If you own rental property in or around Denver and Aurora Colorado, then you know that sometimes it’s not just a financial investment, but a big time investment too. A property manager can ease the burden, taking care of most or all of the landlord responsibilities. If you’re looking to team up with somebody to help manage your rental units, here are some tips to find a great property management company in Denver.
Ask other investment property owners for recommendations. It’s always good to know somebody else is happy with their service before you invest your time looking for somebody.
See if the manager knows his or her stuff. Some people just jump into this because they need some income, but don’t really know the process.
Ask them detailed questions about lease enforcement, rent collection, and the eviction process. If the person doesn’t sound confident, move on.
Pay attention to their people skills. This person represents you. Do they convey respect, professionalism, and other qualities that are important to you?
How are they interacting with you? Is the person cutting you off or finishing your sentences? This type of person can be hard to work with because they think they know how things should be done, rather than listening to what you want. Be cautious if they seem to think they would not respect your ownership decisions.
Ask if they are a member of the National Association of Residential Property Managers (NARPM). These managers have the distinction of extreme loyalty and professionalism. They also have a higher level of knowledge of local and federal laws regarding rental property.
If you’re in the Denver area and looking for a residential property manager, contact us. Legacy Properties has many years of experience managing homes, townhouses, and condos in the area with great success and professionalism.
As a property manager for investors, this is a question that I am asked often. It can be a scary and confusing world, so here are a few pointers on how to get started.
The first thing I recommend doing is to talk to a property manager. You will want to interview them, because a good personality match is important. property managers have their specialties, just like any other profession. Some specialize in certain areas of town or types of properties, while others specialize property management and don’t do sales. If you choose a property manager that doesn’t do sales, be sure they have a real estate agent that they work with. That way they can work together as a team to help you find the right properties. A property manager is going to know the rental market and be able to help you to find the best deals.
Once you have your property manager, then what?
Take the time to talk with them about your short and long term goals and your financial situation. There are different types of investing that you can get into. The three main types are Wholesale, Fix and Flip, and Buy and Hold. Here is a brief description of each one to help you to better understand what these are:
Wholesalers find properties that would make a good profit after the repairs are done, but don’t want to do the work. They get the property under contract at a discounted price, then for a fee, assign it to someone who wants to fix it up. The profit on these deals is lower than on the others, but the risk is much lower as well.
Fix and Flippers buy distressed properties, then not only do the repairs, but also adds upgrades to the property (such as remodeling the kitchen and bath). The property is sold at a higher price and hopefully a profit is made. This is a more risky venture as the outlay of cash is far greater. Most fix-ups run about $30,000.
Buy and Hold properties are like fix and flips, the difference is that the repairs are not as expensive and the property is not sold afterwards. This type of investment has a return over time as the property is rented. Since the property is held as a rental, this is probably the least risky type of investment.
You may ask why you need a property manager if you aren’t going to be holding on to your investments. The answer to this is simple. Many of those that you will end up selling to will be wanting to rent the property out. You will need to know if the property would be a good fit for that or not. This way you can craft your marketing messages appropriately.
As with all types of investments, property investing does carry some risks. Risks can be mitigated by careful planning and understanding the risks involved. Your property manager can help you to reduce your risks. A great thing about property investing is that you don’t have to pick one method and stick with it. You can get a property under contract and then decide what method would work best for the given property and your current situation.
Another big concern is where the money comes from. Some investors use their own money, while others get loans from what are called hard money lenders. Sometimes you can even get a loan from a traditional bank for this. If you use your own money, you don’t have a loan to repay, however it does limit the number of properties that you can invest in at one time. Using a hard money lender will cost you more in interest and points, but you may be able to diversify into multiple investments at once. Your property manager should be able to recommend some investor friendly lenders if you don’t know any.
The one other thing that is needed is patience. Remember that finding and buying properties isn’t something that always happens in a week, or even in a month.
I hope that you have found this information useful and if you have any questions, or would like to talk to me about your specific investing needs, please don’t hesitate to call me or fill out our contact form.
Team Up with Legacy Properties-PM, a Denver Colorado Property Management Company
Investing in rental property in and near Denver Colorado continues to be a wise financial decision, as owners typically see a return on investment regardless of the state of the economy. However, there are times when owning income property can seem like it may not be worth the hassle. If you’re feeling ready to throw in the towel, consider teaming up with a property management company.
If you’re trying to be a property investor as well as a landlord, then you’ve got your work cut out for you. Lots of people do it, but they often don’t realize they’re making it harder than it has to be. So many property owners like you start to feel like they’re trapped by their properties because it’s hard to deal with all the issues. A maintenance problem in the middle of the night, a tenant turnover right when you scheduled a family vacation, and a problem collecting rent are all real scenarios that keep you from enjoying your family and free time. With property management services, you get to still profit from your wise investment without having to deal with day-to-day hassles.
If you own a single family house, condo, or townhouse in the Denver area, we can help you with:
Determining rent amount
Advertising a vacancy
Screening tenants
Collecting rent
Enforcing the lease
Changing locks
Scheduling maintenance
Taking calls, 24 hours a day
Keeping financial records
With our Denver Colorado property management company, you no longer have to be constantly available to deal with whatever situation arises. You can go on vacation, schedule a date night, or go to your kids’ concerts and games without the possibility of having to cancel because of a property issue.
You probably initially invested in property to help your family financially, but often income properties can end up adding stress and anxiety to the picture.
We would love to work with you as your property management company in Colorado.
Pick up the phone and call 720-989-1996 and eliminate all of the hassle of renting your property.
What do I need to know as a Colorado Landlord legally speaking?
There are many legal concerns that every Colorado landlord and property manager should be aware of before renting out a property. Legacy Properties-PM is not a law firm, and I am not a lawyer, but I can give you a few suggestions of things that we keep on top of.
Fair Housing Laws:
Under federal law (42 United States Code Secs. 3601-3619, 3631), you cannot discriminate based on race, color, religion, national origin, familial status, age or sex. The state of Colorado has added the following protected classes as well: creed, sexual orientation, marital status and ancestry. The rules apply not only to the application process but to the words you use in advertising the property and what you say during a showing. While most people don’t discriminate intentionally, it can be a simple slip or the way something is worded. For example, here at Legacy Properties-PM, we require every person over the age of 18, who intends to live in the home to fill out an application. If we didn’t, that could be considered discrimination. Another area that many people get tripped up is when a potential tenant asks “What’s the area like?” The only answers we give to this question involve local shopping, parks, public transportation and the like. As for the people in the area, or the perceived safety of an area, every person is different in how they view such things.
Local ordinances and rental registration requirements:
In Colorado, some cities, municipalities and HOA’s require registering rental properties. For example, if you own a rental property in the city of Boulder, Co, you are required to have your property registered. If you don’t live in the city yourself, then you are also required to hire a property management company that has an office in the city. On top of that, you must have your property professionally inspected on a regular basis. There are some exceptions to these rules, but this fits for most situations.
Americans With Disabilities Act:
The Americans with Disabilities Act (“ADA”) also prohibits you from discriminating against people with a disability. This act not only prevents you from discriminating against a disabled person, it also covers what accommodations can be made, what you can ask and if you can require documentation of the disability. Having a disabled person in our family, we here at Legacy Properties-PM not only take this very personally, but it also means that we are kept up to date on the latest updates to this law.
Lead Based Paint:
For any home built before 1978, that is sold or used as a rental property, the owner or landlord must provide a disclosure about any known presence of any lead-based paint or hazards. The buyer or Lessee must also be provided with any documentation pertaining to this. In the case of rental properties and lead based paint, the Lessee must also be provided with a copy of the EPA pamphlet entitled “Protect Your Family From Lead in Your Home” and a 10 day period to inspect for the presence of lead based paint. The State of Colorado has a form that is required to be signed by the tenant, landlord and home owner in these situations.
HOA’s:
Many Home Owner’s Associations, or as they are now called, Owner’s Associations have rules regarding the percentage of properties in the community that can be used as rental homes. It is always a good idea to check into this before deciding to rent your home, or when considering buying a home for investment purposes. The other thing to keep in mind is that your tenants will be expected to follow all of the covenants of the HOA, and if they don’t, you will be the one receiving the fine. This is why Legacy Properties-PM always requires our owners to provide us with the latest OA documents. This way we can be sure that they have been provided to the tenant. Then if a fine is levied, we can charge it back to the tenants.
All of these issues can be quite confusing and complicated if you own and want to rent multiple properties in Colorado.
So, pick up the phone and call 720-989-1996 or fill out our Property Management Contact Form, and we will have a conversation about what every landlord should know about (legally speaking) in and around Denver Colorado.
