5 Essential Tips for First Time Rental Property Owners in Colorado Springs

There are a number of reasons why you might consider becoming a landlord in Colorado Springs or anywhere in El Paso County. Maybe you’re downsizing to a smaller property, but still want to maintain your current home for income. Perhaps you’ve found a great deal on an income-producing property and are planning to use the revenue for your retirement. Or you’ve found your dream home with an attached apartment or suite that will help you defray the costs.

Whatever your motivation, here are some critical steps you need to take to minimize hassles and be financially profitable.

  1. Be realistic. Remember that you’ll still be paying the mortgage on your rental property, so you can’t count on the rental income to be pure profit. Be sure to calculate taxes (local and federal), utilities, upkeep, maintenance and insurance as part of your cash outflow. Plus you may have some lag time before you find the right tenants. If you’re relying on the rental income to purchase something in the near future, e.g. a round-the-world-cruise or new car, you may have to wait a while.

  2. Keep scrupulous records. Set up an online system such as Quickbooks or Freshbooks. This will help you keep track of all incoming and outgoing cash flow, as well as create reports that will make your tax preparation much less stressful. It’s also a good idea to maintain a file with all the paper receipts, or scan them into a device.

  3. Consult with a professional. Even if you’ve done your own taxes and accounting for years, you’ll want to meet with an accountant or tax attorney to learn the legal do’s and dont's and ensure that you are financially suited to handle the task of being a landlord.

  4. Hope for the best, prepare for the worst. You may not be able to find a tenant for months. Rent payments may be consistently late. Your renters may damage the property or hold loud parties. Or you may have dream tenants. Just remember, this is a business proposition, so try not to become emotionally involved.

  5. Understand your tenant’s rights as well as your rights as a landlord. Consulting with an attorney who specializes in property leasing will help prepare you to deal with any situation that may arise. Be sure to put all your expectations (date rent payment is due, additions made to the property, noise level, best time to contact you) in writing as part of your lease agreement.

At Springs Homes we specialize in Colorado Springs Property Management, we work with properties not only in Colorado Springs but anywhere in El Paso County. We not only manage properties but we can also help investors find properties that meet their needs. We are a great solution for those that want to landlords but are weary of the hassle and the liability. Our investors simply leave the hassle to us.

The preceding information is deemed to be reliable, but is not guaranteed. If you are thinking of purchasing rental property in the Colorado Springs area, be sure to consult with your tax professional or tax advisor for specific information pertaining to your financial situation.

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6144 Montero Circle

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Check out my new listing!   Enjoy unobstructed Pikes Peak and mountain views, with open space directly behind the property.  And, no rear neighbors means plenty of privacy. Built in 1997, this terrific ranch floorplan features walk-out lot, stucco exterior, wood floors, vaulted ceilings, gas fireplace, spiral staircase, 4 bedrooms, 3 baths, finished basement, media room with projector, big screen and built-in speakers, air conditioning, wood deck, and all appliances stay!  Great Powers location...walk to nearby shopping and parks!

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Hot Market in 2014...Can We Do It Again?

Colorado Springs saw a great real estate market last year.  Sales of single family homes rose by 3.8% from the previous year, ending 2014 with 11,197 total homes sold.  The average sales price of a single family home was $251,430, up 2.8% over last year's average price.  Inventory, meaning homes for sale, dropped dramatically as homes continued to sell at a record pace.  As a result, we ended the year with 20% less inventory from a year ago.   Condos and townhomes saw the same kind of gain, with total sales of 1,474 units sold, up 6.6% over last year.  The average sales price of a condo/townhome was $167,893, up 2.3% over last year's average price. Inventory, or units for sale, had dropped by 13% by year's end.   In summary, there are less homes for sale right now.  There are more buyers buying.  As a result, prices are going up and houses are selling faster.   2015 is already paced to outperform last year.  We are seeing a lot of activity early in the year, and we haven't even hit our peak busy season which is usually Spring and Summer.  Bring it on!

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8231 Horn Run Rd. Great Briargate Home For Sale

I have just listed this great four-level home in the Briargate neighborhood. This home is a “Campbell Homes” resale. When you enter the home you walk into a large living room area with vaulted ceilings, skylights and hardwood flooring. The living room is currently being used as an oversized formal dining room. The Living Room has a large pass through window that opens to the kitchen. The Kitchen has vaulted ceilings as well as tile flooring, Corian countertops, lots of cabinets and walks out to a large fenced backyard. There is a gate in the fence that provides access to the greenbelt behind the home. Additionally, the backyard also features a large storage shed and fenced dog run. The upper level features three large bedrooms, a Master Suite and two additional bedrooms and two full bathrooms, an attached master bathsuite as well as a full bathroom in the upper hallway for the remaining bedrooms. The lower level consists of a huge family room complete with fireplace. This room walks out to a two car attached garage complete with opener. The basement is unfinished and offers ample storage with the option of adding an additional bedroom and bath. This is a great home in a popular neighborhood. {rsmediagallery tags="horn_run"}

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8231 Horn Run Rd. Great Briargate Home For Sale

I have just listed this great four-level home in the Briargate neighborhood. This home is a “Campbell Homes” resale. When you enter the home you walk into a large living room area with vaulted ceilings, skylights and hardwood flooring. The living room is currently being used as an oversized formal dining room. The Living Room has a large pass through window that opens to the kitchen. The Kitchen has vaulted ceilings as well as tile flooring, Corian countertops, lots of cabinets and walks out to a large fenced backyard. There is a gate in the fence that provides access to the greenbelt behind the home. Additionally, the backyard also features a large storage shed and fenced dog run. The upper level features three large bedrooms, a Master Suite and two additional bedrooms and two full bathrooms, an attached master bathsuite as well as a full bathroom in the upper hallway for the remaining bedrooms. The lower level consists of a huge family room complete with fireplace. This room walks out to a two car attached garage complete with opener. The basement is unfinished and offers ample storage with the option of adding an additional bedroom and bath. This is a great home in a popular neighborhood. {rsmediagallery tags="horn_run"}

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