New to Landlording in Denver - Advice?

Question

So, I'm not completely new to landlording. I currently do short term vacation rentals with a condo in the mountains. This month, I'm closing on a 3/2 condo in Denver metro and I plan to step into long term rentals. I'm not sure if it will be easier or more difficult than the short term game, but I know it will be different.

First off, property management. I know that there are very strong opinions in both directions. For me, I'm thinking that I'll have a go at it myself and then later I can always hire a PM if I don't like it, don't have time, etc.
Anyone have thoughts on that plan?

As mentioned, I'm in Denver. This market is a bit crazy right now, and most people seem to think it's set to continue this way for another 5 years or so. What does that mean for a new landlord?
I've got a list of things I'm reading to prepare myself for this process, but if we focus on something like Brandon Turner's blog post/book 'How to Rent your House' (https://www.biggerpockets.com/renewsblog/2013/01/0...), I'm wondering which parts and pieces I may want to do differently, pay special attention to, or take with a grain of salt due to my location/rental market.

Thanks in advance for any advice that you're willing to throw my direction.

Dana Dunford · Answer

@Garry C. - Some quick pointers:

• The most costly expense is a bad tenant: make sure you screen your tenants properly. The upfront work saves a lot of time once you have the tenant in your property.
• Maximum exposure: make sure to get your listing on all of the websites (listing), as it will provide additional demand.
• Move-in inspection: make sure to do this with the tenant's sign off, as it will help with the move-out process and security deposit refund.
• Lease: make sure to have a concrete State-specific lease.

Best of luck!

Dana

Penny Clark · Answer

@Garry C., Welcome to the world of long-term landlording! Good suggestions already listed above. I would add the following:

1) Learn the landlord-tenant laws in your state if you have not done so

2) Take a Fair Housing class

3) Develop a solid written rental criteria ( income to rent ratio, min. credit score, etc) use this in your ads and attach to application

4) Research market rent for long-term rentals like yours in your area

5) Stick to your rental criteria; use it as a guide to screen for quality tenants

6) For move- in inspection, inspect it yourself first and do needed repairs. Take pictures of every room and appliances. You can use these as reference with your checklist for move out.

7) Create a welcome fler or info sheet about the area as well as points of interest, schools, utility and available services in area for prospective tenants.

Good luck and congratulations on new purchase!

Travis Sperr · Answer

@Garry C. Congrats on the new unit. I think you will find that longer term leases are less work than short term rentals. The good news is because our local rental market is strong, it makes landlording a little easier than in previous years. Managing your own properties is a great way to learn the ins and outs, as well as if you mind/like doing it.

The number one thing that all landlords (new and seasoned) need to make a priority is screening the tenants properly. Nothing will cost you more time, money and energy than a trouble tenant. Take your time and verify all of the information you need to get comfortable with a potential tenant. In a tight rental market like we currently have, you will likely get a lot of qualified applicants, just make sure they fit your business plan.

Best of luck as you add units - let me know if I can be a resource for you.

Kevin Fletcher · Answer

I agree with the idea that you give it a shot for a little while. If you do, Id make sure to have a good Electrician, Plumber HVAC/appliance and General handy man to go to the property instead of you when there are problems. I have always really tried to avoid big companies for these things because many will charge you a fee for just showing up, but you can  get service techs that can do the work without charging an arm and a leg for every additional thing that they add on to the bill

New to Landlording in Denver - Advice?

Most Popular Reply