When setting financial goals for the New Year, it pays to consider your real estate net worth. For most people, the wealth they have in real estate is due to their primary residence. For people who got into real estate investing in the Denver area, the net worth statement looks positive because vacancy rates are low and market rent is high. When you hire a property management company to take care of your Denver rental properties, you will find your net worth increases without very much effort on your part. According to an article by Financial Samurai, real estate is an important part of your net worth mix that also includes stocks, bonds and risk-free CDs or money market accounts. Whether you have more of your portfolio tied up in real estate or in other investments depends on your risk tolerance and age. Some of the best communities to own rental properties include Parker, Littleton, Highlands Ranch, Cherry Creek, Aurora, Lakewood and Centennial.
Owning real estate by age 30
By the time you are 30 or older, you have enough work experience to qualify for a mortgage on your primary residence. If you purchased a home earlier in life, you are ready for real estate investing in a hot rental market such as Denver. According to Financial Samurai, a person with a medium risk level strives for 40 percent of their net worth in real estate by age 30.
Enjoying passive income in retirement
If you are a pre-retiree, you are looking for ways to boost your net worth before you claim Social Security. Owning professionally managed rental properties in Denver provide passive income when you need it most. Whether you live in another state or in the Denver metro area, you can retire in style instead of living like a pauper. According to experts, the median 401(k) balance is just $100,000, even though most retirees need significantly more to pay their bills.
Being bullish on real estate
According to another piece by Financial Samurai, the only way to take advantage of the current housing recovery is to buy more than one real estate property. Owning your own home has distinct advantages over renting. Mainly, you have a paid-off place to live when you retire. By owning rental properties, you build wealth over time. Experts point out rental yields are higher than interest rates, which are still at historically low levels. In the Denver area, property owners not only make income off their rentals, but enjoy the appreciation as the value of homes rise.
Many landlords want to hold on to the security deposits for their tenants so that they can use the funds in case the rent comes in late.
As a landlord, you might be thinking that you can use your tenants security deposit when your tenant’s rent is late, and then replenish the security deposit when the rent comes in.
This is an illegal practice called commingling which is defined as illegally using other people’s funds given to you in trust and meant for a specific purpose.
If you as a property owner renting your home in Colorado have received any information telling you that you CAN use your tenant’s security deposits to pay your bills, be careful.
As stated above this is illegal and your tenant can take you to court.
DORA requires that a Property Management company holds tenant’s security deposits in a separate trust account. Not only does this ensure that security deposits can only be used for repairs to a home, it also protects the funds from potential lawsuits made against the property management company or the landlord.
We believe the reason why some property management companies want to have the landlord hold the security deposit is simply less paperwork and the ability to have less staff, and decrease their liability.
At Legacy Properties-PM, we pride ourselves in being an outstanding member of NARPM® which holds us to a higher code of ethics.
We never have nor will we ever have a landlord hold a security deposit. We work very hard to screen all of your tenants to ensure that they WILL not have difficulty paying their rent on time. If there becomes a problem we follow a set of procedures to collect rent from delinquent tenants.
If you have received ANY communications concerning using your tenant’s security deposit for ANYTHING other than its intended use, or if you have any questions at all about security deposits and your rental home in Denver, Aurora call 720 989 1996, read our property management FAQ, or contact us.
If you own an investment property, then you know one of the biggest questions is:
What to charge for rent?
Whether you’re new to residential real estate or a seasoned veteran, this issue comes up all the time, so why not ask an expert?
Rent amount is a tricky thing, because it’s based on so many factors. The size of the property, location, and upgrades make a big difference. But one of the biggest factors is the rental market, which changes constantly. If you’re renting a house, condo, or townhouse, you need to know the market so you know how much rent to charge. Rent amounts go up and down depending on the local market, so always check in with a local expert.
You may wonder, “Is it really that big of a deal? I’m sure I can figure out how much rent to charge.” Well, you can make an educated guess, which is what a lot of landlords do, but there are ramifications for being off the mark. Charging too much or too little, even by just $25 can have consequences. Ask too much rent, and you’ll generate little interest in the property, having fewer prospective tenants to choose from. Charge too little, and you’re cutting into your profits.
So how do you know who to ask about market appropriate rent amounts? A member of the National Association of Residential Property Management (NARPM) is the perfect choice. Members of this organization show a thorough knowledge of the local rental market, and they are known for their responsibility and professionalism in the field.
and has a unique perspective on investment properties in the Denver and Aurora area because their family started out with just one property and continued to build from that small investment. You too can see your property legacy grow by deferring to their wisdom and knowledge in this area. For more information on Denver area rent amounts, call 720 989 1996 or contact us.
Everyone puts a smile on their face this time of year, but the truth is, it’s a stressful season for many people. One of the biggest problems which becomes hard to ignore this time of year is financial strain. Expectations to give gifts to others causes bank accounts to plummet, yet you’re supposed to be happy about it. Many people have found a way to bump up their income by investing in residential real estate.
With the help of our property management company, you can look forward to having a little more financial peace, both during the holidays and year round.
You may be wary of purchasing property when your finances are strained. That’s very wise, and you’re right to listen to that little voice that advises you to be cautious. But, as the old saying goes, you have to spend money to make money. We’ve found that to be true in our many years of property management experience, which is why we now make it our goal to help others achieve success through investing in real estate.
With our expertise, we can help you find a property that is the right price, in the right neighborhood, that will turn into a source of income for you and your family. Not only will we help you find the property, but we can help you manage it so your time isn’t taken up with tasks such as finding tenants, collecting rent, dealing with maintenance needs and knowing all the legal ramifications of being a landlord.
It can be hard to be in a joyful mood during the holiday season when you’ve got financial stress on your mind. If you’re having a hard time figuring out a way to increase income, investing in residential real estate may be the perfect solution. It’s how our legacy was started, and it may just turn things around for you too. For more information, contact us by calling 720-989-1996.
Legacy Properties-PM Shows Your Rental Property 7 Days A Week
We take pride in making sure we are always ready to show your Colorado Rental Property whenever your tenants are available for a tour.
With our busy schedules, touring a rental property often has to be scheduled on a weekend, so your tenants can be home from work and available to take a close look at your rental property in Colorado.
Watch our YouTube video that explains the careful pride we take in showing your home to the right tenants. We will make sure your rental property is managed better than ever.
