When many people think about a real estate investing strategy, they often look only at properties in their own geographic area.
This might be a wise idea if a person plans on dealing with all the landlord responsibilities themselves, or doesn’t have a property manager they feel confident in, but a quality property management company can open up a whole new world.
Thinking about having to travel by plane or long road trip to visit and check on your property can cause anxiety. Some people never even consider it because they start to ask themselves, “What do I do if the tenant doesn’t send the rent? What if there’s an urgent maintenance issue, like a broken furnace or a leak in the roof? How do I know the renters are taking care of the place and not trashing the property?” Obviously it’s not an option to travel every time an issue comes up, but with a well-qualified property management company, there’s no need to fret over these questions.
In the greater Denver and Aurora area, Legacy Properties-PM is a property management company that takes care of everything on your list of concerns. Because they started out managing their own properties, they are experts at showing and renting you property, taking care of leasing paperwork, collecting rent, dealing with maintenance needs, performing property reviews, and even evicting tenants.
Whether you live close by or the other side of the country, there’s no need to worry when you have an experienced property management company that truly cares about your property and your investment.
When you hire Legacy Properties-PM, a property management company you can trust, it opens doors to other markets for investments. The Denver market is busy with people constantly moving to the region to take advantage of all the area has to offer. If investing in this area is something you’d like to consider, Legacy Properties-PM can even help you find a desirable property at a great price.
If you’re ready to think outside the box and invest in a single family home, condo, or townhouse in the greater Denver area, contact us or call 720.989.1996.
Even if you live out of town, our property management services make it a great option for investors.
Working to get your rental property “rent ready” doesn’t have to cost a ton of money. For less than $1,000, you can make high-impact home improvements that will please renters in the Denver area. Whether you already own a rental or like the idea of real estate investing in Littleton, Aurora, Lakewood, Centennial Parker, Highlands Ranch or Cherry Creek, certain cosmetic upgrades are universally appealing to renters. Don’t forget to also give your rental property a thorough cleaning and to hire an established property management company to market your listing, perform background checks on tenants and enforce the lease. Many real estate investors are good at finding profitable rental homes, but don’t like being the “tough guys” when it comes to enforcing a lease and evicting tenants. One of the fun parts of real estate investing is getting to fix up a home so it’s attractive to renters. According to a recent piece by time.com, you can do a lot with a budget of just $1,000.
Giving the kitchen a makeover
While $1,000 won’t allow you to put in custom cabinets and exotic solid hardwood floors, it will pay for an upgraded stainless steel refrigerator or new tile backsplash. Inexpensive improvements include painting, changing old electrical outlets and putting in new baseboards.
Freshening up the powder room
For a renter, the perfect bathroom is spotless. If you are renting out a home that you used to live in, don’t leave the old shower curtains or lighting fixtures. Your property management company will let the prospective renters know the shower curtains or any other accessory you have left new. Unless the toilet is spotless, consider replacing the bathroom bowl.
Upgrading the lighting
Many rental properties have old and outdated lighting. Your rental property will stand out if you put modern decorative lights in the entryway and pendant lighting in the eat-in kitchen area or above a kitchen island. You can find hip and modern decorative lighting for less than $1,000 as well as a few upgraded ceiling fans.
After you spend money with your real estate investment, make sure you protect your investment. A good property manager will find you good tenants who pay their rent on time and don’t damage your rental home. At Legacy Properties-PM, are members of the National Association of Residential Property Managers (NARPM). For more information on real estate investing in the booming Denver rental market, please call 720.989.1996 or contact us.
If you have never rented out a home before, you likely have worries shared by many first-time landlords. With the help of a Denver property management company, you can enjoy the benefits of real estate investing without the drawbacks. With soaring rental prices in Denver, Aurora, Parker, and more cities, it makes sense to keep your residence instead of selling it. People who are new to real estate investing often have questions about how the change will affect their financial situation.
Will it stop me from getting another mortgage?
Because lending requirements aren’t as strict as they once were, you will likely qualify for a mortgage on a second home in your new location. Some lenders ask for evidence to show you intend to rent out or sell your current residence before they will give you a loan at a lower interest rate for your new residence. As long as you will occupy the new residence, you are eligible for easier lending terms such as a 5 percent down payment instead of the 20 percent for investors. Your lender won’t place any restrictions on what you do with your former residence, but you typically require that you not rent out your new (owner-occupied) residence for at least one year.
Do I have to stay on call?
Another concern new landlords have is that they will have to do all the repairs themselves or hire different contractors. By working with an experienced Denver property management company, it’s a burden off your shoulders. A property manager enforces the lease, finds qualified tenants and maintains your rental property. If you relocate to another part of the country, you won’t have to fly out to check on your rental home every few weeks. You won’t receive any urgent phone calls in the middle of the night, although your property manager might.
Can I sell when the market goes up?
Some people become reluctant landlords because they owe more money on their home than they can get by selling the home. Other people feel excited about real estate investing because they know rents are strong. According to an article by the Christian Science Monitor, Denver experienced the biggest rent hike this year. Even though rent has skyrocketed in the Mile High City, you may offer residents a reasonable rent. If you are making a profit and your tenants are happy, keep a competitive edge. When you are ready, you are free to stop using a property manager and list your rental home for sale. Many investors get so accustomed to the tax breaks and easy cash flow that they decide to expand their real estate investing portfolio instead of reducing it.
Even if you never thought you’d own a rental property before, we can help you manage all the details. At Legacy Properties-PM, we work with people who own only one rental home in Denver as well as experienced investors with several lofts, condos or homes in Denver’s hip neighborhoods. We are proud members of NARPM, the National Association of Residential Property Managers. For more information on real estate investing in Denver and surrounding areas, please call 720.989.1996 or contact us.
The Ease of Obtaining a Mortgage
Now is a great time to consider buying a second or third home in Denver, Aurora and throughout Colorado and using it to increase your financial legacy.
Coming into the Summer of 2015, mortgages are becoming more simple to obtain. Some recent rule changes and comments by Mel Watt , director of the Federal Housing Finance Agency:
“the government and mortgage bankers are at least discussing moving in the proper direction and making it easier for borrowers to get a loan.”
In July 2014, The Federal Reserve reported that mortgage lenders are easing up on their requirements such credit score requirements and debt ratio requirements are being softened up this Summer.
This allows for lenders to accept mortgage borrowers with lower credit scores and higher debts.
In the past, lenders have does this to try to compensate when volume goes down by easing these credit restrictions and, in turn, allowing for more loans.
There was evidence that this occurred in 2014, and it is likely what is going to take place in the Summer of 2015, so now is a great time to contact your realtor and invest in a colorado rental home property.
Not only is it easier to obtain financing for your new rental home, Home Values themselves continue to rise.
The real estate housing market tends to vary from state to state or even city to city when involving national pricing trends. While that generally is the rule of thumb, national averages like the S&P/Case-Shiller Home Price Index typically do act as a general gauge of where things are headed.
In Colorado, all signs indicate that home values are moving upward and will continue to do so.
Another recent Case-Shiller report provided data that prices rose about 5-6% within the past year, further proving that now is a great time to literally “make your move”. There are several Colorado analysts and economists who predict another 5-6% rise in home prices during the upcoming Summer of 2015.
Ready to make your move? Contact Legacy Properties-PM and we will connect you with the best real estate agents in Denver, and then work with you to manage your new Colorado Home Rental Property and grow your Legacy.
As home values rise in Colorado, and mortgages are easier to obtain, now is a great time to buy a home and have it rented out and managed by us. Wherever your rental home is in Colorado: Denver, Aurora, Parker, Highlands Ranch, Littleton, and beyond just to name a few. Give us, Legacy Properties-PM a call today @ 720.989.1996 or contact us to set up a consultation.
A dining room is nonessential for some renters, but having plenty of “flex space” can draw tenants to your Denver rental. When investing in single-family homes, trendy lofts or condos in Denver, you will likely find some homes with formal dining rooms and some with only eat-in kitchen areas. Although having at least three bedrooms and two bathrooms is ideal, having flex space commands higher rent. For help with your real estate investing questions, talk to an experienced Denver property manager who knows what today’s renters want.
- If your tenants work at home
For tenants who work at home or need extra space, a dining room can often work well as a “flex space.” If your tenants entertain a lot by fixing family style meals, a dining room is not superfluous. At the same time, there are easy ways to work around not having a formal living room space. If you invest in a property with a dining room but rent out to people who eat out all the time, your tenants can still put it to good use as a home office or playroom.
- If your tenants entertain
Because many renters in Denver like to entertain and have fun, look for investment properties with rooftop decks or outdoor living space. Look for an open layout. If the rental doesn’t have a formal dining room, tenants can place serving plates on a bar between the kitchen and Great Room or set up tables topped with attractive tablecloths. Some renters put bar stools at a breakfast bar as well as a small table in an eat-in kitchen area. When entertaining, guests can mingle in the main room or on a deck or patio.
In general, the number of bathrooms, bedrooms and square footage dictates the rental price. In Denver, rent pricing are climbing fast. According to an article by cbsnews.com, rents in Denver went up more than 5 percent each year since 2010. In 2014, Denver rent went up a whopping 9.2 percent.
At Legacy Properties-PM, we are members of NARPM, the National Association of Residential Property Managers. For more information on real estate investing in Denver, and Aurora or surrounding areas, please call 720.989.1996 or contact us.