Is Your Rental Property A Business

You have a rental property. Whether it was a home you lived in or just an investment property, if someone asked you if it was a Is Your Rental Property A Businessbusiness, what would you say? How you answer depends on a lot of things.

One thing to take into consideration is how emotionally involved in the “business”are you? If you have emotions tied to the property or business relationship it may keep you from making practical decisions.

Here is an example:

A young couple moves out of state and decides to rent their first home to one of the couple’s siblings. The couple needs the rent money from the sibling to pay the mortgage so they can save the money they make now for their next home. This sibling is also responsible for the utilities. The couple keeps the utilities in their name just to be sure they are being paid. The sibling consistently shorts the rent and refuses to pay the utility bills. Instead of being able to rationally decide that evicting the sibling is the answer, the couple instead puts up with it until it causes issues between them. Business? Probably not!

Next, how do you account for the monies collected?

Is the security deposit in a separate interest bearing account? Are the costs and income also kept separate from household accounts? How the IRS determines if something is a business or not is by seriously looking at commingling of monies. Successful businesses, even family run ones, don’t put business assets into house accounts.

If you seriously want to treat your rental property as a business you need to change your thinking.

If you need help in what to do, contact a property management company like Denver Realty and Rentals. We can help and take the day to day responsibilities and money collection, etc., out of your hands. We can help you treat it like a business! 303-452-5853

Rental Property Management Broomfield CO

Broomfield, Colorado is a fantastic place, especially if you have a rental property to share with another family. As a
landlord, being available 24/7 to maintain that property is difficult at best. This is especially true if you’ve moved out of the area. So you need a great property management company. There are many to choose from, but your choice is Denver Realty & Rentals. They provide the best service for real estate investors and their properties.

24/7 365 days a year

Rental Property Management Broomfield CODR&R provides all of the services you could possibly need, 24/7 365 days a year. It would be great if emergencies happened during the day when your plumber, electrician or contractor has regular business hours. Unfortunately, that’s not usually the case!

They usually happen in the middle of the night, on holidays, at times that are inconvenient. That doesn’t bother DR&R. They have plumbers, electricians and handymen ready to help whenever your tenants need them.

Oh no, your current tenant has given notice! How can you possibly get the property cleaned, repaired, shown to prospects and re-rented in 30 days? Keeping it rented is the only way you can make money. Don’t worry, DR&R will get your property in tip top shape, shown and rented, and also improve it to increase your equity. They also inspect annually and between tenants.

Range of services

DR&R provides you with a wide range of services to make your property shine and stay rented. They provide cleaning and repairing between rentals, advertising the property between tenants with professional photos, background check prospective tenants and show the property, protect your identity if that’s your wish, help the tenants by providing quiet use and enjoyment of the property, make sure all fair housing laws (Federal and State) are followed, collecting rents and evicting tenants when necessary.

Don’t try to do it all yourself

Hire the best property management company with the most expertise to handle your rentals. For more information visit:    http://denverrealtyandrentals.com/property-management/

For more information about the Broomfield, Colorado area visit these sites:

http://www.colorado.com/cities-and-towns/broomfield
https://en.wikipedia.org/wiki/Broomfield,_Colorado

Rental Property Management Westminster CO

You have a rental property in Westminster, Colorado. You know that you can’t be there to take care of it at a drop of a hat. So you need a great property management company. They aren’t a dime a dozen, so your best bet is Denver Realty & Rentals. They provide the best service for real estate investors and their properties.

24/7 365

Rental Property Management Westminster CODR&R provides plenty of the services you need, 24/7 365 days a year. As you know, calls can, and usually do, come in the middle of the night, on holidays, at times that are inconvenient. That doesn’t bother DR&R. They have plumbers, electricians and handymen ready to help whenever your tenants need them.

Worried about getting the property in shape for a new tenant? They strive to not only keep the your property looking top notch in between tenants, but improve it for you. They inspect annually and between tenants.

Range of services

The range of services they provide include making sure your rents are comparable to others in the area, cleaning and repairing between rentals, advertising the property between tenants with professional photos, background check prospective tenants and show the property, protect your identity if that’s your wish, help the tenants by providing quiet use and enjoyment of the property, make sure all fair housing laws (Federal and State) are followed, collecting rents and evicting tenants when necessary.

You know that you can’t do it all, so hire the property management company with the most expertise to handle your rentals. For more information visit http://denverrealtyandrentals.com/property-management/
For more information about the Westminster, Colorado area visit these sites:

http://www.ci.westminster.co.us/
https://en.wikipedia.org/wiki/Westminster,_Colorado
http://www.colorado.com/cities-and-towns/westminster

Should You Buy a Rental Property in a Hot Market Like Denver?

The real estate market in Denver has definitely heated up, so is now the Should You Buy a Rental Property in a Hot Market Like Denver?time to purchase a rental property? In a word, yes. Hot market or not, now is a great time to jump into being a landlord.

Low interest rates

As with buying a residence, buying to invest now while interest rates are at historical lows is a good idea that will save you money over the long term. Lower interest rates mean lower mortgage payments and that fixed rate mortgage will stay the same while rents will increase.

Tax advantages

Another reason to buy an investment property now? Tax advantages. Interest, taxes, insurance and other expenses of the rental unit are deductible against the property’s income. Any losses can usually be deducted against your other income. Depreciation is also tax deductible.

Depreciation

Depreciation is an allowance for wear and tear, usually over 27.5 years, or 3.636% of the purchase price of the building per year. Even better, rental properties can be sold and the proceeds used to purchase another investment property without you being hit with capital gains. Be sure to talk to your tax advisor about these and other tax advantages.

Different investment properties

There are a lot of different ways to have an investment property. You can purchase an existing home and break it into separate rental units, or create one in or on your existing home. You can purchase a unit in an existing condominium. Purchase a home in a place where you would like to retire later and rent it for the time being. Don’t forget about a vacation home that you can use for a set time a year without risking the rental tax advantages (again, check with your tax advisor about this). The options are endless.

Landlord risks

Just keep in mind that you will be a landlord and that comes with risks. Bad tenants, property upkeep and repairs and being saddled with that second mortgage if the property isn’t rented are all risks you take. So before buying, talk to a realtor who knows the local rental market. They can tell you what average rents are, how hot the rental market is and possibly help you get your property rented as well.

Denver Property Management News – Why Rents Are So High In Denver

Denver Property Management News - Why Rents Are So High In DenverIf you’ve been looking lately for a rental property in Denver, you know that rents are high. Why? There are a number of reasons, including low inventory, rising equity and not too much new construction.

It means that if you want to rent your property, now is a great time and using a Denver property management service can help you get it rented for the best income possible.

Rental property is hot due to low inventory

Denver real estate, for rental properties, is hot right now. There are a few reasons for this. One is low inventory. When the housing bubble burst, people stopped buying, generally, and started renting. Many were people who lost their homes to foreclosure and couldn’t purchase another home.

Others were younger people who saw the bubble crash and decided that home ownership was too risky. Renting was better. That means that many more housing was being rented and there were fewer homes available. That trend has continued. Those who have been through foreclosure needed time to repair their credit before being able to buy again. Others just kept renting.

Another reason is housing market prices are higher

Another reason is the fact that now that the markets are rebounding, those who own now have a lot more equity in their properties. That makes housing that’s for sale more valuable, and more expensive. Prices are going up, another reason for higher equity, meaning that those who may have been able to buy a few years ago are finding themselves priced out of the market. They have to continue to rent, another factor in low inventory.

Factor in low amount of new construction

The last factor in higher prices is the fact that there hasn’t been a lot of new construction of apartments… yet. That factors into low inventory. If more housing units are built, there will be more available and more choices for tenants. That will help stabilize prices, maybe even help push them down a bit. Construction is picking up, but it takes time to get places built, so any relief from higher rents from this is some time away.

Rents are high in Denver. And maybe that’s just because it’s a cool place to live too!

So use Denver Realty and Rentals to assist you in fulfilling your real estate investing goals by capitalizing on this crazy time in the housing market. NOW is the time to buy property to use as an investment and we can help you find the best deals! 303-452-5853