Real Estate Investing
Working to get your rental property “rent ready” doesn’t have to cost a ton of money. For less than $1,000, you can make high-impact home improvements that will please renters in the Denver area. Whether you already own a rental or like the idea of real estate investing in Littleton, Aurora, Lakewood, Centennial Parker, Highlands Ranch or Cherry Creek, certain cosmetic upgrades are universally appealing to renters. Don’t forget to also give your rental property a thorough cleaning and to hire an established property management company to market your listing, perform background checks on tenants and enforce the lease. Many real estate investors are good at finding profitable rental homes, but don’t like being the “tough guys” when it comes to enforcing a lease and evicting tenants. One of the fun parts of real estate investing is getting to fix up a home so it’s attractive to renters. According to a recent piece by time.com, you can do a lot with a budget of just $1,000.
Giving the kitchen a makeover
While $1,000 won’t allow you to put in custom cabinets and exotic solid hardwood floors, it will pay for an upgraded stainless steel refrigerator or new tile backsplash. Inexpensive improvements include painting, changing old electrical outlets and putting in new baseboards.
Freshening up the powder room
For a renter, the perfect bathroom is spotless. If you are renting out a home that you used to live in, don’t leave the old shower curtains or lighting fixtures. Your property management company will let the prospective renters know the shower curtains or any other accessory you have left new. Unless the toilet is spotless, consider replacing the bathroom bowl.
Upgrading the lighting
Many rental properties have old and outdated lighting. Your rental property will stand out if you put modern decorative lights in the entryway and pendant lighting in the eat-in kitchen area or above a kitchen island. You can find hip and modern decorative lighting for less than $1,000 as well as a few upgraded ceiling fans.
After you spend money with your real estate investment, make sure you protect your investment. A good property manager will find you good tenants who pay their rent on time and don’t damage your rental home. At Legacy Properties-PM, are members of the National Association of Residential Property Managers (NARPM). For more information on real estate investing in the booming Denver rental market, please call 720.989.1996 or contact us.
Real Estate Investing
If you have never rented out a home before, you likely have worries shared by many first-time landlords. With the help of a Denver property management company, you can enjoy the benefits of real estate investing without the drawbacks. With soaring rental prices in Denver, Aurora, Parker, and more cities, it makes sense to keep your residence instead of selling it. People who are new to real estate investing often have questions about how the change will affect their financial situation.
Will it stop me from getting another mortgage?
Because lending requirements aren’t as strict as they once were, you will likely qualify for a mortgage on a second home in your new location. Some lenders ask for evidence to show you intend to rent out or sell your current residence before they will give you a loan at a lower interest rate for your new residence. As long as you will occupy the new residence, you are eligible for easier lending terms such as a 5 percent down payment instead of the 20 percent for investors. Your lender won’t place any restrictions on what you do with your former residence, but you typically require that you not rent out your new (owner-occupied) residence for at least one year.
Do I have to stay on call?
Another concern new landlords have is that they will have to do all the repairs themselves or hire different contractors. By working with an experienced Denver property management company, it’s a burden off your shoulders. A property manager enforces the lease, finds qualified tenants and maintains your rental property. If you relocate to another part of the country, you won’t have to fly out to check on your rental home every few weeks. You won’t receive any urgent phone calls in the middle of the night, although your property manager might.
Can I sell when the market goes up?
Some people become reluctant landlords because they owe more money on their home than they can get by selling the home. Other people feel excited about real estate investing because they know rents are strong. According to an article by the Christian Science Monitor, Denver experienced the biggest rent hike this year. Even though rent has skyrocketed in the Mile High City, you may offer residents a reasonable rent. If you are making a profit and your tenants are happy, keep a competitive edge. When you are ready, you are free to stop using a property manager and list your rental home for sale. Many investors get so accustomed to the tax breaks and easy cash flow that they decide to expand their real estate investing portfolio instead of reducing it.
Even if you never thought you’d own a rental property before, we can help you manage all the details. At Legacy Properties-PM, we work with people who own only one rental home in Denver as well as experienced investors with several lofts, condos or homes in Denver’s hip neighborhoods. We are proud members of NARPM, the National Association of Residential Property Managers. For more information on real estate investing in Denver and surrounding areas, please call 720.989.1996 or contact us.
Property Management
Housing experts say the latest data shows many renters are staying put instead of buying. A new wave of renters called “shadow renters,” should soon be moving out of their parents’ homes and forming households. Now is a good time to buy an investment property in the Denver area. According to an article by nytimes.com, a recent study conducted for John Burns Real Estate Consulting shows about 14 percent of tenants who moved at the end of last year did so to buy their home place. Since 2002, the average has been close to 17 percent, which means fewer renters are transitioning into home ownership. In Denver, homes prices are high and climbing higher, which should keep the demand for rental high and vacancy rates low.
- Depend on a property manager
When searching for an investment property in Denver or Aurora areas, touch base with a reputable property management company. A good property manager will market your rental and screen tenants as well as offer guidance about what kinds of features matter most to the millennial renters in their 20s and 30s. Experts say the millennial’s are the shadow renters who will be renting in the next several years with roommates, relatives or spouses.
- Choose a walk-able neighborhood
From Lower Highlands (LoHi) and Capital Hill to Five Points or Uptown, there are many downtown neighborhoods that draw young renters. Many college grads migrate to Denver, but like to walk to their destinations. Some of the popular places to buy investment properties to rent out to recent college grads and others include LoHi with trendy lofts, duplexes and single family homes near restaurants and nightlife. If you want to attract families, some ideas include the 1960’s ranches in Hilltop, older homes in Congress Park and Tudor homes in Bonnie Brae. Baby boomer renters also like living in walk-able neighborhoods closing to shopping and restaurants.
After your property manager finds you reliable tenants who pay their rent on time every month, it’s important to keep them in place. Most renters like the fact that they don’t have to do their own maintenance work. At the same time, you want to know your investment property isn’t being trashed by careless tenants of any age. A good property management company protects your asset.
Legacy Properties-PM, are proud members of NARPM, the National Association of Residential Property Managers. For more information on owning investment properties in Denver and how a property manager gives you the edge, please call 720.989.1996 or contact us.
Property Management
What is the difference between a condo and an apartment?
The main difference between a condo and an apartment basically comes down to whether they are individually or privately owned, owned by a corporation, or by a management company.
What is a Condo?
A condominium, or condo for short, is often a property that is shared and contains individually owned units/residences. Coming from a legal standpoint this means basically that when you purchase an apartment you can call yourself a condo owner.
What is an Apartment?
Apartment is a term that almost always applies to a building or buildings with units that are rented out. Most times a corporation runs the complex of buildings and residences. One management company manages all residents versus a private landlord.
More about the difference between a condo and an apartment:
Condominiums usually offer services and facilities to condo owners, such as maintenance repairs, lawn care, pools, gyms and club houses. Many of these services, like clubhouses, exercise facilities, and pools are also offered in apartment complexes, but are not required to be maintained by the owner of each unit.
Condo owners or their tenants must follow all set regulations and policies of the condominium’s homeowners association. This often includes, monthly association fees, requires owners to maintain a specific type of appearance outside and around the premises of the residence and pet restrictions in and around the property of the community.
The difference between a condo and an apartment in this aspect is that apartments are not considered to be in a shared community. This is because fees and maintenance are already included in rental costs and taken care of by the management company.
If you’re a condo owner looking to rent your property, look no further than Legacy Properties-PM. There are special rules to keep the difference between a condo and an apartment clear within communities. As an elite property management company that services Denver, Aurora, Parker, Highlands Ranch, Centennial, Littleton, Westminster and more cities in Colorado, we can help. Call 720.989.1996 or contact us.
Property Management
Investment properties can be very expensive. In fact, real estate is often the most expensive thing many people spend their money on. This can pose a problem for many potential investors. However, there are a number of options for financing a residential property. At least one of these options will be possible in a surprising number of cases, and often, multiple options might be possible. Let’s explore a few of the most common choices.
Bank Financing
This is the most common form of financing for a residential property. This requires the buyer to approach a bank and go through an application process. This requires a lot of paperwork, a credit check, and approval of the property, among many other things. If the bank approves the loan, the buyer must pay a sum of money in the form of a down payment and is usually required to offer some form of collateral. This is almost always the property that is being purchased, but doesn’t have to be.
Seller financing
Seller financing can be a little more tricky, because individual sellers tend to be less consistent than banks. However, if it works out, this can be a very efficient way to borrow money. A seller financed loan means that the payments are made directly to the seller over time, rather than the bank acting as a middle man. Because sellers are individual people, and because they’re often much more motivated to complete the sale than the bank is, they are likely to give a buyer much better terms on the loan. This could come in the form of a lower down payment, a lower interest rate, or payments that fluctuate over time according to the buyer’s ability to pay rather than interest rates.
Cash
Although it is rarely possible for a buyer to pay in cash, it can be a very successful option if you have the money. In this case, the cash is directly turned into an asset, and there are no loans to worry about. You also won’t have to worry about the potential of losing the property as collateral. Possibly the biggest benefit of paying in cash is that you won’t have to pay any interest. This could save you a lot of money.
Trade
This is probably the least common way to pay for property, but if you already own a piece of property that you no longer want, it’s possible that the seller may accept it instead of payment. It’s also possible to combine a trade with some of the other options. For example, if you finance a purchase through the seller, you may be able to make the down payment a house you already own that isn’t worth very much.
Need some more help with your residential property? Legacy Properties-PM is here in Denver, Aurora, Parker and more. Call 720.989.1996 or Contact us! We can help with anything you need, and we’ll be there from beginning to end.
Property Management
Collecting rent each month is at the top of the list for a landlord’s most despised task. For many tenants, it’s not an issue, but then there are others that always seem to be surprised when the 1st of the month rolls around again. Sometimes you just have to laugh at the excuses they come up with, so enjoy some of the most outrageous ones we found, and then read on to find out how a residential property management in Denver or Aurora can make your days of collecting rent numbered.
- “My dog and bird died the same week and I’m crushed.
- “I was on vacation for two weeks and I had to pay for everything!”
- “I was going to pay on the 1st, but you sent me a reminder and it upset me.”
- “I have to make payments on my BMW and iPhone.”
- (shows up at door without clothing) “Oh dear, let me put something on and look for the money”
- “You are too wrapped up in the whole concept of ‘money.'”
- “So you’re only talking to me because the rent’s not paid? Is that all I am to you … a tenant?”
- “I don’t feel inclined to pay the rent this month. The apartment is neat so you can use the security as the rent.”
- “It is illegal to ask me for the rent. You have to send me a letter ASKING POLITELY for the rent. Then I can decide if I want to pay the rent.”
- “I did not pay the rent because that is the only day I can sleep late.”
If you currently own investment property, some of these might sound a little familiar to you. If you’re thinking of getting into real estate, then don’t let them scare you. As a property management company, part of our service includes collecting rent so you’ll never have to hear these excuses.
We offer many convenient ways to pay, including an online credit card payment option which helps avoid some of the late payments. In addition, we offer thorough tenant screening services to give you the best chance of finding responsible renters who won’t give you these excuses in the first place.
To find out more about property management services with Legacy properties-PM in and near Denver or Aurora, call 720.989.1996 or contact us.
Property Management
The Ease of Obtaining a Mortgage
Now is a great time to consider buying a second or third home in Denver, Aurora and throughout Colorado and using it to increase your financial legacy.
Coming into the Summer of 2015, mortgages are becoming more simple to obtain. Some recent rule changes and comments by Mel Watt , director of the Federal Housing Finance Agency:
“the government and mortgage bankers are at least discussing moving in the proper direction and making it easier for borrowers to get a loan.”
In July 2014, The Federal Reserve reported that mortgage lenders are easing up on their requirements such credit score requirements and debt ratio requirements are being softened up this Summer.
This allows for lenders to accept mortgage borrowers with lower credit scores and higher debts.
In the past, lenders have does this to try to compensate when volume goes down by easing these credit restrictions and, in turn, allowing for more loans.
There was evidence that this occurred in 2014, and it is likely what is going to take place in the Summer of 2015, so now is a great time to contact your realtor and invest in a colorado rental home property.
Not only is it easier to obtain financing for your new rental home, Home Values themselves continue to rise.
The real estate housing market tends to vary from state to state or even city to city when involving national pricing trends. While that generally is the rule of thumb, national averages like the S&P/Case-Shiller Home Price Index typically do act as a general gauge of where things are headed.
In Colorado, all signs indicate that home values are moving upward and will continue to do so.
Another recent Case-Shiller report provided data that prices rose about 5-6% within the past year, further proving that now is a great time to literally “make your move”. There are several Colorado analysts and economists who predict another 5-6% rise in home prices during the upcoming Summer of 2015.
Ready to make your move? Contact Legacy Properties-PM and we will connect you with the best real estate agents in Denver, and then work with you to manage your new Colorado Home Rental Property and grow your Legacy.
As home values rise in Colorado, and mortgages are easier to obtain, now is a great time to buy a home and have it rented out and managed by us. Wherever your rental home is in Colorado: Denver, Aurora, Parker, Highlands Ranch, Littleton, and beyond just to name a few. Give us, Legacy Properties-PM a call today @ 720.989.1996 or contact us to set up a consultation.
Property Management
A dining room is nonessential for some renters, but having plenty of “flex space” can draw tenants to your Denver rental. When investing in single-family homes, trendy lofts or condos in Denver, you will likely find some homes with formal dining rooms and some with only eat-in kitchen areas. Although having at least three bedrooms and two bathrooms is ideal, having flex space commands higher rent. For help with your real estate investing questions, talk to an experienced Denver property manager who knows what today’s renters want.
- If your tenants work at home
For tenants who work at home or need extra space, a dining room can often work well as a “flex space.” If your tenants entertain a lot by fixing family style meals, a dining room is not superfluous. At the same time, there are easy ways to work around not having a formal living room space. If you invest in a property with a dining room but rent out to people who eat out all the time, your tenants can still put it to good use as a home office or playroom.
- If your tenants entertain
Because many renters in Denver like to entertain and have fun, look for investment properties with rooftop decks or outdoor living space. Look for an open layout. If the rental doesn’t have a formal dining room, tenants can place serving plates on a bar between the kitchen and Great Room or set up tables topped with attractive tablecloths. Some renters put bar stools at a breakfast bar as well as a small table in an eat-in kitchen area. When entertaining, guests can mingle in the main room or on a deck or patio.
In general, the number of bathrooms, bedrooms and square footage dictates the rental price. In Denver, rent pricing are climbing fast. According to an article by cbsnews.com, rents in Denver went up more than 5 percent each year since 2010. In 2014, Denver rent went up a whopping 9.2 percent.
At Legacy Properties-PM, we are members of NARPM, the National Association of Residential Property Managers. For more information on real estate investing in Denver, and Aurora or surrounding areas, please call 720.989.1996 or contact us.
Property Management
Mother’s Day is just around the corner, and we want to take a few minutes to honor all the Moms who work so hard to keep everything running smoothly. Whether their children are in diapers, college, or even grown adults, mothers continually put their children first, and help or guide them in any way they can. This year, we would like to say Happy Mother’s Day and offer residential property management to all the Moms out there.
Maybe your family has already taken the plunge and invested in real estate. If so, you know the challenges it can present to your family. Sometimes things come up at inopportune times. A furnace that stops working when the family has the flu, a leaky roof while you’re away on vacation, or a late rent payment when you were really counting on that money. A property management company can take care of all of the little details that cause stress and aggravation, allowing your family to continue to hold onto the investment without having to deal with any of the day-to-day details.
Other moms really want to do something to contribute financially to their family but have a hard time finding something that works for their schedule. With a traditional job, Moms feel pulled between work and home, constantly trying to find a balance. Some do it very well, but others find details such as finding babysitters, dealing with sick kids, and wanting to volunteer for things like field trips difficult to deal with.
Investing in residential property could be the answer for Moms who want to have a schedule that puts family first, yet has the possibility for bringing in some income. With the right investments and a property management company to help, being a stay-at-home Mom may be more profitable than trying to juggle a 9 to 5 job.
Whatever your situation, we want to wish all the mothers a wonderful day. We are a family-based business who understands what it means to work hard to build your family’s legacy. If you’re ready to find out more about investing in real estate in Aurora, Denver or surrounding areas we can help, contact us at Legacy Properties-PM or call 720.989.1996
Property Management
Facing retirement is a scary proposition for many living in Colorado who haven’t saved up. Fortunately, it’s never too late to get started building up a real estate portfolio of Denver investment properties to help fund retirement. Even having just one investment property often makes enough of a financial difference for retirees. According to a recent article by The Motley Fool, 3 scary retirement statistics point out just how far behind many people are in preparing for the future.
The personal savings rate is low at just 5.8 percent, but a greater challenge is what to do with your savings. Many prudent pre-retirees have rolled over money from a 401(k) into a self-directed IRA so they can multiply their retirement wealth with real estate properties. When you use a self-directed IRA, it’s easy to generate passive income. The IRS doesn’t allow you to manage your own rental property or live in it even for part of the year. A reputable residential property manager does all the work while your retirement account grows.
Another scary retirement statistic is the number of people who worry about retiring with debt. A study by the Employee Benefits Research Institute discovered almost half of retirees worry about debt with 17 percent of them having more debt than ever before. While credit card debt and student loan debt isn’t good to have in your 50s and 60s, a low-interest mortgage lets you leverage your money. Although you pay a slightly higher interest rate on an investment property compared to your primary residence, you will likely make money on your Denver rental property where the rental market is spectacular.
While some people are extremely healthy, experts say a retired couple needs almost a quarter of a million dollars to cover medical bills in retirement. Having several investment properties or several rentals are part of a retirement plan that addresses future needs for long-term care, nursing home and medications. Rental income can easily pay for long-term health insurance, for example.
At Legacy Properties-PM, we encourage our Aurora and Denver clients to look at different ways to diversify their income streams in retirement. We also work with many clients who are decades away from retiring, but want to build up a portfolio of investment properties in Denver that they don’t have to manage themselves. We are members of NARPM, the National Association of Residential Property Managers. For more information on how we screen and place tenants and enforce the lease, please call 720.989.1996 or contact us.
