Problems in Denver Property Management

Successful property management means finding out the most effective way of making a profit with a piece of property. This means in turn deciding what the biggest problems are regarding that property and figuring out ways to deal with them. This would be a simple problem except that each area has its own problems to deal with.

Denver property management has its own problems. The good news is that it is a popular area: It is in the middle of skiing country, the state capital, and a popular destination on the way to other places. This means that there is plenty to money to be had for anyone who is able to figure it out, and as property values are on the rise this makes it a great opportunity for those in property management. However, the bad news is the same as the good news as well as the legalization of marijuana, and a good property manager can adjust for these.

Although being in the middle of skiing country means that Denver is a popular place to be, it also means that a property manager must also be good at vetting potential renters. The majority of skiers and other winter sports enthusiasts can be counted on to pay their rents on time, and the cost of entry into the hobby acts as a method of vetting itself, this means that those enthusiasts tend to go elsewhere during the other months of the year. This means that the properties may be full part of the year but vacant for the remainder.

The obvious solution is to charge higher rents during the winter months to allow for the decreased occupancy. Although this will make up for some of the loss as well as allow more time for improvements and maintenance, it may also drive others away. Another approach is to encourage time-sharing over the year even though this may mean a problem in marketing, although marketing to parents looking for office space or high school students on summer break may work. A good compromise may be to rent for a lower rent during the non-winter months and a slightly higher rent during those months.

Denver's status as a capital city means that it also home to public officials and all of the people associated with them, all of whom need somewhere to live. `Administrative jobs tend to be long-lasting but those based on elected officials, either the official himself or associated positions, tend to have a turn-over every few years. This can cause a drop in property income every election year and needs to be allowed for in projections. This is usually only a temporary problem, and can usually be fixed by increasing marketing during those years.

The legalization of marijuana has created an exodus to Colorado. Most smokers are good for the rent and so this should not be an issue in of and itself, but may pose a problem when they move out. An increased deposit may be the answer, or increased diligence when they move out resulting in less of a deposit. The stereotypical fear is that the smoker may skip out some month without any kind of notice, but that is usually not as big a fear as it should be. The only fear a property manager should have is if the smell from the smoke gets into the surrounding apartment, and dealing with that once the person leaves. Deal with that issue and you may be able to tap a new market while making the apartment is still rentable.

 

There are other issues that may come up, but anyone involved in Denver property management can find a simple solution to any problem that may come up.Denver property management can be difficult at times but it is just a matter of looking at the problems as they come up and making them as simple as possible rather than difficult messes. Remember that and it will be an easier job.