3 Reasons Encouraging Long Term (Happy) Renters Is So Important For Real Estate Investing

As a real estate investor, your focus is making money from your investment. In order to do that you should be working on getting and keeping long term renters. How do you get renters to be long term? Keep them happy. Here is why that is so important.

Save money

3 Reasons Encouraging Long Term (Happy) Renters Is So Important For Real Estate InvestingLong term tenants save you a lot of money in the long run. How? Well you don’t have the expenses every few months, or even every year, of short term tenants or bad tenants you have to evict. Beyond eviction expenses, which can vary from place to place, but are hefty enough, there are the expenses you have with every turnover in renter.

Examples

Here are examples of some of them. First, lost rent while the property is empty. The time it takes you to re-rent the property costs you. This is the perfect example of “time is money” in action. Even one month lost rent could be thousands of dollars, depending on the type of rental and where it is located. Next, repairs and fixes of wear and tear times (paint, rugs/flooring, etc.) or property damages (holes, broken doors, broken appliances or worse). Even with a handyman or management service on call, getting the property ready to re-rent takes time. Last, expenses to advertise the rental, show the property and get it back under lease. That entails ad costs, realty fees and attorney fees.

Well managed properties

Having well managed properties will keep tenants happy and staying. That means that when they complain about an issue, your property manager or management company is responsive immediately. Even if the fix takes time, addressing their complaint then will keep them satisfied with how you, as their landlord, value them. The longer tenants stay with you, the more income you’ll gain. It’s as simple as that.

Related Resource: Learn more about How To Succeed Using Hands Free Real Estate Investing

Why Millennials and Baby Boomers Are Renting Homes

The conventional wisdom is that buying a home is the best use of your money. What some are finding is that isn’t necessarily the case. This is especially true of baby boomers and millennials. In many ways they are better off renting. Here are a few reasons why.

Baby Boomers

Why Millennials and Baby Boomers Are Renting HomesFor baby boomers renting after retirement actually makes sense. Boomers are downsizing in record numbers. Their children are grown and out of the home and they find that there is no need for the larger home. Instead of opting for a retirement community or assisted living home, some are seeing that renting a home or apartment is a better option. Apartments make basic cleaning and maintenance a lot easier for anyone.

Maintenance is a big reason for renting. Not only for basic cleaning, but also when things break.

In their owned homes if the kitchen sink backed up they would call a plumber. In a rental if the kitchen sink backs up, you call the landlord who calls the plumber… and pays the plumber as well.

Renting provides flexibility for boomers as well. If, as they age, they find they need more help than an apartment will provide, they have the flexibility to move into an assisted living facility without having to worry about selling a home.

Millennials

For millennials renting provides some of the same benefits as for boomers. Millennials are just getting started so the need for a large home isn’t there yet.

The same maintenance issues are solved for millennials renting. They don’t have the know how to fix things since the landlord does it all. They also need the flexibility since getting started in a new career may entail a move. Being able to be move more quickly than you could if you owned a home is important for those looking to be upwardly mobile in a new career.

For millennials the expense is also a key factor. While it may seem cheaper to buy a home, there are hidden expenses. Things like real estate taxes, condo fees and those costs to maintain your home.

So if you are a boomer or millennial, weigh your options and don’t be afraid to go back to renting. It might be the exact solution to all your questions.

Want To Be A Real Estate Investor But Hate Cleaning Toilets?

Being a Real Estate investor sounds good, but you know you don’t want to be that landlord being dragged out of bed in the middle of the night to fix a leaky toilet. It’s kept you from taking the plunge so far, but what if you could invest and be a hands free investor? Investing in turnkey real estate is for you.

Benefits of turn-key investing

Want To Be A Real Estate Investor But Hate Cleaning Toilets?There are plenty of benefits to being a turn-key real estate investor. The first is not being a landlord. You do this by putting professional property management in place and you reap the rewards of investing without the time consuming job of being a landlord. The property managers deal with the tenants, fix what needs fixing, maintain the property, collect the rent and deal with evictions for you.

No rehab costs

Purchasing a turn-key property means you don’t have to spend money up front to rehab the property before you make a dime on it. It may appear to be cheaper to buy a foreclosure property but turn-key removes all the risk that foreclosure properties have. You know the condition of the property instead of guessing about it.

Tenant in place

Often turn-key investment properties already have a tenant in place, so you start off from day one making money on your investment. Vacancies mean no income, so finding one without the “for rent” sign on it will mean knowing what your income will be instead of estimating it.

Lastly, turn-key investment properties are usually in the best neighborhoods. Bonus for the amount of income and type of tenants. Marry that with a property management aspect and you can buy anywhere in the US, no living close by necessary!

Check out all the turnkey properties that we recommend here. This is a company that we work with who provides great turnkey properties for your investing needs!

How To Succeed Using Hands Free Real Estate Investing

You like the idea of real estate investing, but don’t have the time it takes to be hands on with the business. So would you get involved in real estate investing if you could do it hands free?

It is possible!

Collective buying power

How To Succeed Using Hands Free Real Estate InvestingCompanies like the Maverick Investor Group make the idea of helping others make money in real estate possible. They do this by leveraging what is known as “collective buying power.”

Turn key properties

How? By coordinating multiple people to buy properties from the same seller/developer. By doing that, they would be able to negotiate better prices and terms than a single investor could get on their own. What’s better is that what Maverick offers isn’t a “flip” scheme where you buy a property and have to fix and update it, but investments in turn key properties.

That means that your money can go farther

This is because you aren’t spending the money you have or wasting weeks or months on rehabbing a property before you can rent it out. What can you spend it on instead? Multiple units or properties that are all ready to become rental properties now, not weeks or months from now. That means more income faster.

Makes sense, right? Throw in a property management company to manage the day to day aspects of being a landlord and you will truly be hands free in your real estate investing.

Looking for hands free real estate investing properties? Click here to find out more!

3 Places To Buy Investment Properties In Denver

Denver has lots of different neighborhoods and each has their own character. Whether downtown, in the towns surrounding or further out, each are great places for investment properties.

College areas

3 Places To Buy Investment Properties In DenverOne great place to look for an investment property is around colleges. Colleges offer a slew of opportunities for tenants. College students often look to off campus housing to make college more affordable. Not all are party animals who will destroy your property. In fact most landlords find that students tend to be better tenants than others.

While it may mean faster turnover, students may only stay a year or so, there is always another class of students coming to town. So purchasing a home, town home, condos or apartments, students will jump at the chance to live independently off campus.

Find out more about area colleges: 5 Best Colleges In The Boulder Denver Metro Areas

Nearby suburbs

Other places just outside of town can mean great properties for families. Think of the nearby suburbs that have great schools, close shopping and parents who will be working in Denver.

Of course, there are also the wonderful opportunities in the suburbs or just further out. Some great suburbs to check out are Westminster, Broomfield and Brighton in the North and Parker or Lakewood in the South.

Executive rental properties

Larger estate properties that will make fantastic executive rentals. The properties must be top notch and equipped with the latest and greatest updates, technology and amenities. Executives expect no less and will pay through the nose for it. Although you may have to invest more money into the property, you will definitely make it back in rental revenue.

Find out more about Denver Executive Rentals

Denver has great places to make your mark as a real estate investor. Look at who you may want to have as a tenant then go find a great Realtor to help you find the property you need.