If you’re drawn to the real estate investment boom of 2021, you aren’t alone! Many are choosing to take advantage of the market and start their rental journey in the wake of the pandemic. Below, we’ve compiled a list of the top steps that you can take to find success in the Denver rental market.
1. Contact your mortgage and insurance companies. Before pursuing your rental dreams, always connect with your mortgage company first. There may be outstanding paperwork or requirements that you should fulfill before accepting renters. For example, some loan programs (like FHA) require that the owner occupy all or part of the home for a specified period of time. Insurance is another crucial part of your rental plan, as you’ll have someone else living in the home. This can present an increased risk that may not be covered by your current policy. Contact your provider to inform them of your situation, and ensure that your policy is adequate for your unique situation. Before proceeding, you’ll also want to make sure you’re following any local, state, and/or federal rules and regulations required of landlords.
With this new endeavor comes a new set of tax rules. According to IRS regulations, if you rent out your home for more than 14 days you are considered a landlord. While this does mean more reportable income, you’ll also enjoy deductions that you would otherwise be ineligible for. Be sure to hire a good bookkeeper so that your tax season process is as easy as possible.
2. Help your home shine for your new tenant. Keeping the home clean and neat before a tenant moves in can create a great first impression – especially when it comes to walkthroughs. Help your tenant feel confident and right at home by hiring professional cleaning services to make your home sparkle.
3. Consider your curb appeal. The overall look of a rental property is imperative to maintain. This simple step can help you to set the standard of care that you would expect from a tenant, and also improve the curb appeal of your home. This can greatly impact your ability to obtain (and keep) regular tenants. If you aren’t sure how your home measures up, consider the question: how does your property look when someone arrives for the first time? First impressions of things like the front door, pathways, flower beds and lawn/landscaping can make a big impression.
4. Safety first. New renters want to move into a home that is safe. You can help them feel confident in their choice by making sure that the smoke and carbon monoxide detectors are operating in the way that they should. This can help you preserve your rental space and ensure that any risk or liability is mitigated. Also, take the time to consider any tripping hazards or other possible safety issues.
5. Create a warm welcome. The details are what can differentiate your home from other rental choices on the market. Nothing says “thank you for renting our home, we are glad you’re here” than a housewarming gift. This can look different for everyone and may include a guide to local amenities, a small gift or decor piece, or a ‘thank you’ note from the landlord. You may even consider gift cards, homemade items such as art or delicious food, or a floral bouquet to add a decorative touch.
6. Enlist the help of a (local) expert. Our full-service property management services unlock a wide range of services and a full team of skilled professionals that have one goal in mind: to provide you with the highest level of service and the maximum return on your investment. We’re able to help in many areas, including:
- Greenwood Village
- Highlands Ranch
- Lone Tree
- Cherry Creek
- Ken Caryl
Don’t make rental management a second (full-time) job. The experts at PMI Aspire work with high-quality vendors to provide you with the most streamlined process possible. Our goal is to eliminate the headache and worries of managing a rental property on your own. With our processes and years of experience, we can help you achieve the success in real estate and investment income you’re looking for. We’ll help you get optimized rental income out of your property, determine your cash flow from monthly rental value and gain critical insight into local real estate market conditions. Contact PMI Aspire today for more information. 720.928.9955