Property Management, Real Estate Investing
#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.
Property Management
Pests are a pain in a rental property. You’d think that a few bugs wouldn’t cause such an uproar, but they definitely pose a problem. Not only do you have to get rid of the intruders, but the tenants themselves can become pests when there’s an infestation. A property management company can help you navigate this situation because it’s often time-consuming and stressful.
If you have had investment property for any length of time, you’ve probably gotten the call about a pest problem. It usually goes something like this: “Hello, I just saw a ______ and you have to do something about it right now!” You fill in the blank. It could be roaches, bedbugs, ants, wasps, mice, or some other unwanted visitor.
In many cases, the tenants are the ones who brought in the pest. Maybe a roach caught a ride in a box from their last apartment, or they got a good deal on a used sofa that happened to have a colony of bedbugs living in it. But somehow, as the property owner, it becomes your problem to eradicate the issue.
Pest control is a time-consuming task. Even when you hire an exterminator, the problem requires monitoring to make sure it is under control. Several treatments are usually prescribed, as well as continual communication with the tenants because they will have to keep an eye out for pest activity.
In the Denver area, Legacy Properties-PM is experienced in dealing both with pests and tenants. We know exterminators who can tackle the problem effectively, and can handle the emotional calls from renters.
Property management services not only make your life easier when pest issues arise, but we take care of other maintenance issues, collect rent, enforce the lease, and review the property on a regular basis to make sure there are no problems. For more information on how we can help with your investment properties, call 720.989.1996 or contact us.
Property Management
The Millennial generation makes up a large demographic of Colorado renters in Denver, Aurora, Centennial, Parker, and more, so those who own an investment property or are thinking of buying one would be smart to find out what they are looking for. These 18-33 year olds are opinionated and know what they want. You can make your property more marketable based on this information.
So why are there so many renters from this generation? Many are just getting out of school, and have student loans and other expenses to pay, so renting seems like the better option to them. Those on the older end of the spectrum may still be recovering from the economic slump, and a little shy to jump into home ownership just yet. Others just don’t want to have the responsibility, preferring to hold off on the burden of paying taxes and home maintenance for a little while.
But many of these millennials don’t want to compromise in what they want. For the most part, they want a place that is updated, stylish, and conducive to entertaining. Granite counters, stainless steel appliances, open concept, and an outdoor living space are just some of the things on the top of their list. A condo or townhouse that offers amenities such as a pool or fitness center is also attractive to many from this generation.
If you currently own an income property and are thinking of doing some upgrades, this type of information may steer your decisions in a way that will attract more renters. If you’re considering purchasing a property for the purpose of renting it out, you can look for something that checks off some of these things on a millennial’s “must-have” list.
Whether you’re a seasoned landlord or just starting out, owning an investment property is a great way to build a financial future for you and your family. If the day-to-day details such as filling a vacancy, collecting rent, or handling maintenance issues gets to be overwhelming, call 720.989.1996 or contact us. Legacy Properties-PM, property management company can help with these things while you continue to enjoy the financial benefits of your investment.
