Property Management
Choosing the best tenant for your investment property can be the difference between loss or profit. As a landlord you want tenants that treat your property like their own. So where do you begin?
Advertise Your Property Wisely
You may not realize it, but advertising is the first step to screening potential tenants. Today landlords have many different ways to get the word out about their property. While putting a rental sign in your window, listing with a realtor, and adding the vacancy to sites like Zillow and Craigslist might be the first thing that comes to mind, don’t overlook the value of social media.
Sites like Twitter and Facebook are a great way to advertise to potential tenants. There’s probably a page on Facebook for landlords in your area to advertise their rentals. Also, don’t overlook the obvious. Word of mouth, print ads, and advertising on bulletin boards have filled rentals. But remember to choose wisely where you advertise. A bulletin board in a coffee shop near a college will attract a different tenant than one in a community center in a stable neighborhood.
Screen Your Tenants Carefully
So your advertising produced a list of prospects. Now it’s time to screen your potential tenants. Many landlords don’t want to offend by asking personal questions, but this isn’t about discrimination. Since you must adhere to the Federal Fair Housing Rules, it’s about protecting your investment. Don’t be afraid to ask hard questions when interviewing. In the very least, conduct a criminal background check verifying the prospect’s name and date of birth with a valid i.d. In addition, run a credit check and verify their income. By taking care of these issues up front, you’ll be able to quickly disqualify the more irresponsible tenants from the more trustworthy ones.
Having to evict a tenant can be aggravating and costly, but with carefully planned advertising and screening it can be prevented. Taking the time to do things properly yourself or by hiring a property management company will get you one step closer to finding the best tenant for your investment property. Call Legacy Properties-PM @ 720.989.1996 or please contact us.
Property Management
Spotting a good deal is paramount for real estate investors in Aurora. Whether you buy a banked-owned foreclosure online or work with a Realtor to find traditional sales, look for value when hunting for your first rental. House hunting for a property you will use as a rental is a little different from hunting for a home you will occupy. When you buy a home for yourself, you follow a different timeline for making improvements. With real estate investing, you want to get your property rent ready in as short of an amount of time as possible. By hiring a residential property management company, you receive the guidance needed to generate income from your rental home. According to an article by Investopedia, there are several features to look for when trying to identify a profitable rental home.
Renters pay more for homes in better neighborhoods because they feel motivated by highly ranked schools and their perceptions of better safety and prestige. In Colorado, some of the best areas to find rentals include Aurora, Denver, Highlands Ranch, Littleton, Lakewood, Parker, Cherry Creek and Centennial. According to Investopedia, where you buy will attract different kinds of renters. For example, if you buy a rental near a college campus, you’ll likely attract students and instructors.
- Checking out the property taxes
Before choosing a rental, check out the property taxes. Your property manager will give you an idea of the market rent for the specific home you plan to buy so you know whether the market rent will easily cover higher property taxes as well as home owner association fees.
When you tour a home, pay attention to whether the necessary improvements are costly or fairly cosmetic and easy. Only an inspector and building contractor can give you a complete estimate of cost and issues. However, you can determine whether a home has potential as a rental. Can you change out a few lighting fixtures, paint and buy upgraded cabinets or appliances?
Your property manager will market your rental home to draw qualified tenants. If you own a rental that’s less than 20 years old, in a good neighborhood, close to amenities and has at least three bedrooms and two bathrooms, you’ll attract a higher rent. Instead of trying to guess the going rent in a neighborhood and what renters want, talk to experts. If possible, buy a rental home that will appeal to millennials since experts believe they will continue to delay home ownership.
At Legacy Properties-PM, we give all of our clients our undivided attention. We are a stellar property management service company in the Aurora area and proud members of the NARPM, the National Association of Residential Property Managers. For more information on real estate investing in Aurora, call 720.989.1996 or please contact us.
Property Management
When you decide to purchase an investment property, there are some things you know you will have to deal with, both positive and negative. You hope that you will see some return on your investment, but also know that it will require some time put into maintenance, collecting rent, and other responsibilities. Because you never know when something will come up that needs attention, many landlords find themselves surprised with how tied down they feel with their rental properties.
Everyone needs to get away once in awhile. Family vacations and weekend trips are essential to finding balance in your life. But many property owners literally feel like a slave to their properties. What if something comes up while you are out of town? What would happen if there was a major plumbing leak, or the heat stops working in the middle of winter? How would you make sure the rent was collected or who would mow the grass? All these “What if’s” add up to property owners who never want to leave town, and families who are frustrated.
A property management company can take the responsibilities off your shoulders so it’s easy to get away. Finding great tenants, depositing rent, evaluating maintenance needs, and even making periodic reviews of the property will be taken care of, so you no longer need to be in town to take care of the day-to-day details of owning an income property.
The benefits don’t stop when you get back into town, though. Property management services continue around the clock, 24 hours a day, 7 days a week, so even when you’re home, you can focus on other things such as your family, hobbies, or job without the constant thought in the back of your mind that something in the investment property needs your attention.
If you own investment property in the Denver area, Legacy Properties-PM is a family-oriented company that wants you and your family to have time together, whether it’s taking a day trip to hike through the Garden of the Gods in Colorado Springs, a week in Hawaii, or a month-long cross-country adventure. Owning investment properties doesn’t need to tie you down, so call 720.989.1996 or contact us for more information.
Property Management
April 15th is just around the corner. If you’re really on the ball, your federal and state taxes are already submitted, but if not, there’s no need to panic just yet. You’ve got plenty of time and some things to consider. If you’re expecting a refund from your taxes this year, maybe it’s time to think about investing it. If you have ever considered real estate, this is a great time to talk to a residential property management company.
Many people get so excited about the unexpected money that they blow it on something they think they really want. Sales of new cars, televisions, and vacation packages increase this time of the year for a good reason. But once that new car smell wears off or the vacation is over, many people probably wish they’d made a wiser choice.
That income tax return could make a nice down payment on a house, condo, or townhouse that you can rent out to improve your family’s financial health. In the long run, you’ll build equity in the property, but residential real estate also gives you the opportunity to increase your income now when you make a smart investment.
Not sure where to start? An experienced property management company that keeps up with the local market can advise you. In the Denver area, Legacy Properties-PM can help you find real estate that is a sound investment. We know what tenants are looking for, and the right property will make finding responsible renters easy.
If you’re not sure you have the time or inclination to be a landlord, our property management services can take care of most of the work for you. From finding tenants and taking care of the leasing paperwork, to collecting rent and fielding maintenance calls, our services allow you to reap the benefits of making a wise financial investment without taking up a lot of your time.
This year, don’t blow your income tax return on something frivolous. Make a wise investment that will start a financial legacy for your family. Legacy Properties-PM can help you with the process, so call 720.989.1996 or contact us for more information.
Property Management
If you own Denver or Aurora residential investment property, then you know how much work it takes to keep up with things.
Leasing paperwork, collecting rent, and dealing with maintenance issues are just a few of the time-consuming tasks, and if you’re like most owners, you may wonder if it might be better to hire someone else to carry some of the load. As an investor, the question that probably comes to mind is “How much do property management companies charge?” There are two different approaches to this, and it’s important to know what you’re getting before signing on with any property management company.
Property management costs vary depending on the market you’re in and how the business is organized. Some companies charge a flat fee each month for management. In several major metropolitan cities, the average seems to be about $80.
Other companies price property management services on a percentage of the rent. On average, companies usually ask for about 10% of the rent collected.
Property Management
covers services such as collecting rent, working with vendors to coordinate maintenance needs, conducting property reviews, and keeping track of financial records. Sometimes there is an additional leasing fee, other times that cost is included in the property management services.
In addition, most property management companies offer additional services. Tenant placement services include thorough checks and investigation to make sure you’re getting a quality, responsible renter and is usually a one-time fee. Some companies charge as little as 50% of the monthly rental amount, all the way up to 2 times the rental amount.
While the fees can be confusing, there are two questions owners must ask. First, is the company you’re considering capable and trustworthy? Second, how does hiring a property manager change the situation?
To find a reliable company, find out if they are a member of NARPM, the National Association of Residential Property Managers. This ensures they are ethical, professional, and at the top of their field, knowing the ins and outs of their local market.
A quality property management company will change the situation for the better. First, they take over much of the responsibility, freeing up your time. Second, as experts in the field, they have knowledge that will save you money in the long run. Maybe they discover your property could go for a higher monthly rent, or they have contacts with local vendors who do better quality work for less. That, in addition to the fact that property management fees are typically tax deductible, means the monthly fees are well worth it in the long run.
In the Denver, Aurora, and Parker Colorado area, Legacy Properties-PM is an experienced property management company that is associated with NARPM. Our management fees are 10% of the monthly rent, as well as a leasing fee of 35% of the first month’s rent. If you wish to take advantage of tenant placement services, they cost 50% of one month’s rent. For more information on our services and fees, please call 720.989.1996 or contact us.
