I am working on a longer writeup on the rental activity in the Colorado Front Range. Many of us have noticed one or more of the following things:
- Decrease in "qualified" tenant calls/leads
- Decrease in rental rates of SFR
- Increase in DOM
- Increased incentives from years past (free rent, low deposit, ipods, cash, etc)
Overall, what we are seeing can be related to the following (in no specific order)
- Economy - Layoffs, pay cuts, news headlines, etc
- Saturation - Large amount of new rentals in any given neighborhood, specifically lower priced areas with a higher volume of foreclosures.
- Re signing of leases at current residence - They know another place may cost more and the owners do not want a vacancy
- Tenant reduction of "needs" - Upgrades such as granite, hardwood, and high levels of trim becoming less important therefore shooting your home out of the running
There are more things to consider here but this is what I wanted to touch on right now.......rather than an informational blog I want to see what kind of feedback this generates and what others are experiencing.
I want to add a disclaimer that the above statements are only observations and we are not seeing this slowdown in every town on every kind of home.....trying to avoid the "What are you talking about? The rental market is great" comments. If you have noticed a slowdown or change in your clients or your investment properties, please share.
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