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How Much Does A Vacancy Actually Cost?

by The Colorado Springs Group™

Rental vacancies are a common thing when there is tenant turnover. The length of vacancy can be just a day to months. A lot of it depends on your property manager and how good they are.

This is a cost to homeowners that is rarely given consideration when interviewing property managers. Good property managers can find tenants who will sign a multi-year lease. When this happens, you're protected against vacancy cost because the same tenant is going to occupy the home for a longer period of time.

Just as an example, let's say you're renting a home for $2,000 per month, and the average vacancy time for an area is 2 weeks. Finding a tenant who signs a 3 year lease vs. a tenant who signs a 1 year lease means there is a difference of 2 vacancy periods by the time the 3 year lease is up. Those 2 vacancy periods with an average of 2 weeks each comes out to almost a full month's rent - $2,000. That's equal to 10 months of property manager fees at 10% per month. This situation can turn a profitable property into a loss.

How fast is your property manager at filling vacancies? This can depend on a lot of things, all of them revolving around your property manager's organization and abilities. Finding better tenants to begin with means a shorter turnover period simply because the home is going to be in better condition when possession is given back to the property manager. Using professional photos, and/or doing open houses can also help reduce the time.

Right now we can turn over most homes in 2 days. There are reasons for our ability to find and place great tenants. We have clear expectations on what we expect from tenants. Our company is very proactive in all searches for new tenants. We have a team of people ready to go for any necessary repairs and upkeep between tenants. The way our leases are drawn up there is a lot of protection to ensure seamless transition between tenants.

2017 April Sales Activity

by The Colorado Springs Group™

Broken down by area to give a better prospective on the results for April. Single Family & Patio Homes

Black Forest: 15 Sales for a total dollar volume of $8,131,500

Briargate: 102 Sales for a total dollar volume of $38,298,028

Central: 68 Sales for a total dollar volume of $19,106,575

East: 77 Sales for a total dollar volume of $19,589,072

Fountain Valley: 223 Sales for a total dollar volume of $53,556,855

Falcon - Peyton: 100 Sales for a total dollar volume of $31,978,627

Marksheffel: 45 Sales for a total dollar volume of $13,863,703

Northeast: 85 Sales for a total dollar volume of $25,895,361

Northwest: 44 Sales for a total dollar volume of $18,081,150

Northgate: 50 Sales for a total dollar volume of $23,286,643

Old Colorado City: 18 Sales for a total dollar volume of $4,746,443

Powers: 126 Sales for a total dollar volume of $33,956,591

Southeast: 72 Sales for a total dollar volume of $14,135,975

Southwest: 57 Sales for a total dollar volume of $22,395,634

Tri-Lakes: 51 Sales for a total dollar volume of $24,704,733

West: 17 Sales for a total dollar volume of $6,258,100

"Based on information from the Pikes Peak REALTOR Services Corp. ("RSC"), for the period 4-1-2017 through 4-30-2017.  RSC does not guarantee or is in any way responsible for its accuracy.  Data maintained by RSC may not reflect all real estate activity in the market."

Move In and Move Out Videos

by The Colorado Springs Group™

Our property manager goes over move in and move out videos. Move in videos are done prior to the tenant moving in. The tenant is not allowed to be present. Depending on the size of the house, it can be 5-20 minutes long. This gets the condition of the home documented before possession is given to the tenant.

Move out videos are also done without a tenant being present. These videos are done after the tenant has vacated the home.

Video documentation like this really protects the property. It's hard to dispute video evidence, especially when they agree that the move in video was in fact accurate.

Documenting Appliances

by The Colorado Springs Group™

Documenting appliances should be done on every property before a tenant moves in. Doing this ensures you're getting the same appliances back at the end of the lease when the tenant moves out.

Sometimes it's an intentional attempt at theft by replacing a good appliance with an older not so great one. Other times a tenant took it upon themselves to replace an appliance that quit working.

In either case the lease makes it clear tenants aren't to be doing these things, and if an appliance quits working they need to contact us to either repair or replace the appliance if necessary.

Documenting should include pictures, serial numbers and model numbers. It might sound tedious but it can eliminate a dispute of "He said, She said" in front of a judge later.

We take several extra steps to prevent problems down the road with tenants. Who doesn't like fewer problems, right? If you're looking for a property manager in the Colorado Springs, CO area, please give us a call, text or email anytime.

Displaying blog entries 1-4 of 4

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The Colorado Springs Group™
6665 Wild Indigo Drive
Colorado Springs CO 80923
(719) 799-3686

Kevin & Jessica
The Colorado Springs Group
6665 Wild Indigo Drive
Colorado Springs, CO 80923
(719) 799-3686