Property Management in Slowing Rental Market
DenCO Property Management (DenCO) has noticed a slowing rental market in the latter part of 2024. The winter months are usually slow. People want to stay put during the holidays. Rents for homes in good neighborhoods are holding their own, but single-bedroom condos are standing vacant in the Denver market.
After a decade of overheated rent increases in Denver, the market is returning to equilibrium. What goes up must come down. Also, the market is highly segmented. Single-family homes in University Park, Washington Park, and Bonnie Brae will feel less rent pressure than in other Denver neighborhoods. Investors must decide whether to wait out the slow market or do what it takes to fill their rental units. Each path has it own financial risks because no one knows how long the rental slowdown will last
One River North, Denver
According to Zillow, existing condo rentals are being pressured by all the new apartment inventory that came on the market this year. The new complexes are rich in amenities and backed by institutional investors so that they can offer lavish move-in incentives. For example, the brand new One River North is one of Denver’s most inspirational apartment complexes in Denver with a living landscape. They are offering this promotion in December 2024..
Enjoy up to 8 weeks free this holiday season. Offer applies to 15-18 month lease terms.
These incentives from new large apartment complexes are common across the Denver market, so it is not surprising that older condos are not moving in Denver.
Avid hikers in Colorado have an old saying: “The mountains do not care if you have a good day or not,” so go prepared when hitting the mountain trails. The same holds for rental property investors because
Rental Home Marketing
The most significant value DenCO brings to the table is pricing analysis, property maintenance, and marketing. Since we have been in business since 1998, we know Denver’s neighborhoods and how to price rentals in good and down markets. The Denver market dictates rental pricing, not an investor’s need to cover their mortgage. There is no correlation between rental rates and mortgage costs. We hire professional photographers to take interior and exterior pictures and produce a 3D walk-through animation for each property. We market the rentals on Zillow and other platforms to reach potential tenants. When contacted, we show potential renters the property and do the necessary follow-up till a lease is signed.
Since there is more supply than demand, a rental home’s curb appeal needs to stand out to get the attention of potential tenants driving by the property. Also the living space should sparkle. Here are some musts:
- The floors and carpet need to be professionally cleaned.
- Paint all walls.
- Update light features and make sure all appliances are clean and functional.
- All window coverings need to be clean and not dusty.
- Lawns and garden spaces need to be tended.
Not paying attention to these details means potential tenants will pass over the units since the market is flush with rentals in excellent move-in condition. Owners should consider the following to make their rental home stand out:
- Update exterior living spaces such as patios and add attractive landscaping.
- Adding a garage for covered parking and additional storage.
- Homes with lawns must have a programable irrigation system.
- Installing a central air conditioner system.
Property management has many facets that require attention to detail, marketing, human relations skills, and time. Rental property investors who lack these skills or the time should consider having their assets professionally managed. DenCO manages over 175 homes, duplexes, and apartment rentals in the DU, Washington Park, and other Denver neighborhoods. Call us at 303-722-9688 or click here to complete a Contact Us form.
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