TeamCox is noticing some amazing changes in the Denver rental market. For the past five to six years, rents in Denver have been very stable with little upward movement. In 2000 and 2001, vacancies were high and apartments and homeowners with properties to rent cut some amazing deals. Signs hung on every apartment building. One month free. Free T.V with one-year lease.Anything to fill the empty places.
2007 in Denver is quite a different story. Rental vacancies are under 5%. There are no more "deals" to be had. Rents are on the rise. When interest rates were at an all-time low, renters were buying homes at a record rate. Renters all wanted to become first-time homeowners. Mortgage companies not only were offering low rates, there were products that allowed buyers to get in with less money than the apartments wanted with security deposits.
What has changed? Well, for starters, interest rates are not at their lowest point. Homeowners facing foreclosure have rented homes and apartments. When vacancies were high, many apartments were converted to condos–absorbing a significant amount of supply.
With an anticipated rental increase of 7 to fourteen percent, maybe this is the time for you to consider adding one or more rental properties to your investment portfolio??
Give TeamCox a call. A team member will be happy to talk to you about this or other possibilities.