Property Management
Have you heard this?
“For a discount in rent, I will fix it?”
It’s extremely common for a tenant to offer to fix things on your rental. But should you allow an agreement when the tenant makes improvements in exchange for a break on the rent? Or do you have a tenant who offers to do the work for free as long as he or she is reimbursed for the cost of the paint, flooring or other supplies?
While most tenants have only but good intentions, it’s not advisable to get into such deals where the tenant makes improvements. What may have started out as a small kitchen painting project may end up costing you instead of saving you money.
For example, if the tenant makes improvements by painting the exterior. It could be a color that’s not approved by the Covenant. Or, they could damages something expensive by spilling glue or paint.
By relying on an experienced property management company, you can rest assured the work done to your home is handled only by trained professionals. All changes will be overseen by your property manager.
Worried about ‘tenant makes improvements’ issues?
Check up on your rental home tenants
A property manager can check up on your tenants, in case they took the liberty to make changes to the property. Even if the tenant makes improvements they have been given permission on, they may make other cosmetic changes or cause damage. Some tenants don’t see the line between acceptable decorating and changing the existing structure of a home.
It’s not appropriate for you to pop in on your tenants. Your property management company knows the local, state and federal laws. They will do a monthly exterior review of the property that’s random as well as a regular interior review that is scheduled with the tenant in advance. If you tenant puts up garish wallpaper, you will find out.
Work with the proper vendors
Your Denver-area property manager will let the tenants know if there are any problems with the property that they need to address or arrange to have the proper Colorado vendor take care of issues. Only insured, licensed and bonded technicians and workers should be allowed to do work on your property.
Your tenant may even have the proper skills, but if the tenant makes improvements, they may later fail and you could have no remedy. Or, the solution could become very muddy. For example, you may have a tenant who claims to be a trained architect, it’s still not a good idea to allow the tenant to re-configure the layout of the great room and kitchen by knocking down walls. They could later say they improved the home value and want additional proceeds.
Keep in the loop
There are times a tenant may take advantage of a landlord, especially a reluctant one. Some landlords fell into the being one by accident- needing to move but couldn’t sell, or from a home inheritance. When the tenant makes improvements it is very common area for unknowing landlords to be taken advantage of.
A reliable and reputable Denver property manger will keep you updated on your property, so you lessen this risk. You should receive property reports on the interior and exterior reviews as well as financial reports to be used for filing taxes.
At Legacy Properties-PM, we take pride in being members of NARPM (Natl. Asso. of Residential Property Managers). For more information on property management in Denver and areas including Cherry Creek, Lakewood, Aurora, Littleton, Parker, Highlands Ranch and Centennial, please call 720.989.1996 or contact us.
You tenant may say they can fix it, but at what cost?
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Aurora, Denver, Property Management
Legacy Properties-PM CAN get you the most rent for your investment home by careful research and comparisons of the most recent rent prices in your area. I am Devin Bewley, CEO of Legacy Properties-PM, and I use only the best software programs to help me compare rent prices around your neighborhood, and I have special access to data that the public does not.
The average property management company may use a basic free program to compare rental prices in their client’s area. When looking at this comparison, the rent prices range over a year period and a much larger demographic area than is really necessary to get an accurate’ comparison. With the information below a 2 bedroom home going for $800.00 a month is considered “reasonable” in the area around the specified address. This means only a B+ grade versus the A++ grade Legacy Properties-PM gets.
Why does our property management company deserve a superior grade when it comes to our rental comparison? Because we spend the extra time and effort to research the rent in your area much more accurately. We do this by lessening the demographic area near your rental home from 1 or more miles to a .3 mile area instead. As well as, shortening the time of recent rent rates in that area, for example comparing the last 3 months versus the last year (See below).
When we take the time and effort to get accurate rental comparisons for your Aurora or Denver rental home, you can be assured you are getting the best rent for your home. Legacy Properties-PM is here to help you with your rental investment today. Call us at 720.989.1996 or contact us.
Aurora, Denver, Property Management
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.
Property Management, Real Estate Investing
When many people think about a real estate investing strategy, they often look only at properties in their own geographic area.
This might be a wise idea if a person plans on dealing with all the landlord responsibilities themselves, or doesn’t have a property manager they feel confident in, but a quality property management company can open up a whole new world.
Thinking about having to travel by plane or long road trip to visit and check on your property can cause anxiety. Some people never even consider it because they start to ask themselves, “What do I do if the tenant doesn’t send the rent? What if there’s an urgent maintenance issue, like a broken furnace or a leak in the roof? How do I know the renters are taking care of the place and not trashing the property?” Obviously it’s not an option to travel every time an issue comes up, but with a well-qualified property management company, there’s no need to fret over these questions.
In the greater Denver and Aurora area, Legacy Properties-PM is a property management company that takes care of everything on your list of concerns. Because they started out managing their own properties, they are experts at showing and renting you property, taking care of leasing paperwork, collecting rent, dealing with maintenance needs, performing property reviews, and even evicting tenants.
Whether you live close by or the other side of the country, there’s no need to worry when you have an experienced property management company that truly cares about your property and your investment.
When you hire Legacy Properties-PM, a property management company you can trust, it opens doors to other markets for investments. The Denver market is busy with people constantly moving to the region to take advantage of all the area has to offer. If investing in this area is something you’d like to consider, Legacy Properties-PM can even help you find a desirable property at a great price.
If you’re ready to think outside the box and invest in a single family home, condo, or townhouse in the greater Denver area, contact us or call 720.989.1996.
Even if you live out of town, our property management services make it a great option for investors.
Aurora, Denver, Property Management, Real Estate Investing
Should you take the plunge?
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.
Aurora, Denver, Property Management
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.
