How to: Set up and Market a Rental

We love to educate you about building long-term wealth through real estate whether converting your home into a rental when you buy a new one, investing in a vacation home, or investing in a multi-unit, real estate investing can be a great option.

That said, anything that is worth it, is always a bit of work, too, right? 

Here is a little cheat sheet on what goes into setting up and marketing a rental. We also advise you to consult with an accountant, attorney, insurance agent, and financial advisor when making your long-term plan, and considering liabilities and tax consequences. Hey, you know what they say, it takes a village! 

Create an LLC

• Secretary of State website ($50 fee)
• Countless websites/YouTube videos can walk you through this
• A lawyer or personal banker can also set one up fairly easily

Obtain an EIN (Employer Identification Number)

• The IRS website is pretty straightforward once the LLC is established
• Needed to open a bank account/file taxes separately - engage an accountant
• Take your Articles of Organization and EIN letter to any bank 
• Keep separate from all other accounts

Price and Market the Property

• Get professional photos (in Denver, we suggest Denver Creative Group for $99-$249)
• Look for comparable properties and discuss a pricing strategy with your agent

Leverage Flat Fee Property Management Solution:

• Application & Tenant Screening
• Lease Tracking & Management
• Financials & Online Rent
• Maintenance & Repair
• State-Specific Leases Online leases, amendments, eviction notices, and other legal documents with e-signature, as well as discounted legal advice.
• Repair Coordination Coordinator to diagnose and troubleshoot requests. Work order management with your service professionals and tenants. 24/7 emergency support. Full visibility and control at all times.
• Considerations in the lease: landscaping, paint, cosmetic modifications, utilities, renters insurance requirement, etc.
• Evaluate what to include in monthly rent, and what the tenant should pay directly. Landlords often opt to include water because if not paid the water company can put a lien on the property, and have tenants responsible for TV/Internet & gas / electric. 

Homeowners Insurance

• Consult with your insurance agent
• Require renters insurance in the lease

Need help finding a tenant? We would be happy to help! Our fee is typically one month's rent and includes:

• Professional photographs
• Marketed on our social media platforms, and via email to 5,000+ brokers
• List on REColorado (Denver’s Multiple Listing Service)
• Syndication to all 3rd party - non brokerage platforms
• Locator fee, in the event the tenant is represented by an agent, we pay the cooperative broker fee
• Facilitate showings of your property
• We do not offer property management and therefore do not charge a monthly fee
• As licensed real estate agents, we offer a brokerage relationship to you, via the exclusive right to lease a listing agreement from the Colorado Real Estate Commission

Thinking maybe a full-service property management company is right for you? While we do not offer those services, reach out, we can help you with recommendations. While fees vary, full-service property managers tend to charge 8-12%.

If you are looking at a mountain property and planning to short-term rent it (Airbnb/ VRBO, etc.), we highlight advise engaging a property management company that specializes in short-term rentals. This can run anywhere from 20-30%, depending upon where, and what they include.