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.
Investment properties can be very expensive. In fact, real estate is often the most expensive thing many people spend their money on. This can pose a problem for many potential investors. However, there are a number of options for financing a residential property. At least one of these options will be possible in a surprising number of cases, and often, multiple options might be possible. Let’s explore a few of the most common choices.
This is the most common form of financing for a residential property. This requires the buyer to approach a bank and go through an application process. This requires a lot of paperwork, a credit check, and approval of the property, among many other things. If the bank approves the loan, the buyer must pay a sum of money in the form of a down payment and is usually required to offer some form of collateral. This is almost always the property that is being purchased, but doesn’t have to be.
Seller financing can be a little more tricky, because individual sellers tend to be less consistent than banks. However, if it works out, this can be a very efficient way to borrow money. A seller financed loan means that the payments are made directly to the seller over time, rather than the bank acting as a middle man. Because sellers are individual people, and because they’re often much more motivated to complete the sale than the bank is, they are likely to give a buyer much better terms on the loan. This could come in the form of a lower down payment, a lower interest rate, or payments that fluctuate over time according to the buyer’s ability to pay rather than interest rates.
Although it is rarely possible for a buyer to pay in cash, it can be a very successful option if you have the money. In this case, the cash is directly turned into an asset, and there are no loans to worry about. You also won’t have to worry about the potential of losing the property as collateral. Possibly the biggest benefit of paying in cash is that you won’t have to pay any interest. This could save you a lot of money.
This is probably the least common way to pay for property, but if you already own a piece of property that you no longer want, it’s possible that the seller may accept it instead of payment. It’s also possible to combine a trade with some of the other options. For example, if you finance a purchase through the seller, you may be able to make the down payment a house you already own that isn’t worth very much.
Need some more help with your residential property? Legacy Properties-PM is here in Denver, Aurora, Parker and more. Call 720.989.1996 or Contact us! We can help with anything you need, and we’ll be there from beginning to end.
If you own residential investment properties, then you know the amount of work it takes to keep everything running smoothly. Finding quality tenants, collecting rent, dealing with maintenance calls, and enforcing the lease are just a few of the responsibilities that consume time and energy. A property management company can take the burden off of the owner by handling the day-to-day responsibilities, but it is important to find the best one to ensure your investment is being handled effectively. This list of questions will help you find the best manager for your property.
- How many years have you been managing properties? You don’t want to pick someone who is just starting out. Lack of experience may cause more headaches than just managing the property yourself.
- How many properties do you currently manage? One person can manage 30-40 properties, not including accounting responsibilities. Ask how many employees they have and do the math to figure out if they can give your property the attention it needs.
- Do you have referrals from previous or former clients?
- How do you handle maintenance issues? At what point does the manager contact you? When the repair gets to a certain dollar amount? How do they keep you apprised of the situation?
- How often do you perform property reviews? Exterior and interior reviews should be scheduled regularly to ensure the unit is being cared for.
- How is rent paid and deposited to my account?
- What financial records do you provide? Are there monthly statements available, and if so, how are they accessed?
- How do you communicate with tenants and owners? Is there a 24-hour phone number tenants can call with problems? Some larger companies offer an online portal for tenants and owners to access their account information and contact the managing company.
- How much do you charge for your services? Some companies charge a flat fee, while others do a percentage of the rent. Make sure it’s comparable to other reputable companies. Remember you get what you pay for.
- Are you a member of NARPM? Members of the National Association of Rental Property Managers are the cream of the crop when it comes to professionalism, dependability, and knowledge of the local market.
A professional property management company will be able to answer all of these questions without any qualms or hesitation. From their answers, you’ll be able to tell whether they are the right fit for your investment. If you own income property in the Denver area, call Legacy Properties-PM @ 720.989.1996 or contact us and we will be happy to answer your questions about our property management services.
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.
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.