good tenant. However, small efforts such as replacing kitchen or bathroom flooring, adding a new kitchen backsplash or replacing worn carpet can mean a lot to a tenant who was contemplating moving out when the lease expires.
At Legacy Properties-PM, we can help you with all your property management needs in neighborhoods such as Parker, Highlands Ranch, Lakewood, Cherry Creek, Aurora, Littleton and Centennial. We are proud members of the NARPM, the National Association of Residential Property Managers. For more information on real estate investing in Denver, please call 720 989 1996 or contact us.
Property Management, Real Estate Investing
When setting financial goals for the New Year, it pays to consider your real estate net worth. For most people, the wealth they have in real estate is due to their primary residence. For people who got into real estate investing in the Denver area, the net worth statement looks positive because vacancy rates are low and market rent is high. When you hire a property management company to take care of your Denver rental properties, you will find your net worth increases without very much effort on your part. According to an article by Financial Samurai, real estate is an important part of your net worth mix that also includes stocks, bonds and risk-free CDs or money market accounts. Whether you have more of your portfolio tied up in real estate or in other investments depends on your risk tolerance and age. Some of the best communities to own rental properties include Parker, Littleton, Highlands Ranch, Cherry Creek, Aurora, Lakewood and Centennial.
Owning real estate by age 30
By the time you are 30 or older, you have enough work experience to qualify for a mortgage on your primary residence. If you purchased a home earlier in life, you are ready for real estate investing in a hot rental market such as Denver. According to Financial Samurai, a person with a medium risk level strives for 40 percent of their net worth in real estate by age 30.
Enjoying passive income in retirement
If you are a pre-retiree, you are looking for ways to boost your net worth before you claim Social Security. Owning professionally managed rental properties in Denver provide passive income when you need it most. Whether you live in another state or in the Denver metro area, you can retire in style instead of living like a pauper. According to experts, the median 401(k) balance is just $100,000, even though most retirees need significantly more to pay their bills.
Being bullish on real estate
According to another piece by Financial Samurai, the only way to take advantage of the current housing recovery is to buy more than one real estate property. Owning your own home has distinct advantages over renting. Mainly, you have a paid-off place to live when you retire. By owning rental properties, you build wealth over time. Experts point out rental yields are higher than interest rates, which are still at historically low levels. In the Denver area, property owners not only make income off their rentals, but enjoy the appreciation as the value of homes rise.
If you want to get into real estate investing in Denver, don’t go it alone. At Legacy Properties-PM, handle your property management needs. We are members of the NARPM, the National Association of Residential Property Managers. For more information on building your net worth through real estate investing, please call 720 989 1996 or contact us.
Property Management
If you worry that your home is not rent worthy or “rent ready” you may need property management in Denver to tap into the booming rental market in Denver. Whether you have a single-family home, a condo or townhome, your property manger will go over the details of what you can do. Much of the work that needs to be done may depend on the phase you are in. If you are in the middle of a rehab or complete renovation, you may have questions about whether Denver-area tenants prefer a certain number of bedrooms or a certain floor plan. If you just need to make a few cosmetic repairs or clean, you may be wondering about deep cleaning versus replacement carpet or have patching and painting questions. The bottom line is your tenants want a home that is clean, safe and secure. According to an article by Military.com, there are things you can do to make improvements before you even meet with Legacy Properties-PM, your new residential property management company that will market and show your property as well as screen tenants and enforce an agreed-upon lease.
Making your Colorado rental property safe
The first step to getting your Denver home rental property to be worthy of being on the rental market is to make it safe. Install lights at the entry way and inside the home in darkly-lit hallways. Replace electrical circuits that are a hazard. Have the home inspected for mold or mildew if that’s suspected. To go the extra mile, have a security system installed or at least, good locks on the doors.
Sprucing up your rental home interior
According to a piece by Zillow.com, it’s extremely important to have the carpets professionally cleaned. If you know the carpet is 5 years old, simply rip it up and put down new carpet for your new tenants. Painting a home is also a fairly inexpensive job. More important, make sure there’s no lead paint if your home is an older home.
Checking your budget
Before spending money on any remodeling projects within your Colorado rental home property, check with Legacy Properties-PM, your property manager about how much money you will get in terms of rent income. If you will be able to rent your home out for an extra $100 a month by putting in stainless steel appliances, it may be worth it to buy an appliance package. On the other hand, if a total kitchen renovation costs $50,000, but only increases your rent by $50, it may not be worth the investment.
Whether you own a rental home in Aurora, Lakewood, Parker, Littleton, Highlands Ranch, Centennial, Cherry Creek or Denver, it pays to have a property manger. Your property manger will walk through your home with you to point out any defects or problems that need to be addressed to make it rent ready.
At Legacy Properties-PM, we take pride in being a member of NARPM, the National Association of Residential Property Managers. For more information on property management in Denver and throughout Colorado, pick up the phone and call 720 989 1996 please contact us.
