Investing in rental properties is one of the most effective ways to earn extra income. Denver can be a great location for a real estate investment. That said, as a rental property owner, you need to know your responsibilities to ensure that you remain on the right side of the law.
Before you rent out your property in Denver, it’s important to be prepared. There are several things that you need to know and do, and it’s essential to understand the duties that come with owning a rental business to avoid any issues. Here are a few things that you need to know before you rent out your house in Denver:
Know Your Duties as a Landlord
Being a landlord comes with a lot of responsibilities. Before you decide to venture into a rental business, it’s crucial to ask yourself if you are willing to spend time and energy managing a rental property.
Here are a few things that you should do as a landlord:
Provide a Habitable Place of Dwelling
Landlords are required to provide a habitable living space for their tenants. This means that you should ensure your property meets the standard habitability requirements of Denver. Additionally, there are health, safety, and building codes that you should comply with.
Perform Necessary Repairs within a Reasonable Timeframe
To provide a habitable dwelling for your renters, you need to inspect your property on a regular basis and perform the necessary repairs promptly. You also have to set aside a budget for regular repairs and maintenance due to normal wear and tear.
What’s more, you need to address repair requests from tenants and sometimes, you’ll even have to respond to calls beyond your regular business hours for emergencies.
Pay for Expenses like Insurance and Taxes
There are several expenses associated with owning a rental business. For one thing, you need to pay for property insurance to protect your investment. And since this is a business, you also need to pay for taxes. Aside from insurance and taxes, there are also other recurring expenses that you need to be financially prepared for, even if your property is unoccupied and not generating income.
Understand the Landlord-Tenant Law in Colorado
Another important responsibility of being a landlord in Denver is to understand the landlord-tenant law in Colorado. Understanding the law can help you stay in compliance and avoid getting into trouble. Here are a few important things that you need to know about landlord-tenant law in Colorado:
In Colorado, landlords are allowed to charge tenants with security deposits. There is no maximum amount required but landlords need to return the security deposits to tenants within one month to 60 days after the tenants moved out of the rental unit.
Breaking a lease is generally not allowed in Colorado, except in certain circumstances that provide protection to tenants against possible penalties. Landlords must know the justifiable reasons for breaking a lease, which can include:
- Early termination clause
- Active military duties
- Uninhabitable rental unit
- Lease violations by the landlord
- Domestic violence
Colorado landlords should abide by the rules and regulations of the federal Fair Housing Act and prevent any discriminatory practices against tenants on the basis of sex, national origin, color, race, familial status, disability, and religion.
In Colorado, landlords are also prohibited from discriminating against tenants on the basis of marital status, gender identity, sexual orientation, ancestry, and ownership of a service animal.
Colorado landlords may evict tenants if they have valid reasons such as non-payment of rent, illegal acts, lease violations, or staying at the property without a lease. Landlords must make sure to follow the proper legal procedure for eviction and must not forcibly evict the tenants by shutting off utilities or locking them out of the property.
Learn How to Market the Property Efficiently
To be a profitable rental property owner, landlords should know how to market your vacant property effectively. Before you market your rental unit, you have to ensure that it’s rent-ready. You should repair all issues to make your property attractive to prospective renters, and oftentimes, landlords perform home improvements to increase the value of the property.
Additionally, using effective marketing strategies is essential to get your property occupied quickly. Aside from using professional photography, you should also learn how to create targeted and engaging advertising to reach your target audience.
Screen Tenants Carefully
Careful tenant screening is crucial if you don’t want to rent to problematic tenants. You want to avoid tenants who couldn’t pay their rent on time or those who won’t take good care of your property. You should aim for tenants who will abide by the rules and regulations of the lease and respect your property.
As a landlord, you should learn how to screen tenants thoroughly. You need to conduct financial, rental, criminal, and background checks to ensure that you only accept highly qualified tenants.
Work with a Professional Property Manager
The best way to prevent any issues related to owning and managing a rental property in Denver is to hire a property manager with sufficient experience managing different types of rental units in the area. Property managers will be the ones to handle all the day-to-day tasks of a landlord on your behalf.
Plus, highly qualified property managers will get your property occupied by the right tenants immediately. Since they have established effective techniques and property management solutions, you can rest assured that you’ll maximize your profits without the extra burden.
There are many steps that you have to take when renting out your home in Denver, Colorado. If you would like help managing your rental properties, consider partnering with a trusted management firm like Keyrenter Property Management Denver. Contact us today to learn about our quality property management services!