VACANCY RATES TO HURT DENVER RESIDENTIAL REAL ESTATE INVESTORS?

According to the Metro Denver Economic Development Corporation, the vacancy rate for rental condos, single-family homes and other small properties in metro Denver fell to a five-year low in the first quarter. Bad news for investors?

Not exactly. The market is actually remaining strong due to the high level of foreclosures. As more Denver residents lose their homes, there are more potential renters in search of properties for relocation. In fact, if you have single family residences available for rent, your property may be more appealing to a family who’s recently fallen victim to foreclosure. Families who have grown used to the space and privacy that a single family home affords will more than likely be more interested in renting a house, rather than an apartment.

So how can you take advantage of this market trend? There are a few ways that investors can ensure that they don’t take a hit due to low vacancy rates as well as lure potential renters that may have been displaced by the foreclosure epidemic.

• Research rental prices in your area and make sure that your property’s rent is competitive
• Keep your property in top-notch condition, both the interior and exterior
• Consider offering amenities like washer/dryer combos, updated appliances, or paid utilities
• Enlist the help of a real estate agent that specializes in investment property to develop strong marketing strategies

If you’ve ever considered becoming a residential real estate investor, now might be a great opportunity to get started. Denver still remains a buyers market and with the number of foreclosures creating a viable source of renters, it could be a great opportunity for new investors to make their mark.

If you have questions about real estate investing, give us a call. We can help you learn the ins and outs of the business, locate investment property and find a mortgage that best suits your needs today.