Clients Will Thank You

The out of state investor typically assumes that our rental rates are similar to theirs. This assumption proves to be costly when it is time to locate a suitable tenant. As a general rule of thumb, it will take 25 percent down to allow a rental unit to break even. This 25 percent figure does not include the rehabilitation costs discussed earlier. As a buyer's agent assist your client by being realistic about foreclosed properties to be used as rentals. Your clients will thank you and perhaps purchase more properties.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Negative Side of Foreclosed

For investors wanting to purchase foreclosed single-family units to use as rental properties there is a negative side. These cons do exist and are significant. A buyer's agent should remember the following-generally, the condition of the foreclosed property is poor; and there is an incorrect assumption held by many investors that tenants are willing to accept tired and worn out properties to call home. While vacancy rates have fallen, it is still a tenants market. As a property manager, my customers (tenants) are demanding clean and functional homes to live in. Be certain your client is prepared for necessary rehabilitation costs connected with most foreclosed properties.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, and manages 150 single-family units in metro Denver. He is a speaker, consultant, expert witness and holds the Master Property Manager (MPM) designation awarded by NARPM. He has served on the National Board of Directors of NARPM. His firm holds the Certified Residential Management Company (CRMC) designation also awarded by NARPM.

Many Foreclosed Properties

Buyers of foreclosed properties should also keep in mind that interest rates remain at relatively low rates. So the good news for investors is that the supply of properties is high to go along with the historically attractive interest rates. Given these two factors how can there be any downside to purchasing a foreclosed single family home?



Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Location of Foreclosed Important

It would seem that most of these foreclosures are less starter homes located in areas that tend to be more modestly priced. As in all real estate acquisitions location, location and finally location is a critical factor. As a buyer's agent the REALTOR must keep this in mind when working with an investors client.






Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Pro Side of Foreclosed

On the pro side is the ever increasing supply of single family homes (foreclosed) available to purchase. Housing prices, in general,have declined and may provide the best value that we have seen in years. Single family homes continue to remain the the strongest segment of the rental housing market.





Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Foreclosed, Perfect Rental Property?

I receive an average of two phone calls per week from REALTORS with out-of-state buyers seeking to purchase cheap rental property in the Denver metro area. Our nationally recognized foreclosure rate appears to have created a demand for those properties. Often the buyer speaks of purchasing ten or more properties. My next blogs to be posted will examine the pros and cons of foreclosures to be used as rental properties.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Property Managers Need 24/7 Repair Service

Property Managers have another possible solution to repair service and that is to do nothing for emergency repairs. This would be below the standard of care that the property owner expects and is entitled to. The property manager must, to the best of his/her abilities, protect the health of the tenant and the condition of the property.

If you are going to be a property manager you must have 24/7 residential property repair service available.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.