Landlord. Landlady. Lessor. Owner. These are the common names to label the main point of contact for a rental property. The rental market in Denver and surrounding areas is tight! Now is the perfect time to add one of these titles to your repertoire.
What must you know to understand why investing in a rental property is such a great idea? Well, here is a fresh and condensed look at the market trends that shouldn’t bore you too much:
- For TJC Real Estate and Management Services, the current average time a home sits on the rental market is only 10 days, compared to 22 days this time last year.
- The national rent average has increased 3.7% to $1362. Denver has increased 10.6%. Central Park (formerly Stapleton), a premier NE Denver neighborhood where TJC Real Estate and Management has a majority of our inventory, currently has an average rent of $2175.
- According to Zillow, there are currently more renters and less homeowners. In 2006, the amount of homeowners peaked at 69%, but has since decreased to 64%. Of all renters, 53% are renters because they are unable to afford to buy a home and 26% choose to rent as a lifestyle choice.
Still looking for the perfect sign? Maybe you would rather have your investments work for you rather than the other way around? Read on…. Like any investment, buying a rental property or converting your current home into a rental, may seem like a leap of faith. In this market, given the low interest rates and record high rental rates, it is the perfect way to diversify your investments.
Rental properties are versatile; you can have them for short-term or long-term investments. Either way, one way to take the guess work and hassle out of being a landlord is to hire a reputable property management company. Going this route allows you to instantly hand over the stress, hassle and many challenges of owning investment property:
- Time on market and/or vacancy
- Rent pool and advertising reach
- Screen prospective tenants
- Getting prime rent
- Having a professional lease
- Legal services and possible evictions
- Handling tenant challenges and maintenance requests
- On-going property upkeep
- Collecting rents and security deposits
- Returning security deposits upon assessing possible damages
So how do you start? If you will be purchasing a home to rent, you will want to meet with your mortgage broker to see what you will qualify for. Once you get a good idea of your budget, your best bet is to meet with a Realtor that is well-versed in acquiring investment properties. Remember that not all Realtors are created equal. Having an agent that has a successful background and great knowledge in this corner of the industry is a must.
Next… Location, location, location! A Realtor can assist you in knowing which neighborhoods will be the best return on your investment. This is just as important when buying an investment property as it is when purchasing a home to occupy for you and your family.
When you finally find a place to purchase, you will want to assess what it will take to get the property ready. No one wants to be a slumlord (this is the name you don’t want to add to your repertoire) and the better shape the home is in, the higher rent you will be able to get. Taking care of the property ahead of time will help to eliminate and/or lessen hassles you will have with the new tenants.
A property management company will be able to assist you with the balance of being rent ready without eating too much into the bottom line.
If you live or are looking to invest in the Denver area, contact TJC Real Estate and Management Services at 303-324-6988 for a complimentary consultation. We are unique in the industry since we are a one stop shop for real estate investors. TJC can help with the acquisition, property management, and asset management. Our goal is to create a long-term relationship that helps your asset(s) grow, as well as, provide stable, long-term ROI. We are happy to assist you on your journey to become a real estate entrepreneur!
***Like most investments, there are no guaranties in investing in real estate. There are a variety of factors involved in the success of your investment and TJC Real Estate & Property Management does not guaranty that you will have a positive cash flow, a positive return on investment, or that your asset will appreciate. Any real estate investment is made solely at the investors risk without any guaranteed results.***
Brought to you by Sondra Lockett-Cameron, Marketing Coordinator for TJC Real Estate and Management Services.
TJC Real Estate & Management Services • 303.324.6988 • firstname.lastname@example.org
Your Neighborhood Realtors® Since 2005