If you recently purchased a rental property in Boulder, CO, here's some fantastic news. U.S. News and World Report has ranked it the 10th best place to live in the country. After all, it boasts a thriving job market, excellent local amenities, plenty of outdoor activities, and a high quality of life.
All those positive qualities will undoubtedly help Boulder attract new residents. And for you, as a new real estate investor, that means an expanded tenant pool.
So now that you're about to become one of Boulder's first-time landlords, what should be your next course of action?
Ensure Your Property's Safety and Livability
Ideally, a professional should have inspected the property before you bought it. If not, there's no better time than now, before even listing your property for rent, to do it. You want to ensure your rental is safe and habitable and meets all necessary Boulder building codes and regulations.
Decide Between Short- and Long-Term Tenancy
One of the most crucial real estate investment tips for first-time investors is understanding the pros and cons of short- and long-term tenancies.
In Boulder, short-term tenancy is when you rent your property to a single booking party for under 30 days at a time. A perfect example is renting to vacationers. Anything longer than that (30 days or more) is already a typical lease agreement.
Short-Term Rentals
Short-term rentals often provide more income than typical leases and offer more tax breaks. They also allow for more regular rental property maintenance and flexibility for personal use. However, they're more susceptible to vacancies, causing inconsistent incomes.
Long-Term Rentals
Long-term rental rates are typically lower than short-term rentals. That means they may provide lower profit margins.
The good news is that long-term leases provide a more consistent income flow. You can also worry less about paying utilities, as long-term renters usually shoulder them. And, if you build great relationships with your tenants, you can reduce turnover rates as they're more likely to renew their lease.
Consider Professional Property Management in Boulder
Whichever tenancy type you choose, you must manage your property effectively to keep it profitable and compliant. It can also help lower the risk of losses from property damage, high vacancy and turnover rates, or, in the case of leases, evictions.
A property management company can help make managing your property more manageable by:
- Providing accurate rental valuation and expert marketing services
- Communicating with and thoroughly screening guests or tenants
- Drafting rental contracts
- Collecting rent
- Overseeing inspections, maintenance, and repairs
- Assisting with accounting and financial reporting
So, if you don't have time for all those tasks or don't live in Boulder, it's best to partner with a property manager.
Find Success as a First-Time Real Estate Investor
Now you know that after purchasing your first property, you'll have to inspect it, decide on the type of tenancy, and manage your investment.
At PMI Flatirons Group, we understand how complex managing real estate investments can be for a first-time real estate investor. That's why we provide full-service property management solutions, from marketing to maintenance and eviction protection. We also back our services with many guarantees for our clients' peace of mind.
So, if you're ready to maximize your rental income, contact us for a free consultation!
