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 still hot! Now is the perfect time to add one of these titles to your repertoire. Need some stats to make this path seem a little less scary and a lot more promising?
What does the current market tell us? Here is a fresh and condensed look at the market trends that should shed some light on the rental world:
· According to CBSNews.com, in 2018 the national rent average increased 2.6% to $1405.
· The 2018 average apartment rent in Denver was $1602 and privately owned home rentals in Denver last year reached $1979 (a stat posted by the Denver Post).
· TJC Real Estate and Management Services, with almost 300 privately owned rentals throughout the Greater Denver Area currently has an average rent of $2350 and the current vacant time for our rental inventory is less than 2 days per year.
· With Denver home prices up 65% from 10 years ago, according to the S&P/Case Schiller Home Price Index, renting is the only option for a good portion of Denver’s residents. Renting is a mainstay in Denver.
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 still low interest rates and record high rental rates, it is the perfect way to diversify your investments.
Should I hire someone to manage my rental? Rental properties are versatile; you can have them for short-term or long-term investments. Either way, one way to take the guesswork 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
Where do you begin when buying an investment property? 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 when 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 guarantee 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.
Your Neighborhood Realtors® Since 2005