Is it Time to Increase Rent on Your Denver Investment Property?
If you have had trouble raising the rent on tenants in the past or aren’t sure what fair market rent is in Denver, it’s smart to consult with a professional property manager. According to a recent report by RISMedia, Denver, Colorado made the list for one of the best U.S. markets for investment properties. Whether you just bought a residential rental property in Denver or are an experienced investor, now’s a great time to own property in Denver. The report showed that from 2014 to 2015 the fair market rents on 3-bedroom homes, condos or townhouses went up 10 percent in hot markets in Texas, North Carolina and Colorado. But Denver, Colorado, saw an increase of 20 percent in fair market rent.
- Giving tenants what they want
One of the keys to being successful in Denver is updating your rental property so it appeals to homeownership-shy millennials or retiring baby boomers. The Denver market is already one of the best markets in the area, but it’s up to you to invest in your rental property if you want to boost potential rental returns. Today’s renters want upgraded kitchens, flooring and outdoor living areas.
- Enjoying the increasing demand
Real estate experts report rent in Denver continues to skyrocket. With so many new apartments, some believed the supply would push down the market rent. Instead, an article by the Denver Post reports rent gains in metro Denver are rising at the fastest pace in the country, going up triple the U.S. average. One way to compete with apartment communities is to provide property management services to your tenants.
- Keeping up with home values
Landlords sometimes like to keep their rent below the cost of a typical mortgage in the same housing market. Experts say the prices of homes in Denver continue to go up, which is making it difficult for renters to save up for a down payment on a home. You can attract and keep tenants by keeping rent increases fair and reasonable so your tenants can still pursue their long-term goals of owning.
If you are planning to buy an investment property in the future that can provide the best ROI (return on investment), consider investing in Lower Downtown. Experts say rent on a two-bedroom in LoDo is double the Denver average at about $2,920 a month. Of course, you don’t have to pick the most expensive neighborhood in Denver. The main key to success as an investor is hiring a reliable property manager.
Legacy Properties-PM provides property management services in the Denver metro area including Aurora, Centennial, Parker and more. We are proud members of the NARPM, the National Association of Residential Property Managers. For more information on how we can help, please call Legacy Properties-PM at 720.989.1996 or contact us.