You've just closed on your first investment property. The keys are in your hand, and the ink is barely dry on the paperwork. The rush of excitement is intoxicating, but as the dust settles, a sobering thought creeps in: "Now what?" You're standing at the threshold of your Denver fixer-upper, surrounded by peeling wallpaper and outdated fixtures, realizing that putting your money down was just the start.
Luckily, we're here to help. Read on to find out what you should do as a first-time Denver real estate investor.
First-Time Property Investor Tips: Set Competitive Rental Rates
Research the Denver rental market to understand what similar properties in your area are charging. Look at factors like:
- Property size
- Property condition
- Amenities
- Location
Pricing your rental too high can lead to extended vacancies, while pricing it too low can reduce your overall return on investment. Consider your property's unique features that may allow you to charge a premium. For example, proximity to schools, public transportation, or updated appliances can make your property more appealing to potential tenants.
Screen Potential Tenants
A solid screening process can help you avoid future problems like missed rent payments, property damage, or early lease terminations. Start by having applicants complete a detailed rental application that includes information about their work history, income, rental background, and references.
It's important to verify each applicant's financial stability by confirming their income as part of their property investment strategies. Many landlords require that tenants earn at least three times the rent they to ensure they can afford your Denver rental property.
Hire Rental Property Management
Property managers offer different services that can save you valuable time, reduce stress, and enhance the overall profitability of your rental. One of the biggest advantages is their expertise in tenant management. Rental property management companies can take over major landlord responsibilities, ensuring you have responsible tenants while minimizing vacancy times.
Property managers also streamline rent collection, using automated systems to ensure timely payments and addressing late fees when necessary. They are well-versed in local landlord-tenant laws, helping you avoid legal issues that could arise from improper lease agreements, evictions, or disputes.
Property Investment Strategies: Prepare for Tenant Turnover
When a tenant decides to leave, you'll need to ensure that the property is ready for the next occupant quickly to minimize vacancies.
Take the opportunity to freshen up the property. New paint, deep cleaning, or minor upgrades, such as new fixtures or updated appliances, can make your property more appealing to possible Denver tenants. This proactive approach can also justify competitive rental rates and help attract quality renters more quickly.
It's also a good idea to streamline your tenant turnover process by creating a checklist. This can include steps such as:
- Scheduling inspections
- Documenting property condition
- Managing key handovers
- Setting up the marketing plan for the property
Succeed as a Real Estate Investor Today
There's so much you need to do as a new Colorado real estate investor. With these first-time property investor tips, you can ensure your new venture succeeds.
Are you ready to hire Denver rental property management? Mavi Unlimited Property Management has 24 years of experience waiting in the wings to help you out.
Learn more today.