How do I pick a good property manager?

How do I pick a good property manager?

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.

 

Top 4 Real Estate Investor Mistakes

Top 4 Real Estate Investor Mistakes

#1 - Thinking that ALL investments are comparable-

For example, stocks and bonds are not going to bring in the same return as real estate. People often say they want to buy real estate to get better returns than their stock, bond or bank account can provide. Real estate is an asset that can come with many stresses, such as, challenging tenants, annoying/opinionated neighbors, broken pipes, clogged toilets and much more.

An asset, like rental property does not allow you to just look at a statement of your account once a month, as with a stock or bond. Owning rental properties is a business, it can be time consuming and stressful. Make sure you think before you invest in a rental property.

#2 - Having the idea or belief that “flipping” properties is investing

Most real estate buyers see “flipping” homes as a constant speculation. In other words, they never know what will happen next when fixing and updating the property. Unfortunately, most of these buyers lose money. Sure, it looks easy on TV with reality shows or do-it-yourself shows, the internet makes everything look easy and profitable; but none of that media is realistic. The truth is, that not everything you see on TV or on the Internet is true!

#3 - Having the belief that real estate investing is low risk

Oh Boy! Buying, owning and maintaining real estate has many risks. Risks, such as, drop in real estate market or home values, having serious home improvement that may not have been foreseen, or ever rising interest rates with mortgages and insurance.

There are few smart and experienced investors that can maneuver their way through these risks. Most investors do not, leaving them exposed to countless items and issues that can and sometimes do become financially painful.

#4 - Believing it’s a “turn-key” real estate deal

Which means to earn money with almost no work on the you, the investor’s, part? As they say, LOL, or to be put more simply, not going to happen! If you believe getting into a real estate property as an investment is going to be easy then you need to re-think.

These are just a few of the many mistakes that investors can make when it comes to investing in real estate. Experience will teach you the most during your real estate investing time. Just try to avoid the big expensive mistakes that could beat you in the end and put a halt to your real estate investing all together.  Be careful, do your own homework, but verify your own conclusions.

If you’re already a investment property owner and in need of the best Property Management Company in Denver, Aurora & surrounding areas, look no further than Legacy Properties-PM. Make sure your investment brings a less stressful return. We have helped hundreds of rental owners to ease the involvement of the investment. Call 720.989.1996 or contact us.

This Father’s Day, Let a Property Management Company Help You Leave a Legacy

This Father’s Day, Let a Property Management Company Help You Leave a Legacy

Fathers have a lot on their shoulders, and sometimes it’s difficult to keep all the balls in the air as they juggle their responsibilities. For Dads that have residential rentals, Father’s Day might be the perfect time to team up with a property management company in the Denver, Aurora or Centennial area.

With parenting, you have one shot to do it right. There are no do-overs, and the time goes fast. One minutes you’re watching your little one take her first steps, the next she’s walking across the stage to receive her diploma. If you have the heart to be a great father, but investment properties are intruding on your time, it’s important to make some changes so your children can grow up with the legacy of having a Dad who was present and available during all the important moments.

Does this sound familiar to you? Missing school concerts, making calls while your child is playing in a sporting event, and your phone buzzing in your pocket during a recital or other performance. Responsibilities such as finding a tenant, collecting rent, or dealing with maintenance issues have to be taken care of, but you may find yourself frustrated that there aren’t enough hours in the day and those needs start creep in on family time.

In the Denver area, Legacy Properties-PM is a property management company who values family. Our own business was started by our grandfather, so we know a little something about legacies. Many people choose investing in real estate so they can provide a stronger financial foundation for their family, but it’s important to also leave a legacy as a father who was present and available during the important moments of their children’s lives.

If you feel you need to shift your focus back to family, while continuing to build your financial legacy, call 720.989.1996 or contact us. We’ll be happy to help with the details of managing the property so you can focus on enjoying time with your children. From all of us at Legacy Properties-PM, have a Happy Father’s Day!

Real Estate Investing: Sell or Rent Out Your Denver Home?

Real Estate Investing: Sell or Rent Out Your Denver Home?

If you have never rented out a home before, you likely have worries shared by many first-time landlords. With the help of a Denver property management company, you can enjoy the benefits of real estate investing without the drawbacks. With soaring rental prices in Denver, Aurora, Parker, and more cities, it makes sense to keep your residence instead of selling it. People who are new to real estate investing often have questions about how the change will affect their financial situation.

Will it stop me from getting another mortgage?

Because lending requirements aren’t as strict as they once were, you will likely qualify for a mortgage on a second home in your new location. Some lenders ask for evidence to show you intend to rent out or sell your current residence before they will give you a loan at a lower interest rate for your new residence. As long as you will occupy the new residence, you are eligible for easier lending terms such as a 5 percent down payment instead of the 20 percent for investors. Your lender won’t place any restrictions on what you do with your former residence, but you typically require that you not rent out your new (owner-occupied) residence for at least one year.

Do I have to stay on call?

Another concern new landlords have is that they will have to do all the repairs themselves or hire different contractors. By working with an experienced Denver property management company, it’s a burden off your shoulders. A property manager enforces the lease, finds qualified tenants and maintains your rental property. If you relocate to another part of the country, you won’t have to fly out to check on your rental home every few weeks. You won’t receive any urgent phone calls in the middle of the night, although your property manager might.

Can I sell when the market goes up?

Some people become reluctant landlords because they owe more money on their home than they can get by selling the home. Other people feel excited about real estate investing because they know rents are strong. According to an article by the Christian Science Monitor, Denver experienced the biggest rent hike this year. Even though rent has skyrocketed in the Mile High City, you may offer residents a reasonable rent. If you are making a profit and your tenants are happy, keep a competitive edge. When you are ready, you are free to stop using a property manager and list your rental home for sale. Many investors get so accustomed to the tax breaks and easy cash flow that they decide to expand their real estate investing portfolio instead of reducing it.

Even if you never thought you’d own a rental property before, we can help you manage all the details. At Legacy Properties-PM, we work with people who own only one rental home in Denver as well as experienced investors with several lofts, condos or homes in Denver’s hip neighborhoods. We are proud members of NARPM, the National Association of Residential Property Managers. For more information on real estate investing in Denver and surrounding areas, please call 720.989.1996 or contact us.

What Is the Difference Between a Condo and an Apartment?

What Is the Difference Between a Condo and an Apartment?

difference between a condo and an apartment

What is the difference between a condo and an apartment?

The main difference between a condo and an apartment basically comes down to whether they are individually or privately owned, owned by a corporation, or by a management company.

What is a Condo?

A condominium, or condo for short, is often a property that is shared and contains individually owned units/residences. Coming from a legal standpoint this means basically that when you purchase an apartment you can call yourself a condo owner.

What is an Apartment?

Apartment is a term that almost always applies to a building or buildings with units that are rented out. Most times a corporation runs the complex of buildings and residences.  One management company manages all residents versus a private landlord.

More about the difference between a condo and an apartment:

Condominiums usually offer services and facilities to condo owners, such as maintenance repairs, lawn care, pools, gyms and club houses. Many of these services, like clubhouses, exercise facilities, and pools are also offered in apartment complexes, but are not required to be maintained by the owner of each unit.

Condo owners or their tenants must follow all set regulations and policies of the condominium’s homeowners association. This often includes, monthly association fees, requires owners to maintain a specific type of appearance outside and around the premises of the residence and pet restrictions in and around the property of the community.

The difference between a condo and an apartment in this aspect is that apartments are not considered to be in a shared community. This is because fees and maintenance are already included in rental costs and taken care of by the management company.

If you’re a condo owner looking to rent your property, look no further than Legacy Properties-PM. There are special rules to keep the difference between a condo and an apartment clear within communities. As an elite property management company that services Denver, Aurora, Parker, Highlands Ranch, Centennial, Littleton, Westminster and more cities in Colorado, we can help. Call 720.989.1996 or contact us.