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Becoming a Denver rental property owner is an attractive investment prospect for a growing number of people. The city boasts many growing companies seeking additional employees. This influx of workers means an increased demand for rental housing. Few people are looking to buy residential properties, preferring to rent so they can pick up and move wherever employment opportunities arise.
As a landlord, you can capitalize on this situation by renting out your home at top-dollar prices. It’s a property owner’s market as there are more tenants than properties. Here are tips for making your Denver rental property one that will have would-be tenants eager to move in:
A worthy investment
Before diving into the real estate market and buying a rental home, establish it as a viable investment. Companies managing residential properties in Denver suggest that interested buyers do enough research before signing any paperwork. Hiring a property manager is in the landlord’s best interests as they shoulder much of the time-consuming commitments rental property ownership entails.
Evernest, an established rental property management company, operates in the Denver area and other major metropoles, such as Nashville, Little Rock, and Columbus, Ohio. Other local rental companies to consider include Cobalt Creek Property Management and Evolve Real Estate and Property Management. However, landlords might choose to work with large rental property management companies, such as Greystar Real Estate Partners LLC and the Lincoln Property Co.
Working with property management companies, buyers can find a home that they can rent out at a price that covers their expenses, such as property taxes, mortgage, and a rental agent’s fee, typically a set percentage of the rental price. These calculations are vital in determining whether the investment will yield an immediate profit. If it will not, investors are cautioned not to proceed.
A good neighbourhood
Not all Denver’s neighbourhoods are favourable to landlords seeking long-term, reliable tenants. Another good measure to consider before buying a property is looking at some rental statistics. Determine how many homes in the area are rented and get a rough estimate of the vacancy and tenant turnover rates.
Another indicator of whether a property is a sound investment is determining the area’s average rental payment for homes like the one you want to purchase. Favourable numbers allow you to charge higher rental rates, making property ownership more profitable. These facts and figures are readily available from real estate agents and property management companies.
The best renters are invariably families as they tend to put roots down in a rental home long term. Parents want to provide their children with a stable upbringing without moving them around too often, which can necessitate school changes and undue stress. Additionally, parents will avoid reckless behaviour that results in home damages.
To attract this tenant type, a rental home should be in one of Denver’s best schooling districts, giving parents options for where they can send their kids to be educated. Discuss school zoning with a real estate agent when planning a rental home purchase to ensure that the neighbourhood will give parents access to well-regarded Denver schools.
Amenities and infrastructure
Renters want access to amenities, such as malls, restaurants, and parks. Their needs and priorities will vary according to their demographic. For instance, younger renters prefer living closer to the city centre and near its nightspots. Older tenants with children want a safe place for their kids to play, such as parks and playgrounds.
Transport infrastructure is also something prospective tenants consider when choosing a rental home. Think about how accessible the house is to public transport facilities for those renters who might need them. Also, look at road conditions as dirt roads or surface roads full of potholes will not make a rental home attractive to tenants.
Like all cities, Denver property tax rates vary from one district to another. Some areas have high property tax rates, which will cut your profits as a landlord. These tend to be more affluent areas that are desirable to renters and buyers alike.
Calculate if the property taxes of a rental home you want to buy are affordable to avoid running your rental business at a loss. Visit municipal offices to inquire about property taxes or consult a real estate agent.