If you have decided to invest in Golden, Colorado real estate, you’ve chosen an interesting time to enter the market. Things are competitive and even a little crazy, but that shouldn’t deter you. There are plenty of opportunities for new investors, and if you’re willing to do the research, get to know the market, and surround yourself with professionals, you can have a successful investment experience, even when you’re new to the field.
Here are a few things you should be thinking about to get started as a real estate investor in the Golden market.
Know Your Investment Goals
Preparation and planning are critical. You should have spent some time exploring how, when, and why you want to become a real estate investor. If you’re ready to begin buying properties, you need to have an established set of real estate goals. Understanding what you’re hoping to accomplish, what your timeline is, and what type of properties you want to buy will ensure you’re making smart decisions and moving forward in a way that sets you up for success.
If you’re interested in short-term vacation rentals, you’re going to invest in a very different property than an investor who wants to focus on long-term single-family homes in HOA neighborhoods that will appreciate in value over 15 or 20 years.
Decide what you’re hoping to achieve and prioritize your goals when you have more than one. This well-mapped plan will set you up for success and keep you from making impulsive decisions that don’t serve your needs.
Know the Golden, Colorado Rental Market
Hopefully, you’ve done a little research and you understand the rental market in Golden. As we’ve said, the sales market is hot and you’ll find a lot of investors are offering cash and waiving important things like inspection requirements.
The rental market can often move just as quickly. 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 who your tenant pool will be, what kind of vacancy you can expect, and whether repairs and upgrades will be needed to attract the highest rental values. Study the market and talk to experts within the market because all this information will help you buy the right investment and prepare for how you’re going to rent it out.
Plan and Budget for Rental Property 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 maintenance reserve equal to 3 months rent so you can easily and quickly pay for those maintenance issues as they arise.
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.
Work with a Golden Property Management Company
Smart investors know that working with a professional Golden, Colorado property management company will likely deliver 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 does more than earn you better rents and returns; your property manager partner can also protect your investment, ensure you’re compliant with all state, federal, and local laws, and save you money on vacancy, turnover, and maintenance costs.
There’s a lot to think about, and 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 Laurel Property Services, Inc. and we’ll help you with investing in Golden, Colorado.