Property Management
There are associations for just about everything these days, and putting a bunch of letters after your name doesn’t always mean much, but in the case of the National Association of Residential Property Managers (NARPM), you want to pay attention.
These are true stories that have happened when investment property owners put their trust in a manager who either doesn’t know the business or is trying to make a quick buck. If you own a rental property and hire the services of a property manager who is not a member of NARPM, these are some of the things you can expect:
- A property manager collected the rent for an apartment, and agreed to hold on to it until the owner picked it up. Instead, he spent the cash when faced with a personal “emergency.”
- Instead of hiring a plumber as agreed upon, the property manager tried to replace a section of pipe that wasn’t draining properly himself. In his new design, the water has to go uphill to drain, which means he must not have learned about gravity in school.
- Another property manager pressed for cash decided to upgrade the property owner’s plumbing system. He removed all the copper pipes and sold them.
- An owner was forced to evict a tenant for non-payment, and the manager said he could handle it. Unfortunately, he didn’t know the proper procedures and the case was thrown out when it got to court. After paying court fees, the tenant got to stay while the owner re-started the process.
These cases may be the extreme, but the fact is, anybody can claim to be a property manager. Even without any business expertise, knowledge of local regulations, skills to take care of maintenance issues, or just general ethics, a person can call themselves a manager and take your money without doing much to help you.
When you hire a property manager who is a member of NARPM, you can rest assured you won’t have to deal with any of these issues. Members are experts on local and national codes and regulations, do their work with great professionalism, and are held to a high level of integrity and honesty.
In you own an investment property in the Denver area, and are looking for a property manager who is a member of NARPM, please call 720.989.1996 or contact us. Legacy Properties-PM’s experience combined with our commitment to serving property owners makes us the best choice when you’re looking for someone to manage your real estate investment.
Property Management
If you have a job that requires you to move around a lot or can’t figure out where to put down roots, it’s smart to rent. At the same time, just because you are a renter doesn’t mean you can’t own an investment property to earn passive income. Many tax advisers and financial experts point out that a rental property is a better investment than a personal residence due to tax advantages and other factors. Buying an investment property in Denver can give you exceptional return on your investment because of the high demand for lofts, townhouses, condos and single-family homes in the popular communities of Denver as well as Highlands Ranch, Lakewood, Aurora, Parker, Littleton, Cherry Creek and Centennial.
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Realizing superior tax benefits
When you own a home that is your primary residence, you can only deduct your property insurance and property taxes if you itemize your deductions. In many cases, homeowners come out a head with a standard deduction instead. However, if you own an investment property, you get to deduct the cost of a property management company and the cost of all maintenance and repairs. Because the IRS treats owning rental properties more like a business, the tax benefits are more advantageous for the investor than they are for the person who owns a primary residence.
As a renter, you can opt for a short-term lease if you have plans to travel or only work in an area for part of the year. Meanwhile, your rental property could generate steady cash flow to supplement your income and pay for your living expenses. Hiring a Denver property management company to manage your properties means you can focus on your family and career or other business ventures without needing to come to Denver.
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Letting real estate do your work
According to an article by Realtor Mag, investing in real estate is one of the best ways to achieve financial goals. Experts say no other type of investment increases net worth the way real estate does. Although stocks go up and down in value, your rental property will likely appreciate over time. While you supplement your income with the cash flow, you still own the underlying asset (the rental home.)
One last tip for people who rent their primary residence instead of owning it is to buy rental properties in a Denver neighborhood where they could imagine living themselves. Your gut instinct about what you would like often pays off. Being a renter yourself, you will have greater insight into what your tenants would appreciate. At Legacy Properties-PM, we belong to the NARPM, the National Association of Residential Property Managers. For more information on getting the help you need to manage your investment property in the Denver area, please call 720 989 1996 or contact us.
