Industry Blog

Denver Rental Manager Echo Summit Has New Headquarters

System - Thursday, July 19, 2018

Echo Summit Property Management, one of Colorado's largest and longest-running property management companies, has purchased a building at:

7076 S. Alton Way, Building A
Centennial, CO 80112

Corporate operations has moved out of their current Greenwood Village location, into the new building, while the company maintains its separate Ft. Collins location serving Northern Colorado.

 

With nearly 1,000 properties managed, and pioneers of RentHammer and the 16-Touch inspection system, Echo has the experience, technology, process and scale that sets us apart from the pack. Echo is the preferred choice for local owners, investors and real estate agents who understand that there can be no compromise in quality and ethics in property management.

Our approach and philosophy are simple... once you start treating an investment property like a -rental-, it will eventually dilapidate into one.

ALL WE DO IS PROPERTY MANAGEMENT. We do not do real estate brokerage, real estate development, or sell cars. We are property managers who strive for nothing short of excellence. Our dedication and approach has earned Echo a quality reputation in Colorado rentals. We invite you to speak with one of our property managers or our referrals to learn how we have helped others achieve their real estate goals, and how we might be able to help you.

More News:  http://www.echo-summit.com

 

Denver housing shortage... What does this mean for Denver rentals?

System - Tuesday, July 10, 2018


Denver housing shortage at a peak?  What does this mean for Denver rentals?


According to Denver Post: https://www.denverpost.com/2018/01/28/denver-chronic-housing-shortage-fixes/ 


The deficit of homes and apartments in the region is expected to peak this year at about 32,000 units, and that will put upward pressure on home prices for years to come even as supply rises to levels not seen since the early 2000s, warned Phyllis Resnick, lead economist for the Colorado Futures Center at Colorado State University. That deficit, which has been building since about 2014, represents the difference between demand from households and the supply of available housing.


Questions?  Contact Echo Summit today!   303-768-8255.


Echo Summit - Denver Property Management - on Normal Wear and Tear

System - Sunday, July 1, 2018

We run into these issues a lot.  

Normal wear and tear is a very important topic because it’s where landlords and property managers often run into difficulties when over-charging when conducting a security deposit disposition.
 The tenant moves out of the house and the carpet is heavily worn. The landlord wants to withhold some of the security deposit to repair or replace the carpet. The landlord has to ask some questions before they withhold some or all of the security deposit.
 • How old is the carpet?
 • How long have the tenants been living there?
 • Is the damage above and beyond normal wear and tear for a typical renter in their same situation (e.g. family of 4 living there for 3 years)
 • Do we have photo or video documentation of what the carpet looked like BEFORE the tenant moved in?
 • Was there a pre-move-in inspection sheet returned to us?

 If the carpet is more than 3 years old, the landlord has to be very careful because, in the state of Colorado, the average useful life of carpet (or paint for that mater) in a non-owner occupied property is typically 3 years. Does that mean if the carpet is 5 years old, and if the landlord has documentation showing the carpet was in great condition before the tenet moved in, then one little section was completely destroyed during their stay – that they can not withhold deposit? No, they can absolutely withhold for that. They just have to be careful when we are dealing with carpets that are entering the end of their useful life.

 Mildewed bathroom, very unclean kitchen. Here is another situation where the landlord might want to withhold security deposit to scrub the tile and maybe even re-grout because it’s so badly worn. Can they do this? Again, if this is a situation where a family of four had lived there and the tub area was already starting to get mildewed. When they move out the judge would ask ‘what would that tub look like after normal use by a family of four who had lived in the home for X period of time.’ The landlord will have to ask themselves this question because this will be what’s going to be defensible in court. The most important thing you’ll need to do is have documentation of what the area looked like before the tenant moved in. If you do NOT have before pictures or video, be very careful about withholding security deposit.


 Holes in the wall. This is a very common issue – because people like to hang things on walls; from pictures and mirrors, to flat screen TVs. In this case, the landlord checks a tenant out and find quite a different size few holes in the walls. What can they withhold for? Our first recommendation is having lease verbiage that defines what is allowed, and what is not. For instance: “…tenant cannot make alterations to wall surfaces without prior written approval from the landlord, aside from small nail holes used to hang pictures.” If the landlord does not have clear language in the lease agreement a judge could easily rule against them and say the big anchor bolts in the wall are in fact normal wear and tear because most televisions available today are flat screen and require wall mounting. Another good idea is to simply ask the tenant to leave all nails in the walls so it will be easier for the landlord to go back and clean up the areas versus the tenant trying to fix t walls and making it even worse. This could require the landlord to come back and have to retexture and paint the surface and then charge the tenants... which they won’t like.
 Scuff marks are another issue that’s common and often misunderstood. Scuff marks can result from a couch, chair or bed head board being close to the wall. The landlord would most likely want to charge the tenant to have the wall re-painted. In general, if the tenants have been living there for a reasonable period of time there, will be normal wear and tear and we would advise against withholding exorbitant security deposit in this case. There will be some cases of excessive dings and dents in which you might have cause to withhold, but you have to be very careful

For more information on this and other topics, please visit us online: http://echo-summit.com/education
 If you prefer to watch a video on this topic, visit us at: http://echo-summit.com/education/videos

Apartment building boom in Denver second-largest in the U.S.

System - Tuesday, June 12, 2018

As much as rents have risen in metro Denver this decade, the increases could have been even higher absent the second-largest surge in apartment construction of any major metro area in the country, according to a new report from Apartment List.

Metro Denver added $12 billion worth of new apartments between 2000 and 2016. That ranks 11th among the nation’s 25 largest metros in dollar terms, but second only to Seattle after adjusting for the size of the population.

More:  https://www.denverpost.com/2018/04/17/denver-apartments-built-second-highest-rate/

 

 

Denver rental competition - Echo Summit can Help

System - Friday, June 1, 2018

Revisiting an earlier post, we continue to believe that competition for Denver residential single-family investment homes, at least at the wholesale level, has picked up dramatically in the past few months.

This is largely due to a massive amount of out-of-state money moving in, making cash offers, sight unseen with no inspection contingencies. It is very hard to compete with this, though Echo Summit is still having success via its network of investors.

Given this phase of the market, it is probably time to start thinking about purchasing turn-key rental properties, and aiming for cash flow, rather than short-term cash-on-cash return. Obviously, almost any property held for a minimum of 5 years will produce some form of cash-cash return based on appreciation alone. What I am a suggesting is to focus away from the masses who are hoping for quick returns on a wholesale flip, and target areas/property types that they are not.

Without getting into the boonies, I recommend focusing on transportation corridors (SSE is off the charts) and anything feeding into the Cherry Creek School District (for those of you who don’t know what bond proposals 3a and 3B were for in recent elections… study up. They passed, and will have significance for property valuation in the coming years).

As of March 2018, average rent for an apartment in Denver, CO is $1575 which is a 0.51% increase fro...

System - Friday, May 25, 2018

According to RentJungle:

https://www.rentjungle.com/average-rent-in-denver-rent-trends/ 

 

As of March 2018, average rent for an apartment in Denver, CO is $1575 which is a 0.51% increase from last year when the average rent was $1567 , and a 0% increase from last month when the average rent was $1575.

One bedroom apartments in Denver rent for $1399 a month on average (a 1.29% increase from last year) and two bedroom apartment rents average $1755 (a 0.57% decrease from last year).

Harvard – State of Nations Housing 2017

System - Friday, May 4, 2018
An incredibly detailed look at both the home sales and home
 rental markets nationwide. Great proof-points as to why the recent ‘boom’ in rentals is not really a boom at all.  Indeed, WHO is renting and WHY they are renting has evolved, but since the study began, between 35% and 38% of households rent… as they still do.
 










Denver apartment rent update

System - Friday, April 27, 2018

According to the Post:  Metro Denver absorbed 11,821 new apartments last year, up from 11,056 in 2016. That represents the most in records going back to 1981, although the 1970s had years with more robust construction.  For the second quarter in a row, both the average and median rent for an apartment in metro Denver fell, while vacancy rates shot up 6.4 percent from 5.4 percent in the third quarter and 5 percent in the second. The average rent dropped to $1,396 at the end of December versus $1,420 at the end of September, while the median rent fell to $1,353 from $1,370.

More Info:
https://www.denverpost.com/2018/01/19/metro-denver-apartment-rents-fall/ 

 

Managing millennials in Denver Housing

System - Friday, April 20, 2018

Managing millennial expectations in Denver Rental Housing

According to Rental Housing Journal:

High turnover in the maintenance ranks is a problem in multifamily housing, especially among millennial maintenance personnel. They like easy-to-use technology applications on their smart phones and not old paper-based maintenance processes. That is why the company, Facilgo, did the study to research these questions.

  • How do millennials' expectations for faster maintenance affect property management maintenance organizations?
  • Are millennial maintenance personnel leaving multifamily due to the lack of technology solutions available in their day-to-day jobs?  What can be done to retain them?
  • What strategies are companies using to make their maintenance processes more efficient?
  • How will these new strategies help retain millennial maintenance personnel and satisfy millennial residents?
  • What will happen if companies don't do anything to cater to millennials' needs?

For more info:

http://rentalhousingjournal.com/articles/2018/02/20/millennials-expectations-driving-maintenance-changes 

 

Amazon's and Denver Rentals

System - Wednesday, April 18, 2018
A recent article in the Denver Post examined the effects of Amazon possibly moving its corporate HQ to Denver.
In the article:  "If Amazon doesn’t pick Denver, “there will be a sense of relief,” Colorado governor says ... Governor clarifies that he thinks the bid’s pros outweigh the cons but sees the growth that accompanies 50,000 jobs as a challenge"
Echo Summit Property Management, who specializes in Denver rental properties thinks the effect on the rental market could be much more profound, especially for families looking for affordable or single family rental housing.
Read More:



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