Tips and Advice for New Colorado Springs Investors - Article Banner

As a new investor, you’ll probably have a lot of questions and need a lot of resources. This is why it’s important to surround yourself with experts who can help you navigate everything from identifying the right opportunity to locating reliable vendors to placing excellent tenants.

If you’re preparing to purchase an investment property or you’ve already closed on your deal and you’re wondering how to handle everything that comes next in the rental process, we have some tips for you. Owning investment real estate can be lucrative and rewarding. It can also be challenging and risky. If you work with great property managers and real estate experts, you’ll have a much better investment experience.

Know the Rental Market

Hopefully, you’ve done a little research and you understand the rental market in the region that you’re buying. Once you own property and want to rent it out, understanding the nuances and trends of the local market is essential. This knowledge will help you price your property appropriately, market it to the largest number of potential tenants, and make the necessary updates and upgrades to attract those tenants. You need to know if most of your tenants will be families looking for good schools, professionals who want an easy commute to work or retirees who will want access to recreational and entertainment activities. Find out if the area is walkable or if a car is necessary. All of this information will help you buy the right investment and prepare for how you’re going to rent it out.

Plan and Budget for Maintenance

Many new investors forget that their expenses do not end once a property is purchased. There will be routine and emergency maintenance costs that cannot be avoided. Even if your home is new and in excellent condition, things will break and repairs will be needed. You’ll have to be responsive and ready to meet the needs of your tenant and your property. We recommend that you put aside a reserve so you can easily and quickly pay for those maintenance issues as they arise.

Select a Team of Preferred Vendors

While we’re talking about maintenance, make sure you have a reliable list of vendors who can help you handle small problems and major projects. New investors will often find themselves scrambling to locate a plumber when the water heater bursts. It’s better to have vendor relationships in place already, and to trust their quality of work and their pricing.

Find a Property Management Company

Professional Property Manager - thumbnailSmart investors know that working with a professional property management company will bring you higher rents and lower expenses. If you’re experienced in managing properties and you know all the laws pertaining to landlords and tenants, you can probably manage your own home successfully. However, it’s time consuming and it’s easy to make expensive mistakes. A property management company will protect your investment, ensure you’re compliant with all state, federal, and local laws, and save you money on vacancy, turnover, and maintenance costs. You won’t have to worry about responding to tenants in the middle of the night or trying to decide how to manage a security deposit.

We’re here to help. If you have any questions about how to succeed as a new investor, we’d love to share our experience and our knowledge. Contact us at Muldoon Associates.