The Denver area rental market is competitive and to be successful you need to be prepared. We have compiled a list of the top three tips for first-time property investors. You can find more tips on our website, and we are always happy to schedule a meeting to review important factors to consider when purchasing a rental property.
Tip #1: Understand the Market and Its Rental Values
A mistake often made by new investors is thinking they’ll have a positive cash flow right out of the gate. Get to know the Denver rental market and understand the rental values. You’ll also need to understand what upgrades and amenities tenants are expecting in your property’s area.
Tip #2: Hire An Expert
This isn’t the time to Do It Yourself. Surround yourselves with experts who can help you have a successful investment experience. Start with a reputable property management company that handles all aspects of your rental. You’ll also need a good broker, an insurance agent, a legal expert, and a CPA who understands rental property tax
Tip #3: Budget for Maintenance Expenses
A property manager will help identify areas of improvement and necessary upgrades on your property to make it desirable to rent. You’ll need a good cash flow reserve for necessary maintenance expenses when you begin to rent properties. Once you have properties occupied you need to realize that with any property, appliances can break, repairs come up, tenants will leave, and there are associated vacancy and turnover costs. Continuing to invest in improvements and such will ensure that your property will be appealing to rent.
We hope you found these tips for first-time property investors helpful. Need more advice? Whether you’re thinking about buying an investment property or looking for some creative solutions that will solve current rental problems, Walters & Company Property Management is here to help. We have a reputation for meeting and exceeding expectations, we are leaders in the Denver property management field and offer top-notch rental properties in highly coveted areas and we’re always happy to be a resource for property investors.