5 Great Tips for Managing Denver Apartment Buildings

5 Great Tips for Managing Denver Apartment Buildings

1) Clarify Management Agreement Terms (either professional property management company or resident manager)

– Leasing Fees – typically 50% of the 1st month’s rent

– Overall Management Fee – ranges between 6%-12% for apartments, but typically around 10%

2) Advertising

– Everyone knows to use Craig’s List, but you can set yourself apart by creating a rental brochure on V-Flyer (http://www.vflyer.com/) or a Postlets (http://www.postlets.com/) to insert into Craig’s List

3) Rental Application Process

– Charge for accepting a rental application! Suggested minimum charge of $30 per adult applicant

– Make sure all areas of the rental application form are completed (include: emergency contact, cars, pets, etc.)

– Run credit and criminal background checks on prospective tenants using the rental application fee that you collected

4) Lease (several options for written form/agreement)

– Become a member of Apartment Association of Metro Denver (http://www.aamdhq.org/) which will give you access to the Colorado Apartment Association (CAA) lease form

– Have an attorney draft your lease.  My clients use Foster Graham Milstein & Calisher, LLP (http://www.fostergraham.com/) and Tschetter · Hamrick · Sulzer (http://thslawfirm.com/) to name a few

– Include all addendums, lead based paint, move-in checklist, community rules, etc.

– Specify which utilities tenant pays, how pets are handled, rental charges for parking, when the apartment community laundry facility can be used, who is responsible for exterior maintenance or lawn care, etc.

– Make sure all adult occupants sign the lease (it sounds fairly obvious, but it doesn’t always happen)

5) Apartment Tenant Move In/Move Out

– Move-in: checklist is a very important document to attach to your lease

– Move-out: Security Deposit disposition – what does your lease specify (30 or 60 days)?  Maximum timeframe for release of funds is 60 days

For more helpful information about how Denver’s apartment market and what the boutique apartment owner wants to know, please continue to visit: http://www.denverapartmentbuildingsforsale.com/

Kyle Malnati
Madison Commercial Properties, LTD
1221 South Clarkson Street, Suite #300
Work Phone: 303-771-3850
Cell Phone: 303-358-4250