Who is Legacy Property Management?
We are a small property management company in the southern suburbs of Denver. We do go through the city, we specialize primarily in single-family homes. We manage about 150 in our portfolio and it’s growing every month and we love to take care of our owners.
We were able to get 100% in the month of May. There were no rental plans as of yet, nobody has asked for a rental plan or rent relief. We had 2 late payers so it was really minimal. Everyone seems to be getting them in and keeping it on their auto-pay and for June we are looking to get 100%. There are a couple of stragglers that come in and their lease is written that they can come in and pay as late as the 8th. So those few people are not considered late, that’s actually still per their lease they are allowed to pay to wait on a paycheck.
For the month of June, almost everyone is paid up as of now. Our business is slightly different, the average rent that we have is about $2700 and those are the folks that have been hit the hardest by this COVID-19 crisis. They are in the service industry and they have had to ask for rent relief and that is one of the reasons why we haven’t been impacted and we keep stating that we are at 100%
One thing that we are doing is continual communication with our tenants to please have a conversation with us. Don’t wait until rent is due to inform us that you are not going to be able to make rent. They all have been told and requested that we have reminded them about the stimulus check, so they can use that. It is meant for rent, it is not meant for let’s say a vacation. In terms of trends, we have to say that normal high leasing months in Denver are March, April, May, and usually part of June. This year our leasing went bonkers starting in February so pre COVID-19 and we have not stopped leasing and going strong since February.
We are blown away every month, I think we have about 15 properties up for lease right now. Some people renewed while others did not and they did not renew so they are listed. Then we have some new properties coming into the portfolio that are just been put up for lease right now. Houses are still going the best and the quickest. Still 30-45 days, maybe even less on a house. Those still seem to be the most in-demand. There are a couple of caveats, they are a little bit based on the area in town. Condos are still taking the longest, almost painfully long, 60 days at least which is hard for owners.
We don’t see any change in the shift of how leasing time frame has changed with COVID-19 or not, it has always been the same for us pretty much. In terms of rates, they are not as high as they have been, in 2016, 2017 we had great rates. We don’t feel like we are below average but we have had to adapt a little bit on our rent rates just to get more traffic through the property.
So as for the COVID-19 pandemic, we thought that we would have issues getting rent in so we are very blessed and grateful that we have not. And we really have not had to pester the majority, maybe one-off. We have also removed as per executive order all late fees, so we are not charging any late fees even if they pay late. We did not expect the leasing activity to be as crazy as it has been. If it wasn’t for COVID-19 and we were able to do all of what we normally do we don’t know if we could have sustained it. It has been unbelievable this year. There are so many people moving all over either in and out of the state or across the city. We are really blown away at how much leasing activity that we have had this Spring.
We would also say because of COVID-19 our practices have been modified in terms of showing because we personally do no self showings. So the property managers have found a phenomenal system to weed out a lot of uninterested people. We pre-screen much heavier now.
The question that keeps coming up the most is “should I keep buying in Colorado or in Denver?” and we are huge fans of owning rental properties. We had a recent meeting with a panel of property managers and some would say it kind of depends on your goals and what you are trying to accomplish. If you are holding for the longterm then maybe Denver is still a great option. If you are trying to do a quick turn then Denver might not be because CAP rates are lower, prices are higher, and getting that 10% is long gone.
But we believe that Denver is a really well sought after city and our economy, despite all of this going on is still very strong and the mortgage rates are phenomenal. To us, it’s still a win situation and we just want you to know that there are renters on the other side and certainly families because companies are still coming to Denver. So we are still huge fans of owning an investment home
If COVID-19 carries on and we are not able to get back to work then the second wave of not being able to make rent payments could come in. That is where we are kind of waiting to see what August and September looks like. If we can get through till the end of the year then we feel like we have escaped but every month we are grateful that people are communicating and we are communicating with our owners where we are.