Buying your first rental home is an exciting time. By now, the paperwork is almost finished, and you will soon have the keys and get tenants moved in to start turning a profit. Unfortunately, the process will likely not be as smooth as you imagine. Indeed, it can be anything between a bumpy ride and a rollercoaster, especially when you are new at the game.
However, this should not deter you from investing in residential rental property because help is at hand. Hiring a property manager can turn owning a rental home from a nightmare into a sublime experience. Here is what a property manager will do for you:
Putting agreements in place
As a landlord, you might have no idea what a rental agreement should contain. Downloading templates from the internet might seem like an ideal solution, but it could cause long-term headaches if the agreement does not cover everything. Instead, let one of the Denver property management experts handle it for you. Landlords have a choice between large residential property management companies, such as Bozzuto and Morgan Properties. Alternatively, they might opt for local companies like Airhomy and Atlas Real Estate, which operate out of Denver. Evernest is a residential property management company with a sound reputation in many cities, including Denver, Fort Collins, Jackson, and Birmingham.
Property managers have standardized legal contracts designed to protect the company, landlord, and tenant alike. Real estate legal professionals draft these agreements to be watertight and straightforward. However, they can be amended to accommodate any unique needs you might have.
Finding Denver tenants who are a perfect fit for your property is easier said than done. Landlords frequently share tenant horror stories online, detailing their awful experiences with nightmare renters who made them question their decision to invest in rental property. However, it is a simple process for rental property agents as they know exactly where and how to market a property to attract the right type of tenants.
Many would-be tenants are already included in a database or waiting list that property management agents keep. Once they have a new client, they scour their lists for suitable tenants and contact them. Many times, an agent can secure tenants without even advertising the property first.
Finding Denver tenants that look good on paper might be easy for a property management agency. However, the process does not stop there. A potential renter submits an application, which the agent evaluates and verifies.
Typically, they start by checking out the applicant’s employment and salary to ensure the would-be tenant can afford the rent. An agent might also run a credit check to determine an applicant’s past financially responsible behavior as it is a sound indicator of how they will manage their rent payments. A credit check also determines whether an applicant is burdened by many debts they must service before paying rent.
Part of a landlord’s contract with a property manager makes it the latter’s responsibility to ensure tenants pay their rent in full and on time. It is a task many rental property owners dread, as tenants may avoid them or come up with stories about why they cannot afford to pay.
Landlords who give in and allow such a breach of the rental agreement often find themselves having to do so more than once, which jeopardizes their rental income. Having someone managing it on your behalf negates the need for this. As a middle-man, a property manager helps keep the tenant-landlord relationship strictly business and does not allow personal matters to enter the equation.
Dealing with repairs and maintenance
Landlords who do not use property managers find themselves taking phone calls about burst pipes and broken appliances at odd hours in the middle of the night. They need to be available 24/7 to deal with these matters and have a team of contractors on standby to help where necessary.
Property managers establish connections with reputable Denver contractors who handle their repairs and maintenance tasks on their behalf. To be placed on a property management company’s list of authorized repairs and maintenance service providers, these contractors must have a proven track record for doing quality work at competitive rates. Contractors who do sloppy work or fail to deliver on their promises will not be considered.