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Pets in your Aurora Home rental: Should you allow it?

Pets in your Aurora Home rental: Should you allow it?

Property Management

With an estimated 72% of renters having pets, it seems homes that don’t allow pets are really disallowing themselves from getting, or keeping, renters.

But the concern is the damages pets can cause. And, if not damage, animals can lead to smells from carpet and padding stains, marking and more.

Apartments.com did a survey and discovered:

“…nine out of 10 renters have told us pet policies played a deciding role when choosing where to live.”

[source: http://corporate.apartments.com/press-room…]

Of pet owners, seventy-three percent own a dog, forty-one percent have a feline family member and thirteen percent have a small mammal, bird or other pet.

With many Americans finding value in having a pet, it seems better pet policies and planning that actually encourages pets in your rental, could be the more profitable way to go. We are also not suggesting you go at it haphazardly, however.

Tips for allowing pets in your rental

  1.   Collect a pet deposit.

Most tenants expect to pay an additional charge for their loveavble pets. The deposit shouldn’t be usurious, but rather appropriate for possible damages that can be incurred.

 

  1.   Consider creating a welcoming environment.

When an environment exists to encourage desired behavior, rather than discourage poor behavior, people are more likely to use it. Installing dog doors, doggie poo pick up bags and more can help people feel trusted.

 

  1.   Consider pet friendly yards

Using concrete paving stones rather than gravel will allow a nice looking yard without a bunch of mess. Use ornamental grasses as a fun pet area that doesn’t require a ton of upkeep.

 

  1.   Give resources

A great value you can offer is listing dog parks and pet services in the area. People who care for their pets and know they are welcome, will be more relaxed and happy in the space. Plus, well exercised dogs are less likely to cause damage. (More stable renters who stay longer? Sounds good to us!)

If you have comments, suggestions or tips on what worked or didn’t work for you in allowing pets in your rental, we would love to hear from you. Legacy Property Management specializes in helping landlords better manage their properties and we would love to hear from you. Contact us today with questions or more.

 

Free Property Assessment

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Being a Landlord Means Having (and Managing) a Team

Being a Landlord Means Having (and Managing) a Team

Property Management

Being a landlord in Colorado can be a very lucrative venture. It can mean a passive income (or at least semi-passive), but it can also mean calls outside of business hours for emergencies (real and perceived).

Legacy Property Management has learned that being a landlord in Colorado means having and managing a really great team. What do we mean by team? Well, just like any business venture, and yes, being a landlord is a business venture, you need the support of a team to be successful. Here is a list of the resources you will need in order to be successful as a landlord:

Lender

A lender will understand the complications of loans on a home that is not owner occupied. It is important that the lender understand this scenario and be able to communicate the financial component to you. It is not the same as simply buying a home you will be living in regards to putting a down payment on the loan and making a monthly payment.

Real Estate Agent

A good real estate agent who deals with income properties is ideal. They are not helping you personally find a home that meets your needs, they are required to consider your return on investment and the best fit for renters in the current and future markets. If they are not able to have that investment mindset, find someone who does.

Insurance Agent

Insurance coverages are different for income properties then they are for owner occupied homes. Your current coverage may not be enough, or they may be unwilling to accommodate the change in your policy. Shop around for an independant agent. These agents can help you best by building a relationship with you regardless of changes because they can shop more than one carrier. They can also help you set up umbrella policies to protect you personally from being sued because of something a tenant did.

Lawyer

diverse property investment teamAccess to a lawyer is very important when dealing with tenants. It is important to follow anti-discrimination laws, real estate law and contract law. Interviewing and conducting background checks on potential clients, writing up leases, navigating an eviction, late payments, security deposits and more, all need the foundation set with support from a lawyer.  You are also required to know about posting notices, when you are allow to show up on the property and how to notify the tenant of work being done, and the work they can or cannot contract on their own.

Lawyers help to ensure your assets are protected from a legal standpoint, just as insurance protects you from a loss standpoint.

Accountant/Bookkeeper

The main role of the accountant is to help you understand, create and manage multiple accounts. A portion of tenant income is to be reserved and gaining interest. It is their money, not yours. Understanding what is yours and what is theirs and how it can be spent, is done with the accountant. The accountant will also help with maximizing tax deductions for end of year reporting, as well as filing all appropriate quarterly taxes and reports on the rental income.

Vendors

Every home has upkeep. Homeowners know how important regular maintenance is and they understand sometimes things break and things go wrong. Being a landlord means you need a great vendor team. This team includes:

Plumber

Electrician

Roofer

Landscaping, snow removal, sprinklers, tree trimming

Handyman

Garage door repair

Masonry/Concrete

Windows and Siding

Exterminator

HVAC

Well and septic (where applicable)

 

For each vendor you need to know:

Hours of operation

If they offer emergency service

Fees

Additional fees for holiday/weekend/emergency services

Payment terms (COD or Invoicing)

Types of payment accepted (this is important for bookkeeping)

Rules/Policies they have regarding pets, landlord/tenant relationships, vacant/occupied property, etc.

 

Consider using a Property Manager

In some ways, and some days, being a landlord is it’s own job. A Property Manager can take over this role on your behalf. Typically, they are able to properly price a home and adjust amenities to create more profitability. This usually offsets the low fees they charge to manage the property and is especially beneficial to people just entering the landlord world or those who have multiple properties. A good property manager already has a list of vendors so the owner doesn’t need to waste their valuable time trying to find them.

 

If you have questions about being a landlord or want more information about the roles, responsibilities and fees associated with outsourcing the landlord work by hiring a Property Management company, call 720 989 1996 and use the form below to contact Legacy Properties-PM.

Free Property Assessment

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Income Property Investors Use This Sneaky Trick

Income Property Investors Use This Sneaky Trick

Property Management

Income property investors are a brave breed. They have to stay on top of the market, have large sums of cash at their disposal, and be lucky.

Right?

Well, luck never hurts, but a great team, is really the sneaky trick income property investors use. Here are the four main things savvy income property investors know, and the team that is needed to create “luck”.

  1.      Income property investors know the reasonable costs

Understanding the costs associated with having a renter is important. These need to be measured to allow for a reasonable reserve of money for repairs, maintenance, insurance and the ‘unknown’. Much of this comes from experience, and if they are new and don’t have it yet, it is a good idea to have a Mentor- someone who has done it before. A good Home Inspector and reliable and reasonable General Contractor, must make the team. Without a clear understanding of reasonable costs, getting funding, from any source, will be difficult.

  1.      Understanding the market

Over or underpricing the rental can be very detrimental. It is important that the rental is priced correctly. At minimum, it needs to cover costs, however getting fair market value for the rent is the goal. Additionally, understanding how changes to the property can affect the rental is important as well. For example, if adding a washer and dryer hook up for $350 will bring in an additional $50/month is rent, that is valuable to know. A Property Manager understands the market and what is going to bring in the most bang for the buck. Their small management fees are typically offset by the value they bring in proper pricing to maximize profit.

  1.      Having access to legal support

Legal support is a normal part of any business venture. From reviewing contracts/leases to dealing with ending a contract, a lawyer is a key component to protecting your assets. Being on top of the law will help in resolving conflicts before they happen and having proper remedies if they escalate.

Rental income text on blackboard with 3d houseIn this category also fall a good Accountant, an investment focused Real Estate Agent and an ethical Property Manager. All three have a valuable component to offer in transacting business as an income property investor. The accountant is going to help you best discover tax savings and keep you compliant with laws around that. The Realtor is able to help protect against purchasing the endless “fixer upper” with an investment mindset. And finally, the Property Manager is going to manage the day-to-day business of managing the income property or properties. Which brings us to…

  1.      Using a Property Manager

Property Managers are like the General Manager of a business. They allow the owner (the income property investor) to focus on growth (like searching for another income property), or enjoying the growth (like playing golf Thursday morning). Property Managers manage the biggest part of the “team” which are the vendors.

Plumbing will fail. Grass will grow and snow will fall. All the needs of the homeowner, such as windows, siding, roofing, electrical and more, don’t go away. They still need to be handled and one of the roles of the Property Manager is to get good, qualified vendors in place to handle the maintenance and emergencies that come with living in a home.

The additional benefit of a Property Manager is that it their primary goal to protect the real property- the home. This means they are on top of laws and they manage the tenants themselves- from applications and background checks to making sure the home is in great condition when the tenants vacate the property. And, in the worst of scenarios, they manage an eviction, late payments and the rest of that “stuff” owners don’t want to deal with.

Income property investors can have a good business of passive income. With a great team in place to help with the business of running the day to day operations, it can be a dream lifestyle. If you have questions about becoming an income property investor, or if you already are and are looking for the support of a great team, call 720 989 1996 and contact Legacy Properties-PM today using the form below.

Free Property Assessment

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The top 3 reasons property owners change Property Management Companies

The top 3 reasons property owners change Property Management Companies

Property Management

As a Denver Metro and Aurora Colorado Property Management company, we never want to see our clients go. And there is something bittersweet about getting clients from another property management company. After all, we want our industry well represented and we want people to get a tremendous value from using a property manager, because “a rising tide lifts all boats”.

Here are the top 3 reasons we have found that causes someone to ‘jump ships’ in the property management world.

  1. Lack of Communication

This problem is certainly not unique to the property management industry. In fact, the irony of our super connected world, where you can communicate with people via dozens of methods, we suffer from lack of communication more than ever. You can call, text, email, Facebook message, leave a voice message, write a note, put a note on an invoice… yet somehow, we fail to know the BEST way to communicate with any given person, and therefore communicate in the way we like best, or sometimes, not at all. We can take for granted that the other person somehow heard from So-and-so, or will know the work was done, the bill was paid, etc. by way of NOT receiving something.

Nothing can lose a customer faster than simple lack of communication. Owners want to know expectations and they want to know results. Without these two things, it is like talking to a sail. Eventually, the owner feels ignored and they go looking for someone to talk to, someone who will listen, someone who lets them know they exist and are appreciated.

  1. Too many tenants

There are a lot of costs involved with getting a rental filled. Marketing the property, spending money on conducting background checks, and labor hours to interview prospective clients, are just a few. Owners have to cover these costs, which cuts into their profits.

When an owner is dealing with constant tenant turnover, it is a hassle, and worse, cuts into their profits.

Why is there high tenant turnover? It can be a result of:

Property Management aurora denver coloradoUnqualified tenants. The Property Manager possibly didn’t do a thorough job of screening the applicant. Even though the applicant was able to produce employment verification and the required deposit money, the employer wasn’t contacted. References, including the former landlord, weren’t called. Basically, due diligence wasn’t done and the tenant ended up being low quality. This happens sometimes- people get laid off or have medical emergencies, but when tenant turnover is high, repetitive and habitual, it is an issue with the manager.

Poor Management. If the Property Manager is neglectful of the tenant, this can result in high turnover. Ever heard the term “slumlord”? This is the term that is applied here. When the Property Manager ignores the legitimate needs of the tenant, is belligerent regarding requests or otherwise is problematic with boundaries, laws or ethics, this is a big problem, and tenants won’t stay.

Tenant Dissatisfaction. This goes hand in hand with poor management, but is separate for another reason. Sometimes the needs of the tenant changes- they moved into a one bedroom and now they have a baby on the way and want a second bedroom. This is not something that can be foreseen or controlled. But, when tenant dissatisfaction comes from the property not being maintained, or the rent is too high, those can contribute to tenant turnover. While most people will say their rent is too costly, there is the truth of what the market is barring. If comparable units are going for a third or half of your unit, tenants are likely not going to stay. A good property manager keeps up on the market trends.

  1. Lack of communication between property owner and property management

This has been said already, but needs to be said again because it is so important. Good communication should be the goal of a Property management company. Owners should expect updates on the property including inspections, any changes and always the status of vendor service orders.

Is it too much for a home rental property owner to be given an update on a repair status? We think not.

If the property management company you are using is no longer steering you the way you want to go and you are looking for a change, Legacy Properties-PM would love to help. Want to avoid the pitfalls of poorly managed, high tenant turnover companies? Call 720 989 1996 and contact Legacy Properties-PM today using the form below.

Free Property Assessment

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Thinking About Investing in an Income Property in the Denver Metro Area?

Thinking About Investing in an Income Property in the Denver Metro Area?

Property Management, Real Estate Investing

Income property investing can be tricky.

However, a property management company can help you find the right income property to invest in.

If you’re considering buying a residential property to rent out, the potential return on investment is encouraging and exciting. But sometimes choosing the right income property can be overwhelming. If you need some guidance finding the right house, condo, or townhouse to purchase, a property management company in Aurora, Centennial, Denver, Highlands Ranch or other cities, we can help.

With an income property, it’s always good to keep the big picture in mind. Over the long run, the value of the property will increase, making it a sound investment. Ideally, you’ll want to see some short-term profit too, but to do so your income must exceed your expenses. Before you purchase a property you need to consider how much the following items will cost:

  • Loan payment
  • Insurance
  • Taxes
  • Utilities (depending on whether you or the tenant will pay these)
  • Maintenance needs
  • Other dues, such as Homeowner’s Association

Next, you need to find out how much rent you can get for a specific income property.

For this, it’s best to go to an expert. Different factors will affect rent amount including:

  • Neighborhood
  • Strength of the rental market
  • Size of property
  • Updates in the unit

There’s really no need to be stressed about purchasing an income property because there’s little risk when you get a property management company with experience involved. They can tell you what to expect regarding expenses and income, and will even help you find the right place for you.

Investing in real estate by using an income property plan is a healthy way to diversify your savings portfolio. You can building a strong financial future for you and your family, rather passively.

If you’re ready to jump into buying an investment property and need some guidance, contact us. Legacy Properties-PM wants to help you as you work to leave a financial legacy for your family. Call us at 720.989.1996 or contact us.

 

5 Reasons To Hire A Property Management Company For Your Rental Property

5 Reasons To Hire A Property Management Company For Your Rental Property

Property Management

Do you own and rent out a rental property?

Owning, renting and maintaining properties in the Denver Metro area, or anywhere for that matter, can be a time-consuming, difficult task. Background screening potential renters. Collecting rent payments. Following up on maintenance and repairs. It all takes a lot of energy. The best way to avoid the work and stress involved is to hire a property management company.

Here are five of the best reasons to do so:

  1. You own more than one rental property.

    Keeping up with just one rental property is difficult, and the more rentals you own, the worse the problem gets. Running around from property to property, handling all the small things is daunting, at best. If you own multiple properties that contain several units, you may well benefit from hiring a management company.

  2. You live out-of-town.

    If you don’t live near your rental property, it is difficult to travel to and from the property to keep things running smoothly. It can also be extremely expensive, especially if you have to make a trip for a small problem. Hiring a property management company assures that the day-to-day issues are dealt with quickly and effectively.

  3. Property management isn’t your thing.

    Some people like the idea of owning a rental property, but don’t want the responsibilities of day-to-day management. Dealing with tenant complaints, collecting rent and managing maintenance is stressful, to say the least. If you are more of a hands-off property owner, a property management company will help relieve the pressure on you.

  4. You just don’t have the time.

    If you have a day job and you own one rental property, it may not be too much more work. However, if you’ve got multiple properties, it can take as much time to manage as your job does. Perhaps you just want to invest more of your time growing your rental property business. Either way, a property management company can help. You can leave the time-consuming tasks to someone else so you can focus on what’s really important to you.

  5. You don’t want to be an employer.

    At some point, you may need to hire a manager and, perhaps, other employees to help. That means you’ll have to deal with payroll, taxes and potential legal issues. You must realize that the actions of your employees can, and will, have an impact on you and your livelihood. A property management company avoids these problems and protects your interests.

Denver, Centennial,  Aurora and other city rental property owners are not always the best at managing their properties. At times, it is difficult and downright stressful to deal with all the demands. When you hire a property management company, you not only relieve the stress, but you also open up more time to focus on other things.

If you are a rental property owner looking for a reliable, experienced property management company, pick up the phone and call Legacy Properties-PM at 720.989.1996 or contact us.