Property Management
Many Colorado landlords struggle with the idea of whether they want a property management company overseeing their investment.
On one hand, it’s nice to be involved and know whats going on. On the other, when things aren’t going well, your phone is ringing constantly and you have non-stop anxiety over dealing with whatever is going on in addition to all your other responsibilities. During those times, it’s easy to make the decision. From a casual poll of property owners who have teamed up with property management, these are the top five calls they don’t miss getting:
- “My heat/AC isn’t working.” HVAC is one of those things you don’t give much thought to until there’s a problem, and it usually happens on the hottest or coldest day of the year.
- “There’s a lot of water on the floor.” This is usually the start of the conversation, and then you have to play guessing games to figure out what’s going on. Did the toilet overflow? Is there a broken pipe? Maybe the roof is leaking. Water problems are one of those problems you can’t put on the back burner. They must be dealt with immediately.
- “My neighbor is too __________.” You fill in the blank. Noisy, smelly, inconsiderate, and the list goes on. It’s hard to know when to get involved in disputes between tenants, and it’s never fun.
- “I won’t have my rent until next week.” Chasing down rent is one of the worst tasks, especially from a tenant who chronically pays late. The excuses can get humorous, but the hassle is no laughing matter.
- “I know the lease said no pets but…” People are forever signing a lease and then asking to change the agreed upon rules, and many times it’s about pets. One cute little puppy can’t hurt anything, right? Wrong!
Whether you’ve been managing your own investment properties and have experienced these calls before, or are just getting into the game and are not sure you want to handle these types of issues, a property management company will take these calls so you don’t have to deal with them. Enforcing the lease, dealing with maintenance needs, and collecting rent are just a few of the tasks that they take care of so you have more time and less stress.
In the Denver area, Legacy Properties-PM is happy to take these calls. For more information, contact us.
Property Management
There are ups and downs with any real estate investment experience, but the eviction process is probably the hardest thing to deal with.
Landlords who have gone through this know that having a property management company on board from the beginning makes the eviction process much easier.
The biggest reason for evictions is a tenant who is late paying the rent. A property owner has to know the terms of the lease, which states exactly when rent is due, and if there is any grace period.
There are specific guidelines for the eviction process including:
Serving the tenant with a 3-day notice to “Pay or Quit”
How to serve the notice (whether it requires hand-delivery or via certified mail)
How to count the three days (the delivery day does not count, nor do weekends or holidays).
The eviction process requirements vary by state.
If the tenant will not leave, then you must go to your local court to start legal proceedings. You will be given a court date and will need to have the tenant summoned. When going to court bring any and all documentation to support your claim, including communication between you and the tenants, receipts, bounced checks, a copy of the lease, and proof of the 3-day notice. It may seem like an easy case, but this is where it gets complicated.
In Colorado, courts will decide in favor of the tenant
Since many tenants can’t deny they failed to pay the rent, they try to get out on a technicality. If you failed to complete any part of the eviction process or forgot to “dot an I or cross a T,” the court will decide in favor of the tenant. Then you have to start the process over.
The eviction process is complicated, time-consuming, and extremely stressful. The best thing you can do is partner with a property management company from the start, so there’s no need to panic when it gets to this point. They take care of all the legalities, including signing the lease and collecting the rent. If there is a problem, they know the eviction process and have the proof to go to court and win the eviction.
If you own investment property in the Denver area, contact us or call 720.989.1996 to take advantage of property management services. Legacy Properties-PM has the experience to find quality tenants so you probably won’t have to deal with an eviction in the first place, but if it comes to that, we know exactly how to handle it.
Property Management
There are associations for just about everything these days, and putting a bunch of letters after your name doesn’t always mean much, but in the case of the National Association of Residential Property Managers (NARPM), you want to pay attention.
These are true stories that have happened when investment property owners put their trust in a manager who either doesn’t know the business or is trying to make a quick buck. If you own a rental property and hire the services of a property manager who is not a member of NARPM, these are some of the things you can expect:
- A property manager collected the rent for an apartment, and agreed to hold on to it until the owner picked it up. Instead, he spent the cash when faced with a personal “emergency.”
- Instead of hiring a plumber as agreed upon, the property manager tried to replace a section of pipe that wasn’t draining properly himself. In his new design, the water has to go uphill to drain, which means he must not have learned about gravity in school.
- Another property manager pressed for cash decided to upgrade the property owner’s plumbing system. He removed all the copper pipes and sold them.
- An owner was forced to evict a tenant for non-payment, and the manager said he could handle it. Unfortunately, he didn’t know the proper procedures and the case was thrown out when it got to court. After paying court fees, the tenant got to stay while the owner re-started the process.
These cases may be the extreme, but the fact is, anybody can claim to be a property manager. Even without any business expertise, knowledge of local regulations, skills to take care of maintenance issues, or just general ethics, a person can call themselves a manager and take your money without doing much to help you.
When you hire a property manager who is a member of NARPM, you can rest assured you won’t have to deal with any of these issues. Members are experts on local and national codes and regulations, do their work with great professionalism, and are held to a high level of integrity and honesty.
In you own an investment property in the Denver area, and are looking for a property manager who is a member of NARPM, please call 720.989.1996 or contact us. Legacy Properties-PM’s experience combined with our commitment to serving property owners makes us the best choice when you’re looking for someone to manage your real estate investment.
Property Management
According to an article on NuWire Investor, there are many benefits for Colorado rental property owners.
I have been in the real estate and property management business for over 14 years, and this is definitely an accurate statement.
I would recommend talking to a local Property Management company such as Legacy Properties-PM to get current market rental rates and make sure that they are knowledgeable about Fair Housing and anti-discrimination laws. There are also other things that may be deductible, such as management fees, and if you are an active landlord, vs a passive landlord, there are even more deductions.
Kevin Johnston of Demand Media has written an excellent article “Is Real Estate Rental Income Considered Active?”
If you have multiple properties, read his article for the best advice for the greatest tax advantage.
Questions about property management in Colorado? Call Legacy Properties-PM @ 720 989 1996 or contact us.
You can also review my video FAQ on Property Management in Colorado.
Property Management
People who buy rental properties in Denver create passive wealth.
According to a recent article by Main Street, owning rentals is easy, but being a landlord isn’t simple. Having a residential property management company find you reliable tenants can help because your property manager is the “tough guy.” Data from Real Property Management in Salt Lake City shows the rental market has grown by 31 percent in the U.S. since 2006. Meanwhile, investors can still take advantage of low-interest rates unless they decide to make an all cash purchase. If your goal is wealth creation, keep several factors in mind when hunting for investment properties and residential property management companies in Denver. It’s possible to find all kinds of architectural styles and types of homes in the Denver area. A good residential property management company will handle your concerns whether you buy a townhouse, condo or single family home in the city or the suburbs.
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Choosing newer construction
One of the advantages of buying a new construction home or home that is less than 5 years old is the fact that the home will require very little renovation work or updates. In the Denver areas, some of the newest developments that are in high demand include the Stapleton neighborhood. Keep in mind, a master-planned community such as Stapleton, comes with added fees and maintenance costs. If you want to buy a new construction home to rent out, other new developments slated for the area include Sterling Ranch and Littleton Village.
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Opting for hip, urban neighborhoods
Some of the most popular Denver neighborhoods with high rental market demand include Washington Park, Uptown, Lower Downtown, City Park and Lower Highlands. Investors can find a steady supply of well-paid tenants who want to live in modern lofts and condos in LoHi, the eastern section of Highland. Meanwhile, RiNo or the River North Art District is also a good place for investors.
If you are contemplating selling your high-rise condo, loft or single family home in the Denver area, consider renting it out for a profit. Legacy Properties can provide you with an estimate of the market rent your could receive whether you own a place in Ajax Lofts, Barclay Towers, The Beauvallon, Streetcar Stables, One Riverfront or other location.
At Legacy Properties-PM, we are proud members of NARPM, the National Association of Residential Property Managers. For more details on residential property management services in Denver, please call 720 989 1996 or contact us.
Property Management
If you have a job that requires you to move around a lot or can’t figure out where to put down roots, it’s smart to rent. At the same time, just because you are a renter doesn’t mean you can’t own an investment property to earn passive income. Many tax advisers and financial experts point out that a rental property is a better investment than a personal residence due to tax advantages and other factors. Buying an investment property in Denver can give you exceptional return on your investment because of the high demand for lofts, townhouses, condos and single-family homes in the popular communities of Denver as well as Highlands Ranch, Lakewood, Aurora, Parker, Littleton, Cherry Creek and Centennial.
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Realizing superior tax benefits
When you own a home that is your primary residence, you can only deduct your property insurance and property taxes if you itemize your deductions. In many cases, homeowners come out a head with a standard deduction instead. However, if you own an investment property, you get to deduct the cost of a property management company and the cost of all maintenance and repairs. Because the IRS treats owning rental properties more like a business, the tax benefits are more advantageous for the investor than they are for the person who owns a primary residence.
As a renter, you can opt for a short-term lease if you have plans to travel or only work in an area for part of the year. Meanwhile, your rental property could generate steady cash flow to supplement your income and pay for your living expenses. Hiring a Denver property management company to manage your properties means you can focus on your family and career or other business ventures without needing to come to Denver.
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Letting real estate do your work
According to an article by Realtor Mag, investing in real estate is one of the best ways to achieve financial goals. Experts say no other type of investment increases net worth the way real estate does. Although stocks go up and down in value, your rental property will likely appreciate over time. While you supplement your income with the cash flow, you still own the underlying asset (the rental home.)
One last tip for people who rent their primary residence instead of owning it is to buy rental properties in a Denver neighborhood where they could imagine living themselves. Your gut instinct about what you would like often pays off. Being a renter yourself, you will have greater insight into what your tenants would appreciate. At Legacy Properties-PM, we belong to the NARPM, the National Association of Residential Property Managers. For more information on getting the help you need to manage your investment property in the Denver area, please call 720 989 1996 or contact us.
