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.