With views like these, who wouldn’t want to live in Colorado?!
Well, believe it or not – according to the site Rentjungle.com – rental rates in Denver have decreased slightly over the past year.
Here is the data they found: Rental Market Trend Denver
Of course, Denver is still a very compelling market for investors – the city is growing rapidly and the greater Denver area has a strong rental market.
Still, these decreased rental rates should help paint a clearer picture of what landlords might expect in 2017 – a slight cooling off of the overall rental market as supply begins to catch up with demand.
The decrease of about 3% in the rental rates, year over year from 2015-2016 also means landlords need to have a higher rate of responsiveness to market pricing with their rental units. Dropping the price aggressively on a vacant and rent-ready unit is a better strategy than “wait and see.” When landlords hold out at top-of-market pricing for their rentals, they usually end up making the price drop anyway, and often times they have already lost precious time and money.
Keep in mind, also, that no site actually knows what properties rent for. There are last minute price changes, negotations, etc. that all affect the actual leased-price of a rental. Data compiled only tells you at what price the properties were listed and how long they were listed before the listing was removed. Accounting for variations such as condition of the unit, what time of year it was listed, etc. all would be nearly impossible – but those factors contribute greatly to the ultimate rental price of a Denver rental property.
Whether market rents are on the upswing or on the downswing, the same fundamental truths always apply to rentals: units that are priced within market parameters, in excellent condition and being shown by a professional property management company will always rent quickly. A big part of the equation – when it comes to reducing vacancy time and increasing the ROI on a rental property – is being quick to respond to prospective tenants and having a high level of flexibility for showing the property. Making the application process easy (and inexpensive) for prospective tenants also leads to a shorter vacancy time.