Keeping a Cash Reserve for Your Investment Property
You never know when something can happen that will require a large amount of cash. This could include a disaster where the property is located, a major maintenance expense, an unexpectedly long vacancy, or a problem with a tenant that leads to legal action or damage. As your property management company, we work on preventative measures to keep this to a minimum; however we cannot control all unexpected actions that may affect your investment. Therefore, it is important as an investor to create and maintain a cash reserve. Many factors impact rental properties financially.
Emergencies and Disasters
No one can anticipate the ...
Tenants Performing Maintenance
Many times tenants offer to perform maintenance on properties. While it may seem to be an excellent idea at the time, it can lead to many problems.
Landlords need to ask themselves why the tenant is offering to absorb the time and expense of the work. There are tenants who are honest and capable but often there are underlying motives that property owners should question.
There are questions to ask and a...
Property Managers play a critical consultative role as regulations to address housing affordability complicate rental ownership.
The demand for affordable places to live has outpaced the supply for years, causing rents and home prices to grow faster than residents' salaries can support. Property managers are put in a difficult position, trying to balance the profitability of their clients' investments with rent prices that keep units filled with qualified residents. There's no simple solution to this crisis on the horizon; but property managers can play an advisory role to property owners by staying on top of changing regulations aimed at easing affordability issues in their market, such as upzoning ...
The Impact of URLTA
Over the years, courts have made many rulings based on the Uniform Residential Landlord and Tenant Act, the URLTA. When faced with a difficult case between Landlord and Tenant, a judge will often consult the fine points of this Act before rendering a decision. Important Landlord/Tenant Law often stems from these judgments.
A number of states have based their statutory law on this Act. Interpretations can vary with different judges and in different states. A state can often model their legislation on rulings in another state. Many people are unaware of the existence of this act, or it's impact.
Landlord-tenant law in the United States originated from English common law dev...
We did not see rents increase as this was a winter quarter and rents typically do not see the increase until our spring/summer changes. This is historically consistent with the first quarter rents in previous years.
Grand Junction continues to be a landlord market with rental rates remaining strong. It is important for potential tenants to maintain good credit backgrounds, with good landlord references and be prepared when looking at units to have the security deposit necessary to hold the unit.
~ Cindy Hoppe, Manager
According to the NARPM 2020 State of the Property Management Industry, in recent years, the seller's market has caused a noticeable shift in the property managers' client base: Intentional Investors now represent more than 1 in 2 rental owners seeking property managers' services. Why is this the case? After holding onto their former homes from the onset of the Great Recession until it made sense to sell, Accidental Landlords have now been given a chance to exit the rental market. Meanwhile, as home prices have begun to recede from the peaks they've reached over the last two years, interest is growing among a new generation of investors.
Intentional Investors represent 55% of rental owners in 2019, an increase of 11 points since 2018. Of ...
All the parts of an investment property have a life expectancy. A building can last for years, while you may have to replace a dishwasher next year.
Why is it useful to consider the life expectancy of your property?
It is always better to know as much about your property as possible. Property owners can do more planning and budgeting if they are aware of the life of different items in their investment property. This includes heating units, air-conditioners, various appliances, garage door openers, or water heaters. Knowledge can also help you plan for the unexpected. For example, it may be worthwhile to pay for a 3-5 year warranty than paying for a high maintenance bill if a one-year warranty expires and a dishwashe...
According to the NARPM 2020 State of the Property Management Industry:
6 in 10 renters want a washer and dryer
6 in 10 renters want central air
5 in 10 renters want a dishwasher
5 in 10 renters have a pet
5 in 10 renters want private outside area (ie: balcony, porch, patio, yard)
"In-unit laundry and central air conditioning have topped the list of residents' most-wanted amenities for three years in a row."