Whether you want to purchase property or start using your current home to generate income, there are plenty of opportunities for rental property management in Colorado. Yet, it’s not enough to put a “for rent” sign in the front yard and hope for the best. If you want to put cash in your pocket, you need to find profitable property that can make a profit. Look for the following features.
Determining rent amounts uses a simple formula: calculate how much money you need to make each month and tack on an additional fee for yourself. Ideally, the rental should cover the cost of the mortgage payment, property taxes, insurance and HOA fees. You also need a cushion to pay for maintenance and repairs. However, if these costs add up to more than the average rent prices in the neighborhood, you may have trouble finding a renter. Without a renter, the property becomes a liability instead of an asset.
What happens around your property can affect its value and profitability as much as what you do to it. For example, building a shopping mall or entertainment center may turn the neighborhood into a hotspot that commands higher rent prices. Constructing an apartment complex nearby brings more competition to the area and may force you to lower your rent amount to attract tenants. Check with the local development board and zoning agency to find out if anyone has plans for the area.
Choosing a floor plan is a personal choice, but modern floor plans with plenty of open spaces still appeal to a great number of tenants. Look for a property with a great room and open kitchen where the tenants can gather as a family or entertain guests. Master suites, walk-in closets and renovated kitchens and bathrooms are also popular features. Keep this in mind as you choose your next rental property.
It may be a cliche, but you can’t talk about real estate without discussion location. Your tenants want to be in a neighborhood that fits their lifestyle. Families with small children may want to be near schools, playgrounds and recreation facilities. Single adults may prefer living close to nightlife. College students may look for rentals within walking distance of the campus or public transportation. Look for property that has the amenities your tenants want.
At Woodruff Property Management, we understand what it takes to be successful in rental property management in Colorado. Call us today to learn more about the services we offer homeowners and renters. We’d love to be part of your team.