Why Your Denver Rental Property Won’t Rent: Denver rents are flat to declining
The Denver rental market is currently experiencing shifts that impact both landlords and tenants. Many real estate investors are facing challenges in renting out their properties. To assist in this process, we’re sharing our five-step approach to successfully secure tenants in a declining market:
1. Understand the Market:
Recent statistics reveal that year-over-year asking rates for properties in Denver have declined. ApartmentList.com reports a 1% year-over-year decrease, while Realtor.com indicates a 3% drop in average asking rates. Zillow reports a stable rental market for single-family homes, with no change in asking rents compared to last year. However, a closer look at apartments, condos, and townhomes on Zillow reveals a significant shift, with asking rents down by 10% year-over-year. This is not even taking into consideration move-in incentives that are being advertised, some of which are offering up to 10 weeks of free rent. The overall decrease in demand is driving these changes, indicating a more competitive landscape for landlords in the coming months. This data underscores the importance of aligning rental prices with market conditions.
2. Property Presentation:
In a competitive market with an abundance of available rentals, the property must show well. Properties should be clean, updated, and visually appealing. Fresh paint, spotless carpets, and modern fixtures are essential to making a strong first impression on potential renters.
3. Comprehensive Marketing Strategy:
Even the most attractive rental property must be marketed effectively. At Grace Property Management, we utilize quality photos, videos tours and targeted advertising to ensure properties reach a wide audience. This approach helps potential tenants discover property listings among many options.
4. Offer Move-In Incentives:
Current trends show that nearly 40% of properties listed for rent offer move-in incentives or move-in specials, and we expect this number to increase through 2025. Options like rent reductions or perks to ease moving costs can attract more interest.
5. Competitive Rental Pricing:
Being aggressive with rental pricing is essential in the current market. Prices from a year ago may no longer be relevant, especially in segments where asking rents have decreased significantly. Adjusting rental rates to remain competitive will enhance the chances of securing tenants quickly.
Denver Rental Demand
The Denver rental market is slowing, and landlords must adapt to these changes. With the slow season approaching in November through January, waiting for a market rebound is not the best strategy. Instead, we encourage Denver real estate investors to be proactive in order to avoid prolonged vacancies.
The current real estate rental market in metro Denver is more segmented than it has been in the past 15 years. While properties such as single-family homes continue to attract steady interest, condos and townhomes are experiencing significant declines in demand—up to 10%. This trend suggests that owning properties in declining markets may warrant consideration of selling and reinvesting in properties that are in higher demand.
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 award winning property management service. Feel free to reach out to us for assistance.
Grace Property Management & Real Estate
Serving real estate investors and residents since 1978.
www.RentGrace.com
303-255-1990
