Property Management
Those who own investment properties know things come in waves. Sometimes all is quiet and you think this is the easiest gig ever, and other times you just want to throw your phone off the nearest bridge because it won’t stop ringing. Unfortunately it comes with the territory, and landlords may relate to a day like this:
The property owner woke up on a cold winter morning to a text message informing him that the heat wasn’t working in the downstairs unit. This 2-unit apartment has a double boiler system, and unfortunately, that one was at the end of its life. Knowing the time was approaching, the landlord had already purchased a boiler and had it in the basement and it was just a matter of installing it. So, after a call to a plumber, the landlord went off to his regular job, satisfied that the problem would be taken care of, even if the tenant still calls every hour to complain.
Mid-morning he gets a call from the upstairs tenant complaining about the downstairs tenant. It’s not about something important, such as an aggressive dog, or suspicion of drug activity. He’s complaining that she talks too loud when she’s on the phone and it’s interrupting his sleep. At 10AM. And this guy doesn’t work the night shift. After telling the guy to work it out himself, and a reminder that he will be stopping by at 5:00 for the rent that is past due, the landlord gets back to work.
5:00 arrives and the property owner leaves his regular job to stop at the apartment. The first task is to collect the late rent from the upstairs tenant who assured him he would have it ready. But despite a lot of knocking and phone calls, Mr. Upstairs is conveniently not home. Then, he heads to the basement to see the progress on the boiler job. He’s thankful to find out the plumber is just finishing up, but has a hefty bill for him due to the pricey materials needed to hook up the new system. As he shows him the work he has done they hear the shower turn on in the downstairs apartment and water starts to drain through the pipes. The landlord starts to write the plumber a check and as he’s signing it they hear an odd noise, turn to investigate and at that moment, the valve from the shower drain gives way, covering them both with dirty, soapy water.
If there was anything good from the situation, the plumber was already there and willing to fix it immediately. At that time, the landlord got a text message from the upstairs tenant saying his car broke down, and that is, of course, the reason he wasn’t there to pay the rent. The landlord heads home without the rent, another plumbing bill to pay, and the saga continues the next day.
This is a true story, of a landlord with just one 2-unit property. If this landlord had taken advantage of property management services, he wouldn’t have had to deal with any of this. Maintenance calls, rent collection, and finding better tenants to begin with are just a few of the perks that a property management company provides. If you own investment property in Denver, Aurora, Centennial, Parker, Littleton or Highlands Ranch area, don’t be like this landlord. To avoid hassles like this, please call Legacy Properties-PM @ 720.989.1996 or contact us.
Property Management
From the time children are very little, parents are told to start saving for college. It’s true that the cost of higher education continues to rise, and financial aid isn’t as generous as it once was, so it is important to plan ahead. To avoid suffocating amounts of student loans, saving is essential. Unfortunately, even with the best intentions, many families don’t have anything left over after paying monthly bills to start a nest egg for education. This is where an investment property can make a big difference.
A wise investment in residential property will provide you with some extra funds that will grow if put in a college savings account. It’s true that even a little bit every month will add up, so if you jump into real estate while your kids are young, you’ll be able to really watch your investment grow. Even if your children are teenagers, you still have the potential to realize some significant savings before they graduate.
With the right property and healthy management, you will probably see your savings grow from month-to-month profit, but you’ll also gain equity in the property. After many years, you could even sell the property and use that money towards college bills, or possibly take out a home equity loan if needed.
In the Denver & Aurora area, Legacy Properties-PM knows the importance of family. We’re a successful third generation family business that exists because of the wisdom our grandfather saw in investing in real estate. Now we want to help other families build their legacies and realize financial stability by using the things we’ve learned.
Our property management services can help you find a property to invest in, as well as take care of a lot of the responsibilities along the way, so it won’t be a burden on you. We screen tenants, take care of leasing and licensing paperwork, collect rent, deal with maintenance problems and even evict tenants if necessary.
If you’re concerned because you haven’t been able to start saving for your children’s college education, you’re not alone. You may need additional income to set aside for the future. To find out more about doing that through investing in real estate, please call 720 989 1996 or contact us.
Property Management
The numbers are really indisputable. Wise investors know that putting some money into real estate will bring a return on investment that’s better than any bank account, and, in many cases, better than traditional CD’s or mutual funds. Maybe you have the money to invest, but you’re not sure if you have what it takes to be a landlord. There are situations when you can’t be nice. Business requires a certain level of assertiveness and if that’s holding you back, a residential property management service such as Legacy Properties-PM can help.
A property management company can help owners in several areas, but if being tough is one of your weaknesses, consider what you would do in any of these situations:
- You’re trying to find a quality renter, but need more information to make the best decision. Would you ask prospective tenants for social security numbers to do background and credit checks? Will you call previous landlords and employers to verify their information?
- A tenant hasn’t paid the rent on time, and keeps asking for extensions or won’t answer calls.
- You discover there has been damage to the property that goes beyond normal wear and tear.
- Tenants are keeping pets that are not permitted according to the lease.
- It appears that the tenant’s extended family came for a visit and has decided to move in permanently.
- You need to evict a tenant.
The last situation, evictions, can be especially tricky. For a property owner who is too nice, a bad situation usually goes on way too long before eviction is considered, leaving the owner with loss of income and other problems. Eviction also requires legal knowledge of policy and procedure which must be followed closely for a successful decision in favor of the property owner.
If you’d like to invest in residential property, but feel like some of these situations would be hard for you to handle due to your kind and forgiving nature, let us be the bad guy. Our experience in dealing with tenants who don’t follow the rules will serve you well when unpleasant circumstances arise. For more information on property management services, look to Legacy Properties-PM in the Denver or Aurora area, call 720 989 1996 or contact us.
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Property Management
When discussing investment properties, one of the most common comments that comes up is “I’d like to buy an income property, but I’m not handy.” Many people seem to have a phobia about jumping into real estate investment because of their inability to take care of maintenance needs, but you shouldn’t let that hold you back.
When you partner with Legacy Properties-PM in the Denver, Aurora, Centennial, or Parker areas, you don’t have to break out into a sweat whenever you get a call that something needs to be fixed. First, you won’t even get the call. Tenants will call us directly and we will evaluate the situation. Second, we’ll take care of getting it fixed. Whether we use someone on our staff to take care of the repair, or we need to call in one of our trusted contractors, you don’t need to worry about it.
Does the thought of paying for maintenance leave you concerned about finances? We understand. After all, you are in it for the investment. When things break, it does cost money to fix them, but we make every effort to keep costs down. Our experience gives us the advantage of being able to fix common issues quickly, and for larger jobs, we have relationships with local contractors who will do the job right at a fair price. Many people make a great profit on their rental properties without ever lifting a hammer, so don’t let it stop you.
What else is holding you back when it comes to jumping into real estate investment? The idea of finding responsible tenants for your property? Collecting rent? Dealing with needy tenants? Or possibly having to go through an eviction process? We can take care of all of these issues, so don’t let small issues get in your way. Whether you’re a current property owner who is struggling, or someone who is just starting out, please call 720.989.1996 or contact us. We would love to be part of your team.
Property Management, Real Estate Investing
For many retirees, rental properties in Denver provide much-needed income to supplement withdrawals from a retirement account and Social Security. Real estate investing can help you now as well as help your descendents through an inheritance. You can educate your children and grandchildren about the Denver rental market so they can have financial security even after you have passed away. If your children aren’t handy, they can rely on the expertise of professional landlords or property managers. When your children inherit your Denver rental properties, they will have something more tangible and meaningful than money.
- Understanding tax ramifications
According to an article by The Nest, your benefactors will be eligible for depreciation of the property to offset the rental income and decrease taxes owed on the rental income. A tax advisor will help your beneficiary figure out all the tax ramifications as well as the cost basis. The value of the rental home is the fair market value when you died minus the land value.
- Lining up a property manager
Even if you prefer being a DIY landlord, you can help your beneficiary by having a reputable Denver property manager take over your responsibilities. Once you are free of having to chase down the rent payment every month, you will have more time to enjoy retirement. Your children won’t have to worry about how to market the property, get market rent, screen prospective tenants or respond to maintenance requests. Also, if a bad apple ever gets in the mix, they won’t have to worry about the legal hassles of evicting a tenant.
Your financial planner can help you figure out the best way to go about buying more rental properties in Denver if you want to expand your real estate portfolio. Some people like to use a self-directed IRA to buy real estate, while others buy with cash with the future generations in mind. With rent costs escalating, it’s a good time to own rental properties. Your children can use the rental income to pay their own mortgages or help them run a business. At Legacy Properties-PM, we believe in treating our clients like family. We are proud members of the NARPM, the National Association of Residential Property Managers. For more information on leaving an estate with savvy real estate investing in Aurora, Denver, Highlands Ranch and more, please call 720 989 1996 or contact us.
