The Brandt Company

Buying or Renting? Home or a Condo?

Stepping out of the dorms and into off campus life can be difficult to navigate.  The Brandt Company and Brandt Realty can help you through all the ins and outs of Real Estate in Fort Collins. With 39 years helping our student and faculty finding homes, we have the experience and understanding of the market, our students needs and the various obstacles and advantages in each option.

First, we should look at renting in the Fort. The Brandt Company has a wide variety of homes to choose from, whether they be houses, condos, apartments or townhome, or duplexes.  You can visit our website at thebrandtcompany.com to see all the current options available for August.  Often our students ask, “what is the difference between a condo and an apartment”?  So, defining property types is a good place to start.

A house, is a single family detached home. This type of home usually requires the tenant to maintain the yard and pay all the utilities.  The utilities include, trash, water/sewer/electricity and gas.  On average a 1600 square foot home probably will run about $350 a month for utilities.  Some bills could be higher, and all electric could be higher in a home as well.  Our houses rent for between $1650 to $2150, and are all 3, 4, or 5 bedrooms. You can look at the properties on line at thebrandtcompany.com

The pluses of renting a house usually are that it feels more like home and they generally have yards for your pets, if allowed by the owner.  It is often quieter and usually there is a garage.  Sometimes there is enough space for everyone to watch tv or play video games without interrupting others studying. The minuses are yard work, and snow removal!  It’s a large time commitment when you have classes, and jobs and want to enjoy some free time.  If the yard is not mowed or snow is not done the city will fine you for not taking care of it. Some of our properties have lawn care included in the rental price.

A condo or condominium is an attached dwelling in which there is a private owner per each unit, and they own the air space, not the land.  They generally have the same feel as an apartment complex, as they usually have three stories and the units are stacked one above the other.  Apartments are stacked units like condominiums but a large corporation owns them all.

The pluses with a condominium, are that you don’t have to take care of the grounds or snow removal. You also generally don’t have to pay water, sewer and trash.  Because a condo has shared walls the utilities are often much more reasonable.  Generally, with an all-electric two-bedroom condo, utilities run about $50 to $90 per month, although they can be more dependent upon your usage and the size of the property. When looking at a condo, ask your landlord if they know what utilities average and what is included.  I always encourage prospective renters to ask my current residents about the utilities.  They usually are very helpful.  The negatives are that there is usually less space, and you might occasionally hear your neighbor.

The Brandt Company and Brandt Realty have 1, 2, 3, bedroom condominiums, duplexes, and townhomes.  They range from $725 to $1050 for our one bedrooms, $1050 to $1500 for our two bedrooms, $1400 to $2150 for our three bedrooms.  Visit our website to see what might work for you.  Thebrandtcompany.com

 

With apartments, that are part of a large corporation, there are usually other amenities that can be enjoyed.  The negative would be that you are not supporting local owners and the corporation will not really know you individually. Sometimes the rent quoted does not include a fixed water or trash bill that is added on, so it is important to verify those things, before you commit to renting them. They sometimes have strict rules much like the dorms so you don’t feel you are really stepping out on your own and they may not have as much flexibility in their rules.   Also, you may be required to purchase a parking permit from the apartment community in order to park your car.

A townhome, and a duplex are similar.  They usually do not have any neighbors living above you.  They share a wall on one side or on both sides of their unit.  Most have a little yard area that might be maintained by the owner, but also might be maintained by an HOA or the owner may request that you take care of the yard.  Most of the time trash and water are paid by the owner.  Having your own yard and no neighbors above are pluses, having a possible an HOA can sometimes be annoying.  Please note it is customary that the owner pays the HOA fees.   Be sure to ask who pays the HOA and what utilities you are responsible to pay.

We at the Brandt Company strive to give you all the details we can think of to help you make a choice on your new home for the school year and hopefully for your entire time at college.  What utilities you pay, whether pets are allowed, what makes the property stand out, how you apply, what fees are involved.  Students have been our main focus in rental housing and we truly enjoy working with them.  If you have any questions about our rentals you can call us at (970)227-4000, or check our website at thebrandtcompany.comYou can also find our application online at our website as well.

BUYING… We really believe in ownership and students can own fairly easily.  We can help you through the entire process, from loan application, to showings, to completing contracts and closing on your first home.  Not only can we help with that but we can help you to become a good landlord and manage your property successfully.  We know the rent value, we know what location is most desirable, the type of property that nets the best rents, the CAP rates and Rates of Return.  It is not just that simple, buy a house and move friends in.  All the details will help make the experience rewarding and successful.

The pluses in ownership are that you will have room mates to help with the mortgage payment, while you build equity in your home.  This equity can be cashed in when you graduate to help pay off your school loans, or help you purchase your future forever home.  You can also decide to keep the property for a rental.  Some of our most successful students have actually bought and sold 20 or 30 homes over the past 15 years.  They have built awesome portfolios for their futures.

Think about this statistic.  Rents go up an average of 4% per year for the past 30 years.  Real Estate values generally will approximately double every 12-15 years, based on the market history in Fort Collins.  A 3-bedroom condo in 1985 rented for $350 and now rents for $1500.  That same property value went from $42,000 to $245,000.  If you had bought a home in Warren Farm in 2008 you would have paid $150,000 your home would now be worth $350,000.  That is why ownership makes sense.

The median sales price in 2017 for single family homes in Fort Collins was approximately $375,00 and at the end of 2020 it was $455,000.  A percentage increase of 21% in that four-year period. If you put 5% down on a $375,000 purchase, which is $18,750.00 you gained $80,000 in equity!  That is an increase of 427% on your actual cash investment.  You can’t guarantee that return, but it has proven itself over the last 40 years.  Working with an expert in rentals and real estate makes sense for purchasing a home while attending college.

The negatives are that you can’t move from one apartment to another and you have to find friends to live with you every year. If you don’t prepare good leases, your friends can take advantage of your friendship.  Being sure to have all the expectations and an understanding of what rents and utilities are, and running your investment like a business, are key to ownership being a success.

Whether buying or renting, we at the Brandt Company are excited to help you with your stepping out to living in the Fort Collins Community.  Be sure to check our website on rentals at thebrandtcompany.com.  If you would like to explore purchasing, we have access to all the properties available on the market through the MLS Services.

We look forward to working with you whether you decide to rent, or you decide to purchase.  This should be an exciting year, so let’s make it as stress free as possible.