Tag Archives: Colorado property management companies

Top Reasons to Rely on Property Management Company for Your Rentals

Although you could manage a rental property, many real estate investors rely on an experienced property management company to handle the details of their rentals. A property manager takes an active interest in protecting your rental property as well as satisfying the reasonable demands of tenants.

New rental property owners sometimes take on the monumental task of managing their own property only to deal with emotional and financial drains as well as unexpected headaches. To figure out if hiring a property management company would serve as a solution for your particular situation, consider the main reasons most investors rely on professional landlords.

Saving time

The old saying that “time is money” is literally true!   If you have a full-time job, family or career that requires you to travel, taking care of your own rental property often requires too much attention. Most people are too busy to deal with the everyday problems associated with tenants such as collecting rent, calling repair professionals and enforcing the lease.  A property management company will sabe you time.  

Screening tenants

Most people aren’t familiar with the tenant and landlord laws. A property management company finds qualified tenants that are the best match for your rental home. By running a background check and reviewing a tenant’s rental history, it’s possible to minimize risks.   

Serving as an intermediary

When you own a rental property, you don’t necessarily want tenants calling your or violating your privacy. With a property management company, you don’t end up having tenants showing up on your front door step with the check or calling with complaints. A property manager is the point of contact for the tenants when they want emergency repairs or need to air concerns or ask questions.

Other important reasons people hire a property management company include legal considerations such as evicting tenants the property way. Also, property managers know the best vendors and contractors for necessary repairs.  

Whether you need help renting your property or managing your property contact Housing Helpers for the most professional landlords in Colorado.  303-545-6000.

Boulder Property Management      Longmont Property Management

Arvada Property Management        Broomfield Property Management

Louisville Property Management     Superior Property Management

 

Colorado Property Management Fall Maintenance Tips

Fall Tips From a Colorado Property Manager

Fall in Colorado is beautiful, sunny clear days and cool nights.  But Colorado weather can sneak up on us.  As the saying goes “if you don’t like the weather in Colorado just wait five minutes!”  Over the years as a property manager I’ve developed a routine for maintaining my properties.  Here are a few tips to share from my October schedule of Colorado property management maintenance.

Service HVAC units

With winter fast approaching, fall is a great time to have a professional HVAC service done on your heating systems.   Service should include at minimum: changing the furnace filters, cleaning and testing the furnace, changing out humidifier pads ( in a central humidifier system) and changing the settings from “summer” to “winter”.   We also like to stock extra air-filter nearby in a utility closet at the property so that filters can be easily changed throughout the winter season.

Winterize The Sprinkler System

It’s still eighty degrees on the thermometer and the sun is shining bright but don’t let that fool you.   Snow will be falling soon and so will the temperatures.    I remember more than a few Halloweens’ where the kiddos were trick-or-treating in the snow and freezing temps.  Now is a good time to have your irrigation system winterized including: blowing out the lines with an air compressor, draining the back-flow device, shutting off the main water line to the sprinkler system- draining any excess water from  the line, and I like to cover the back flow device outside. You can do this with a couple of hefty garbage bags and some duct tape or purchase a cover at Home Depot.

Aerate and Fertilize The Lawn

Yep. Often overlooked, fall fertilizer and aeration service can make the difference in having a lush green lawn come spring time.   Lawns go dormant in Colorado in the winter time.  However they aren’t dead!  They still need nutrients to survive the long harsh winter weather.  Aerating gives the fertilizer a path down to the deep roots- the part of the turf that will feed the lawn nutrients all winter long as the surface stays dormant.

Schedule Snow Removal Service

If you have a property in Colorado chances are you will have to deal with snow removal.  Be aware of your local City ordinances for snow removal and know the rules.  For example in Boulder Colorado where we are located, the City requires that you remove snow and ice from public walkways in front of your property within 24 hours of the snow fall.   If you have a snow removal contractor, now is the time to get that new contract signed and agree upon the terms for service.  Most contractors will initiate service after 2 inches of snowfall and follow up again after subsequent 2 to 4 inches of snowfall.

TIP!  October is the time to stock up on ice melt and snow removal supplies- your local hardware store or Home Depot tend to run out of supplies as folks rush to the store when the first snow fall hits.

Cover Patio Furniture and BBQ Grills

Whether you invest in custom fit covers or use my method (tarps with bungee cords) , covering your outdoor assets will add years to their life.   Keep the snow and ice off and help prevent rusting, fading, and weather damage.   Patio cushions and fabric umbrellas should be stored away in a protected area.  Believe it or not, the Colorado winter sun does more damage to patio furniture than anything else so if you can keep the sun off you will be ahead of the game.

We enjoy Colorado in the fall, it’s my favorite time of year.  But as a property manager I feel a lot better knowing that my properties are ready for winter.   If you need help renting your property please give us a call and we’ll go to work to help make your days worry free.  303-545-6000

 

Property Managers in Boulder Colorado 

 

 

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Lease Only Services versus Property Management

Rental property owners often ask if they should use a lease only service or a property management company for leasing their rental properties.  Rental properties can be great investments, and like any investment there are different ways of managing them to maximize their potential.  Each has its pros and cons, and each may appeal to a different type of investor.  So this post will explore the basic differences between lease-only services and property management services.

Some rental property owners prefer to take a hands on approach and manage their own properties, instead of hiring a property management company.  One of the benefits of this approach is the investor/owner can save money on property management fees.  But for many rental property owners the most time consuming, most stressful, and most costly part of self managing their properties is locating suitable tenants and avoiding vacancy.  Vacancy loss can destroy the income potential of a rental property if it is not kept in check.  That’s where lease only services come in handy.

For the investor/owner looking to maximize cash flow on their rental properties and minimize vacancy loss the lease only services or leasing only can offer a great solution.   Lease only services are designed to handle the upfront task of obtaining tenants for a rental property.  Lease only services will usually include the following: all advertising and marketing of the rental property, fielding all phone calls from prospective tenants, prequalifying prospective tenants, showing the property, providing feedback to the property owner regarding showings, rental rates, and marketability, and providing tenant screening and lease document resources.   Once the property owner approves of the tenant and the lease is signed, the lease only services are completed.

For the investor that is more “hands-off” and doesn’t mind foregoing some of the cash flow to have a third party acting on their behalf to oversee the operations of the investment, property management may be the way to go.  Property managers can be responsible for rent collection, scheduling repairs and maintenance, property inspections, accounting functions, and more.  Typically they will require a long term contract at least for the term of the lease.   And the property manager will typically act as an agent for the property owner in all matters dealing with the tenant relationship.  Because property management companies will likely require a contract it is important to make to review the contract carefully with your attorney.

There are important cost differences between a lease only service and a property management service.  A typical property management contract charges an ongoing recurring monthly fee to the property owner based on the percentage of monthly rent- such fees can range anywhere from 7% to upwards of 30% of the monthly rent depending on the type of property- the fee is charged for each month of the lease term.  Many times there is also a tenant placement fee and renewal fee in addition to the monthly management fee.  On the other hand, lease only service typically charge a one time fee, sometime based on a percentage of the first month’s rent and sometimes a flat rate fee- and the fee is typically only due when the tenant is secured approved by the property owner.

With a lease only service there is no ongoing recurring fees and typically no renewal fees.   For this reason lease only services can save property owners thousands of dollars in rental income over the course of a lease term.  But only if the property is properly managed by the investor during the ongoing lease term.

A poorly managed property can also end up costing the investor more in the long run.   For rental property owners that want the ability to manage their own properties, are able to handle basic management duties, but not the hassle and expense of securing tenants, lease only services can be a great way to go.

Rental property leasing services are different from property management services in a number of ways, both in the fees involved and the services performed.   This by no means covers every leasing service or property management company that is out there but lets summarize the basic differences.

Compare the services performed:

  • Lease only services: focus is on quickly obtaining suitable tenants to minimize vacancy costs.  Handling the upfront tasks of advertising, showings, and screening tenants.
  • Property management: focus is on the ongoing management activities for the property such as: rent collection, scheduling maintenance and repairs, accounting, and property inspections.

Compare the costs of service:

  • Lease only services:  One-time fee due upon lease execution.  A percentage of first month’s rent or flat fee.  No recurring fees, no renewal fees.
  • Property Management:  Recurring fee due for each month for the term of the lease.  A percentage of each month’s rent for the term of the lease.   Often renewal fees in addition.

As a side note:  Both lease only services and property management fees are typically tax deductible as an expense of operating the rental property- **always consult your tax advisor to determine if this is the case for your property**.

Rental property owners/investors have a multitude of choices when it comes to renting out their properties and protecting their investment.  Regardless of which way you decide to go, hiring a professional to help can make your life easier and the ownership of your investment more enjoyable.

 Property Management Companies

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