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Maximize Your Rental Income: Effective RenovationsIn the highly competitive rental market, making your property stand out is crucial for maximizing income. Strategic renovations can enhance both the appeal and cash flow of your property, ensuring it remains desirable for tenants while increasing its overall value. Below, we explore high-ROI (Return on Investment) upgrades and amenities that can help you boost your rental returns and stay ahead of the competition.Why Renovations MatterRental properties, whether long-term leases or short-term vacation rentals, are more than just real estate investments—they're income-generating assets. A well-maintained and thoughtfully upgraded property not only attracts quality tenants but also commands higher rents and lower vacancy rates. Renovations can also lead to greater property appreciation, making your investment more lucrative over time.High-ROI Renovation IdeasModernize the Kitchen&nbsp;The kitchen is often the heart of the home and a major selling point for tenants. Consider updates like new countertops, energy-efficient appliances, modern cabinetry, and fresh lighting fixtures. Even small changes, such as updated hardware or a backsplash, can make a big difference.Upgrade the Bathroom Bathrooms are another area where renovations yield high returns. Installing new fixtures, replacing old tiles, or adding luxury features like a rainfall showerhead or a double vanity can elevate the space’s appeal. Neutral colors and clean lines create a timeless aesthetic that appeals to a broad audience.Enhance Curb Appeal First impressions matter. Simple updates like landscaping, painting the front door, and ensuring well-lit pathways can make your property more inviting. For vacation rentals, an attractive exterior can significantly influence booking decisions.Energy-Efficiency Upgrades Tenants increasingly value eco-friendly features that lower utility costs. Installing energy-efficient windows, smart thermostats, LED lighting, and high-efficiency HVAC systems can reduce expenses for both you and your tenants while increasing the property’s attractiveness.Flooring and Paint Fresh paint and durable flooring are cost-effective ways to rejuvenate your property. Choose neutral tones for walls and opt for materials like luxury vinyl planks, which offer both durability and style.Add Amenities Competitive rental properties often feature amenities that set them apart. Consider adding in-unit laundry, a fenced backyard, or a private parking space. For vacation rentals, extras like a hot tub, outdoor seating area, or high-speed Wi-Fi can justify higher nightly rates.Create Flexible Spaces Flexibility is key to appealing to a wide range of tenants. Adding features like a home office nook or extra storage solutions can cater to modern renters who work remotely or need versatile spaces.Balancing Costs and BenefitsWhile renovations can significantly enhance your property’s value, it’s essential to approach them strategically. Focus on upgrades that provide the highest ROI and align with your target tenant demographic. For example, a high-end kitchen remodel may be unnecessary for a budget-friendly rental but could be a game-changer in a luxury property.The Long-Term PayoffEffective renovations aren’t just about immediate returns; they’re about positioning your property for sustained success. By maintaining high standards and adapting to market trends, you’ll attract reliable tenants, command competitive rents, and enjoy steady appreciation in property value.

Maximize Your Rental Income: Effective Renovations

Warm tones are having a moment in home design, and Pantone’s 2025 Color of the Year, Mocha Mousse, is leading the charge. This soft milk chocolate hue exudes comfort and low-key luxury, making it an ideal choice for creating inviting and stylish spaces. Whether you’re sprucing up your home to sell or enhancing your personal sanctuary, Mocha Mousse offers versatility and warmth for any design scheme. <h3>A Little About Pantone and Mocha Mousse </h3>​Pantone, a leader in color management and trend forecasting, selected Mocha Mousse to reflect our collective desire for comfort, wellness, and the joy of simple pleasures. Laurie Pressman, vice president of Pantone Color Institute, notes that the hue speaks to these universal needs. Its warm and earthy qualities make it perfect for creating spaces that feel grounded and harmonious. Here’s how you can incorporate Mocha Mousse into various areas of your home: <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250102090056.jpg" alt="" width="897" height="598" style="width: 897px; height: 598px;"></figure></div><h3> Bedrooms: A Restful Retreat</h3>Bedrooms are a haven for relaxation, and Mocha Mousse brings a cozy elegance to these spaces. Consider an accent wall in this shade for a dramatic yet soothing effect. Pair it with soft, neutral bedding for a layered look that’s both inviting and luxurious. For a modern touch, contrast Mocha Mousse with cool blues or silvery tones, as seen in many contemporary designs. The result is a tranquil yet visually engaging atmosphere. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250102090245.jpg" alt="" width="" height="" style=""></figure></div> <h3>Bathrooms: Spa-Like Comfort </h3>​Bathrooms are another excellent space to showcase this comforting color. Mocha Mousse pairs beautifully with natural wood and metallic accents, creating a spa-like ambiance. Use it on feature walls or in tilework to add warmth and character to the room. If you’re in a colder climate, warm tones like this can make the space feel more inviting. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250102090633.jpg" alt="" width="" height="" style=""></figure></div> <h3>Kitchens: A Delicious Hue </h3>​Kitchens are increasingly embracing earthy tones, and Mocha Mousse is no exception. Incorporate it subtly through backsplash tiles, vent hoods, or countertops to add depth to white or neutral kitchens. This hue harmonizes with natural stone and wood, making it a stylish choice for a welcoming cooking and dining space. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250102103850.jpg" alt="" width="" height="" style=""></figure></div> <h3>Living Rooms: Cozy Elegance </h3>​In living rooms, Mocha Mousse shines when used in textiles, furniture, and window treatments. Its versatility allows for layering with other neutral tones or bold pops of color. Create an inviting space perfect for family gatherings or quiet evenings with a good book by incorporating this warm hue into the décor. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250102110428.jpg" alt="" width="" height="" style=""></figure></div> <h3>Home Offices: Stress-Free Productivity </h3>​Color can influence mood, and Mocha Mousse is an excellent choice for home offices. Its soothing qualities help reduce stress, making workdays a bit more manageable. Use it on walls or millwork to create a calm and productive environment. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250102112310.jpg" alt="" width="" height="" style=""></figure></div> <h3>Exteriors: Natural Appeal </h3>​Mocha Mousse isn’t just for interiors—it’s equally stunning on home exteriors. Drawing inspiration from nature, this hue blends seamlessly with the environment and enhances landscaping. In dry climates, its earthy tone camouflages dust while providing a beautiful backdrop for greenery. Whether paired with bright accents or neutral trim, Mocha Mousse adds timeless curb appeal. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250102112830.jpg" alt="" width="" height="" style=""></figure></div><h3>Embrace the Trend </h3>​Pantone’s Mocha Mousse offers endless possibilities for enhancing your home’s style and comfort. Whether you’re staging your property for sale or simply refreshing your space, this warm, earthy hue is a sophisticated choice. Your Turn: What do you think of Mocha Mousse as the 2025 Color of the Year? Share your thoughts and design ideas in the comments below!

Pantone’s 2025 Color of the Year: Embracing Mocha Mousse in Home Design

<h1>This Capitol Hill mansion where aspiring butlers once trained is now a permanently affordable housing co-op </h1>by: Paolo Zialcita A Capitol Hill mansion that once housed generations of aspiring butlers is being converted into the city’s first permanently affordable housing co-operative. “The irony's not lost on us,” said Lincoln Miller, the executive director for Boulder Housing Coalition, which purchased the property. “We really appreciate that and that is part of why we're calling this the People's Mansion.” Since 1990, the mansion housed the Starkey International Institute for Household Management, where people trained to become butlers for the ultra-rich. <h2>A quick tour of the People’s Mansion</h2> The 10-bed, 7-bath mansion on Logan Street sticks out like a sore thumb. Sitting just two blocks from the state capitol, it’s the only building in the area that maintains a distinct, Georgian-era architecture. The mansion even received a historic landmark designation from the city in 1997. Inside, it reflects the lifestyle of those the students wanted to serve. Upon entering, two rooms greet you. On the left, a library boasts a wide array of books and a grand piano. On the right, a “living room” features two couches that look more for show than for comfort. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241217095055.jpg" alt="" width="" height="" style=""></figure></div>There’s a staircase designated specifically for butler use only, as well as a wine cellar downstairs. The Boulder Housing Coalition’s $2.8 million purchase of the property came with all of the furniture used by the Starkey school. While the co-op nonprofit plans to keep some of the furniture, it’ll likely hold an estate sale to get rid of some things they don’t need — including the hundreds of class photos depicting every single graduate of the program since 1990. The nonprofit envisions the mansion housing up to 22 people. Before that can happen, the nonprofit plans to do some renovations, like building more walls to turn the mansion’s 10 bedrooms into 19 and installing fire suppression systems. <h2>More than just affordable rent, co-ops are an alternative to traditional housing</h2> After the renovations are complete, Sarah Wells, the board president for the Boulder Housing Coalition, said she expects a bustling, collaborative community not unlike those found in the nonprofit’s four other houses in Boulder. Rooms will be occupied by low-and-medium income individuals. Rent will be capped at a price affordable to people making 30 to 80 percent of Denver’s median income, as defined by the <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241217095246.jpg" alt="" width="" height="" style=""></figure></div>“A lot of that is teachers, government workers, nurses are still in that range,” Wells said. “So lots of people that contribute to the functionality and the cultural beauty of a city.” Living in a 20-plus person co-op isn’t just about affordability, she notes. Wells, who lives in the Queen City Cooperative, said those who apply need to be cognizant that they’re consciously choosing to be in close proximity to 19 other people. “I think part of what is beautiful about nonprofit cooperatives and the co-op Queen City where we live is people are choosing to live collectively,” she said. “So it's not necessarily the only place you can afford, it's a choice of people living together.” <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241217095751.jpg" alt="" width="" height="" style=""></figure></div><div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241217095853.jpg" alt="" width="" height="" style=""></figure></div>Barak Bullock, who currently lives in one of the Boulder Housing Coalition’s Boulder houses, said he’s considering applying to the People’s Mansion when it opens in a few months. “There's one part of my brain that's just so enamored with the idea of living here, and then there's another side of my brain, which is like, dude, this is going to be so much work,” he said. “Imagine sweeping all these floors and mopping all these floors and keeping this place clean week after week. It's an enormous amount of work.” <h2>A city grant helped the Boulder Housing Coalition purchase the mansion</h2> The Boulder Housing Cooperative wanted to take advantage of the moment Mayor Mike Johnston created through his persistent calls for more affordable housing in the city. The nonprofit applied for a $1 million grant from the Denver Department of Housing Stability (HOST). The grant, approved by city council in November, was awarded to the coalition under the condition that the rooms stay permanently affordable to applicants. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241217100017.avif" alt="" width="" height="" style=""></figure></div> In addition to the HOST grant, Miller said they received low-interest loans from the Colorado Housing Accelerator and Mercy Housing to aid with the purchase. “Without that support and the fact that it's historic, which opened up other grants, we wouldn't have been able to provide this affordable housing here,” he said.<h2> A new state law could make way for more housing co-operatives</h2> Earlier this year, Gov. Jared Polis signed an occupancy limit ban into law. Under the new law, local municipalities can no longer set an across-the-board cap on how many unrelated people can live together. In Denver, the occupancy limit allowed up to five unrelated adults to live together before the new state law struck it down. Cities can still set occupancy limits, but they must justify them with health and safety concerns. With the new state law, Miller said he’s seen an appetite to expand the rental co-op model to other Front Range cities. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241217100354.jpg" alt="" width="" height="" style=""></figure></div>Lincoln Miller, executive director of the Boulder Housing Collaborative, sits in the Starkey Mansion, which he and his organization plan to turn into co-op housing. Dec. 7, 2024. Kevin J. Beaty/Denverite <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241217100446.png" alt="" width="" height="" style=""></figure></div>“It's a model that creates community and can work in urban areas like Denver,” he said. “So it could work in every city in the front range for sure. But there are management challenges with spreading yourself across all of the front range, and we have to carefully consider those.” And as for whether the Boulder Housing Coalition will change its name now that it's expanded outside of Boulder? “We've talked about it. We got Better Housing Coalition or ‘bolder,’” he said. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241217100551.png" alt="" width="" height="" style=""></figure></div><div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241217100635.png" alt="" width="" height="" style=""></figure></div>

Capitol Hill Mansion

<h1>​Fannie Mae Expands Coverage, Raising Loan Limits By 5.2%</h1>by Jeff Vasishta If you want to buy a million-dollar home and have enough for a&nbsp;<a href="https://www.biggerpockets.com/blog/down-payment">down payment</a>, you can now ask Uncle Sam for the rest.&nbsp;That’s&nbsp;probably&nbsp;an oversimplification, but if you think of government-backed loans to finance single-family homes, you likely think of modestly priced residences for the middle class.&nbsp;However, the federal government is&nbsp;<a href="https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2025">expanding its loan limits</a>&nbsp;through Fannie Mae and Freddie Mac-backed mortgages—offering loans to the conforming loan limit value of $806,500, starting in January 2025. That’s a marked increase of 5.2% from 2024 levels.&nbsp;A conventional down payment of 20% means you can buy a million-dollar home backed by government financing. The move reflects escalating home prices, which have edged many Americans out of ownership.“I think it’s practical for (Fannie and Freddie) to meet the market where it’s at,” Molly Goodman, co-founder of Abundant Housing Massachusetts, a housing advocacy organization, told&nbsp;<a href="https://www.usatoday.com/story/money/personalfinance/real-estate/2024/11/26/fannie-freddie-back-million-dollar-homes/76459040007/">USA Today</a>. “We still need financial products that can serve the market, but we need to recognize that this is not sustainable.”How Fannie and Freddie WorkIf you can’t remember taking a mortgage out directly through Fannie Mae or Freddie Mac, that’s because you haven’t. Government-sponsored enterprises (GSE) provide mortgage financing and help make homeownership more accessible. They do this by buying mortgages from lenders, who then have more money to help other buyers, thus providing liquidity in the market and keeping housing stable and affordable.&nbsp;“Having those loan limits raised helps a lot more people. It makes it a lot easier, especially for us as lenders,” David Horvath, vice president and senior mortgage loan officer with Meridian Bank, said in the&nbsp;USA Today&nbsp;article. Mortgages backed by Fannie and Freddie offer more flexibility for applicants on things like down payments and credit profiles than jumbo mortgages do, Horvath added.&nbsp;<a href="https://hubs.ly/Q02LzKH60"></a>A Governmental Safety Net for LoansFannie and Freddie had to be bailed out by the government during the 2008 financial crash and has been in federal conservatorship&nbsp;ever&nbsp;since—though&nbsp;<a href="https://www.fhfa.gov/conservatorship/senior-preferred-stock-purchase-agreements">amendments were made&nbsp;in 2021</a>. They are tied to the Treasury Department, funded by the American taxpayer, and pay quarterly dividends for the privilege. In return, the government steps in to help them in times of financial difficulty—as&nbsp;is what&nbsp;happened in 2008.The Federal Housing Finance Agency’s (FHFA) annual loan limits are tied to national home prices and adjusted accordingly and publicly. The correlation is simple: The 5.21% increase in the home price index between the third quarter of 2023 and 2024 resulted in loan limits changing by the same amount—the new single-family upper limit of $806,500. The loan limits increase when&nbsp;<a href="https://www.housingwire.com/articles/fhfa-conforming-loan-limits-increase-to-806500-in-2025/#:~:text=The%20Federal%20Housing%20Finance%20Agency,mortgages%20up%20to%20this%20amount.">local median prices are more expensive</a>.FHA Rules for FlippersFor&nbsp;<a href="https://www.biggerpockets.com/guides/how-to-flip-houses">flippers</a>, increasing loan limits for Freddie and Fannie financing opens up another category of homebuyers who may&nbsp;not&nbsp;have&nbsp;been&nbsp;previously eligible.&nbsp;It allows investors to look for homes in competitive areas more confidently, knowing that end buyers with less-than-stellar credit scores or lower down payments might still be able to buy a&nbsp;home.&nbsp;However, there are&nbsp;<a href="https://www.dsldmortgage.com/blog/fha-flipping-rules-understanding-the-90-day-rule-and-its-implications">certain&nbsp;rules</a>&nbsp;flippers must adhere to when selling to buyers who&nbsp;are preapproved&nbsp;for an FHA mortgage. These are:<ul><li>There has to be a 90-day seasoning period between buying and selling a home to an FHA-approved buyer.&nbsp;This&nbsp;prevents&nbsp;<a href="https://www.biggerpockets.com/blog/on-the-market-224" style="font-family: &quot;Helvetica Neue&quot;; font-size: 13px;">wholesalers</a>&nbsp;from doing double closings and safeguards buyers from&nbsp;buying&nbsp;homes with minimal renovation, but it&nbsp;should&nbsp;not present an issue&nbsp;for flippers who have done&nbsp;major&nbsp;renovation work. </li><li>If the home is&nbsp;being sold&nbsp;for more than the flipper paid for it between 91 and 180 days after acquisition,&nbsp;a second appraisal (conducted by an FHA-approved appraiser) must be&nbsp;conducted. The buyer cannot pay for the second appraisal; the seller/flipper must bear the cost.</li></ul>FHA approvals are synonymous with red tape,&nbsp;onerous&nbsp;document checks, and expenses that can delay a closing. So, knowing this ahead of time or working with an efficient, approved FHA mortgage broker to streamline the process and address any foreseeable issues upfront will help an experienced flipper get to the finish line.&nbsp;Mortgage Competition Heats UpNonbanks—online lenders such as Rocket Mortgage, PennyMac, and United Wholesale Mortgage—have already increased their conforming loan limits ahead of the FHFA’s official announcement, which is standard each autumn. These lenders compete with Fannie and Freddie-associated lenders, so FHFA has to compete by increasing their limits accordingly.&nbsp;An Uncertain FutureAccording to the&nbsp;<a href="https://www.wsj.com/politics/policy/trump-allies-are-working-on-plans-to-privatize-fannie-and-freddie-a9c4e5ff">Wall Street Journal</a>, the incoming Trump administration plans to privatize Fannie Mae and Freddie Mac. Government stakes in the two lending institutions are estimated to be&nbsp;in the&nbsp;hundreds of billions of dollars, allowing bankers to sell over $100 billion worth of shares at once.&nbsp;This&nbsp;would create&nbsp;the&nbsp;biggest&nbsp;stock and bond offerings&nbsp;in history&nbsp;and attract sovereign-wealth funds.Critics fear such a&nbsp;large&nbsp;investment buy-in could destabilize the U.S. housing market, which relies heavily on FHFA backing. About 40% of the $435 billion of residential loans originated in the second quarter of 2024 were sold to Fannie or Freddie, according to Inside Mortgage Finance, not including multifamily mortgage debt (of which 40% is $2.2 trillion).&nbsp;Advocates of privatization point to it as a way to reduce the deficit. At the same time, opponents fear it will decrease access to credit for homebuyers and increase the risk for taxpayers,&nbsp;<a href="https://finance.yahoo.com/news/housing-clash-coming-involving-two-154516884.html?guccounter=1&amp;guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&amp;guce_referrer_sig=AQAAAJ6jl9mDKTyhfVkI9vHov_Mn8uKXS1FHhnZvN_Y_ujeTkaqn4BnywAHiJ1izqEubCCSnBiu4z2bswG_Kd-zwRvH9HpAqXu8HzneengaTpPYLdIS1-1l_LBmTUcBJJHFJ_8ZjEIfHHTx3SOVlwnNiQiNif4bYZaqOhOYtI6RYgGw4">sending mortgage costs</a>&nbsp;skyward.“The conservatorship&nbsp;was always intended&nbsp;to be temporary, so it makes sense that policymakers release them from conservatorship now that reforms are complete,” a spokesman for billionaire John Paulson—a Trump backer and hedge fund manager who owns a sizable share of Fannie and Freddie shares—said in a&nbsp;<a href="https://www.wsj.com/politics/policy/trump-allies-are-working-on-plans-to-privatize-fannie-and-freddie-a9c4e5ff">statement</a>. “The government will be the biggest winner in a release of [Fannie and Freddie].”Final ThoughtsAny sale of Fannie and Freddie—which were&nbsp;created by Congress—needs to benefit the mortgage and housing industry and enable the public to obtain safe, securitized loans in tandem with escalating home prices, as recently demonstrated.&nbsp;Whether that transpires remains to be seen. What’s not up for debate is that Fannie and Freddie have played an integral part in propping up home lending during its most turbulent times, providing liquidity, stability, and affordability.&nbsp;Investors have relied on these loans for&nbsp;<a href="https://www.biggerpockets.com/blog/finding-multifamily-properties">multifamily</a>&nbsp;purchases as landlords, while flippers and homebuilders have used Fannie and Freddie to sell homes to owner-occupants. The secondary mortgage market relies on Fannie Mae and Freddie Mac to provide mortgage-backed securities (MBS), reducing the cost of borrowing for affordable housing. The increased loan limits allow borrowers—owner-occupants and investors looking to rent out homes after living in them— to remain competitive and buy homes at their current market value.&nbsp;Given the current housing crisis, a strong, functioning Freddie and Fannie&nbsp;are needed&nbsp;now more than ever. Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.

Fannie Mae Expands Coverage, Raising Loan Limits By 5.2%

Five Laws Most Colorado Landlords Don't KnowBy Marc Cunningham Wednesday, December 4, 2024As we approach 2025, Colorado landlords and housing providers face a critical challenge: staying compliant with the state’s new and revised laws. These laws apply universally to ALL Colorado housing providers, real estate investors, and landlords, whether they own just one single property or manage thousands. To help, we’ve highlighted five common laws that housing providers often overlook when navigating these changes and how to ensure compliance with them.*Grace Property Management is not an attorney firm, and this is not legal advice. The below is simply our interpretation of some aspects of HB 24-1318. A legal professional should be consulted before relying on any of the below information.1. New Lease Language: Warranty of HabitabilityBeginning in 2025, all Colorado residential lease agreements must include updated language reflecting changes to the warranty of habitability laws. This update redefines habitability standards and among other things, also requires:•Specific legal language in a lease and even the font formatting must be in bold and a required font size.•Specific legal language informing tenants of their rights related to habitability, including their ability to request temporary housing during certain repairs issues.2. New Lease Language: Maintenance RequestsColorado housing providers are now required to include detailed instructions in their leases on how tenants can submit maintenance requests. The lease must:•Include an email address, a physical mailing address, and clear instructions for submitting requests.•Include this language in both English and Spanish.Failing to incorporate these changes could result in penalties. To view and read the full bill in which this is mandated,&nbsp;<a href="https://leg.colorado.gov/sites/default/files/2024a_094_signed.pdf">click here: SB 24-094</a>3. Repair Requirements For Habitability IssuesUnder the newly redefined warranty of habitability in SB 24-094, real estate investors face new and stricter standards for addressing repair issues including detailed time requirements. The bill significantly expands what qualifies as a habitability concern and mandates faster response times. Key highlights include:•Redefined Habitability: The updated law broadens the definition of habitability to include issues like mold and other environmental concerns.&nbsp;<a href="https://leg.colorado.gov/sites/default/files/2024a_094_signed.pdf">For full details, review the bill here.</a>•24-Hour Response Requirement: Landlords must address habitability-related repair requests within 24 hours. Delayed responses could lead to tenant claims and legal penalties.•Tenant Rights: Tenants must be informed of their right to temporary housing during major repairs.4. Tenant Notices Must Be Tenants Preferred LanguageUnder HB 24-198, landlords must provide demand notices (e.g., for unpaid rent) in the tenant’s preferred language.•Housing providers should identify the tenant’s primary language during the application process.•Housing providers should ensure all notices, including rent demand and eviction notices, are translated accordingly before service.Ignoring this requirement could invalidate a legal eviction proceedings. This law applies equally to single-property landlords and large companies, so preparation is key.5. Major Changes To Applicant ScreeningColorado has tightened rules and added restrictions around the residential applicant screening process:•Income Limits: It is illegal to require an applicant’s income to exceed two times the monthly rent.•Credit Reports: Housing providers may NOT access or view credit reports for applicants who receive subsidized housing.•Portable Screening Reports: If an applicant provides a landlord with a portable screening report, the landlords must accept it and may not charge an application fee to the applicant / tenant.What the rental market will do in &nbsp;2025With stricter regulations and a shifting rental market, landlords must stay informed and proactive. Grace Property Management’s 2024 Annual Letter provides insights into these changes and expectations for the year ahead and&nbsp;<a href="https://www.rentgrace.com/2025">may be viewed here.</a>At Grace Property Management we believe that when property management is performed with integrity, both tenants and landlords benefit. Property Management is not just our business - it is a relationship between us, our owner-clients, and our tenant-residents.If these are important to you, we may be a good fit to provide you, your property, and your tenant-resident with our full service property management services. Feel free to reach out to us for assistance.Grace Property Management &amp; Real EstateServing real estate investors and residents since 1978.www.RentGrace.com303-255-1990

Five Laws Most Colorado Landlords Don't Know

The idea of flipping a house and making a healthy profit in a relatively short period of time is one that holds a lot of appeal for investors, but is it always the right option? It may be better, depending on your situation, to buy and hold versus flipping. The following are considerations to keep in mind if you’re ready to delve into real estate investing but aren’t sure of the right path for you. <h2>The Pros and Cons of Flipping </h2>You can flip properties in one of two main ways. First, you can buy a house or a multi-family property below the current market value. These properties tend to be available because the current owner is facing some sort of financial distress.Then, the second option is to buy a fixer-upper. That property may have cosmetic or more serious structural issues that need to be addressed, and in doing so, you’re creating value.When you buy distressed properties, you actively work to find homeowners who can’t manage their property and are currently at risk of default. If you look for flipping opportunities that need to be remodeled, it’s simpler to peruse real estate listings and find options with potential.The pros of flipping a house include a faster return on your money and the potential that it’s going to be a safer investment than the stock market. When you flip a property, it usually takes around six months, but if it’s your first time, it’s probably going to take longer. Your capital is only at risk for that period of time when you’re working on flipping and then selling the house. You don’t have to take on some of the risks of holding the property and renting it out, like finding tenants.However, there are significant expenses that come with flipping a house, and these expenses are very often underestimated by novice flippers.There are also tax ramifications when you turn around a property quickly. If you own a property for less than a year, expect to pay a high capital gains tax rate on the income you earn.<h2>What About Buy and Hold?</h2>Another option is to buy a property and hold onto it for the long-term, earning income typically by renting it out.The big pro of a buy and hold strategy is the ongoing income. You’re earning passive income without going to an office every day to get it. You could be halfway around the world and still earning income on a rental property.It’s also likely that when you buy property, it will ultimately go up in value. There may be ups and downs along the way depending on the real estate market and the general economy, but for the most part, the longer you hold onto a real estate investment the more benefits you’re going to amass thanks to inflation.There are tax advantages to buy and hold. When you own a rental property, it’s investment income, so your tax rates are lower, and you can write off&nbsp; the expenses of keeping up the property. Plus, the longer you hold onto the property, the lower your capital gains rate will be when you do sell.Is buy and hold risk-free? Absolutely not.If you want rental income, there are risks that come with this, including the potential that you’ll have difficult tenants or tenants who don’t pay.You’ll also have to carry the expenses of your property if it’s vacant for a period of time.While buying and holding property can generate passive income, it’s not always passive. You’re going to have to manage the property itself and your renters, or else you’ll have to take on the expense of paying a management company to do so.When you compare flipping versus buying and holding, you have to think about your level of risk tolerance, your investment timeline, and how active a role you want to take in the investment. You also have to weigh your financial objectives. For example, do you want to make money fast, or do you want to build long-term wealth?

Flip vs. Buy and Hold: Which is Right For You?

<h2>How You Can Legally Minimize Rental Property Taxes as Much as Possible​​ </h2>​As a landlord, you probably already know that taxes are unavoidable, but that doesn’t mean you can’t minimize them and keep more of your hard-earned cash. The IRS can be your friend who gives you their notes before the test or the bully who takes your lunch money. It’s all about how you utilize the tax code in your favor. Here’s a little guide on how to play the tax game without paying a cent more than necessary. <h2>Tax Advantages Of Rental Properties </h2>First off, depreciation is your best friend. The IRS lets you deduct the wear and tear of your property over 27.5 years. So, while your house may actually be appreciating in value, on paper, it’s “wearing down,” which magically reduces your taxable income. Next, we have deductible operating expenses like insurance, taxes, and more that can significantly lower your tax bill. Finally, there is capital gains tax relief that comes into play when you hold your property longer than one year, which you may qualify for.Another tip: if you’re planning to sell your rental property, the 1031 exchange is your golden ticket. This lets you reinvest the sale proceeds into another rental property and defer paying capital gains tax. It’s like pressing pause on taxes while you grow your real estate empire.<h2>How is Rental Income Taxed With a Mortgage </h2>​Next, if you’ve got a mortgage, you’re in luck. The interest you pay is fully deductible. Think of it like this: every time you make that monthly payment, a chunk of it goes towards lowering your tax bill. And if you use part of your property as your primary residence and rent out the rest, you can even deduct the interest on the rental portion. Sadly, the principal paydown is not tax deductible.&nbsp; <h2>6 Tips To Reduce Your Rental Income Tax </h2><h3>​Actively Managing </h3>One of the lesser-known tricks is actively managing your property. According to the IRS, if you spend at least 750 hours a year managing your rentals, they consider it “active” income rather than passive. This classification opens up more deductions, which means more money stays in your pocket. The more involved you are in your property’s upkeep, the bigger the tax benefits. There are several factors to be considered active, so talk with an <a href="https://www.biggerpockets.com/business/finder/tax-and-financial-services" target="_blank" rel="noopener">investor-friendly CPA</a> to learn the ins and outs of qualifying.<h3>Track and Deduct All Expenses </h3>Keep a detailed list of every single expense related to your rental. We’re talking about everything from new appliances to marketing costs and travel expenses. Even the miles you drive to and from the property are deductible. Miss a deduction, and you might as well be tossing money out the window. Even the HOA fees you may pay are deductible. Finally, we can benefit from them telling us our trash cans were out an hour too early.&nbsp;<h3>Depreciate Capital Investments&nbsp; </h3>If you made any big-ticket upgrades like installing a new HVAC system or putting on a fresh roof, you can depreciate those over time. Depreciation accounts for the natural decline in the value of assets over time. Maintaining your property, and will the IRS reward you for it? That’s a rare win-win for both of us.<h3>​Make Borrowing Your Friend</h3>When you take out a loan or line of credit for your rental, the interest is deductible, too. It’s another win-win: you get the cash to improve your property, and you get to reduce your tax bill. Just be careful not to overdo it—too much debt might limit your financing options down the road.<h3>Reduce Capital Gains Tax</h3>Now, if you plan to sell the property, brace yourself for capital gains tax, but don’t worry—there are ways to soften the blow. If the property was your primary residence for at least two of the last five years before selling, you can exclude up to $250,000 ($500,000 for married couples) from capital gains. For those thinking long-term, careful estate planning can help defer and even eliminate capital gains taxes when passing properties on to your heirs. Selling your property or gifting it to a family member will trigger a gain tax. Tax rules swing in our favor, though, when it is an estate gift instead.<h3>Review your property tax assessments regularly</h3>Over-assessed properties mean overpaying taxes. Compare your property’s assessed value to similar ones in your area, and if it looks off, appeal the assessment. You’d be surprised how often tax assessments are higher than they should be. The process to appeal property taxes varies by jurisdiction, so make sure to familiarize yourself with the deadlines and procedures needed. There are even companies that will do all of the work for you in return for a percentage of the money they saved you if you are confused by the process or don’t have time.Managing rental properties is a juggling act, and taxes are just one of the balls in the air. But with these tips, you can minimize your tax bill and keep your investment profitable. If all these deductions and tax strategies sound overwhelming, don’t sweat it. Software like <a href="https://baselane.com/?utm_source=google&amp;utm_medium=cpc&amp;utm_content=560648430175&amp;utm_term=baselane&amp;matchtype=e&amp;device=c&amp;utm_campaign=Brand_Baselane&amp;gad_source=1&amp;gclid=CjwKCAjwxY-3BhAuEiwAu7Y6sxwRZhs_2_hDelTYfzBVgmgBiHsgHf0tiszHARkrw14nLjFw9mpX0xoCDswQAvD_BwE" target="_blank" rel="noopener">Baselane</a> can help you stay organized. It simplifies bookkeeping and rent collection and even helps you categorize all those deductible expenses, so you’re not scrambling at tax time. Take it from me, the guy who regularly used to not keep up properly and would turn on panic mode each tax season.&nbsp;

How You Can Legally Minimize Rental Property Taxes as Much as Possible

<h2>Getting Tenant Turnover Right Can Increase Your Income and Lower Costs Dramatically—Here’s How to Do It </h2>Other than perhaps property taxes, turnover is generally the biggest single operating expense you will endure as a buy-and-hold real estate investor.And unlike property taxes, it’s something you have a lot of control over.Getting turnover right can both increase your income and reduce expenses. It can quite literally make or break your ability to have positive <a href="https://www.biggerpockets.com/blog/rental-property-cash-flow-analysis" target="_blank" rel="noopener">cash flow</a>.<h2>Reducing the Need for Turnover</h2>First and foremost, the idea that tenants renewing their lease or moving out is something you can’t control is a myth. Sure, you can’t control it, but you can definitely influence it.The goal here is to move the dial and increase the likelihood a tenant will renew their lease.<a href="https://en.wikipedia.org/wiki/Law_of_large_numbers" target="_blank" rel="noopener">The law of large numbers</a> states that if you can increase the likelihood of a renewal of any given tenant over time with enough tenants, you will increase your renewal rate substantially.&nbsp;Sure, if they get a job out of town, they’re going to move out. But if they are moving because of too many maintenance issues, that’s something you can (or at least could have) fixed.Think of it this way:
 Let’s say your average vacancy is two months between tenants (turnover 
and time to lease). If you have a move-out every year, that would amount
 to a vacancy percentage of 14.3%; two divided by 14 (12 months tenancy,
 plus the two vacant months). Right off the bat, you increase your 
income by over 7%&nbsp; and reduce expenses to boot.&nbsp;If you can bump that up to two years, vacancy halves all the way down to 7.7% (2 divided by 26). At three, it’s down to 5.3%, etc.&nbsp;The most important thing to keep in mind
 is that fast, quality maintenance and good communication are by far the
 best forms of customer service a property manager can provide. And yes,
 you should think of your tenants as customers or clients. Think of <a href="https://www.youtube.com/watch?v=MWwI12n3rGE" target="_blank" rel="noopener">quality maintenance as a tenant retention strategy</a>.You should also be proactive in seeking to get a tenant to renew. In the past, we have offered “lock-in” rental rates for renewing six months in advance. (This is when we had a glut of rehabs and didn’t want to add any more to our plate.)&nbsp;Nowadays, we reach out to the tenant two months before the lease is set
 to renew with the new lease price and ask if they intend to stay. If 
they say no, we ask why, and occasionally, we can sway them if there had
 been a misunderstanding—for example, a lingering maintenance issue that
 hasn’t been addressed and they didn’t bother to call about.We don’t have time for a deep dive on lease renewals, but it’s definitely worth picking up a copy of Jeffrey Taylor’s <a href="https://www.amazon.com/Landlords-Survival-Guide-Succesfully-Part-Time/dp/1419535692/ref=sr_1_2?crid=CSXSYZ7OA95G&amp;dib=eyJ2IjoiMSJ9.JWy-kFOBo8_BozHt6uZToPkOvosKGCsgJtkRtd4tDzF_r5p8KJHUTHBGBOPKFEaLboxHpNZAG5LvGk0YzLUWHcVMvpuWOeJN4CM6__VUpw2dBttvpNaKT4MX23eUgPIWlEUtqzii4gRQvH0NPa9QOnLngxE7w3qcymnFr_l3xo2Rym_pjdEcPfg4CdgRyWYDQJp1gnG0B2oUSLj8NBrXGHh6rqwGrjHBwI7ETDo_YfU.Yv7BeKifRrqAQ3t1Be23bL7XdnM0IH_9kB7jyMif124&amp;dib_tag=se&amp;keywords=jeffrey+taylor&amp;qid=1726540403&amp;sprefix=jeffrey+taylor%2Caps%2C122&amp;sr=8-2" target="_blank" rel="noopener">The Landlord’s Survival Guide</a>, which has all sorts of tips on getting tenants to renew. The average tenancy in the United States <a href="https://www.tenantplanet.com/blog/how-long-does-a-tenant-stay" target="_blank" rel="noopener">is about three years</a>. Ours are between four and five. His is over six.&nbsp;If nothing else, offering a small 
reward like a gift card to their favorite restaurant (ask when they 
initially sign the lease) helps. <a href="https://www.amazon.com/NEW-Influence-Psychology-Persuasion-New-Expanded/dp/B09VQ3XCZV/ref=tmm_pap_swatch_0?_encoding=UTF8&amp;dib_tag=se&amp;dib=eyJ2IjoiMSJ9.JCumAfWDg5tgTnMbK4o9I4jeyNGfrLBNMBR_c7iE1sKeHHKDgWyD3JDG1TheMxcK0X8McOcWLHii1ogXDCFObEOLRcV2d-a_lpPMHeqp45NbO9htwByxRBoIAZDfIeiYaAL-9OJW5ktZtxHbbEPvivOwNP6iri5FQrnWijGWhIBfxIpWiTco_8_NV3X-5epijbMauw58aI1UbKqiFvOAzMamV7UvMVmiHFdTP4GiT1o.AIrbERck8HfvjBcjI_Og8PgQ2wPq_6bjMBJJYRS_8HU&amp;qid=1726541393&amp;sr=8-1" target="_blank" rel="noopener">Robert Cialdini</a> notes that creating a sense of reciprocation is one of the best sales tactics out there, even if the items being reciprocated aren’t anywhere near equal in value (like a 12-month lease versus a $25 gift card, for example).&nbsp;

Getting Tenant Turnover Right Can Increase Your Income and Lower Costs Dramatically—Here’s How to Do It

Finding, screening, and placing new tenants for your <a href="https://www.biggerpockets.com/guides/how-to-buy-rental-property" target="_blank" rel="noopener">rental property</a> is not only difficult—it’s expensive! Want to attract the best tenants in town and ensure that they stick around for the long haul? You won’t want to miss this episode!Welcome back to the Real Estate Rookie podcast! As the self-proclaimed “lazy investor,” Dion McNeeley wants to have long-term tenants and as little <a href="https://www.biggerpockets.com/blog/tenant-turnover-solution" target="_blank" rel="noopener">turnover</a> as possible. Today, he’s going to share the tips, tricks, and tactics he uses to keep tenants around for not just months or years but decades. The best part? He’s not doing anything the average investor can’t do. By implementing these same strategies, you can find high-quality residents and reduce turnover!Of course, not every investor can devote twenty hours to their <a href="https://www.biggerpockets.com/blog/how-to-start-a-real-estate-business-key-steps-for-success" target="_blank" rel="noopener">real estate business</a> each week. Fortunately, Dion offers some portfolio-saving advice that will allow you to become a more hands-off investor. You’ll hear about a strategy that will have tenants asking YOU to <a href="https://www.biggerpockets.com/blog/rent-increase" target="_blank" rel="noopener">raise rent</a>, as well as a crucial document that could protect your investment when inheriting tenants. Finally, you’ll learn why <a href="https://www.biggerpockets.com/blog/how-to-retain-tenants" target="_blank" rel="noopener">retention</a>&nbsp;isn’t always the best option and when to let a tenant go.

The “Lazy” Landlord’s Guide to Finding (And Keeping) Tenants & Raising Rents

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