Today we’ll be discussing the best ways to protect your Denver area investment home from potential tenant damage. You want to ensure you get the best return on your investment, or ROI, so it’s important to take good care of that property.
The first thing we always recommend is this: don’t be afraid to charge a high security deposit. If there is something in the tenant’s background that worries you in any way, ask for a higher security deposit. The worst thing that will happen is the tenant will say no. In the best case scenario, you have a little extra protection in case something happens; for example if the tenant leaves with a lot of damage that you’ll need to take care of. You want to have enough money to cover those expenses that could be caused by the tenant.
Here’s a perfect case scenario: in a $1,000 rental property, instead of asking for the $1,000 security deposit, you ask for $1,500 or $2,000. This is acceptable if there is something in the background that makes you nervous. The applicant might have poor credit but a really good rental history. Or, maybe there’s a high credit score and great rental references but a lack of income. There is no harm in asking for a higher security deposit.
Another thing we recommend is frequent inspections. Get inside the property so you have an idea of how everything looks and what the tenant is doing to maintain it. If you have a professional property management company like ours, it’s a great way to ensure those inspections happen on a regular basis.
High Quality Tenants
At the end of the day, protecting your rental property comes down to the type of tenants you’re approving. Always go after the high quality tenants, regardless of the neighborhood in Denver your property is in. I don’t think there’s a reason to accept a substandard resident. You’re setting yourself up for failure, as well as increasing your risk of property damage and rent not being paid. Why take that risk? Whether your property is located in a low income neighborhood or a high income neighborhood, go after the best tenants with good credit, high incomes and an excellent rental history.
Please contact us at Mavi Unlimited if you have any questions about how to protect your rental home in Denver and surrounding areas.