What Questions Should You Ask Your Property Management Company?

Congratulations! You are now an investment property owner. Now you need a property management company to help you with your property.

What Questions Should You Ask Your Property Management Company?When you are interviewing prospective companies, do you know what questions you should ask? Here are some good ones.

Questions To Ask Your Property Management Company

About The Property Manager

  1. How long have you been a property manager? The longer they have been in business, the better their track record can be proven to you.
  2. What kinds of properties do you manage and how many are you currently managing?Ask this because you want to have a property management company that is familiar with the ins and outs of leasing out your property. If they mostly manage apartment complexes and you have a single family home, that could be an issue. You also want to be sure that they aren’t over extended meaning response times will be slow.
  3. What associations do you belong to? This could include local chambers of commerce, Better Business Bureau, etc. They can be a font of information about their business practices.

Vacancy Questions

  1. How many vacancies do you currently have and how long does it take you to fill each? Obviously, a higher vacancy rate will mean something is amiss. Also, it will tell you how long your property may remain unrented.
  2. Can I see your current lease or have my attorney review it? If they aren’t willing to let you see or have their form lease look elsewhere. Violating local and federal laws with tenancy can be a huge problem.

Inspections & Repairs

  1. How often do you inspect properties? Keeping a regular inspection schedule will mean your property will be maintained properly.
  2. What process do you follow for repairs to the property?
  3. Do you set the limit for repair costs before consulting me or do I?
  4. Do you get competitive rates from your contractors?
  5. What is the bid process for large repairs?

Payment Questions

  1. What are your policies surrounding collecting rents?
  2. How late do you allow people to pay?
  3. Do you allow them to pay electronically?
  4. When will I receive payments?
  5. What are your eviction procedures and how often do you have to evict?

Property Management Fee questions:

  1. What are your management fees?
  2. What other fees do you charge (i.e. for eviction, renewal, marketing, contract cancellation and/or account set up)?
  3. Do you charge to find a new tenant? Is there a fee when the unit is vacant?

Selling Questions

  1. If I sell the property, do you handle notices to the tenants?
  2. Do I have to list it for sale with you (if it’s a real estate company that is managing it)?
  3. What is your screening process for tenants?

This is a really good list to get you started picking a property manager! If you are looking for a Denver area property manager, give Tena D a call today! 303-452-5853

Should You Use Your Rental Properties As An Airbnb

You’ve seen the commercials for things like Airbnb or HomeAway and others. It makes it seem to be a good decision to offer your second home or rental property using their service. Maybe, maybe not. Should you offer your property on sites like those?

How does it work?

Basically, the sites allow owners to offer properties that are Should You Use Your Rental Properties As An Airbnbavailable for rent. Owners set up a profile and list their property. They decide whether to accept or decline a guest, often based on the guest profile.

Sites often offer protection for up to varied amounts in case a guest damages the property. Owners and guests can leave reviews of each other. Payment is made through the sites. Sounds great, and when it works it can be.

When it doesn’t…

Well, you as the owner need to make sure you are insured beyond homeowners insurance. Beyond damages to the property, you as the owner may be responsible for the liability of injuries that may occur.

Laws

Then there are local and state laws about short term rentals can trip you up as well. That extra money you make may just be dwarfed by the fines levied for operating a business in a residential area. This is especially true if your neighbors complain about people coming and going or being noisy, etc.

Another local or state law issue: landlord tenant law. Be careful how long you offer rental terms. In many cases if you rent your property out for a month, you need to go through the eviction process to get a renter out of your property. In the meantime, they are living in your property, rent free, and possibly damaging it.

Do your homework

If you do your homework and make sure you aren’t stepping into a mess and look closely at the profiles of prospective renters, offering your property on sites like Airbnb can be a great way to make some extra money and keep your property rented.

Do Property Management Companies Handle Evictions?

It’s a sad reality when you have an investment property, having to evict a tenant. Whether you are evicting a tenant due to nonpayment of rent or violation of other parts of their lease, landlord/tenant law can be confusing.

If you don’t get it right the first time, it can become a colossal mess that leaves you with all of the problems. Since you don’t have a law degree, or the time to understand the ins and outs of the system, what can you do?

Property management company helps

Do Property Management Companies Handle Evictions?Your best bet is to hire a property management company. Part of their job is to help you not only find tenants, but handle evictions as well.

You know that a property management company handles your property upkeep and maintenance. That is a big part of what you hired them to do. It’s also an important part of keeping your property in the green and improving its value.

Property management duties

Part of that upkeep is making sure that your property is making money and keeping non-paying tenants from doing damage to it. That means knowing how to evict them quickly and legally.

Property management companies are experienced in these matters. They have handled many of them and have lawyers to make sure they are done correctly and to the letter of the law. They will have that bad apple out of your way in record time!

Don’t leave this important process to chance. Have a professional handle it for you and get it done right.

What Is The Best Way To Invest In Real Estate In Denver

You live in Denver and want to get into real estate investing. So do you try to buy a multi unit building? What about a single family home? Your best bet is a single family home.

Less cost to get started

What Is The Best Way To Invest In Real Estate In Denver...You live in Denver and want to get into real estate investing. So do you try to buy a multi unit building? What about a single family home? Your best bet is a single family home.First and foremost, a single family home will cost you less to get started. The cost of purchasing a single family home is significantly less than a multi home unit, like an apartment building or duplex/triplex, etc. Beyond cost, for bigger buildings you would need special financing for multi units, as opposed to a typical mortgage for a single family home. The cost savings in that are big.

Multi unit property

Next, if you are purchasing a multi unit property the chances of buying all the multi units together can be challenging. This is especially true in a duplex/triplex property. If the homeowner in the other unit or units aren’t selling, you’re stuck with the challenge of trying to rent out a single attached unit.

Inventory concerns

Another plus to investing in single family properties is there is more inventory to choose from. Think about it, when you look online for single family homes, how many are available? A lot. Search for an attached unit or multi unit, and the choices suddenly get a lot smaller, which helps make those prices higher. Even in a buyers market there is more inventory of single family homes.

Preparing units for rent

Lastly, there is the cost of preparing multi units for rental, and the fact that you have a larger pool of tenants to choose from. Preparing several units for rental, updating, cleaning and repairing, can be very costly. Think about how much one home renovation costs and multiply it.

When you have a single family home, those updates and other expenses are less, even though the home probably has more square footage. Also, smaller multi units limit your tenant pool to singles, newly marrieds and so on. Renting out a single family home opens that pool of tenants up to families who may need more room than an apartment or smaller multi unit, but can’t or don’t want to buy.

If you are interested in learning more, give Tena D a call today to talk about your real estate investing options! 303-452-5853

Should You Get Into Real Estate Investing Now When the Market is so Hot?

Some say that getting into real estate investing when the market is hot is a bad idea. I disagree. Not only can you get into it without losing your shirt, but you should.

So why is it such a good idea?

Should You Get Into Real Estate Investing Now When the Market is so Hot?Well, think about it. Does everyone own a home? Of course not. In a hot market it is really hard for first time buyers to find an affordable property. They often get out bid on those that they can find. That leaves a large segment that still need a place to live.

Not everyone wants to buy a home

Often times those looking for that first home are doing so because they need a bigger space.
So how does that help you, the real estate investor with a single family home to rent? You have that bigger space they need. Since they can’t buy, they can rent. That means that your property will be in demand.

True too is the fact that not everyone wants to buy a home. That means more prospective tenants for you no matter the market.

Use a property management company

Now, as a smart real estate investor, you have a property management company working for you and they will vet prospective tenants and get your property rented in days and keep it rented for you.

So don’t listen to the naysayers. You can and should invest in a hot market. Help out those renters.