303-475-5500

Denver Property Management Blog

Buy Sell Invest Answers

Kathleen Worley - Friday, August 17, 2018

1. Always Conduct Thorough Research On The Current Market
Although real estate values fluctuate due to local supply/demand dynamics and broader national economic considerations, it's important to remember that properties always sell for no more or less than what the market will bear at that time. Whether buying or selling, do your research, plot your data points, use a variety of resources so that you're confident in your list or offer price. - Garratt Hasenstab, The Mountain Life Companies™

2. Don't Reject Low-Priced Offers Without Negotiating
Selling your home can feel like giving up something you love, so a low-priced offer can leave sellers feeling insulted. Homebuyers base their offer price largely on their own affordability, but will consider raising it if the location is just right or if there is value in renovations already done. Stay open to negotiations and working with the buyer rather than turning down a low-priced offer. - Beatrice de Jong, Open Listings (YC W15)

3. Buy Whenever You Can
There's never a wrong time to buy. There is only a wrong time to sell. If you look at real estate trends over the last century, prices go up and down and we have booms and busts. The buyers who win are the ones willing to ride the wave, see a purchase through the cycle. Buy when you can, and hold till the sale is profitable. - Courtney Poulos, ACME Real Estate

4. Get Into The Rental Market Where It Makes Sense
People will need shelter for the rest of their lives. With the life expectancy what it is here in the in the U.S., that's a lot of rent to be paid. Buy what you need now and do it in an area where the population is on a rising and sustainable course. - Michael J. Polk, Polk Properties

5. Factor In The Fees
In real estate, there are middlemen and a lot of them — the escrow company, the title company, the brokers, the lender, etc. Each one of them is taking a drop from the well. While these fees will all likely go down, they aren't ever going away and buyers and sellers need to accept that. - Ridaa Murad, BREAKFORM | RE

6. Buy A Home To Secure Personal Rent Control
Although the real estate market fluctuates over time, there's one thing would-be first-time homeowners often overlook. Yes, there are tax advantages. Yes, you paint the walls any color you want. Yes, you build financial equity. But you also have a built-in rent control. With a fixed-rate mortgage, you'll know what your house payment will be for the next 30 years — not so when you're a renter. - Eileen Lacerte, Hawaii Beach and Golf Properties

7. Always Invest Based On Location
Regardless of the interest rate or transaction environment, good locations with strong demand and access to transportation infrastructure will continue to outperform in the long run. Location is certainly the evergreen factor telling you where to invest. Interest rates and transaction volumes are better indicators of when to invest. - Marc Rutzen, Enodo Inc

8. Find Trustworthy Partners In The Real Estate Process
In an industry that is heavily commission-based, it is very important to find and work with trustworthy and genuine individuals who will have your best interest at heart over their own pocket. - Engelo Rumora, List'n Sell Realty

9. Keep Your Home's Condition Pristine If You're Looking To Sell
Well-maintained houses always sell faster, even in a slow real estate market. Buyers appreciate houses that look move-in ready and are updated versus those that need a lot of work. In a hot real estate market, most houses sell quickly. But during a cooler market period, buyers can get very picky, so it will be the nicer ones that continue to sell. - Jeremy Brandt, We Buy Houses®

10. Be Selective And Don't Be Afraid To Walk Away
The old real estate adage is true: You make your money when you buy, not when you sell. By being selective about your real estate purchases and using larger amounts of cash in the transactions, you insulate yourself from the ebbs and flows of the market. Deals don't always work, so do not be afraid to step away. Sometimes the best investment to protect principal is no investment at all. - Blake Plumley, Capital Pursuits LLC

11. Approach Negotiations From A Collaborative, Not Competitive, Standpoint
It's a mistake to go into real estate negotiations thinking that the other side is your adversary and to be fixated on a specific price. The goal should always be working together to come to an agreement that satisfies both parties. Digging in your heals can sabotage a negotiation. Take a step back and put yourself in their shoes. What's a win-win for everyone? - Brad Le, Climb Real Estate

12. Find An Experienced Local Real Estate Agent
The internet has changed real estate forever. Home sellers and buyers can get more information about real estate than ever. But what they can't get online and can only get from a local real estate agent, is that insider knowledge. That local "go-to" agent who is a neighborhood expert knows things about the homes and the community you just can't Google. Their value will never change. - Lane Hornung, zavvie

13. Remember That A Home's True Value Is Determined By The Buyer
No matter what the market conditions are, one aspect always remains the same — the true market value of a home is only equal to what a buyer is willing to pay. Just because a seller believes their home is worth a certain amount of money, it does not mean that the ask will be equal to what a buyer believes to be an appropriate "bid" price. - Matt Pettinelli, CapGrow Partners LLC

Contact Alpha Dimension Properties at (303) 475-5500 to schedule your appointment.

Single Family Homes with Multipe Families

System - Wednesday, March 28, 2018

With the market change we are seeing home purchases of "non-owner occupy" again, this means new purchases of home to be used as rentals.  Even more prominent is that we are seeing that we have priced the market of rental customers out of the market!  The largest customer base of people renting are adults between the ages of 23 to 35 years old, in most metro areas their typical yearly income is $30K to $40K.  Best practice is their rent should not be more than a third of their income, similar to the FHA rule of purchasing.  An income average of $35K is a monthly income of $2,914 which means  a single person would only be able to afford rent of $972.00 a month and a married couple $1,944.00.   Keep in mind that we are also seeing two vehicle loans with payment of $500 to $700 a month, student loans with monthly payments of $300 to $500 and mandatory insurance payments totaling $500 to $800.  When you do the cost of living math maybe we should change this rule to one fourth of their income for rent.  Young adults that appreciate and respect their credit score know this to be a fact, cost of living has out priced income.  We are experiencing 70% of applications for rental homes requesting to share the home by two and three incomes.  Property management companies are brain storming lease changes needed to accommodate this need to share due to vacancy rates being on the rise.   We want the young adults that appreciate and respect their credit right?  Investment home owners need to start considering if they want higher rents does the location of the home support single family income, if not, does their property management company have leases and processes in screening and on going management that protects their investment for a shared scenario. Most investment home owners want the higher rent they see other people asking on prominent rental sites though don't want their home to be shared.  In this case consider does a month of vacancy to get $2,200 and most likely lowering it after a month make since or does lowering the rent up front to $1,975.00 to obtain a tenant within a week make more sense.  The yearly effect is $2,700 less in rent and possibly avoiding the shared situation resulting in having less impact of wear and tear on the home.

HUD Guidance Letter April 4 2016

System - Sunday, March 11, 2018

Dissimilar impact is defined by HUD as a violation of the Fair Housing Act when the landlord’s policy or practice looks non-discriminatory and has no intent to discriminate but leads eventually to a discriminatory effect. A landlord may treat all applicants precisely the same, but the application process results undesirably against a protected class resulting in a dissimilar impact.
 On the other hand, criminal background checks can come into play with dissimilar impact even if a landlord runs a background check evenly and against every prospective tenant. However, the landlord may end up discriminating against minorities because they are arrested, convicted and imprisoned disproportionate to their share of the general population. All these rules make achieving compliance a complex and challenging task for landlords, administrators and agents of multifamily properties.

Setting Rent Amount-Attention Rental Home Owners

System - Friday, November 18, 2016

Though this makes since sometimes the obvious needs a reminder. During the time you are attempting to obtain a tenant if your marketing is not resulting in phone calls and showing appointments the problem is your marketing.  If you are obtaining calls and showing appointments though are not receiving applications the problem is pricing.  Colorado residents are living beyond their means and budget due to the extreme cost of housing.  This is most apparent in the rental market where eviction court cases have sky rocketed. As a landlord don't become a victim of this rising concern, verify income and look closely at the debt to income on the credit reports.  Make sure your prospective tenant has three times the income as the rent amount and the debt to income is in line to afford monthly payments.

Tenants Prep Work of Rental for Winter

System - Wednesday, November 16, 2016

1.  If there is a swamp cooler it should now be winterized, if you are not aware of how to complete this submit a work order for maintenance to come teach you.Change furnace filter

2. Gutters are a "must" to be cleaned out to keep ice from forming on the roof and gutters overflowing that create dangerous conditions on the ground.  Gutter extensions must be down, or in place to direct water away from the foundation. If the tenant is not comfortable do this contact your property manager to arrange assistance. Damage to the foundation, roof or dangerous conditions can be your liability.

3. If the home has a sprinkler system that has not been blown out submit a work order to the management company.

4. Check weather stripping around doors and caulking around windows, submit a work order to the management company if repairs are needed.

5. If you plan on using "Ice Melt" purchase the kind without salt, if you use the kind with salt and the concrete gets damaged you will be responsible for the damage.

6.  Make sure your garden hoses are disconnected from the outside faucet and drained of water.

 

Free course & How to Manage Your Own Rental

System - Wednesday, April 29, 2015

Alpha Dimension Properties Inc. offers a course to rental home owners for free that will educate you on how and where to obtain the best Lease, Credit Reports and Background reports on potential tenants, as well how to manage and execute the eviction process.  Contact Kathy Worley for more information through this web site.

Landscape Maintenance and Rental Properties

System - Tuesday, March 25, 2014

While residents want to rent a nice looking home, they often have no interest, time, or knowledge on how to maintain the property. They may agree to landscape maintenance in the rental contract but it can be difficult for a property manager or owner to enforce. The owner can charge the tenant for maintenance or include landscape maintenance but it is not always practical to increase the rent with the full cost, particularly if the landscaping on the property is extensive. Landlords may contact Kathy for further detail on how to manage this within a lease by submitting an inquiry through this web site.



Testimonials

"They are knowledgeable professionals who look out for our best interests. They find the right tenant and are available at all times and answer questions promptly. I recommend to anyone who is looking for a property manager."
- Client Testimonial


Affiliations

Copyright © Alpha Dimension Properties. All Rights Reserved.
Property Management Website powered by FreeRentalSite.com  |   Rent Screener  |   Sitemap