Finding a tenant for a vacant residential property isn’t rocket science. You advertise the property, take phone calls, set up appointments to show the house or condo, and then fill out paperwork. A general application should get you the information you need, and that’s all there is to it, right? Why hire a property management company when anyone can do that much?
Quite honestly, it’s the experience that makes the difference. At Legacy Properties-PM, we’ve been placing tenants for decades, and you learn a thing or two in that time. Applicants can look relatively equal on paper, so you have to know what to look for.
For instance, sometimes we have several applicants for a vacancy, and they all appear to be responsible people with verified employment and money for a security deposit and first month’s lease. But maybe we happened to take a peek in the car of one of the applicants when they came out to see the property. Clothes, fast food wrappers, and other garbage covered the floor. How a person takes care of their own property is an indicator of how well they will take care of yours.
Another person showed up late to the appointment, and didn’t really give an explanation or apology. That shows a disregard for other people’s time. And yet another spoke rather rudely, and informed us that they would be signing the lease and moving in the next day. It’s never easy to manage a person that doesn’t recognize who is the person in authority in the situation.
None of these criteria are on paper, but experience and a watchful eye provides us information we can use to choose the best tenant for your property. This information, combined with the application, credit report, and background check provides an assurance that your tenant will take care of your property, pay the rent on time, and abide by the terms of the lease.
If you own investment property in the Denver area and would like to know how Legacy Properties-PM’s experienced property management team can help you find the best tenants, call 720.989.1996 or contact us.
Spotting a good deal is paramount for real estate investors in Aurora. Whether you buy a banked-owned foreclosure online or work with a Realtor to find traditional sales, look for value when hunting for your first rental. House hunting for a property you will use as a rental is a little different from hunting for a home you will occupy. When you buy a home for yourself, you follow a different timeline for making improvements. With real estate investing, you want to get your property rent ready in as short of an amount of time as possible. By hiring a residential property management company, you receive the guidance needed to generate income from your rental home. According to an article by Investopedia, there are several features to look for when trying to identify a profitable rental home.
Renters pay more for homes in better neighborhoods because they feel motivated by highly ranked schools and their perceptions of better safety and prestige. In Colorado, some of the best areas to find rentals include Aurora, Denver, Highlands Ranch, Littleton, Lakewood, Parker, Cherry Creek and Centennial. According to Investopedia, where you buy will attract different kinds of renters. For example, if you buy a rental near a college campus, you’ll likely attract students and instructors.
- Checking out the property taxes
Before choosing a rental, check out the property taxes. Your property manager will give you an idea of the market rent for the specific home you plan to buy so you know whether the market rent will easily cover higher property taxes as well as home owner association fees.
When you tour a home, pay attention to whether the necessary improvements are costly or fairly cosmetic and easy. Only an inspector and building contractor can give you a complete estimate of cost and issues. However, you can determine whether a home has potential as a rental. Can you change out a few lighting fixtures, paint and buy upgraded cabinets or appliances?
Your property manager will market your rental home to draw qualified tenants. If you own a rental that’s less than 20 years old, in a good neighborhood, close to amenities and has at least three bedrooms and two bathrooms, you’ll attract a higher rent. Instead of trying to guess the going rent in a neighborhood and what renters want, talk to experts. If possible, buy a rental home that will appeal to millennials since experts believe they will continue to delay home ownership.
At Legacy Properties-PM, we give all of our clients our undivided attention. We are a stellar property management service company in the Aurora area and proud members of the NARPM, the National Association of Residential Property Managers. For more information on real estate investing in Aurora, call 720.989.1996 or please contact us.
When you decide to purchase an investment property, there are some things you know you will have to deal with, both positive and negative. You hope that you will see some return on your investment, but also know that it will require some time put into maintenance, collecting rent, and other responsibilities. Because you never know when something will come up that needs attention, many landlords find themselves surprised with how tied down they feel with their rental properties.
Everyone needs to get away once in awhile. Family vacations and weekend trips are essential to finding balance in your life. But many property owners literally feel like a slave to their properties. What if something comes up while you are out of town? What would happen if there was a major plumbing leak, or the heat stops working in the middle of winter? How would you make sure the rent was collected or who would mow the grass? All these “What if’s” add up to property owners who never want to leave town, and families who are frustrated.
A property management company can take the responsibilities off your shoulders so it’s easy to get away. Finding great tenants, depositing rent, evaluating maintenance needs, and even making periodic reviews of the property will be taken care of, so you no longer need to be in town to take care of the day-to-day details of owning an income property.
The benefits don’t stop when you get back into town, though. Property management services continue around the clock, 24 hours a day, 7 days a week, so even when you’re home, you can focus on other things such as your family, hobbies, or job without the constant thought in the back of your mind that something in the investment property needs your attention.
If you own investment property in the Denver area, Legacy Properties-PM is a family-oriented company that wants you and your family to have time together, whether it’s taking a day trip to hike through the Garden of the Gods in Colorado Springs, a week in Hawaii, or a month-long cross-country adventure. Owning investment properties doesn’t need to tie you down, so call 720.989.1996 or contact us for more information.
If you own Denver or Aurora residential investment property, then you know how much work it takes to keep up with things.
Leasing paperwork, collecting rent, and dealing with maintenance issues are just a few of the time-consuming tasks, and if you’re like most owners, you may wonder if it might be better to hire someone else to carry some of the load. As an investor, the question that probably comes to mind is “How much do property management companies charge?” There are two different approaches to this, and it’s important to know what you’re getting before signing on with any property management company.
Property management costs vary depending on the market you’re in and how the business is organized. Some companies charge a flat fee each month for management. In several major metropolitan cities, the average seems to be about $80.
Other companies price property management services on a percentage of the rent. On average, companies usually ask for about 10% of the rent collected.
covers services such as collecting rent, working with vendors to coordinate maintenance needs, conducting property reviews, and keeping track of financial records. Sometimes there is an additional leasing fee, other times that cost is included in the property management services.
In addition, most property management companies offer additional services. Tenant placement services include thorough checks and investigation to make sure you’re getting a quality, responsible renter and is usually a one-time fee. Some companies charge as little as 50% of the monthly rental amount, all the way up to 2 times the rental amount.
While the fees can be confusing, there are two questions owners must ask. First, is the company you’re considering capable and trustworthy? Second, how does hiring a property manager change the situation?
To find a reliable company, find out if they are a member of NARPM, the National Association of Residential Property Managers. This ensures they are ethical, professional, and at the top of their field, knowing the ins and outs of their local market.
A quality property management company will change the situation for the better. First, they take over much of the responsibility, freeing up your time. Second, as experts in the field, they have knowledge that will save you money in the long run. Maybe they discover your property could go for a higher monthly rent, or they have contacts with local vendors who do better quality work for less. That, in addition to the fact that property management fees are typically tax deductible, means the monthly fees are well worth it in the long run.
In the Denver, Aurora, and Parker Colorado area, Legacy Properties-PM is an experienced property management company that is associated with NARPM. Our management fees are 10% of the monthly rent, as well as a leasing fee of 35% of the first month’s rent. If you wish to take advantage of tenant placement services, they cost 50% of one month’s rent. For more information on our services and fees, please call 720.989.1996 or contact us.