Rental property ownership is a lucrative investment that appreciates continuously. It is a competitive market and can prove to be stressful for landlords. Contrary to what many investors might think, rental property ownership is not a passive income as it requires time and patience to be a landlord.
Whether you are renting out a property while waiting for the market to pick up before selling it or because you have purchased a rental home as an investment, here are some tips to help you:
Get professional help
The rental property market has grown in Colorado Springs over the last years and months. Many people are choosing to settle in the area instead of larger cities. Now that thousands of employees can work remotely, life in towns like Colorado Springs is attractive to more would-be residents.
Nevertheless, for landlords in Colorado who don’t reside close to the area and have time constraints, the process of renting out could be quite challenging. Agencies are a great aid for such owners to have their work done efficiently on their behalf. Rental agencies operating in Colorado springs such as RentRedi, Cornerstone, and Evernest have an outstanding reputation for service excellence, as its dozens of Colorado Springs clients would attest.
Rental property management companies handle the day-to-day operations of being a landlord. This includes recruiting and screening tenants, collecting rent, and dealing with maintenance and repairs. Industry expertise allows JLL to ensure that rental property ownership is hassle-free at a percentage fee, making the payment worth the investment. As a rental property owner, you could choose a local business specializing in the Colorado Springs area like Dorman Property Management.
Set the right price
Landlords cannot afford to overprice their rental property as no one will express any interest in it. Instead, an examination of average rental prices in an area gives the property owner an idea of what to charge. The average rental price in Colorado Springs sits at just over $1,200. Neighborhoods like Pikes Peak Park, Knob Hill, and Spring Creek are less expensive than the city’s upscale areas, including Setson Hills, Springs Ranch, and Wolf Ranch.
The median house price in Colorado Springs is $350,000, although that figure will be significantly higher in the city’s more affluent suburbs. While it is a sellers’ market, investors will still find bargains with a good real estate agent’s assistance.
Understanding the rental pricing system in Colorado Springs and setting your price accordingly is a surefire way to secure tenants. Look at rental prices for similar homes in the neighborhood and use them as a guideline.
Marketing a rental property
Those landlords that opt for a property management company do not need to worry about marketing their rental home, as agents will do that on their behalf. They have a pool of potential renters waiting to hear from them about available rental homes.
Most tenants search for a rental property online, list the house on various sites. Some research will reveal which sites generate the most foot traffic. Your listing should make tenants want to view the rental property. This includes attractive photography that highlights the home’s features. A short, punchy write-up will complete the task.
Some would-be tenants drive around neighborhoods they are interested in. Take advantage of this by posting ‘For Rent’ signs on the property. Ensure that your contact details are indicated on the sign so that potential renters can get in touch.
While you might have a long line of interested tenants, finding the right ones takes some additional work. As a landlord, you are entitled to establish whether an applicant can afford the monthly rent you intend to charge.
Landlords can ask applicants for a proof of employment letter or recent pay stubs to verify that they have a job and how much money they earn. In an ideal scenario, the rental price should constitute about one-third of an applicant’s take-home salary, as this makes it affordable. A credit history report also reveals how a potential tenant manages their finances. Past fiscal behavior is a predictable indicator of what to expect from a renter.
Undertaking a rigorous screening process each time you are looking for tenants can be time-consuming. Rental property management companies have established screening processes that tend to be more thorough than anything a landlord can undertake privately.
Repairs and maintenance
Make your rental home attractive by ensuring that repairs and maintenance are kept up to date. A fresh coat of paint and garden clean-up will do wonders for the house’s curbside appeal.
Successful landlords deal with repairs and maintenance issues promptly once they have sitting tenants. If you manage your rental property alone, have a network of contractors and specialists you use for any work around the home.
Rental property management companies include repairs and maintenance in their fees, taking the stress of dealing with such issues off the landlord’s shoulders. This is ideal for busy landlords who do not have time to attend to maintenance and repairs timeously.