Not great news for our market here in Colorado Springs.
Fortune: Rent Will Be Even Less Affordable in 2016
Category Archives: Rentals
State of the Market: Rental Options
Looking to rent a home in Colorado Springs? Interestingly, there are 124 MLS listed Single Family Homes (SFH) w/3+ bedrooms on the market at $1500 and below. There are 87 on the market at $1501 and above.
This differs from July by a total of 4 homes, which makes for an interesting market.
If buying is an option, I’d be honored to earn your business!
DATA SOURCE: PPAR MLS derived statistics
Are rising rents forcing millennials to buy homes?
Here in Colorado Springs, this seems to be the trend. Especially around the $200K price point…we’re seeing lots of activity. Looking for a home? Questions about the process, I’ a home! Call Rob at 719-440-6626!me! Call Rob at 719-440-6626!
From the inbox: What’s up with the rental market here? And what’s the MLS?
Good question! The first answer is that we have an intense rental market here with an app. 96% occupancy rate. That’s been sustained, too, for a couple of years. If anything, it’s getting harder to find affordable housing in the rental market in Colorado Springs.
Second, the MLS is the local database of agent and property manager listed homes. It is not the sole source of rental properties in town but is the best product we as Realtors have access to.
If you’re looking for housing in Colorado Springs, we’d be honored to earn your business. Call Rob or Drew at 719-440-6626 or email robthompsonrealtor@gmail.com!
From the inbox: what’s up with these application fees?
Good question! Short answer: property managers generally charge an application fee for the work they do in screening tenants for the properties under their management.
Longer answer: Often, companies will charge an application fee only once. If you don’t get accepted to a given property, they may apply that fee to any property in their inventory. ALWAYS ask them before paying the fee.
Consider, too, that Company X’s fee doesn’t cover Company Y’s fee, even if you don’t get accepted into X’s properties.
You’re best covered by asking about the fees involved in the application with each management company.
Questions, please don’t hesitate to ask!
– Rob
**NOT LEGAL OR FINANCIAL ADVICE**
From the inbox: (Colorado Springs) why is the rent so high?!
I get asked this question almost daily; it’s a good question and one that bears repeated asking and answering.
Short answer: in my opinion, this is a function of property and mortgage values and cash flow.
Longer answer: it’s a function of the dymanics of the city. As a landlord myself, here’s the analysis/format I use in looking at this. If you want to buy a $150,000 home, as an investment, you need at least 20% down. Let’s assume $1000 a year in insurance and another $1,000 in taxes.
For investment purposes then, this home is going to cost a $30,000 down payment and at an approximate 4.5% rate (estimate, for the purpose of this practical analysis only, always consult a lender), cost a landlord $777 a month to pay principal, interest, taxes and insurance.
A landlord is going to need cash flow, too, to be prepared for emergencies and have a return on their investment. In this case, that $150,000 3 Bed, 2 bath home may rent for $1000-1150 in this town.
The landlord is “cash flowing” about $223-373 in this case. However, that does not account for their costs any time anything breaks. This isn’t profit for the landlord, necessarily, as there are taxes and maintenance of the home involved, too.
It scales from there…a $175K home requires a 35K down payment (as an investment property) and costs $878 a month to carry in this scenario.
The answer then is that rents rise as property values rise because they must, for an owner/landlord to carry a property.
LARGE CAVEAT: This is for a 20% conventional loan, investment property. An owner occupied home will require much less down but have a higher overall mortgage as a result.
Looking to buy or sell a home in Colorado Springs? Please call Rob at 719-440-6626 or email me at robthompsonrealtor@gmail.com.
*This is not legal or financial advise just sharing information and experience. Always consult a CPA, lender or attorney as needed.
From the inbox: why is the rent so high?!
This is one that I’ve been asked a bunch of times! It’s a good question and one that bears repeated asking.
Short answer: property and mortgage values and cash flow.
Longer answer: it’s a function of the dymanics of the city. As a landlord myself, here’s the analysis/format I use in looking at this. If you want to buy a $150,000 home, as an investment, you need at least 20% down. Let’s assume $1000 a year in insurance and another in taxes.
For investment purposes then, this home is going to cost a $30,000 down payment and at a 4.5% APR, cost a landlord $777 a month to pay principal, interest, taxes and insurance.
A landlord is going to need cash flow, too, to be prepared for emergencies and have a return on their investment. In this case, that $150,000 3 Bed, 2 bath home may rent for $1000-1150. The landlord is “cash flowing” about $223-373 in this case. However, that does not account for their costs any time anything breaks. This isn’t profit for the landlord, necessarily, as there are taxes and maintenance of the home involved, too.
It scales from there…a $175K home requires a 35K down payment (as an investment property) and costs $878 a month to carry in this scenario.
LARGE CAVEAT: This is for a 20% conventional loan, investment property. An owner occupied home will require much less down but have a higher overall mortgage as a result.
Looking to buy or sell a home in Colorado Springs? Please call Rob at 719-440-6626 or email me at robthompsonrealtor@gmail.com.
*This is not legal or financial advise just sharing information and experience. Always consult a CPA, lender or attorney as needed.
Tenant beware: READ your lease
Renters, it’s absolutely imperative you read the lease before you sign. The lease is a legal contract, binding and enforceable. Make sure you understand the terms of the contract you’re signing, to include penalties for exiting it and the presence of a military clause, if applicable.
Forbes has some additional advice, too.
*This isn’t legal advice. Always consult an attorney when/where applicable and needed.
From the inbox — counterpoint — what do I look for in a landlord?
Because tenants are as important to a landlord as landlords are important to tenants, here at 13 questions you as a tenant may want to ask your landlord!
Looking to rent in Colorado Springs? Check out Colorado Springs Rentals or email robthompsonrealtor@gmail.com with your needs!
Lifehacker: what should a first time home renter know?
While not all inclusive, this checklist is a starting point for renters. To me, the most important tip is this: get the existing damages and needed repairs documented via photo and in writing.
This is an extremely difficult rental market. Don’t lose your security deposit because you didn’t document the move in.
Questions or have additional resources? Comment/post here!
Rob @ 719-440-6626