5 Tips on How to Get the Best Offer in Denver Real Estate Market

In Denver, there are limited properties on offer and it is quite difficult to make a real estate deal or even identify one. Houses are highly priced and it is costly to get a good home near a place of work or popular social amenities. Most of the Centennial property management companies in the region are aware that demand for housing is quite high and they keep on revising their prices from time to time. This is very frustrating to homebuyers in Denver because competition in the region has made many people unable to buy homes. Although real estate in Denver seems to be in favor of sellers, buyers can still get a good offer for their money. The following are some basic tips on how to get the best offer in Denver real estate market.

  1. Consider homes in developing neighborhoods

Home prices are very high in the developed areas of Denver versus those in the developing neighborhoods. Wealthy individuals do not usually look for homes to buy in less established neighborhoods because they believe these areas lack basic amenities. They compete for homes in popular Denver neighborhoods such as Capitol Hill and Cherry Creek where prices are very high. People looking for homes to buy can take advantage of the situation by buying homes in developing areas of Denver such as Skyland and Athmar Park. What first-time homebuyers need to know is that developing areas are rapidly catching up with the rest of Denver. More so, housing is relatively affordable in the developing areas of Denver and soon these areas will become real estate hot spots.

  1. Always have your financing ready

Homes in Denver are like hot cakes, you may get an offer today and tomorrow it is gone. Many homebuyers start looking for property to buy even before they have their financing approved. This strategy may be applicable in other places but not in Denver. Here, you need to have your finances ready if you do not want to find your ideal home and lose it to the next buyer. It is also worth noting that home sellers are more confident with buyers who are financially ready and have some evidence to prove it.

  1. Consider summer for home hunt

Majority of the people in Denver, including homebuyers, are less active during the summer season and many people take a break from routine activities to relax. This is the most suitable time to look for a home to buy in Denver because competition is low and buyers have more bargaining power. For instance, the month of July is the most suitable time to search for a home to buy because many people are on vacation. Moreover, many homebuyers are already tired and take a break to resume searching in August. If you look for a home to buy in Denver in July, you are likely to find better opportunities due to less competition.

denver real estate

  1. Always submit a personal letter to backup your negotiations

Real estate in Denver is wild and homebuyers need to use every possible strategy to have their offers accepted. It is therefore a wise idea to provide a personal letter to help you convince home sellers to accept your offer. Sometimes your offer may not be the highest but you may win the heart of the seller depending on how you explain yourself in the personal letter. Include some personal information in your letter to help the seller understand you better. They may realize why you need that home over another bidder. Some home sellers in Denver are interested to know who is buying their home and for what reasons. In some cases, homebuyers and sellers end up as family friends afterwards.

  1. Do not ignore properties that have overstayed in the market

Many homes buyers are less interested with properties that have been on offer for a long time. However, what many buyers do not know is that the fault may not be with the house itself but the previous buyers. It is therefore good to check homes that come back in the market because they are less competitive. Additionally, owners of properties that have overstayed in the market are more willing to negotiate even below the asking price. It is therefore wise to look for such houses and check why they have been on offer for a long time. Who knows, you may be lucky and get your ideal home at affordable rates.


Property Management Fair Oaks CA: Why Rental Prices Are Higher In California than the Rest of the USA

Rental prices in California

Having a shelter is not enough to the majority of the Californians. It is actually the desire of every Californian to have a decent and reasonably located home. In California, people compete for houses close to places of work, shopping malls, schools and recreation centers. Obviously, this is a common phenomenon in the rest of the USA. However, the most unfortunate thing is that rental prices in California are far higher than in the rest of the USA. In fact, the cost of housing in California is very expensive to an extent that many people struggle to find houses that meet their needs at affordable rates.

Nevertheless, many people prefer to live in California instead of moving to the surrounding areas. It is worth noting that the high cost of housing in California has been there for some time, and is actually a major concern for the local policy makers and the state. Property management firms in California know that the demand for housing is very high and keep on revising rental rates from time to time. A good example is property management Fair Oaks CA where rental prices for both multi-family apartments and single-family homes persistently increase.

Generally, rental prices in California are much higher than in other states on average, excluding Hawaii. For instance, in 2013 the median rental price in California was about $1240, which was over 50 percent above the national average rental price. Additionally, the cost of a typical home in California was about $437000 in 2015. This was more than twice the national average cost of a typical home.

What makes housing expensive in California?

Numerous factors have contributed to high rental prices in California. Here are the main reasons why the cost of housing in California is much higher than the rest of the USA:

  1. Less housing in California coastal areas

Majority of the Californians prefer to live within the coastal regions (https://en.wikipedia.org/wiki/Coastal_California). However, most of the houses in the coastal areas of California are private homes, hence there is less housing to accommodate the population of tenants in the region. The fact that there are very few multi-family apartments within the California’s coastal areas has made tenants to compete for available houses, thereby pushing rental prices higher. Tenants who do not get housing in the coastal areas move to the neighboring inland California. This also causes rental prices there to increase.

  1. Land is quite expensive in California’s coastal areas

The cost of land in the coastal region of California is quite high when compared to the rest of the USA. Therefore, real estate investors charge high rental prices for their property to recover money spent to acquire land. Remember that majority of the homeowners in the region use mortgages, which have to be paid. Other than paying mortgages, property owners also need to pay property managers, pay maintenance costs and make a profit on their investment.

Property Management Fair Oaks CA

  1. High cost of building in California

High cost of building is another reason for high rental prices in California. Constructing a house in California is quite expensive when compared to other states in the USA. It is worth noting that the high cost of building materials and labor is actually the main reason for high rental prices. This is not only seen in the coastal region, but all of California. Moreover, government fees paid by property developers in California are much higher than in other states.

  1. California finance structure does not favor residential development

It is worth noting that the manner in which local government’ finance is structured in California does not favor residential development. On the contrary, it encourages construction of commercial properties. Consequently, lack of incentives from the local government discourages developers to invest in residential housing. Many developers in California prefer building non-residential property in order to enjoy the available incentives from the local government.

Generally, the above are the basic reasons why rental prices are higher in California than in the rest of the USA. However, this does not mean that property management is not a lucrative business in California. A property manager in California needs to know that competition is very stiff in the region because tenants go for the best housing and property owners expect higher returns. Therefore, property managers planning to operate in California need to up their game in order to satisfy both tenants and property owners. They will be paid more than fairly if we consider the high prices of rent in the region. One company I’ve had the pleasure of dealing with in the Sacramento area is 2 Rivers Properties. If you’re looking for a property manager in this area of California I recommend contacting them and inquiring about their services.



Las Vegas Property Management: What to Include In a Rental Agreement

Good property management is very important because it determines whether an investment is going to be profitable or not. Property owners and property managers should ensure that rules and regulations governing the property are not in violation of tenants’ rights or exalts too much pressure on tenants. It is therefore important to draft a detailed rental agreement that covers all rules and regulations of your property, what you expect from tenants and what they should expect from you. The following are the basic items to include in a rental agreement for Las Vegas property management.

1. Tenant details

Rental agreement should have tenant details such as names, place of work, number of adults living in the rental unit and who is responsible for paying rent and taking care of the property. Tenant details are very essential in every rental agreement not only in Las Vegas property management but worldwide. Tenant details form the foundation of any rental agreement.

2. Property maintenance terms

Rental agreement should include property owner and tenant responsibilities in as far as property maintenance and repair is concerned. Rental agreement should state clearly, who will be responsible for damages, repairs, garbage collection and consequences for neglecting property maintenance conditions listed in the agreement. Rental agreement should also state whether tenants are allowed to keep pets or make any modification to the property without involving the property owner.

3. Eviction and lease buyout

It is worth noting that not all tenants are cooperative and some can be unruly or damaging. Therefore, property owners and property managers should be ready to conduct evictions whereby they are required to remove tenants from the rental property. Sometimes this can be a tough moment for property owners and property managers, especially when no eviction terms were included in the rental agreement. It is therefore important to include eviction terms in a rental agreement to help you win an eviction lawsuit if a tenant decided to sue you.

On the other hand, a lease buyout may arise when a tenant decides to pay the property owner certain amount of money to end the tenancy before the end of the agreed. This could be due to various reasons such as when the tenant is unable to pay monthly rent or when he/she has to relocate to other places. It is therefore important to include terms of lease buyout in a rental agreement to avoid complications when a tenant leaves the property before the end of the agreed duration.

las vegas property management

4. Security deposits and other fees

A rental agreement should include all financial information associated with tenancy. This may include rent amount, security deposits, and other tenancy fees to be paid. It is important to state how security deposits will be paid back to the tenant when they leave the house, whether it will generate some interests and what happens if property is damaged by the time a tenant leaves the house. Tenants need to know how they will get their deposits back and other related conditions that may hinder them from having their deposits refunded.

5. Tenant rights

Tenants have their rights too, which vary from one state to another. It important to include tenant rights in a rental agreement so that tenants can decide whether they are comfortable with them or not before moving in. Otherwise, absence of tenant rights in a rental agreement may find property owners in a difficult situation if tenants files lawsuit for violation of their rights.

lease agreement

6. Occupancy limits

It is important to include occupancy limit in a rental agreement. The rental agreement should state clearly how many occupants are allowed to live in each rental unit. This should include both adults and children. Presence of occupancy limits in a rental agreement gives the property owner or property manager legal power to evict tenants who bring in their friends or relatives without your permission. Otherwise, tenants may decide to bring in their friends and relatives so that they share costs against the wish of the property owner.

7. Breaking the lease

It is important to include the guiding terms and conditions to be applied if tenants decide to end the tenancy before the agreed time. Similarly, property owners may decide to break the lease before the agreed time. Rental agreement should therefore state clearly all the penalties to parties that decide to break the lease earlier than the agreed time.

Generally, the above are the basic items to include in a rental agreement in order to have good relationship between tenants and property owners. However, there are more items that are included in a rental agreement, which vary from one property owner to another. If you need professional help, one firm I’ve had experience working with on my property in Summerlin Nevada is Costello Realty & Management. They’ll be able to provide you with further guidance on rental agreements in Las Vegas.