Important Tips For New Landlords
Managing your rental like a professional
Whether it’s your only property, or you own several, managing your property in Durango as if you were a professional Property Management Company is key. All communication with your tenant should be clear, cordial, and professional, yet the renter needs to know you should be taken seriously.1
It’s necessary to separate business from emotion. You can work out a deal with a struggling tenant, (maybe they just lost their job), but it’s still important to set boundaries like late fees ,so that tenants paying rent past due doesn’t become a habit. As a landlord, you’ll consult with lawyers, accountants, and insurance companies, so take their advice when dealing with complex situations.5
Owning a rental property in Durango, Colorado
When you own a property in Colorado, you want to maintain a great reputation, including one who cares about their tenants. Being organized on maintenance requests is important, and setting reminders for yourself helps. Word of mouth is a good, free advertisement, but just like any other business, word will get around if you aren’t trustworthy or professional, which will only hurt you in the long run.5
It may be that it will be more beneficial to hire a property manager. They will handle the marketing, dealing with collecting rent or any tenant issues, especially if you have multiple properties in Durango or surrounding areas, and are overwhelmed.7
Rental agreements should consider variables like whether you allow property alterations of any kind, pets, keeping the property free of pests or damage. Whether or not subletting will be allowed. Start by looking at some online agreements and incorporate some of the ideas into your own.
Know your tax benefits when you buy additional property. Sometimes lower rents are not beneficial. It’s good to know ahead of time if vacation rentals can also be considered primary residences.11
Extra income opportunities
There
are lots of different ways you can rent your property in Durango, whether or
not it is a vacation rental or a long-term one. Consider your area for summer
and winter rentals, and gather comps.
An often overlooked factor is collecting additional rent outside of your
standard lease agreement for:
- Storage sheds.
- Garage space.
- Parking spaces or additional ones (especially in areas where parking is at a premium).
- Pets, such as a nonrefundable pet deposit or monthly pet fee (if allowed by your state).1
Protecting Yourself as a Landlord
Landlords need to take steps to protect themselves and their investments. Consistently follow through on the terms of the lease. Collect late payments, promptly repair any tenant-reported breakdowns, inspect your property while there. Be willing to start eviction8 if payments have not been made.
The
best way to avoid problems is to not only keep your property in good condition
but to thoroughly pre-inspect it before rental.
Make sure everything is up-to-code and if you include utilities, make sure they
work. Here are some examples (add your own):
- Test smoke and carbon monoxide detectors
- Give the property a sniff test. Be sure you don’t smell smoke, mildew, pet smells, etc.
- Look at vents, for moisture, dust, or any debris.
- Check internal and external pipes for leaking and flow.2
Make your plan ahead of time for the period your unit is rented. Dangerous problems should be handled immediately. The best way to prepare for problems like these is to have a plumber, locksmith, and contractor on call. Being professional, keeping your finances in mind, following your city and state’s laws, protecting yourself from liability, and preventing tenant problems are the best ways to manage a good rental property business.2,3
Property Management Software
Consider looking into software available online for Property Managers.
They can allow for online rent payments which are deposited right into your account. This cuts out delays the mail, bounced checks, and makes it easier for your tenant. The software also allows for automatic bank-to-bank transfers (ACH), the tenant may pay a small processing fee for a debit card.1
These aren’t just for rent payments, quite a few Property Management programs allow landlords to manage the rental property virtually. Beyond collecting rent online, the programs can help you advertise the property for rent, collect late fees or deposit amounts, manage repair requests, and communicate with the tenant.3
Maintaining the right relationship with tenants
The right relationship starts with a good screening process from the beginning. You are looking for eviction history, too low of an income for the rent, length of time at their job, and even whether you may want to have pets. Many Landlords follow a ‘3-times the rent per month rule’.2 Some of the programs can give you previous addresses, criminal history such as even sex offenders. Being thorough from the start will give you more peace of mind.6
The relationship with tenants may be friendly but important to remain professional. Start with thorough tenant screening. Know your federal, state, and local laws and comply with them. Purchase Landlord Insurance4 and make sure your Renters have a Renter’s policy.
Knowing when and how much to increase rentals. Especially if there has been a spike in property taxes. Usually, it is 5% to 10%, but you should be aware of any rent control measures in Colorado. Keeping good tenants is important, so sometimes you can offer a small upgrade or an inexpensive perk.
Ways to Find Tenants
The large majority of tenants search online for their rental needs. Consider creating an online listing via the different rental listing sites.2,10
Promote your listing on sites such as Trulia and Property Management sites will help increase the exposure. Good photos and detailed listings are key. Make sure you have the most appealing features upfront, such as views, amount of bathrooms, fireplace, location, and more.
Consider hiring an established property management company like RentDurango.com. We have been in Property Management since 1988. We specialize in the professional management of Residential and Commercial Properties and Home Owner Associations. We have amenities like available rental property listings, online applications, booking vacation rentals, buying in today’s market, and more. Please contact us here, we look forward to speaking to you.
2 – https://www.mysmartmove.com/SmartMove/blog/9-must-know-tips-new-landlords.page
3 – https://www.hgtv.com/lifestyle/real-estate/tips-for-first-time-landlords
4 – https://walletgenius.com/home-ownership/12-must-know-tips-for-new-landlords/
5 – https://www.apartments.com/rental-manager/resources/article/10-tips-for-first-time-landlords
6 – https://www.myrental.com/pricing?msclkid=60d9145c63d5180bcee1756ffd5429c5
7 – https://www.mysmartmove.com/SmartMove/blog/how-hire-property-manager-pros-cons.page
8 – https://www.nolo.com/evictions-ban
9 – http://rentdurango.com/how-to-protect-yourself-as-a-landlord-in-colorado/
10 – https://www.avail.co/landlords/rental-listings
11 – https://laporte.com/knowledgecenter/tax-services/tax-consequences-of-charging-below-market-rent
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