The rise in mortgage rates has increased the number of renters in Denver and elsewhere.
Becoming an accidental landlord in Denver, CO, can be both a challenge and an opportunity. Whether you've inherited a property or had to move but decided to rent out your home, knowing how to handle the rental market is crucial.
Keep reading for five top strategies to help accidental landlords boost rental income, manage property efficiently, and more.
1. Rental Income Tips
Maximizing rental income starts with understanding the local market. Denver's rental market is competitive, and setting the right rent price is essential.
Begin by researching comparable rental properties in your area to determine a competitive rate. Overpricing can lead to longer vacancy periods, while underpricing means you lose potential income.
Always review and adjust your rent based on market conditions and property upgrades. Keeping an eye on local trends and other signs will help you stay competitive.
2. Property Management Guide
Start by deciding whether to manage the property yourself or team up with a tried and true property management company. Handling the property on your own can save some money but takes significant time and effort. If you choose this route, stay organized by keeping detailed records.
If you opt for a property management company, select one with a good reputation and experience in the Denver market.
They can handle everything from tenant onboarding to rental property maintenance and beyond. Whether managing the property yourself or through a company, establishing clear communication channels with your tenants is crucial for addressing issues promptly.
3. Landlord Legal Advice
Familiarize yourself with Colorado's landlord-tenant laws to ensure you comply with all regulations. These laws cover security deposits, lease agreements, eviction procedures, and more.
It's worth consulting with a real estate attorney. That way, they can review your lease agreements and ensure they are comprehensive and within legal boundaries.
Understanding fair housing laws is also essential to avoid discrimination claims. These laws prevent discrimination based on someone's race, color, national origin, and other factors. Make sure your tenant screening process is fair and objective, and always document your decisions to protect yourself from potential legal issues.
4. Tenant Screening Tips
Selecting reliable tenants is vital to minimize problems and ensure a steady rental income. Start with a thorough tenant screening process that includes background checks, credit checks, and reference verification.
Look for tenants with a solid income, a clean credit history, and positive references from past landlords. A comprehensive screening process can help you avoid tenants who might default on rent or cause property damage.
Setting clear criteria for tenant selection and consistently applying them can help you make fair and informed decisions.
Accidental Landlords Have a Promising Future
Accidental landlords don't have to feel overwhelmed anymore. Instead, they can accomplish much more when they find a proper property management solution.
Walters and Company Property Management is here to help you get the most out of your Denver property. We handle marketing, tenant screening, and other management staples.
Get your free rental analysis by reaching out to the Walters and Company Property Management team today.