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

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!

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.

Executive Property Management – Protecting Your Assets When Investing

An important part of being a real estate investor and executive property management is protecting your assets. One way to do this is to own your properties through a company. One of the most popular types of entities is the Limited Liability Company or LLC. It’s a smart move, and here’s why.

Protect your personal assets

Executive Property Management - Protecting Your Assets When InvestingAs a real estate investor owning your investment properties in your personal name opens you up to a lot of personal responsibility. If someone is hurt in your property, you, as the owner, can be held liable. That means that anything you own can be taken if a judgment is entered against you. Obviously you don’t want to lose your own home or assets so you need to find a way to protect your personal assets. That’s by forming an LLC to own your business assets.

What is an LLC?

An LLC is similar to a partnership but has the legal protections of a corporation. What that means for you is that the liability stays with the LLC, while the income and taxes flow through to you like a partnership. Unlike a partnership you can have only one member of an LLC or as many as you want. So for those wanting to work for themselves, and just themselves, you are protected. Rules for forming an LLC differ from state to state, but the tax implications are the same all over the US.

Using a lawyer for set up

You don’t have to get a lawyer to set up your LLC, but it’s not a bad idea. You may file the paperwork yourself, but a lawyer will know more ins and outs of all the things required and can help you navigate it better. Getting one going means filing a document called Articles of Organization. They are usually straightforward and most states have blank forms for your use. It’s a smart idea to have something called an Operating Agreement, especially if there is more than one member of the LLC. An Operating Agreement lays out all of the rules of getting into and out of an LLC, how it will run and who will do what. That should be at least reviewed by an attorney.

Forming an LLC to own your real estate investment properties is a great idea. Talk to your attorney about it today!

Disclaimer: While I have worked with 100’s of real estate investors in Colorado and around the country, I am not a lawyer. Please make sure to check with your attorney for specifics about incorporating to protect your assets in your city or state.