Just a Few Simple Reasons Renting Can Be Better Than Buying
Reason #1: You can change your location whenever you want
Owning a home and raising a family are top priorities for some people. Settling down and finding a safe and homey suburb to live in for the next ten to twenty years is perfect for that. On the other hand, there are quite a few people who aren’t sure where they’ll be next year, let alone in a decade. This makes the idea and option of buying a home a not so feasible option.
When you rent, you have the flexibility to move next month or next year without the stress of having to find renters for your home and/or maintain a property remotely.
Reason #2: If the water heater breaks as a renter you don’t pay for it
As a renter, surrounded by homeowners you’re sure to witness the hidden costs involved in owning a home. “A friend of mine recently had to have her heater replaced and consequently ate baked beans for four months afterwards.” says renter Jackie Smith. When you rent, it’s the home owners/landlords responsibility to pay for the repairs on and in the property.
“It’s nice to not have to drop a couple of grand per year on things like curtains, hot water systems and replacing toilet cisterns,” says Jackie.
Reason #3: Renting can be less pricey than buying
People many times buy a house as a way to save money, they do this by putting most of their monies into a home and property where it can’t be touched, rather than a bank account where it’s always accessible for withdrawal. Instead of buying a home though, one can save just as well with paying rent and putting the extra money in a high returns investment bank account rather than buying property.
Whether you rent or buy, it’s important that you do what’s right for your own circumstances and your own financial situation. If you are a homeowner looking to rent out your home or a tenant looking for a new home to rent, call Legacy Properties-PM at 720.989.1996 or contact us. We proudly serve many Denver areas including Aurora, Centennial, Highlands Ranch and Parker.
You’ve weighed the pros and cons and have decided it’s time to move.
Maybe you’ve been transferred to your current company or are taking a new position, but the result is the same. You’ve put the “For Sale” sign up in your front yard but haven’t gotten a solid offer, and it’s starting to weigh on you. Instead of taking too little for the house, consider the benefits of renting it out. It may seem like a hassle, but our expert rental property management company in Denver and the surrounding cities (such as Aurora & Centennial) can make it an easy decision.
One of the biggest concerns a homeowner has about renting their house when they won’t be nearby is how to handle all the logistics. A professional rental property management company can take care of every detail, including advertising, showing, and leasing the property. They will collect rent, take care of maintenance issues, and if needed, even evict a tenant.
Another major worry is whether the house will fall into disrepair with renters living in it. You can be assured our rental property management company will keep an close eye on your property as if it were our own. We do random exterior inspections once a month to make sure everything looks good from the outside. Then, once a quarter we do an interior inspection. We also ask any vendors who go into the house to report any issues to us. If there are any problems, the tenants are given seven days to take care of the problem, or we will deal with it and send the bill to them.
If you’re moving out of town and would like to discuss renting your house, look no further than Legacy Properties-PM, call 720.989.1996 or contact us. It may be a wise financial decision given the current market, and it would provide an additional investment that will build equity in the long-term. Most properties have the added benefit of making a monthly profit as well, so the decision to rent rather than sell may be in your best interest.
#1 - Thinking that ALL investments are comparable-
For example, stocks and bonds are not going to bring in the same return as real estate. People often say they want to buy real estate to get better returns than their stock, bond or bank account can provide. Real estate is an asset that can come with many stresses, such as, challenging tenants, annoying/opinionated neighbors, broken pipes, clogged toilets and much more.
An asset, like rental property does not allow you to just look at a statement of your account once a month, as with a stock or bond. Owning rental properties is a business, it can be time consuming and stressful. Make sure you think before you invest in a rental property.
#2 - Having the idea or belief that “flipping” properties is investing
Most real estate buyers see “flipping” homes as a constant speculation. In other words, they never know what will happen next when fixing and updating the property. Unfortunately, most of these buyers lose money. Sure, it looks easy on TV with reality shows or do-it-yourself shows, the internet makes everything look easy and profitable; but none of that media is realistic. The truth is, that not everything you see on TV or on the Internet is true!
#3 - Having the belief that real estate investing is low risk
Oh Boy! Buying, owning and maintaining real estate has many risks. Risks, such as, drop in real estate market or home values, having serious home improvement that may not have been foreseen, or ever rising interest rates with mortgages and insurance.
There are few smart and experienced investors that can maneuver their way through these risks. Most investors do not, leaving them exposed to countless items and issues that can and sometimes do become financially painful.
#4 - Believing it’s a “turn-key” real estate deal
Which means to earn money with almost no work on the you, the investor’s, part? As they say, LOL, or to be put more simply, not going to happen! If you believe getting into a real estate property as an investment is going to be easy then you need to re-think.
These are just a few of the many mistakes that investors can make when it comes to investing in real estate. Experience will teach you the most during your real estate investing time. Just try to avoid the big expensive mistakes that could beat you in the end and put a halt to your real estate investing all together. Be careful, do your own homework, but verify your own conclusions.
If you’re already a investment property owner and in need of the best Property Management Company in Denver, Aurora & surrounding areas, look no further than Legacy Properties-PM. Make sure your investment brings a less stressful return. We have helped hundreds of rental owners to ease the involvement of the investment. Call 720.989.1996 or contact us.
Mother’s Day is just around the corner, and we want to take a few minutes to honor all the Moms who work so hard to keep everything running smoothly. Whether their children are in diapers, college, or even grown adults, mothers continually put their children first, and help or guide them in any way they can. This year, we would like to say Happy Mother’s Day and offer residential property management to all the Moms out there.
Maybe your family has already taken the plunge and invested in real estate. If so, you know the challenges it can present to your family. Sometimes things come up at inopportune times. A furnace that stops working when the family has the flu, a leaky roof while you’re away on vacation, or a late rent payment when you were really counting on that money. A property management company can take care of all of the little details that cause stress and aggravation, allowing your family to continue to hold onto the investment without having to deal with any of the day-to-day details.
Other moms really want to do something to contribute financially to their family but have a hard time finding something that works for their schedule. With a traditional job, Moms feel pulled between work and home, constantly trying to find a balance. Some do it very well, but others find details such as finding babysitters, dealing with sick kids, and wanting to volunteer for things like field trips difficult to deal with.
Investing in residential property could be the answer for Moms who want to have a schedule that puts family first, yet has the possibility for bringing in some income. With the right investments and a property management company to help, being a stay-at-home Mom may be more profitable than trying to juggle a 9 to 5 job.
Whatever your situation, we want to wish all the mothers a wonderful day. We are a family-based business who understands what it means to work hard to build your family’s legacy. If you’re ready to find out more about investing in real estate in Aurora, Denver or surrounding areas we can help, contact us at Legacy Properties-PM or call 720.989.1996
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.