The rental market in Denver is leveling out, according to a Westword article. However, this shouldn't deter you from wanting to become a landlord. In a city where the average rent for apartments is $1875, there's a lot of money to be made for new rental property owners.
If you're ready to let out your property, you might be considering using the for rent by owner approach as opposed to letting a property manager do all the work. Although it's not the most popular approach, you still have a great chance of being successful. You just need to know how to go about being a DIY landlord.
Understand Colorado's Landlord-Tenant Laws
The relationship between landlords and tenants is governed by the state's landlord-tenant laws, and local laws can also apply. As a DIY landlord, it's crucial to familiarize yourself with all the relevant laws before you even list the property for leasing.
Some of the most important areas of law you need to know include:
- Security deposits
- Tenant rights
- Landlord responsibilities (Habitable Housing)
- Eviction process
- Rent collection
- Pet deposits capped at $300).
Violating the law can land you in trouble, even if you might not have done it intentionally.
Conduct a Rental Analysis
Once you have established what the law requires of Denver landlords, the next step is to price your rental property. Setting the rent can seem simple, but you can easily get it wrong. Just because similar properties in the neighborhood are going for a certain amount doesn't necessarily mean that's what you should charge your tenants.
There's a science to determining the right rental price, and it involves conducting a rental analysis. This will enable you to understand the current rental demand, which is the primary factor for setting the rental rate.
Observing the local economic conditions is also helpful. If the economy is thriving, it means consumers have more purchasing power, and can thus afford higher rents.
Listing Your Property for Rent
In a competitive Denver rental market, landlords have to market their properties to get tenants. A simple "for rent" sign on the property might not make the property visible to your target audience.
The good news is there are listing platforms that enable landlords to profile their properties and wait to be contacted by interested renters. Be sure to choose to right platform, and describe the property in detail. Provide clear photos of the property's key selling points.
Screen Your Tenants
You're excited to pick up those calls from prospective renters but don't be quick to select a tenant. You need a tenant screening checklist to help you identify good tenants from bad tenants. Key things to check include:
- Credit history
- Criminal history
- Renter history
- Income verification.
Your goal is to find tenants who won't just pay rent on time. You need tenants who will also observe all your rental rules, and likely stay beyond their initial lease.
Excel As a For Rent By Owner Landlord
Being a for rent by owner landlord can seem daunting given all the property management responsibilities on your shoulders, but armed with the right information, you can find success.
And if you feel overwhelmed somewhere along the way, you can always count on PMI Aspire to help you out. We utilize cutting-edge proptech to simplify property management, enabling residents and owners to connect with us effortlessly, anytime and through their preferred channels.
Get your free rental analysis and call us to set up a consultation.
