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:
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.
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.
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.
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.
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.
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.