Rental investing in Tri Lakes and the ironies

PHOTO:  Taken from Spruce Mountain in Larkspur overlooking the Spruce Mountain Ranch and Northern El Paso County

There are various and sundry reasons these days as to why a property is offered for rent.  There are those who would love to sell their home because of a job relocation but can’t or won’t sell in a down market because it would likely put them in a distressed sale situation.  Doing that would sadly wreck their credit for a purchase at their new destination.  So they decide to rent their property “until the market improves”.   

Then, of course, there are those creative entrepreneurs who are in a solid financial situation who offer properties for rent for investment purposes. 

Either way, today's landlords try to find the best tenant they can to live in their property – people who will be gentle to their investment and are financially strong enough to make dependable monthly rent payments. 

That’s where the irony starts.  Many would-be tenants have lost their homes in foreclosure or short sale.  They found themselves in this situation for a reason.  Not only that, folks nowadays are more cautious than ever about not over-extending themselves financially.  Landlords have to take poor credit ratings into account when making their decisions and accordingly may increase the monthly rent or the security deposit to compensate for their financial risk, much the way a lender operates with a home purchase.

Tenants can ultimately find themselves in another financially stressful position when rental opportunities a limited and they end up paying more than they should on rent - neither the tenant nor the landlord wins.

There is a huge need for reasonably priced rentals in the Monument, CO area.  There is not much available let alone much available for under $1,500/month.  When they pop up, they go quick.

The Tri-Lakes Area with award winning schools is desirable for those who call it “home” and have already raised their families, as well as for parents who want to keep their kids in these schools.  The charming neighborhoods of Palmer Lake, Woodmoor, and Monument to name a few are also intentional destinations for those who want to settle here and do life.  It’s the perfect place to live for Denver commuters, as well.

There are some great investment opportunities in the area and with low interest rates making it an excellent time to make the leap for those who have the spirit to be a landlord. And if even they don’t, no worries, there are plenty of property management resources locally as well.  So for those who are contemplating their 2012 investments, consider rentals!  Here’s to a prosperous and happy new year.