Owner´s Frequently Asked Questions (FAQ) 

For many, this may be the first time you need to or have considered hiring a Property Manager.  We understand this.  The information below is provided to help you understand how we do business and how we serve you. 

           ·  Collect rent and distribute proceeds to you.

           ·  Take calls and emails and faxes from the tenant.

           ·  Coordinate repairs.

           ·  Ensure repairs are done properly.

           ·  Send notices for late or nonpayment of rent, violations of the rules, etc.

           ·  Coordinate or oversee evictions.

           ·  Obtain your approval for major expenses.

           ·  Inspect the property aperiodically.

           ·  Provide timely and accurate accounting of all money received and disbursed monthly, as well as keeping a client trust account in a non-interest bearing account for your money. Colorado state law and the Colorado Real Estate Commission and Department Of Regulatory Agencies (DORA) regulates Property Managers.

(9) What Expenses May Be Tax Deductible?

        Consult your CPA.  For many, management expenses are deductible, as well as repairs and maintenance. Your mortgage interest may also be deductible, as well as your property taxes and insurance and any applicable Home Owner Association (HOA) fees. In fact, all your expenses, including sales tax and going to inspect the home are business expenses that may be deductible.  Plus, of course, you have depreciation to deduct, once it becomes rental property. We recommend you consult your accountant prior to tax time!  You should become familiar with IRS Schedule E.  You can go to www.IRS.gov and download a PDF version of the Schedule E. The deductions you can take on your investment/rental property are one of the big advantages of owning a rental/investment property.

(10)  What Happens When A Tenant Has Not Paid Rent?  If We Need To Do An Eviction?

Colorado Eviction occurs when the court enters an order for the tenant to vacate the home. This order is enforceable only by the sheriff. It allows the sheriff to monitor the removal of the tenant and their property from the premises. As in most states it is never legal for a Colorado landlord to evict a tenant without a court order. 

When a Colorado Tenant Has Not Paid Rent:

Before filing a suit to evict a tenant for nonpayment of rent, the landlord must post a written, signed demand giving the tenant the choice of either paying the past due rent or moving out within three days. In computing the period of days the first day is excluded. Therefore, the three day time period begins the day following the posting. The notice must be posted in a conspicuous place on the premises. After the notice has been posted and if the tenant has not paid the rent or moved out within three days, the landlord need not accept the rent and may file an eviction suit at your local Justice Center. The time begins running whether or not the tenant discovers it posted. Also the time continues to run regardless if it is a Saturday, a Sunday, or a holiday. The tenant's legal right to this three day notice prior to eviction for nonpayment of rent cannot be taken away by the language in a lease.

When a Tenant has Broken a Condition of the Lease:

Before filing a suit to evict a tenant for noncompliance with lease conditions, the landlord must post a written, signed demand in a conspicuous place for delivery of possession of the premises. The notice must state the reason the landlord believes the tenant is in violation of the lease and give the tenant three days to either move out voluntarily or correct the violation. (Noise violations are particularly difficult issues for both landlords and tenants regarding eviction.) After the written notice has been posted and if the tenant has not moved out by the end of the three days and has not corrected the violation, the landlord may file an eviction suit at the Justice Center, 6th and Canyon. In computing the three day notice the first day is excluded. Therefore, the three day period begins the day following the posting. The start of the three day time limit begins running whether or not the tenant discovers it posted. Also the time continues to run regardless of whether it is a Saturday, a Sunday or a holiday.

A helpful website for more information on the Colorado Eviction Process is www.HTSPC.com, the company website for Hopkins-Tschetter-Sulzer Law Firm - Colorado's largest "eviction" law firm.  Via this website, you can also sign up for a helpful and very informative monthly, electronic Landlord Newsletter.

(11)  What Is A Home Warranty And Should I Consider Purchasing One?

Many of our property owners do purchase a Home Warranty!  We recommend visiting the Fidelity National Home Warranty or Blue Ribbon Home Warranty websites for more information concerning the plans and policies and costs!  If you want to speak to a warranty representative, please feel free to call Fidelity National Home Warranty, Cindy Bonick, 303-210-9973, cindy.bonick@fnf.com or you can visit http://www.HomeWarranty.com or http://www.BlueRibbonHomeWarranty.com 

Other Thoughts & Considerations:
Owning an investment home is a smart investment for many but it does involve risk similar to other investments.  As an investment owner it is important to us that you understand these risks.  We will do what we can to maximize the profitability of your investment.  However, please understand that there may be times when losses occur.  Below is a list of items we call "Owner Acknowledgments."  We review these items when we meet with you to discuss the management of your home.  The list is based upon our experience with tenants and home owners!  The items help us ensure that your expectations and reality are as close as possible! 

(1)  Homes require regular and preventative maintenance.  Different occupants stress the homes in different ways.  Unforeseen maintenance may be required.

(2)  Sprinkler systems, plumbing systems, appliances and heating/cooling systems require maintenance. In order to keep your investment property in good condition, and maintain the home in safe condition for your tenants, it is imperative to keep these items in good working condition.

(3)  Over time, exterior items such as fences, the exterior frame, and siding of the home should be painted.  Also, landscaping above and beyond simple mowing and weeding needs to be attended to.  Do not expect the Tenant to perform painting and landscaping other than mowing and weeding.

(4)  Property Managers monitor the overall condition of the interior and exterior of your home and coordinate repairs as necessary as per the Property Management Agreement.  Making a repair immediately for $50.00 is typically more effective and cost efficient than doing the same repair later for $500.00.

(5)  Property Managers do not control the rental market and do not guarantee how much the home will rent for.  Property Managers also do not guarantee how long it will take to rent your home.  If you demand top dollar for rent, it could require a longer time period to find a Tenant.

(6)  Property Managers often do not accept the opportunity to manage every home that is made available to them to manage.  If the homeowner does not want to properly maintain the home, then the Property Manager may elect not to assume responsibility for managing the property.

(7)  In the state of Colorado, water is a lienable item.  Ultimately, it is the homeowner's responsibility to pay the water and sewer bill unless other legal arrangements have been made via a Home Owners Association.  The Property Manager will monitor Tenant water use and water bill payments to ensure proper payment of water and sewer bills.  Utility companies do not always bill in a timely manner; occasionally you will receive a water bill from a reading that is several months old.

(8)  In the state of Colorado, Home Owner Associations (HOA) may place liens on properties if HOA fees are not paid.  Ultimately, it is the homeowner's responsibility to pay the HOA fees.  The homeowner may choose to pay the HOA fees themselves or request that the Property Manager provide this service.

(9)  Property Managers do not pay mortgages.  They collect rent and forward rent proceeds to owners.  It is homeowner´s responsibility to pay their own mortgages.

(10) Property Managers maintain a non-interest bearing escrow account for all tenant security deposits.  All funds are placed in an FDIC insured bank.  Property Managers, not owners, are responsible for the maintenance of tenant security deposits.

(11)  Property Managers do not control the individual lives of Tenants.  Tenants do things that neither of us understand nor can explain.  Be aware that Tenants can leave the home in better or worse condition than when they moved in.

(12)  Tenants will sometimes move out of a home without any notice. 

(13)  Property Managers will turn down a perfectly good Tenant if they cannot bring certified funds for the Security Deposit and certified funds for the First Month's Rent as per the Rental Agreement.

(14)  Tenants may not fully comply with the lease.  Occasionally, legal action is required to force a Tenant to comply with the lease.

(15)  Late fees are put in the lease to motivate Tenants to pay the rent on time.  If Tenants do not have the money to pay the rent on time they more than likely will not have the money to pay late fees.  It can be difficult to collect late fees.

(16)  Be aware that Tenants will make promises that they cannot keep.  They may promise to rent the home and not show up to sign the lease.  They may show up to sign the lease without the security deposit. We will not allow the Tenant to sign the lease without the Security Deposit.

(17) In the event that an appliance needs to be replaced the Tenant will expect the appliance to be replaced with a like-kind appliance.

(18)  Please understand that home repairs priced below $500 can be considered minor repairs.  We may make these repairs as needed without the owner´s consent as per the property management agreement. 

(19)  Our Property Managers are licensed realtors who service clients buying and selling real estate.  As realtors we can offer you a Comparative Market Analysis (CMA), neighborhood market updates or specific sale/sold information on a particular home.  These are complimentary services available upon request.