303.666.4300
Phoenix Realty and property management
YOUR RESIDENTIAL PROPERTY MANAGEMENT EXPERTS
May 2014 
In This Issue
Newsletter Now Seasonal!
Instead of sending a monthly newsletter, we'll now be forwarding a seasonal newsletter to advise you as to our seasonal changes and maintenance advice that goes with those changes.  We'll also be including some helpful hints and educational pieces on our local real estate market and topics that are pertinent to the market and to those who may eventually want to purchase and are interested in learning more about the process.
  
We hope you enjoy the helpful information we include, if you have any questions or thoughts on what you'd like to see included just let us know by replying to me here at Kevin Chard
  
Spring Yard and Home Maintenance

YARD MAINTENANCE

The time has come for yard maintenance if applicable.  Please take some time to clean up the yard by removing dead leaves, grass, and debris.  If you have a sprinkler system, you should have it turned on and running regularly by now or very soon.  If you are unsure of how to do this, please call Paul at Carlson & Carlson at 303-666-5143 or Robyn's Nest Yard Care 303-884-1046. We will provide this service for you; just tell Paul at Carlson or Pete at Robyn's Nest that you are a Phoenix Realty tenant and he will bill us direct.  If you do not have a sprinkler system, it's time to start watering by hand.  The best times for all lawn watering is either at night or very early in the morning.  Some yards may require watering more frequently than others, and to avoid HOA or City fines, remember that weed removal is expected under terms in your lease. 

 

If you're a resident in one of our single family homes or townhomes with a yard, a great way to insure you don't have a negative impact to your security deposit when you vacate the property is by insuring the landscaping is maintained per your lease agreementBushes and trees are trimmed and not overgrown, flower gardens are weeded, the lawn is healthy, well mown and green, and the overall landscaping is pleasant to the eye. 

 

Should you have tall trees with large dead branches, dead trees, or branches that are overhanging on your roof let us knowWe will deploy a professional arborist to assess the trees and provide us a quote for ownership to take care of the affected area(s).  If you have any questions or concerns on yard maintenance expectations or what an HOA may or may not cover, please be sure to contact us as we're happy to be of service to you and answer your questions. 

 

 FURNACE / AIR CONDITIONING

If you have not done so, remember to change your furnace filter with the appropriate type and size.  A good telltale sign of a filter that needs replacement is noticeable dust on furniture and fixtures.  This should be done at a minimum of every 3 months.  Any local hardware store, Target, Sears, Jax, or Walmart should have replacement filters, and they're one of the quickest and least expensive maintenance projects you can do. 

 

If you have air conditioning, you may consider running ceiling or central fans to circulate cooler air throughout the residence.  This keeps the air relatively constant around the thermostat as well as spreading cool air throughout the home.  Turning your a/c completely off, or at a very high setting while you are away is not recommended; as cooling a "hot" house is less efficient and more costly than keeping your home cool throughout the day.  If it appears that your a/c unit is not cooling the home please check and potentially replace the furnace filter before calling for a service call.  A clogged filter will prevent the a/c system from operating and cooling properly.

 

GENERAL

With the Spring thaw, it's time to quickly check your plumbing for leaks.  Feel around under your sinks and inspect around toilets and outdoor spigots for signs of small leaks.  Please let us know right away if any are found.  Catching a leak early is a good way to keep your water bill down and to preserve the home as a whole.

 

MOVING

Remember, if you are giving your notice to vacate, notice is to be given on the 1st day of the month or before, vacating the last day of the month by noon.  If your lease expires and no notice is given you are automatically on a month to month with 30 day notice required.

  
  
  
If you want to purchase a home, you might wonder if you could get pre-approved. You could visit a loan officer and they could help you figure out if you'd qualify. Or you could do a few simple calculations at home to know if you're in the right ballpark.
  
Step 1: Is your credit score high enough?
  
Credit score requirements have changed a lot over the last decade. Chances are they will continue to vary, but right now you really need a score of at least 680 to get a good loan. Ideally having a score over 720 would enable you to get an excellent loan.
  
If your score isn't up there, take action now to improve it. In our April Newsletter I had an article on what factors make up your credit score, how it's calculated, FAQ's, and several steps on how to improve your score.  If it is very low, you can hire someone to help you raise it to the level you will need. Or you can order your credit report and start handling any problems on your own with the credit reporting bureau's.  Links on how to pull your credit report are also included in the April Newsletter.
  
Step 2: Do I have enough income to support a house payment?
  
In order to figure out how much you can afford in a mortgage payment each month, you will need to calculate two numbers: the front-end ratio and the back-end ratio.
  
Front-end ratio: Your proposed monthly mortgage payment divided by your gross monthly income (before taxes). This figure should not go over 28 percent.
  
For example: Let's say you earn $5000 a month, gross. You can afford to spend $5000 x 0.28 = $1400 on your monthly mortgage payment. Note: This must include your principal, interest, taxes and insurance.
  
Back-end ratio: Your total debt obligations (credit cards, student loans, etc.) divided by your gross monthly income. This amount should not go over 36 percent.
  
For example: Keeping with the previous example, if you earn $5000 a month, you may spend $5000 x 0.36 = $1800 on your total debt obligations. So, if you have a mortgage payment of $1400, you can spend an additional $400 a month on credit card payments.
  
Step 3: Do I have the cash on hand that I will need to buy a home?
  
You will need to have money for a down payment and closing costs. There are government loans that allow you to put little or no money down, and ask the seller to pick up the closing costs. However if you get a conventional loan, you will need money in the bank for the expenses.
  
Lenders want to make sure that the money for the down payment is your money, not borrowed money. They like to know that you are personally invested in the home, because you are less likely to default that way.
  
You must show the money you plan to use for the down payment to have been in your bank account for at least 60 days. If you transfer it from another account, you must show that transfer and that you had the funds in that account for the time required.
  
Some lenders will allow you to receive a down payment (or part of the down payment) as a gift, but if you can have the money sit in your account for two months it is much easier.
  
If you have any further questions or concerns on this process, or would like a list of lenders to be referred to in order to explore this process further; be sure to contact Kevin Chard in the office and he'll be happy to be of service to you. 

Why Are We In A Housing Shortage? 

So you're thinking about moving into a new rental, or thinking about buying a home for yourself this summer when your lease expires.  Then you remember how hard it was for you last year or the year before to find the home you're in now.  You start doing some research and find there's just not a lot to look at- for rentals or buyers- and when you do find an attractive property it's gone in a matter of days.  So why is that, and for how long will we be in this environment?
  
  • Statistics show people are living longer and staying in their homes longer.  People are spending an average of nine years in a home instead of five and elderly home owners are staying in their homes later into life than previously observed.   

 

  • Unemployment is 3% better than in 2010, allowing more buyers to be approved for a mortgageInterest rates are also in the 3-4% range, meaning more people can afford to buy a home, and most rental payments are about equitable to a mortgage payment for those who decide to purchase a home. 

 

  • Echo Boomers, the children of the Baby Boomers, are coming of home-buying age, increasing competition for already sparse availability. 

 

  • Natural disasters.  Colorado as a whole is experiencing a housing shortage, between the Front Range floods and Black Forest fire, hundreds of Colorado homes were destroyed last year; and not all have been rebuilt.

 

  • Dormant Sellers.  65% of home buyers surveyed think now is a good time to buy, whereas just 38% of sellers think it a good time to sell.  Some sellers are afraid they won't have anywhere to go when they do sell their home, as the market is experiencing record lows for inventory; so they're deciding not to sell now until it becomes easier for them to locate and purchase their next home.   

 

  • Not enough homes were being built during the recession, and builders are challenged making up for lost time.  In 2009, the number of new homes hit a national low with just 300,000-400,000 built that year, compared to the 1.3-1.4 million units being built in 2006.  During the recession, there wasn't enough building going on to keep up with population growth.  Banks were very slow in financing builders during the heat of the recession to the crippled housing market.  Financing has since been easier to come by with the banks over a few years ago, but now builders are having a hard time 'gearing up' since many trades people left Colorado for places they could find work.
  
So for the short term this imbalance of high housing demand and low inventory will remain with us, certainly for the remainder of this year.  Year over year we do expect builders to close the gap by creating new shelter, so it will become easier to locate a new home for yourself in the years ahead.  Interest rates are already starting to rise, and will likely continue to do so in the years ahead; so that may slow some individuals from wanting to purchase a home as property becomes more expensive with higher mortgage rates. 
  
Daily Camera | Friday/Saturday, April 25-26, 2014
Is It Better to Buy or Rent?
The New York Times has a very easy to use, visual tool to assist in calculating whether renting is better than buying.  Naturally that decision making process will depend on many factors, particularly how fast prices and rents rise and how long you stay in your home.  Compare the costs of buying and renting a home in the calculator at the hyperlink noted above entitled visual tool.  
 
The Annual home price change and Annual rent decrease or increase have active slider bars where you can see how an increase or decrease changes the graphical representation of how many years does Buying make sense over Renting; and how much owning can save over renting and what your average savings a year is.  The financial data points change dynamically as the slider bars are manipulated, as do the years; by placing the mouse over the graph at various points you will get an average savings per year and detailed expenses.  By clicking on this link March 2014 you can track the year over year single family home, condo & townhome annual % increase in property appreciation for that particular slider bar.  
 
If you're looking for assistance in where these slider bars should be set in a similar home to the home you're currently renting, and would like approximate figures on Annual tax rates, home pricing, or other data points that the tool asks for; be sure to reach out to Kevin Chard and he can provide you that information to provide a higher degree of accuracy for you
 
By clicking on the advanced settings button you can change inputs such as your rate of return on investments, condo/common fees and your tax bracket.
 
We hope you find value in using this tool, as it graphically represents some very important financial data points that are great for your decision making process on renting Vs. Buying.
 
The New York Times | April 2014
(April, 2014)

Phoenix Realty and Property Management 

102 E. Cleveland Street, Suite 200 Lafayette, CO 80026

 

 website: www.phoenixrealtyinc.com facebook: Corporate fb Page Google+: Google+ 

 

Tel: 303-666-4300 Fax: 303-665-9154 e-mail: info@phoenixrealtyinc.com


Copyright © 2014. All Rights Reserved.

Contact Us

Phoenix Realty and Property Management, Inc.
400 E. Simpson St., Suite 220
Lafayette CO 80026

Phone: 303.666.4300
Fax: 303.665.9154



Best Property Managers in Denver

Ranked in the top 20 Best Property Managers in Denver, 4 years in a row by Expertise.com!


Selected as one of the Best Property Management Companies for 2019 & 2020 by PropertyManagement.com

Copyright © 2024 Phoenix Realty and Property Management, Inc. All Rights Reserved.
Property Manager Website powered by FreeRentalSite.com | Rental Application by RentScreener

Property Management Boulder | Boulder Homes for Rent | Brighton Property Management | Brighton Homes for Rent | Broomfield Property Management | Broomfield Homes for Rent | Denver Property Management | Denver Homes for Rent | Lafayette Property Management | Lafayette Homes for Rent | Areas We Serve