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Denver Property Management Blog


Single Family Homes with Multipe Families

Kathy Worley - Thursday, March 29, 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

Kathy Worley - Monday, March 12, 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

Kathy Worley - Saturday, November 19, 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

Kathy Worley - Thursday, November 17, 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"

Kathy Worley - Thursday, April 30, 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

Web Admin - Wednesday, March 26, 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.

Alpha Dimension Properties


10321 Washington St., Suite 104
Thornton, CO  80229
 
Mailing Address: P.O. Box 33482, Northglenn, CO 80233 

Phone: 303-475-5500
Email:
kathy@alphadimensionproperties.com

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