Property Management for Townhomes
Townhomes and Condos are most often referred to as one and the same. However, townhomes differ from condos greatly in their structure and generally have multiple levels and are not built as part of a complex. Townhomes are most often built in sets of two or three units per building and each unit is separated by a dividing wall. They are not built with neighbors above or below, and typically come with a small yard area as well. Renters who are looking for townhomes in the Denver area are probably not quite ready to purchase a home, but they want more space then an apartment or condo can afford them. As an investor this type of renter is ideal, because they tend to be longer term and if you have a good relationship they could possibly purchase the home from you in a rent to own agreement. With the Denver Real Estate market being what it is, any neighborhood would be ideal for an investment property. Just be mindful of the demographic when you are purchasing a townhome, as some are built near busy downtown centers and universities. Before deciding on a new townhome to invest in take some time to think about the points discussed below to make sure it is the right investment for you.
What is your ideal market? When you begin the process of looking for an investment property, it is important to consider the kind of people you would like to have as renters and then look in areas of the city that meet that target market. For instance if you love renting to college students than consider a townhome closer to campus. Or if you prefer a more professionals, or career minded renters than consider a home closer to Denver’s bustling tech center. Considering your target market is going to help narrow down the number of options significantly for areas in which you would like to buy. The best ways to get to know areas and demographics is to actually be in them, so if there is a part of the city that you are curious about just hop in the car and drive around, walk, or even grab a cup of coffee and try to imagining buying and managing an investment property there.
How do you feel about an HOA? Homeowner’s Associations are usually worth the extra cost just due to the number of items they can take off of your to-do list as the property owner, but be careful with certain HOA’s and make sure you know the full scope of what they are doing and possible risk factors. The best place to start would be to request paperwork on things like budgets, covenants and financial statements. Also make sure you ask about what is called a statement of reserves, which is simply the money they have on hand to cover large repairs and expenses.
Townhomes are a wonderful investment opportunity and with more and more people opting to share space rather than buy a single family home it is a great time for the market as well. Having the conversation about who will manage the property for you is an important one, but there is no better company up for the job in Denver then Highpoint Property Management.