720 989 1996
I’m Moving. Do I Rent or Sell My Denver Home?

I’m Moving. Do I Rent or Sell My Denver Home?

Property Management

Wondering what to do with your Denver house when you move out of the area?

The changing housing market is scary for some and seen as a cash cow for others. The options you have as a homeowner to leverage one of your largest assets is not a small feat. If you are moving out of town and have a home in Aurora, it is important to decide whether selling or renting it is the better solution for you.

 

What are your goals?

This is always the first question because it determines your next course of action. Are you wanting the investment of an income property that can send you ongoing income each month? Are you needing a lump sum of income or are you able to allow value to build in the property?

What’s my Denver home worth?

You will need to look at the sale value of your home. From that, you will see what the bottom line is from the sale. Subtract any costs associated with the sale such as Realtor fees and the mortgage and capital gains tax burden.

Contact us to get a property rental analysis to determine what rental rates your home could earn. Subtract any costs associated with the rental such as expected repairs and property manager fees. Also consider the additional tax benefits, and the effect on your wealth portfolio.

 

What is your strategy?

Once you understand and know your goals, you can make better decisions about how to achieve those goals. Knowing the value of your home- not based on emotion but instead on a market professional’s opinion, you can now see the potential return on your investment. From there, you will need a strategy to use the home as a vehicle to your goal.

If you use a home sale to reach your goal, you are looking at a single transaction and can start the home buying process again. If you use a home rental to reach your goal, you will be wanting to interview and work with a property manager.

As an out-of-area landlord, it is critical you have someone local to manage the property. Why?

  1.    Someone needs to be reviewing the property at least once a month.

It is important to stay on top of tenant issues and changes. A vacant property can easily be taken over by squatters. A tenant may attempt to make unauthorized changes or begin bad habit such as allowing the grass and weeds to become overgrown. These can create legal issues and being on top of changes will help nip any problems while they are small.

  1.    Someone needs to meet the potential tenants face to face.

Meeting the tenants, including doing a complete background check, reference check and income verification is critical. You want a high quality tenant and a legally binding lease to protect your investment. You also want to protect your property by having an agent you have designated be responsible for showing the property and following a code of ethics. Never give a lock box code to someone claiming to be an agent without proof.

  1.    Someone needs to manage your home rental investment.

Property management can be a full time job, and we are guessing you aren’t putting your house for rent because you have nothing better to do with your time. In addition to saving you time, they will be watching your investments value. For example they will be asking, “Is the rent comparable to others in the area? Which vendors do we need right now vs. what can wait?”

If you have defined your goals, or aren’t sure where to start or what is possible with using your home as a rental, contact us. If you have defined that and are needing a home value analysis, call 720 989 1996 and contact us today.

Pets in your Aurora Home rental: Should you allow it?

Pets in your Aurora Home rental: Should you allow it?

Property Management

With an estimated 72% of renters having pets, it seems homes that don’t allow pets are really disallowing themselves from getting, or keeping, renters.

But the concern is the damages pets can cause. And, if not damage, animals can lead to smells from carpet and padding stains, marking and more.

Apartments.com did a survey and discovered:

“…nine out of 10 renters have told us pet policies played a deciding role when choosing where to live.”

[source: http://corporate.apartments.com/press-room…]

Of pet owners, seventy-three percent own a dog, forty-one percent have a feline family member and thirteen percent have a small mammal, bird or other pet.

With many Americans finding value in having a pet, it seems better pet policies and planning that actually encourages pets in your rental, could be the more profitable way to go. We are also not suggesting you go at it haphazardly, however.

Tips for allowing pets in your rental

  1.   Collect a pet deposit.

Most tenants expect to pay an additional charge for their loveavble pets. The deposit shouldn’t be usurious, but rather appropriate for possible damages that can be incurred.

 

  1.   Consider creating a welcoming environment.

When an environment exists to encourage desired behavior, rather than discourage poor behavior, people are more likely to use it. Installing dog doors, doggie poo pick up bags and more can help people feel trusted.

 

  1.   Consider pet friendly yards

Using concrete paving stones rather than gravel will allow a nice looking yard without a bunch of mess. Use ornamental grasses as a fun pet area that doesn’t require a ton of upkeep.

 

  1.   Give resources

A great value you can offer is listing dog parks and pet services in the area. People who care for their pets and know they are welcome, will be more relaxed and happy in the space. Plus, well exercised dogs are less likely to cause damage. (More stable renters who stay longer? Sounds good to us!)

If you have comments, suggestions or tips on what worked or didn’t work for you in allowing pets in your rental, we would love to hear from you. Legacy Property Management specializes in helping landlords better manage their properties and we would love to hear from you. Contact us today with questions or more.

 

Free Property Assessment

[gravityform id="1" title="true" description="true" title="false"]

Finding an Investment Property to Capitalize on Renting Trends

Finding an Investment Property to Capitalize on Renting Trends

Property Management

Housing experts say the latest data shows many renters are staying put instead of buying. A new wave of renters called “shadow renters,” should soon be moving out of their parents’ homes and forming households. Now is a good time to buy an investment property in the Denver area. According to an article by nytimes.com, a recent study conducted for John Burns Real Estate Consulting shows about 14 percent of tenants who moved at the end of last year did so to buy their home place. Since 2002, the average has been close to 17 percent, which means fewer renters are transitioning into home ownership. In Denver, homes prices are high and climbing higher, which should keep the demand for rental high and vacancy rates low.

  • Depend on a property manager

When searching for an investment property in Denver or Aurora areas, touch base with a reputable property management company. A good property manager will market your rental and screen tenants as well as offer guidance about what kinds of features matter most to the millennial renters in their 20s and 30s. Experts say the millennial’s are the shadow renters who will be renting in the next several years with roommates, relatives or spouses.

  • Choose a walk-able neighborhood

From Lower Highlands (LoHi) and Capital Hill to Five Points or Uptown, there are many downtown neighborhoods that draw young renters. Many college grads migrate to Denver, but like to walk to their destinations. Some of the popular places to buy investment properties to rent out to recent college grads and others include LoHi with trendy lofts, duplexes and single family homes near restaurants and nightlife. If you want to attract families, some ideas include the 1960’s ranches in Hilltop, older homes in Congress Park and Tudor homes in Bonnie Brae. Baby boomer renters also like living in walk-able neighborhoods closing to shopping and restaurants.

  • Keep your tenants happy

After your property manager finds you reliable tenants who pay their rent on time every month, it’s important to keep them in place. Most renters like the fact that they don’t have to do their own maintenance work. At the same time, you want to know your investment property isn’t being trashed by careless tenants of any age. A good property management company protects your asset.

Legacy Properties-PM, are proud members of NARPM, the National Association of Residential Property Managers. For more information on owning investment properties in Denver and how a property manager gives you the edge, please call 720.989.1996 or contact us.