May in Full Bloom
A new month, a new market!
May brings more inventory in the Denver Metro (up about 19% since last month) and with higher interest rates, buyers are getting creative with offers – instead of going over ask, many are absorbing fees typically reserved for the seller.
I’ve also talked to lenders who are offering incentives towards closing costs or guarantees to close. Many homes that go under contract are being re-listed once inspections come back – another area to negotiate!
With rates around 6.45% (as of 4/23/2023)we are seeing a normalizing of the market – with about a 6% lower listing price year over year. This is a good thing! Another great piece of news for homeowners came from a new housing report from the National Association of Realtors®. The report revealed middle-income homeowners have had 68% of appreciation in their homes in the past 10 years…another win for real estate!
On a personal note, I am on my mountain bike and planning camping trips for the coming months – would love to hear your outdoor plans!
If you have any questions about real estate, the market, or if you’re thinking of investing in real estate, let’s connect!
Hedging Against Inflation
With inflation at an all-time high, the average person is feeling the squeeze. According to a Colorado Sun Article, Colorado has a higher rate of inflation than the rest of the country. Last month these were the items that went up:
- Nonalcoholic beverages were up 16%
- Fruits and vegetables, up 14.1%
- Dairy and related products, up 12.5%
- Rent of primary residence, 10.3%
- Food away from home, up 10.3%
- Owners’ equivalent of rent, up 7.8%
To hedge against inflation and ensure you’re making the most out of every dollar, here are some simple suggestions:
Rent out a Portion of Your Home
Have a room that you don’t use? Travel a lot on the weekends? Or maybe you have a basement that has a separate entrance? Renting out a portion of your home is a great way to make some extra money! I wrote a guide – check it out.
Get Smart with your Money
Where are you spending? Do your investments have large expense fees? Do you need to make more? Ask for that raise, start a side hustle, start selling that ‘thing’ on etsy. Understand where your money is and how it’s working for you?
Buy a Rental Property
Having an income producing asset can not only produce cash-flow, but allows you to build wealth through appreciation and tax benefits. Let’s chat if this is an avenue you’re thinking about.
Meal Plan
I love to cook & try new recipes, so this one is a personal favorite. Going to the grocery store with a list of ingredients that I know I’ll need for meals I plan to make that week helps me not overspend or waste food.
Reply to this email with any questions!
Lease Renewals & Raising Rents
Tis the season for rent renewals!
As a landlord, with multiple rentals, there are a few things I have systematized around our rentals. Depending on the state you live in along with what you’ve drafted in your lease, there are notifications needed for both the renewal of a lease and if you choose to raise the rent.
Here are a few tips on the subject to make sure you give ample notice to your tenants:
- Check your state laws around rent control legislation. In Colorado, there aren’t currently state-wide laws around rent control and landlords are able to raise rent for their rental agreement term.
- If you are going to raise rent, you need to let your tenants know in writing. Check your state legislation to determine how much notice you need to give. Keep a template of the verbiage, giving them a deadline of when you’ll need to know it they’ll be renewing at the new rate. Set a calendar reminder as soon as a new lease is signed to check in with them.
- Lease renewals should also be in writing and signed by both parties – the lessor and lessee. Download a template from a legal site or create one that you can use year over year and fill in the blanks.
If you have questions about any of this, or want my landlord packet, let’s connect! You can also reply back to this email!
Tips & Teachings
Over the past few weeks, I’ve been reflecting on the steps I’ve taken to get here – running my own business, my own time, having 5 properties to manage and working to find clients homes or investment properties. It’s been a slow and steady ride, with lots of learning along the way. And it ain’t over!
Spring is a wonderful time to take stock, appreciate the growth and plant new seeds. Here are some quotes and podcasts that have done that for me over the past few weeks.
- The best predictor of success is the belief that you will succeed.
- Your comfort zone isn’t comfortable, it’s familiar.
- Start rethinking your relationship with uncertainty.
Here are a few podcasts I’ve listened to that I found extremely helpful in my business, finances, life!
Enjoy!
- It’s not easier here – Lessons from a Quitter
- The Good Life Source – The Good Life
- Get Unsuck – Tim Ferris Podcast
Have questions? Looking to buy or sell?
Don’t hesitate to reach out to happyhomescoltd@gmail.com.