Just a Few Simple Reasons Renting Can Be Better Than Buying
Reason #1: You can change your location whenever you want
Owning a home and raising a family are top priorities for some people. Settling down and finding a safe and homey suburb to live in for the next ten to twenty years is perfect for that. On the other hand, there are quite a few people who aren’t sure where they’ll be next year, let alone in a decade. This makes the idea and option of buying a home a not so feasible option.
When you rent, you have the flexibility to move next month or next year without the stress of having to find renters for your home and/or maintain a property remotely.
Reason #2: If the water heater breaks as a renter you don’t pay for it
As a renter, surrounded by homeowners you’re sure to witness the hidden costs involved in owning a home. “A friend of mine recently had to have her heater replaced and consequently ate baked beans for four months afterwards.” says renter Jackie Smith. When you rent, it’s the home owners/landlords responsibility to pay for the repairs on and in the property.
“It’s nice to not have to drop a couple of grand per year on things like curtains, hot water systems and replacing toilet cisterns,” says Jackie.
Reason #3: Renting can be less pricey than buying
People many times buy a house as a way to save money, they do this by putting most of their monies into a home and property where it can’t be touched, rather than a bank account where it’s always accessible for withdrawal. Instead of buying a home though, one can save just as well with paying rent and putting the extra money in a high returns investment bank account rather than buying property.
Whether you rent or buy, it’s important that you do what’s right for your own circumstances and your own financial situation. If you are a homeowner looking to rent out your home or a tenant looking for a new home to rent, call Legacy Properties-PM at 720.989.1996 or contact us. We proudly serve many Denver areas including Aurora, Centennial, Highlands Ranch and Parker.
Rents continue to go up and interest rates are at an all-time low! Homeownership rates fell throughout the recession, and are currently around 66 percent, compared with almost 70 percent in 2004, according to the Census Bureau.
The great American dream of owning a home appears to have made a comeback. Real estate company Trulia reports that “in many parts of the country, rents are rising while housing prices are falling, making buying a home more affordable.”
If you’re struggling with whether to buy or rent, consider these 7 reasons to take the plunge into homeownership:
Reason 1: You can take advantage of currently low interest rates and prices.
Interest rates remain at historical lows, and at the same time, home prices in many areas remain soft. Trulia points out that deals are especially appealing in suburban areas, compared with the more expensive cities. Overall, Trulia says, asking prices on homes went down 0.7 percent over the last year, while rents went up by 5 percent.
Reason 2: Unlike rent, a fixed mortgage can’t go up (even if inflation does).
Fixed mortgage rates do not go up, even when the cost of everything else does. To protect yourself, Jack Otter, author of Worth It… Not Worth It? suggests making a 20 percent down payment and taking out a 30-year fixed mortgage to lock in today’s low interest rates. “Mortgage rates haven’t been this low since GIs were heading home from France. Lock in a low monthly payment, and you’ve just taken a huge step in protecting your family against inflation,” he writes.
Reason 3: Homeowners can take tax deductions.
The main tax benefit of homeownership is the ability to deduct your mortgage interest payments, but the bonuses don’t stop there. As a homeowner, you can also deduct eligible expenses (certain energy-efficient improvements) and in some cases can avoid federal taxes on earnings from the sale of a home.
Reason 4: No landlord can kick you out.
Renters can face an unexpected eviction notice if their landlord suddenly decides to sell the home, rent to someone else, or otherwise end the lease. Homeowners do not have to worry about this EVER.
Reason 5: You don’t even have to speak to a landlord, ever again.
Landlords can take forever to fix a broken washer or dryer, they usually let the air vents fill with dust and dirt, or they leave you messages about repairs that aren’t even necessary. BUT, if you’re the homeowner, then you’re in charge. This means you have to be home when the plumber calls or comes, but the plumber reports to you.
Reason 6: Owning a home forces you to save money and more.
Since homeowners have to pay their mortgage every month, they are routinely putting money away or paying for repairs and maintenance, instead of squandering it on new shoes or fancy meals. Then, if you eventually sell your home after the mortgage is paid off, there’s a good chance that you’ll actually make money off the sale.
Reason 7: You can customize your space.
Owning the space you live in means you have the freedom to do what you need and/or want done, without worrying about permission from the landlord or losing your security deposit. Whether you want to paint a wall, make a larger bathroom or redo the bedroom to reflect you, you CAN.
Renting can be ideal if you aren’t sure of your job circumstances or if you plan to move soon, so buying isn’t for everyone. So, if you’re looking to rent or want the best property manager to manage your rental home in Denver,Aurora, or Centennial, call Legacy Properties-PM at 720.989.1996 or contact us.
In Denver and Aurora, there are many very good property management companies.
The question then is, how do you decide which property management company is the best one for you?
What I tell people all the time when this comes up is that while you do need to make sure that the one you choose has the experience and training needed. But, you also need to feel a personal connection with, someone that you feel you can trust. The first part is a much easier one to answer. The most important part to finding someone who is trained and highly qualified in any field is to look for those that invest in themselves. In the case of property management, that means looking for someone who is a member of the National Association of Residential Property Managers. NARPM members spend hours learning what is happening legally at the federal, state and local levels. The truly dedicated ones even take it one step further and earn special designations. These designations require a greater investment in time, more specialized training, and giving back to their community of property managers by way of service. The other things that you need to look at when selecting a property manager for your investment would be:
Price – While important, this should not be your primary consideration. In the Denver or Aurora area, most, if not all companies charge a percentage. The most common are between 8% and 15% of the collected monthly rent. Depending on how much time they spend on your property, it usually works out to about $4-$8 an hour. Some also charge a flat fee that is due every month; this is something the Legacy Properties-PM does not do. The other cost is the leasing fee, in other words, the fee charged for the handling all of the prospective tenant contacts, showings, application reviews and lease writing. This is also usually a percentage-based fee and there is a wide range out there of what is charged. You need to talk to any company that you are considering about what you are getting for your money, and see if you can get references.
Experience – This is probably the most important thing for you to look into. Not only how long have they been managing homes, but also what experience do they have that ties in with it. Some examples would be: do they own any rental properties themselves, have they done any hands on cleaning or repairs of rentals, have they personally done any evictions. The staff at Legacy Properties-PM has done everything from cleaning and repairs to being a part of the physical eviction team and everything in between.
Fees – I actually think that this is far more important the price, because this is where your dollars can really add up. You need to know what items your property management company will be charging you for. The most common one is a renewal fee, this is charged for the time spent in discussions with you and the tenant and getting the proper paperwork filled out. Other questions to ask would be: Do they add anything to your repair bills, or charge for property reviews? I’ve even heard on some companies that charge a “paper-processing fee”. What that means is that they add a charge on to every piece of paper or email that they come in contact with for your property. Do they charge a service fee for your evictions, or insurance claims?
Maybe they charge an advertising fee or an account setup fee. These are all things that you need to find out and decide for yourself if they are worth it. With Legacy Properties-PM, you’ll only have three fees. The leasing fee, the management fee and the renewal fee, that’s it.
One other thing you might want to ask them about is how they handle calls that come in after hours and if they will show your property during evenings and weekends. These are very important in keeping your property in good repair and getting it rented quickly.
Once you have done all of your research and compared all of the companies, it’s time to narrow it down to the best two or three companies for your needs. Now comes the hard part, you need to contact those companies again and have a one on one conversation with the person who will be managing your property. Talk to them about your goals and expectations, they may be right on track with you, or maybe not. Either way, you will have a good idea if your personalities match or not. Remember, this is likely to be a person that you will be having a business relationship with for years to come. So, if it seems strained, or they don’t feel genuine to you, then you probably want to keep looking.
Call 720.989.1996 or contact us Legacy Properties-PM; the best in property management in Denver, Aurora, Centennial, and more.
If you own investment property, you know all the details that are involved with such an endeavor.
Marketing your Denver Colorado rental property, choosing a quality tenant, collecting rent, enforcing the lease, and dealing with maintenance needs are just some of the things that need to be dealt with every day when renting a home in Denver. If you’re looking for a property manager to handle the details, be careful who you hire. There are several reasons why you should ask whether the person is a member of the National Association of Residential Property Managers (NARPM).
If you own a rental property in the greater Denver area, then a member of NARPM like Legacy Properties-PM can benefit you in many ways:
Yes, there are people out there who claim to be “property managers,” but who are really just looking for a quick buck. They may be able to take care of some of your responsibilities, but others will still fall on your shoulders, and they probably have no knowledge of local economic factors and legislation involving rental properties.
As a Denver Colorado landlord, you have a lot of responsibilities.
Whether you’re advertising a vacancy, evicting a tenant, or something in-between, there’s never a dull moment. For many income property owners, getting a call from a tenant about a maintenance need makes the blood pressure rise, but it can be taken care of by a residential property management company like Legacy Properties-PM.
Things never break at a good time. The refrigerator bites the dust right after the tenant fills it with food, and the furnace always goes on the coldest night of the year. Sometimes maintenance needs can wait a day or two, and other times they are urgent. Either way, if you’re the landlord you’ve got to figure it out.
If this situation stresses you out, hire Legacy Properties-PM, a Colorado property management company.
The tenant calls them to complain about whatever is not working, and evaluates its urgency. Then they find the right person to get the job done. Depending on whether you need a plumber, electrician, or roofer, we know the best in the business, who will do the job right the first time for a fair price. All the contractors we work with are licensed, insured, and bonded so you have no reason to worry.
Things break. It’s a fact of life, and unfortunately, if it’s just basic wear and tear it will cost you some money. But with a property management company you don’t have to drop everything to take care of a maintenance call that may or may not be an emergency. If you own an investment property in the Denver and Aurora area and would like to team up with a property management company, contact us. We can take care of maintenance in addition to advertising, screening tenants, collecting rent, and keeping financial records. Being a landlord suddenly just got a lot easier. So, stop thinking you need to handle all of those maintenance calls on your rental property yourself. We will take care of them for you, make you feel at easy, and fully manage your Colorado property Legacy. Call 720.989.1996 or contact us.
Does your property management company take the time to show each of your tenants your property one on one?
We do.
Most real estate agents will do an open house on your rental property in Colorado and just let people wander aimlessly around and do nothing to really get the property rented to one of the people who show up.
OR
The real estate agent will put a lock box on the door and have another agent give your potential tenant a tour of your property.
We usually have your property rented within a week or two from when you decide to use our property management service.
We advertise on about 270 websites and we do video tour advertising through YouTube and Vimeo.
You can see an example of our video advertising for one of our clients below.
We act as your real estate agent in a way that most do not, and personally give your potential tenant a tour of your property.
We ask your tenant about what their real needs are and match them to the benefits of your home for rent.
Taking your tenant through the rental application process step by step also helps speed up the process of having your property rented and raising your income level sooner.
And then we go even further to ensure that your property will be well cared for.
Legacy Properties-PM will personally interview your tenants as well and run complete background checks even calling and asking previous landlords and employers about the character and reliability of your tenant.
By taking your tenant on a tour of your property, we are able to make them feel that we are in a professional environment and that your property is and will be taken care of.
Marketing your 
