So you’ve probably already calculated what you thought your home could currently rent for if you are anything like me. Denver is one of the top five cities in the US to own a rental and to be a property owner! People are moving here in droves and while the market may have some softening lately, overall it is still extremely strong and stable. Having a rental is a great way to build your financial empire.
While you may be thinking of renting your home, be aware that renters will not take care of your home as well as you would. They may still be responsible renters, they just may not always keep your high needs garden in tip-top shape or make upgrades to your property without hesitation as you would.
1. I would always make your rental goof-proof. In other words, keep things in great shape, but don’t add things that renters may not value from their personal standpoint. Keep landscaping minimal, keep colors neutral as to not offend, and remove things that have lots of maintenance, such as, hot tubs or complex gardens.
2. Know your city regulations. Avoid hassles and headaches later by making sure you have the right permits and paperwork. Lead-based paint disclosures and asbestos disclosures are a great example.
3. Most renters won’t do things for your properties unless it’s easy. Stock up on air filters and make it clear when you expect them to be changed. Buy felt pads for furniture and let them know that you expect them to be placed under table legs and furniture to protect your hardwood flooring. You can also let them know that any damage done to things for not doing what you expect could come out of their deposits.
4. Think in a defensive way in regards to replacing carpet, flooring, or tile. What will last longer with renters? They are usually a bit harder on things and you will want to choose materials that stand the test of time.
5. Add charm or luxury to your listing that doesn’t cost you a fortune! I would not think about technology here or something that might break easily. I would think in terms of bathroom fixtures or light fixtures. Add knobs to blank kitchen cabinets. Adding those touches can make it more appealing.
6. Price appropriately. In this market, it is tempting to try to gouge the market in price. The market ALWAYS sets the price, not me and not you. Supply and demand is in control here. Listen to the market. If you price it too high, you will find yourselves getting applicants with multiple renters who can’t afford to rent on their own or it will sit and you will lose money.
Start off with the right thinking in order to make the most of your rental!