Property Management, Real Estate Investing
Many Colorado people like you have considered investing in residential real estate, but are not sure they want to deal with all the negative aspects of the job. If we’re being honest, it’s not all fun and games, and there are times you really have to be the bad guy. For that reason alone, many people decide they don’t want to go down that road. If some of these scenarios come to your mind as situations you don’t want to deal with, you’re absolutely correct that they do happen, but there is a solution.
- Asking for prospective tenant’s personal information. To make sure you have a responsible renter, you need to ask for information pertaining to credit history, background checks, employment, and even information such as whether the person owes child support.
- Collecting rent. In a perfect world, tenants would pay their rent, in full, on time, every month. In case you’re wondering, this isn’t a perfect world.
- Enforcing the lease. Whether you suspect a renter has a pet that isn’t allowed, or isn’t keeping the agreed-upon quiet hours, sometimes you have to confront a tenant about these situations.
- Maintenance needs. Getting a call in the middle of the night about a clogged toilet or a leaking roof is never fun. Sometimes you have to deal with it, and sometimes you have to determine that the problem is more than just normal wear-and-tear, and let the renters know they are responsible for it.
- Evictions. While it hopefully doesn’t happen often, once in a while you might get a bad egg that won’t pay the rent, and won’t leave, which leaves you no choice but to go to court to evict them.
If you are a person who doesn’t like conflict and isn’t very assertive, you may have decided against investing in real estate, but when you hire a property management company, you can let them do the dirty work while you enjoy the benefits of your investment.
In the Aurora area, Legacy Properties-PM takes care of all these situations and more, so there’s no need to worry about it. If you’d like to invest in real estate, but want someone else to take care of these types of tasks, read our Property Management FAQ, call 720 989 1996, or contact us.
Property Management
Many landlords want to hold on to the security deposits for their tenants so that they can use the funds in case the rent comes in late.
As a landlord, you might be thinking that you can use your tenants security deposit when your tenant’s rent is late, and then replenish the security deposit when the rent comes in.
This is an illegal practice called commingling which is defined as illegally using other people’s funds given to you in trust and meant for a specific purpose.
If you as a property owner renting your home in Colorado have received any information telling you that you CAN use your tenant’s security deposits to pay your bills, be careful.
As stated above this is illegal and your tenant can take you to court.
In fact the Colorado Department of Regulatory Agencies (DORA) cites that one of the top Colorado Real Estate Commission Violations IS “Theft of Security Deposits Held in Trust/Escrow Accounts” as noted in Chapter 20 of the Colorado Real Estate Manual.
DORA requires that a Property Management company holds tenant’s security deposits in a separate trust account. Not only does this ensure that security deposits can only be used for repairs to a home, it also protects the funds from potential lawsuits made against the property management company or the landlord.
We believe the reason why some property management companies want to have the landlord hold the security deposit is simply less paperwork and the ability to have less staff, and decrease their liability.
At Legacy Properties-PM, we pride ourselves in being an outstanding member of NARPM® which holds us to a higher code of ethics.
We never have nor will we ever have a landlord hold a security deposit. We work very hard to screen all of your tenants to ensure that they WILL not have difficulty paying their rent on time. If there becomes a problem we follow a set of procedures to collect rent from delinquent tenants.
If you have received ANY communications concerning using your tenant’s security deposit for ANYTHING other than its intended use, or if you have any questions at all about security deposits and your rental home in Denver, Aurora call 720 989 1996, read our property management FAQ, or contact us.
Property Management
Whether you are a young adult skittish about investing in stocks or a baby boomer who wants a passive income in retirement, real estate investing in Denver is an appealing option. Using a self-directed IRA is one “thinking outside the box” option for people looking to purchase rental properties in Denver. According to a report by CNBC, many young investors want nothing to do with stocks. A UBS survey found the typical Millennial investor has half of his or her portfolio assets in cash. Owning stock in companies can be risky, especially if the company goes bankrupt. Baby boomers nearing or in retirement are also looking for a safer way to fund their retirement. A Fox Business article points out the advantages of using a self-directed IRA for real estate investing. The key is to hire a professional Colorado property management company after buying a rental property so that your asset is protected.
Investing in what you know
Financial experts often tell people to invest in what they know. Real estate as an investment is easy to understand. Clearly, people will always need a place to live. With the help of a Denver property management service company, you can benefit from their knowledge. Some of the good places to own a rental property include Highlands Ranch, Aurora and Washington Park. Even if you don’t know how to fix things for tenants, you can count on a property manager using licensed, insured and bonded companies to perform maintenance and do repairs on your rental property.
Putting your retirement dollars to work
If money sits in a money market or cash type position within a 401(k), Roth IRA or Traditional IRA, it’s not going to grow. Money invested in mutual funds can actually see a negative return if the market corrects or crashes. It’s possible to roll over money from one of these traditional retirement accounts into a self-directed IRA. You can then buy real estate. You are prohibited from using the self-directed IRA to buy real estate to live in yourself or for your children or immediate relatives. The idea is to generate passive income in the form of rental income that will supplement your retirement. Younger people can simply save their monthly profits.
Another benefit of using a self-directed IRA for real estate investing, according to Fox, is that all rental income and capital gains from the property is tax deferred. For people who end up in lower tax bracket in retirement, it’s a positive situation.
At Legacy Properties-PM, we take pride in being a member of NARPM, the National Association of Residential Property Managers. If you’re in the Denver area and looking for a residential property manager, please call 720 989 1996 or contact us.
Property Management, Real Estate Investing
If you own an investment property, then you know one of the biggest questions is:
What to charge for rent?
Whether you’re new to residential real estate or a seasoned veteran, this issue comes up all the time, so why not ask an expert?
Rent amount is a tricky thing, because it’s based on so many factors. The size of the property, location, and upgrades make a big difference. But one of the biggest factors is the rental market, which changes constantly. If you’re renting a house, condo, or townhouse, you need to know the market so you know how much rent to charge. Rent amounts go up and down depending on the local market, so always check in with a local expert.
You may wonder, “Is it really that big of a deal? I’m sure I can figure out how much rent to charge.” Well, you can make an educated guess, which is what a lot of landlords do, but there are ramifications for being off the mark. Charging too much or too little, even by just $25 can have consequences. Ask too much rent, and you’ll generate little interest in the property, having fewer prospective tenants to choose from. Charge too little, and you’re cutting into your profits.
So how do you know who to ask about market appropriate rent amounts? A member of the National Association of Residential Property Management (NARPM) is the perfect choice. Members of this organization show a thorough knowledge of the local rental market, and they are known for their responsibility and professionalism in the field.
Legacy Properties-PM is a member of the NARPM®
and has a unique perspective on investment properties in the Denver and Aurora area because their family started out with just one property and continued to build from that small investment. You too can see your property legacy grow by deferring to their wisdom and knowledge in this area. For more information on Denver area rent amounts, call 720 989 1996 or contact us.
Property Management
Everyone puts a smile on their face this time of year, but the truth is, it’s a stressful season for many people. One of the biggest problems which becomes hard to ignore this time of year is financial strain. Expectations to give gifts to others causes bank accounts to plummet, yet you’re supposed to be happy about it. Many people have found a way to bump up their income by investing in residential real estate.
With the help of our property management company, you can look forward to having a little more financial peace, both during the holidays and year round.
You may be wary of purchasing property when your finances are strained. That’s very wise, and you’re right to listen to that little voice that advises you to be cautious. But, as the old saying goes, you have to spend money to make money. We’ve found that to be true in our many years of property management experience, which is why we now make it our goal to help others achieve success through investing in real estate.
With our expertise, we can help you find a property that is the right price, in the right neighborhood, that will turn into a source of income for you and your family. Not only will we help you find the property, but we can help you manage it so your time isn’t taken up with tasks such as finding tenants, collecting rent, dealing with maintenance needs and knowing all the legal ramifications of being a landlord.
It can be hard to be in a joyful mood during the holiday season when you’ve got financial stress on your mind. If you’re having a hard time figuring out a way to increase income, investing in residential real estate may be the perfect solution. It’s how our legacy was started, and it may just turn things around for you too. For more information, contact us by calling 720-989-1996.
Legacy Properties-PM
Real Professional Colorado Property Management!
Property Management
The Millennial generation makes up a large demographic of Colorado renters in Denver, Aurora, Centennial, Parker, and more, so those who own an investment property or are thinking of buying one would be smart to find out what they are looking for. These 18-33 year olds are opinionated and know what they want. You can make your property more marketable based on this information.
So why are there so many renters from this generation? Many are just getting out of school, and have student loans and other expenses to pay, so renting seems like the better option to them. Those on the older end of the spectrum may still be recovering from the economic slump, and a little shy to jump into home ownership just yet. Others just don’t want to have the responsibility, preferring to hold off on the burden of paying taxes and home maintenance for a little while.
But many of these millennials don’t want to compromise in what they want. For the most part, they want a place that is updated, stylish, and conducive to entertaining. Granite counters, stainless steel appliances, open concept, and an outdoor living space are just some of the things on the top of their list. A condo or townhouse that offers amenities such as a pool or fitness center is also attractive to many from this generation.
If you currently own an income property and are thinking of doing some upgrades, this type of information may steer your decisions in a way that will attract more renters. If you’re considering purchasing a property for the purpose of renting it out, you can look for something that checks off some of these things on a millennial’s “must-have” list.
Whether you’re a seasoned landlord or just starting out, owning an investment property is a great way to build a financial future for you and your family. If the day-to-day details such as filling a vacancy, collecting rent, or handling maintenance issues gets to be overwhelming, call 720.989.1996 or contact us. Legacy Properties-PM, property management company can help with these things while you continue to enjoy the financial benefits of your investment.
