Historically, there hasn’t been a better time to be a landlord in the Denver area than right now. The vacancy rate in Denver is very low. It’s currently at about five percent for metro Denver as a whole. At Mavi Unlimited, our vacancy average is even lower than that; we’re operating at about one half of one percent of our units being vacant. That tells you that we’re able to find highly qualified tenants in a timely manner.
Rents are increasing year after year and quarter after quarter. Tenants who renew their leases are expecting to pay more as they sign for another rental period. Tenants are also becoming more demanding about the property that they’re renting. There is an expectation that with the premium rents they are willing to pay, there will be premium amenities.
A lot of the new construction units in the city include outlandish amenities like swimming pools, terraces and rooftop patios. Some of these buildings will often provide extra parking for tenants as well as yoga centers, fitness centers and doggie daycare. They have corner stores and other amenities that were not often found in traditional apartment buildings. Tenants are willing to pay $1,500 or $2,000 for a one bedroom apartment, but in exchange for that rent, they’ll want access to amazing perks. All these things are common in the current market.
The new construction is good, and there is a bit of a slowdown expected as more and more units are being constructed. Demand will eventually slow down as builders continue to put these properties up.
It’s a fantastic time to be a landlord in Denver. If you’ve thought about it, investing in real estate is a great idea. It’s not a struggle to find tenants right now and tenant quality tends to be higher. That means you have the ability to be a little choosier.
If you’re interested in learning more about where and how to invest, please contact us at Mavi Unlimited Property Management.