About 10.6 million Americans earn income from 17.7 million rental properties in the US. Are you now among them? Congratulations!
The best accidental landlords set themselves up for success by developing a plan. Read on for the tips you need to become a successful landlord. With these tips, you can attract and retain renters in Denver, CO with ease!
1. Research Local Laws
Before you start marketing your Denver rental property, research local laws. Understanding landlord-tenant laws and regulations will help you remain compliant. These laws cover:
- Rental application and tenant screening
- Security deposit laws
- Required landlord disclosures
- Late fees
- Rent rules
- Tenant rights to withhold rent or repair and deduct
- Termination and eviction rules
- Rules about landlords' access to properties
Neglecting to keep up with new regulations can lead to legal consequences. Tenants may decide to sue you. You may receive a fine and struggle to generate income.
Before that happens, consult a property management company. Look for companies with years of experience in Denver, CO. They'll understand local, state, and federal laws that may affect your endeavors.
2. Invest in Tenant Screening
Consider making a few small upgrades to your new rental property. Make it attractive. Offer amenities to stand out from other Denver rentals.
Complete a rental analysis to establish competitive pricing. Otherwise, renters may look for cheaper options.
Start marketing your rental property online. Optimize the listing to appear for relevant searches. You can open your tenant pool and start generating applications.
Don't invite the first renters you find online to move. Instead, develop a thorough tenant screening process. The information you gather should include:
- Criminal background checks
- References
- Eviction histories
- Employment verification
- Credit checks
Tenant screening can become time-consuming and tedious. Outsource to a property management company. Their process will save you time and money while ensuring accurate reports.
3. Draft a Lease Agreement
An experienced property manager can help you draft a lease agreement. Their lease enforcement services will ensure your tenants comply. A typical agreement includes the:
- Tenant's contact information
- Rental property's location
- Security deposit amount
- Monthly rent amount
- Utilities covered by rent
- Lease term
- Policies
- Disclosures
Creating a lease agreement will protect your best interests. Don't allow tenants to move in until they've signed the agreement.
4. Hire a Property Manager
Consider hiring a full-service property management company. An experienced property manager can handle:
- Rent collection
- Maintenance and inspections
- Accounting
- Marketing
- Tenant screening
You can leverage their years of local industry experience to avoid making costly mistakes. Instead, you can learn how to maximize your earning potential. Relying on their expertise can help you make the most of becoming an accidental landlord.
Succeed Among Denver's Accidental Landlords
The best accidental landlords in Denver don't try to operate alone. Instead, they hire property management companies. With help, you can maximize your profitability in today's competitive real estate market.
Our team at PMI Denver West has helped landlords like you for over 20 years. We're dedicated to helping clients maximize their earning potential.
Leverage our state-of-the-art technology and proven strategies to ensure your success. Contact us today to meet your Denver property manager.
