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

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.

3 Key Things To Focus On When You Are Buying Your First Investment Property

You made the decision to buy an investment property. There are a few things you should be focusing on as a buyer and investment property owner. Here are a few of them.

Look for a property with good systems such as a/c and heating,etc.

First, unless you are planning on putting a lot of money into 3 Key Things To Focus On When You Are Buying Your First Investment Propertyrehabbing a property then renting it, look for a property that is in good shape. You may pay more for it, but you will pay less in the long run.

Don’t worry about paint colors and such. That can be easily and cheaply remedied. Look more for a property with solid systems: heating, air conditioning, electrical and plumbing.

Location

Next, look at the area where the property is located. Is it city? Suburban? Industrial? Commercial? Is it high crime?

Where it’s located will make a difference in the desirability of the property and amount of rent charged. Just like location makes a difference in selling a property, it makes a difference in renting it as well. Proximity to shopping, entertainment, good schools, it all makes a difference.

Look at properties as if you were the renter you want.

Property management

Lastly, make sure you hire a great property management company. This will simplify your life. A property management company will collect monthly rents for you, maintain the property, respond to emergencies that tenants may have and, if necessary, handle any evictions that may be necessary. This is just as important as the items above.

Your tenants deserve a responsive landlord, or in this case, landlord’s agent, and a well maintained property. You deserve timely rent collection and a property in a condition that will improve it’s value.

Looking for a great property management company, give Denver Realty and Rentals a call! 303-452-5853

Is It Time To Sell Your “Upside Down” Rental Property

You had the perfect home, then the bubble burst. All of a sudden your perfect home was an upside down home that had Is It Time To Sell Your "Upside Down" Rental Propertyyou so far underwater you were drowning, and unable to sell. So you moved out and rented it out in order to pay the mortgage. Now the market is rebounding and your upside down home is finally righting itself. So is it time to sell?

The answer is easy, but complicated

The easy answer is yes, if the value of your home now exceeds the mortgage balance. The complicated answer is with tenants there you may not want to or be able to sell right away. Not right away because you probably have a lease in place that requires notice. Notice requirements won’t stop listing the home, but will add time to when you can sell. That aside, your tenants saved your butt when values tanked and made it possible to keep your property instead of losing it and your credit rating to foreclosure. Just throwing them out would be rude.

So what can you do?

If you’ve decided to sell you can sell with the tenant in place. For a buyer looking for an investment property, that’s a huge plus. They don’t have to find a tenant. No down time, income immediately. If you don’t want to sell it as an investment property then you’ll need to move your tenant out. You’ll need to work with your tenant to help them find another place to live. This is especially true if your tenant was a good one. Work with your Realtor to help them out.

Remember that this sale isn’t all about you

Another person or family is affected as well. If you alienate them they can make your sale particularly difficult, long and expensive. So, be kind to your tenants. Help them and you can finally be out from under your upside down home.

Want more info? Give Denver Realty and Rentals a call today! 303-452-5853

Can You Rent a Home You Have Lived In?

Can You Rent a Home You Have Lived In? Sometimes the idea of not selling your home and moving is a possibility. How? By renting your home and paying that mortgage while you move to a new home. Sounds great on paper, but can you rent a home in which you have lived?Sometimes the idea of not selling your home and moving is a possibility. How? By renting your home and paying that mortgage while you move to a new home. Sounds great on paper, but can you rent a home in which you have lived?

We’re not talking legally. Legally you probably can (although a quick call to the county or municipality about what you may need to do is in order), but can you rent it to someone else and be ok emotionally?

First ask yourself an important question: can you detach yourself from the home?

Can you remove your emotional attachment to a place that has been home for years? It’s harder than you think. Every room has memories attached.

If you raised your children in that home every wall has precious memories infused into them. Can you stand the thought of owning it and having other people living there, changing things and making it theirs?

One thing you shouldn’t do to make it easier to rent it is “awful-ize” it

Don’t redecorate to make it look worse to make you feel better. Don’t remove things from the home, such as expensive upgrades you made to it, and put in less expensive ones.

Yes, a tenant might damage your property, but that’s the chance you take. Keep it in great condition. You wouldn’t do that to sell it, so don’t do it to rent it either.

Access to the property

Once you sign that lease you no longer have unlimited access rights to the property. That lease provides for your tenants a right to “quiet use and enjoyment” of the property.

That means that you can’t drop by whenever you want. It means that they can do what they would like, within reason and lease restrictions, with the property. It’s not your home any longer, so just walking in when you want is not allowed.