DenCo Property Management Blog

Housing Market Overview: Reasons to Have a Residential Investment Property


July 12, 2017

If you are looking for an alternative way to make money and have an interest in the housing market, you may want to consider owning a residential investment property.

With many benefits - especially the longer you have the investment - investment properties can assist with extra income, instead of many different types of employment.

Is this something you want to consider?


Learn the benefits of investment, tips to getting started with an investment property and the types of tax deductions you will receive as a property owner.

1. Benefits of Investment

The benefit about owning real estate long term is the return on your investment.

When buying in popular areas where housing prices increase in value each year, the longer you own the property, the more money you could potentially make down the road on a sale.

Or imagine this: When renting your property to tenants, you will typically be able to cover the cost of the mortgage and add to your savings fund. Plus, when you purchase a property when interest rates are at historic lows, this will help you make even more on the investment.

Plus - the current market in Denver is full of people interested in renting, so finding a suitable tenant should be fairly easy to manage.

2. Tips to Get Started

When you are ready to invest in a rental property, there are a few key steps to take…

Step 1: Look for up and coming areas that people want to live in. The more in-demand will help you easily rent a property out at a profitable price. You will also need to do your research when it comes to price so it is comparable with other homes and apartments in the area.

Step 2: Once you find a property to buy, consider any upkeep or issues it may have. You will need to budget for issues that may arise.

Step 3: If you plan on being hands-off, you can work with a property manager to handle the day-to-day with your tenants. You can incorporate them into your investment and still make money with little to no work on your end.

For an in-depth look for those looking to explore this industry, read REtipster’s, The Beginner’s Guide to Buying Rental Properties (a case study).

3. Tax Deductions

As a property owner, you will qualify for many great tax deductions and benefits. It is important you take advantage of these to help you with your return on your investment. One of the tax deductions you can qualify for are any repairs you need to make. This will help in that initial stage if you are prepared and pay for repairs, you will get some of that back. Next, you can also deduct insurance as a landlord too. You can also write-off interest on the home as well. If the home depreciates in value, that is also a tax write-off too.

Are you ready to become a property owner? DenCO Property Management and Sales will help. We are a property management and sales company that will manage your rental so you can focus on other priorities. Take a look at our information for Denver property owners and let us help. Contact us at 303-722-9688 today to get started.
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Tips for Working with Your Denver Real Estate Tenants and Using a Property Manager


June 28, 2017

Being a landlord is a great way to make a steady income. Owning a home or building used for tenants can provide a consistent business that in many cases, is hands-off. However, it takes work and there are best practices you as a landlord can follow. Learn about these through initial introductions, dealing with issues and the benefits of using a property manager for any aspect of your rental.

Initial Introductions

As a landlord, it is important to have a system of business in place before seeking out tenants. Your paperwork should be ready to go and all stipulations needed should be written into a lease agreement. This can include things such as can the tenants have pets? Are there rules for modifications they should make? When is rent due and what are their options to pay? What will the security deposit be? From there, choose potential tenants that can meet the stipulations and have the income to pay the rent each month, and on time. Also, as you are meeting prospective tenants, it is important that you understand their rights as well. Read more about landlord & tenant rights and information from the Colorado government website.

Dealing with Unexpected Issues

As a landlord, you might be faced with some unexpected issues. For instance, your tenants might be late on rent, make unapproved modifications to the property, are loud and disruptive to neighbors or have pets when they are not authorized. In these cases, it is best to work with the tenant directly in a calm matter. While some situations, such as rent payments, they might be stuck in a financial crisis. For other situations, they may or may not have intentionally handled a situation incorrectly. Depending on your situation, you can work with them on the issue. You will want to address these issues as soon as possible for many of these issues.

Benefits of Using a Property Manager

Whether you are a new landlord or have multiple properties, consider bringing on a property manager to help with your property or properties. A property manager can help with any part of the rental process to handle the day-to-day tasks of owning investment properties. They are also the face to your tenants and have experience working with them. In addition, a property manager can assist with maintenance requests which can take up time for landlords with little experience. In the long run the savings are large. Last, property managers work with all the billing. They will collect rent and handle any disputes or issues along the way.
 
Are you looking for help with your rental properties? DenCo Property Management and Sales has you covered. Have you considered renting out your home? Investment real estate benefits are great, and working with us as your property manager will make the process seamless. Whether you need help with payment and maintenance, our services make your job as landlord much easier. We are here to help you any step along the way with your properties. To get started, call us at 303-722-9688 today.
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Benefits of Renting from a Denver Property Management Company


June 14, 2017

Are you in the market to rent a new home? Consider renting from a Denver property management company. Through a property manager, you can find a variety of homes that meet your needs and can expect exceptional service for your next home. As you look for your next place to move, learn more about the reasons to rent a house, how utilizing a property management company can help you have a great experience and tips for searching for a rental property.

Reasons to Rent a House

For many, purchasing a home is a long-term goal. However, that doesn’t mean it is a bad thing to rent. In fact, there are several perks to renting a Denver home! To start, renting is a great option for those who plan on moving at least once within a five-year time-period. Typically, when you buy, you should plan on staying somewhere for five to seven years. It is also a great option if you do not have the funds or ability to handle the fixes when things break down, such as an appliance or air conditioning. As a homeowner you will be responsible for making sure these things get fixed. Renting is also a great opportunity to help you prepare to buy. You can choose to rent in an area where costs are low to save up for your down payment. It also helps to rent when you are in a market where housing prices are high like Denver.

How a Property Management Company Can Make a Great Home

Some people choose to rent from an individual. While it can be a good experience, it also can be hard for one person to manage. When you have something go wrong or need help, you are at the mercy of their schedule. When renting from a property manager, or a landlord that has things ran through a property management company, you can trust that you as a customer, you are their top priority. There are precautions in place to help you whenever you need something. As opposed to a single person, a property management company will ensure your house is up-to-date and applies by all standards. Also, by using a property manager, you usually have easier methods of payment than a single landlord.

Tips for Searching for a Rental

As you look for a rental to make your next home, there are a few key factors to consider. Think about size and amenities that matter to you. Next, consider area and your commute to work. If you are looking for a short commute, you can easily find homes that help reduce that. Also, consider any additional fees that might be included with the home, such as parking. These fees are typical for buildings in a downtown area. There are a variety of other factors to consider for your next rental. For ideas, read HGTV’s 5 Steps to Finding the Perfect Rental Home.
 
Are you getting ready to search for your new rental home? DenCO Property Management and Sales can help. Check out our latest available Denver properties for rent in the Denver, Colorado area to find the perfect rental home for you.
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​Top Electrical Upgrades to Make to Your Denver Real Estate


May 17, 2017

When you are remodeling or considering upgrades to a home or apartment complex, you may have simply forgotten about the electrical needs. Many remodeling projects need updated electrical for functional and safety needs, also upgrading the lighting can complement your remodel and add a high end touch. From overall home or apartment upgrades to kitchen and bathroom remodeling, learn about some of the top updates to make to your Denver real estate pop.

Overall Home Upgrades

Depending on the age of your home or apartment complex, you may need rewiring. With all of the technology and appliances we use today, your old wiring might not be capable of handling your needs or the needs of your tenants. In many cases your old wiring may no longer meet code. If you notice warning signs such as fuses being blown frequently, lights that flicker or seem dimmer than they should be or a spark coming out of an outlet, it might be time to consider a rewire. In addition, if you do not have ground fault circuit interrupter (GFCI) outlets in rooms where there is water, you will need those added for safety. You can have a local electrician assess your property and inform you of what you will need to do for the project. Then during your rewire project, you can add additional outlets to places that would be more convenient. It is also a great time to add plugs to accommodate your devices that include portlets for items such as USB.

Kitchens and Bathrooms

Kitchens and bathroom are two rooms in a home that get frequent electrical use. For kitchens, adding in outlets to accommodate any of your small appliances can be helpful when cooking. Lighting is another addition to make in kitchens though too. Consider adding recessed lighting underneath your cabinets, controlled by a switch upon entry. This is great for setting a mood or ideal if you are just popping in the kitchen at night to grab something and do not need all the bright lights on. For bathrooms, often the lighting can be extremely unflattering. This is not helpful when trying to get ready in the morning! If you have long lights along the sides of your bathroom mirror, consider adding lighting above instead. Or, add smaller sconces on both sides. Also, if you also have overhead lighting in a bathroom, consider adding a dimmer. For more tips on bathroom lighting, read This Old House’s A Lesson in Bathroom Lighting.

Living Rooms

For large living spaces, such as family rooms or basements, it is helpful to have a variety of lighting opens to accommodate all using those spaces. For instance, adding in a dimmer is helpful if the mood changes quickly. For instance, if you are playing games, you might want all the lights on bright. But if you are watching a movie, you might want to turn the lighting down some. It is also helpful to have plenty of outlets as well to accommodate everyone’s charging needs. Last, a fan or ceiling light is a great accent piece to add to a living room as well.

If you are looking to upgrade your current rental, these are some ideal changes to make with your electrical equipment. Need assistance with your rental properties? DenCO Property Management and Sales can help. Learn more about real estate investing in Denver and contact us at 303-722-9688 to get started.
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Upgrades to Make to Your Investment Property in Denver


May 3, 2017

Are you looking for ways to help increase the return on your investment when it comes to your investment property in Denver? It is important to make certain enhancements and upgrades to obtain new tenants and retain current tenants. Painting, flooring, upgrading fixtures, review some of these ideas to consider for your rentals.

Paint and Floors

Whether you are preparing to purchase your first investment property or are needing to make upgrades after a set of tenants move out, it is important to review your walls and flooring. If the walls have not been painted in years or have many scuffs, dings, and other issues from previous tenants, painting the walls can provide a fresh, clean look. When choosing paint colors, pick ones that are neutral. This will help prospective tenants envision themselves in the space. As for flooring, follow the same guidelines. If there is carpet in the home, evaluate the condition to see if it is better to deep clean the carpet or replace it. For wood floors, evaluate if they need sanded or replaced.

Kitchens and Bathrooms

Kitchens and bathrooms can really dress a home up or down. Today, many property owners are installing stainless steel for appliances and granite/stone for countertops. If you choose to install these features, you can increase the amount of rent to reflect that. If you choose to keep plain white or black appliances and laminate counters, you can still consider the condition and upgrade or replace if necessary. However, having these upgrades will improve interest. Also, you can invest in upgrades fixtures such as faucets, knobs, shower features and more. If doing this, make sure there is consistency amongst all finishes. For instance, make sure they are all nickel, brass, chrome, etc.

Repairs

Before tenants move into your rental property, it is imperative to make sure any repairs are made. This can include small things like fixing a faucet, but there are also larger issues too. The roof is a major instance that needs reviewed. If the home is 20 years or older, it is time to have it inspected. If the home is newer, you can check the roof for any leaks, missing shingles or other issues and can work with a local roofer to fix. Check with your insurance to see what they will cover. It is also important to make sure the home is energy efficient. One of the best ways to do this is with windows. This can provide long term savings. Next, make sure the heating and cooling, electrical outlets and appliances are all working properly. If any do not work properly, this is the time to make sure they are updated.

For more details on enhancing your rental and the advantages of working with renters read what Bob Vila has to say on renovating your rental. When it comes to managing your rentals, DenCO property management and sales can help. As a locally owned and managed firm with over 20 years of experience, you can count on us to help you make important decisions with your rentals. To get started, contact DenCO Property Management and Sales today to get started.
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