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

Rental Property Owners – Get Over Perfect

When you live in a home, your own home, you can have it as Rental Property Owners - Get Over Perfectperfect as you want it. From the décor to furnishings to landscaping to cleanliness, your home is yours. When your home becomes an income property and you have tenants, you need to get over perfect.

Do you have control?

When you have a rental property there are some things you can control. You can screen your prospective tenants. You can set certain types of rules. You can’t control the day to day lives and choices of your tenants. Here’s what we mean by that.

Parameters tenants must follow

Your tenants will have certain parameters they must follow. You can decide that you won’t allow pets in your property. Tenants must follow that rule. If you live in a community with a homeowner’s association your tenants must follow their rules about use of the property, what they can and can’t keep on it and so forth. You can limit the number of people who live there. These are big issues that you do have some control over.

What you can’t dictate to your tenants is what they do in your home

What is meant by this is you can’t dictate the amount or type of furniture used. You can’t dictate how they decorate. You can’t even dictate whether they paint, only that they have to repaint it back to how you left it. You can’t tell them how and when they can entertain. You can’t tell them how often they must clean and what shape they have to keep the property.

In short, unless they are destroying your property, hoarding or doing something illegal, how they decide to live is up to them. Your idea of perfect and their idea of perfect may be totally different and you cannot dictate these kinds of things as long as they are paying rent.

So get over perfect and allow your tenants quiet use and enjoyment of what is now their home.

Colorado Rental Property Management

As a rental property owner you know that taking care of one or more properties yourself can be exhausting and time consuming. Colorado Rental Property ManagementIn Colorado the best property management can’t be easy to find, but in Westminster, Broomfield and Louisville, among others, the best is Denver Realty & Rentals. They provide the best service for real estate investors and their properties.

DR&R provides many services

They are available for their clients 24/7 365 days a year. Important because emergencies don’t follow a schedule or wait for the office to open. They have relationships with vendors of all kinds to keep your properties safe and in great shape. They strive to not only keep the integrity of your property not only where it is, but to make it better from tenant to tenant. They do this through annual inspections and also between each tenant.

Other services include:

  • Check rental rates in your area
  • Prepare the home to be rented (thoroughly cleaned and repaired)
  • Advertising the property for rental
  • Provide professional photographs
  • Vet prospective tenants
  • Show the property
  • Take all the phone calls
  • Protect owner identity
  • Make sure the tenant has quiet use and enjoyment of the property
  • Follow all fair housing laws (Federal and State)
  • Move in, move out checking and cleaning
  • 24 hour answering for emergency
  • Owners are our first priority but we know happy tenants are an owner’s priority
  • Collection of full rents
  • Handle any necessary eviction process

Hire the best

Hire the firm with the most knowledge and expertise to handle your rentals. They only deal with the most experienced and affordable tradespeople to make repairs and do the upkeep on your properties. For more information visit  http://denverrealtyandrentals. com/property-management/

Colorado Real Estate Investors – Should You Target Medical Marijuana Renters?

When you first became a Colorado real estate investor you probably didn’t think that there would be any discussion over renting to marijuana users. Alas, the day has come and although you decided that your average pot smoker isn’t your ideal tenant, there is a small group of them that you might want to consider – medical marijuana users.

Legal marijuana

Colorado Real Estate Investors - Should You Target Medical Marijuana Renters?There are a lot of people coming to Colorado in order to get legal marijuana for a loved one, or themselves, who need it for medical reasons. Many states still keep pot illegal for any use. This group isn’t usually your stereotypical pot user.

There are many conditions that are actually helped with the use, in whatever form, of marijuana. It relieves glaucoma issues. It helps cancer patients gain or maintain their weight when chemotherapy destroys their appetite. It helps patients with different seizure disorders. Whether they need it in pill form, smokable form or oils, many states don’t allow it as treatment for whatever their medical need. Colorado does.

So should you rent to them?

The answer is probably not an easy one. How can you navigate the state and federal disparity in legality, as well as all of the landlord tenant issues? If you choose to refuse to rent to a person who will actively be using the medical pot on your premises, there shouldn’t be an issue (anymore than if they were a smoker and you only rent to non-smokers). However, if their use is always done off of your property (such as at a doctor’s office or other place) refusing to rent would probably be a discriminatory issue. Most people, however, won’t be volunteering it, unless they ask about smoking in the property.

Benefit

What you might want to keep in mind is the perceived benefit you might just derive from specializing in leasing to medical marijuana patients. What is it? The image of the compassionate investor and landlord. That, my friend, can go a long way to getting you the best tenants.

How To Sell Your Investment Property With The Tenants In Place

You’ve decided that it’s time to sell your investment property. After all, you bought it as an investment. You have tenants with a lease in the property which can be a good thing or a bad one. So how can you sell your investment property with tenants?

Tenants in place when you sell

How To Sell Your Investment Property With The Tenants In PlaceHaving a tenant in your investment property can be tricky. If they get it in their heads that they don’t want to cooperate with the sales process, your goose is pretty much cooked, and even if they say they will cooperate, what they say and what they do can be two very different things. However, there are ways to make sure that the process goes smoothly with the tenant on your side.

Offer to tenants first

Your first move should be to offer the home to the tenant before hiring a Realtor. They may be interested in purchasing the home and the process could be considerably shortened before it ever gets started. If you get the idea that the tenant will not cooperate at all, you might just want to scrap the sales plan until their lease expires. Don’t offer to renew their lease and you will be able to sell with it empty. The same goes if they are slobs. You need the property to look its best to sell, so if you can’t count on the tenants to keep the property in its best shape, waiting until the lease expires might be your best bet.

Offer incentives for cooperation

If your tenants do agree to cooperate, or you can’t wait for the lease to expire, there are still things you can do. First, you can offer incentives to the tenant for their cooperation. You could reduce the rent during the time the property is on the market. Another extra you could offer is to cover all or part of their moving expenses, after giving them proper notice per the lease. You could also offer extra time to move out to give them time to find a new residence. Make sure that you make it clear that the incentives require them to cooperate and to leave the residence clean and in good shape.

Know landlord tenant law

You must keep in mind that if the tenant stays they have to agree to showings of the home. Sure you must be given access to the property, but they don’t have to agree to let a Realtor in (check the law on this). This can make selling nearly impossible. So know the law in your jurisdiction about landlord tenant laws, know what it takes to evict and what it takes to sell with a tenant.

If you have any questions about how to properly list an investment property for sale, give Tena D a call today! 303-452-5853