Whether you’re a homeowner looking to rent your home, an investor with multiple properties, or a tenant searching for somewhere to lease, the rental market in Southwest Colorado offers many opportunities. From advertising to showings to applications and payments, having the knowledge, systems, and support is ideal for both lessee and lessor.
Renting Your Property
Renting a room or entire unit can be not only a great source of income, it also provides much needed housing within our community. If you’re thinking about renting out your personal residence, make sure you are up to date on HOA rules, city and county regulations, and state laws for landlords, which are always evolving. This includes fair housing, tenant rights, radon testing, and some newer regulations related to eviction cause, pet policies, and utility inclusions. There is a lot to understand, from knowing what is and isn’t legally allowed to preparing for vacancies and potential property damage. Having a clear grasp of these factors will help ensure a more seamless rental experience.
Short vs. Long Term Rentals
Short-term rentals (STR) are defined as units occupied for a period of less than 30 days, usually with either daily or weekly rates. STRs require permits including one from the State of Colorado and one from the City of Durango (if within city limits). Some homeowner associations (HOA) have additional rules regarding vacation rentals such as longer minimum lengths. STRs are popular because Durango's strong tourism base creates demand, and they can bring in high daily rates, especially during peak season. STRs come with different tasks such as turnover labor (like cleaning services), wear and tear, and vacancies during off-season.
Long-term rentals are more widely accepted and fill a much needed service for those that work and live here year round. They do not require permits but must follow any national, state, and city/county rules. Some areas and HOAs may have certain regulations in place which can affect some ADU (additional dwelling unit) usage, owner occupancy rules, and pet allowances. The Durango area rental market is usually strong with many students and local workforce looking for annual leases. Monthly and annual rates are typically less per night but help limit turnover and vacancies.
Property Management Companies
Hiring a property management company can be a worthwhile investment. Depending on their services, they may be able to handle nearly everything for your rental, which can be especially helpful if you live in a different area and are not available to be hands-on when needed.
Applications, Contracts, and Legal Updates
One of the most important parts of leasing space is having the proper paperwork in place. Applications streamline potential lessee’s interest in a property and begin the process of background checks, references, and employment. When an applicant is chosen, a lease will be executed, which typically includes basic information about the property, lessee, lessor, and agreed upon details such as security deposit, monthly rate, renewal/termination notices, rules and regulations, and other terms and conditions. These professionals will stay updated on industry changes to make sure your rentals and procedures stay compliant.
Properly Pricing & Advertising Your Rental
Similar to selling real estate, property managers have a consistent pulse on the local market. From supply and demand to fair market prices, their knowledge will help you properly price your rental to attract a renter. In addition, many property management companies have websites, social media pages, and a solid contact base that they advertise your property to. While not guaranteed, these methods should help minimize vacancies.
Management
Hopefully after finding a tenant for your property, there are little to no issues. However, if something arises, your property manager can be the number to call, whether it’s for a maintenance issue, enforcing lease agreements, or coordinating with third parties as your representative.
Fees
Property managers typically work off of monthly fees which can either be percentages or flat dollar amounts. Monthly percentages usually range from 8-12% of the rental’s rate, with flat fees ranging from $200-400. These rates depend on the market, property location and type, and services provided. Additional fees may include leasing fees, maintenance and repairs, set up, and renewals which vary in amount and cover the property manager's upfront costs and work.
Southwest Colorado Property Management
A recent addition to our parent company, The Wells Group now has a property management division offering high quality, all-encompassing, property management services. Southwest Colorado Property Management offers marketing, tenant screening, lease preparation, routine inspection, rent collection, issue resolution, and clear communication with both landlord and tenant. Although primarily focused on assisting landlords, they are also able to help renters find a home that meets their needs. Additional short-term rental management services are available as well as custom concierge offerings.
With plenty to consider for both homeowners and tenants, it’s important to know the many details of leasing homes in La Plata County and beyond. For more details and information about renting or living in Durango, please don’t hesitate to contact Durango RealtorsⓇ Max Hutcheson and Deven Meininger.
If you’re a renter considering buying a home, this blog highlights some main factors to consider.
