Property Management, Real Estate Investing
When setting financial goals for the New Year, it pays to consider your real estate net worth. For most people, the wealth they have in real estate is due to their primary residence. For people who got into real estate investing in the Denver area, the net worth statement looks positive because vacancy rates are low and market rent is high. When you hire a property management company to take care of your Denver rental properties, you will find your net worth increases without very much effort on your part. According to an article by Financial Samurai, real estate is an important part of your net worth mix that also includes stocks, bonds and risk-free CDs or money market accounts. Whether you have more of your portfolio tied up in real estate or in other investments depends on your risk tolerance and age. Some of the best communities to own rental properties include Parker, Littleton, Highlands Ranch, Cherry Creek, Aurora, Lakewood and Centennial.
Owning real estate by age 30
By the time you are 30 or older, you have enough work experience to qualify for a mortgage on your primary residence. If you purchased a home earlier in life, you are ready for real estate investing in a hot rental market such as Denver. According to Financial Samurai, a person with a medium risk level strives for 40 percent of their net worth in real estate by age 30.
Enjoying passive income in retirement
If you are a pre-retiree, you are looking for ways to boost your net worth before you claim Social Security. Owning professionally managed rental properties in Denver provide passive income when you need it most. Whether you live in another state or in the Denver metro area, you can retire in style instead of living like a pauper. According to experts, the median 401(k) balance is just $100,000, even though most retirees need significantly more to pay their bills.
Being bullish on real estate
According to another piece by Financial Samurai, the only way to take advantage of the current housing recovery is to buy more than one real estate property. Owning your own home has distinct advantages over renting. Mainly, you have a paid-off place to live when you retire. By owning rental properties, you build wealth over time. Experts point out rental yields are higher than interest rates, which are still at historically low levels. In the Denver area, property owners not only make income off their rentals, but enjoy the appreciation as the value of homes rise.
If you want to get into real estate investing in Denver, don’t go it alone. At Legacy Properties-PM, handle your property management needs. We are members of the NARPM, the National Association of Residential Property Managers. For more information on building your net worth through real estate investing, please call 720 989 1996 or contact us.
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, 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.
Real Estate Investing
Investing in real estate can yield profits, but what direction should you take?
If you’re thinking of investing in real estate, you may feel overwhelmed with the choices out there. Should you buy a single family house, or a condo? There are advantages to both, but what it usually comes down to is what renters are looking for. Maybe these thoughts will help you make a decision.
Investing in Real Estate: Condos
Condos are an attractive choice to many younger renters because it offers them lifestyle choices such as an on-site pool, tennis courts, and fitness facilities. Owners may also like the fact that outdoor maintenance is taken care of so there’s no concerns about who is shoveling snow or mowing the lawn. But you will have to pay a Condo association fee which cuts into profits, and some condos don’t allow renters so that’s something to look into before making a down payment.
Investing in Real Estate: Single Family House
Many investors find success in buying a single family house. Families with children enjoy having a private yard, as well as a little more space and privacy than a condo provides. While there is more maintenance, most tenants will agree to take care of upkeep on the yard and driveway. In the long run, these properties also usually appreciate more than a condo too.
It may seem like a house is the better choice, but things are never that simple. When you’re looking at the real estate market, you have to consider all the factors, including location and price. A rock bottom deal on a condo in a desired location in may be a better choice than a house in a questionable setting.
The best course of action is to get some input from someone familiar with your community who is an expert in reading the market, and finding a property that is a good choice based on price, location, and quality. If you’re in the Denver or Aurora area, Legacy Properties-PM is happy to help you get started with your Colorado real estate investment. For more information, call 720 989 1996 or contact us.
