If you have not checked them out, go see 'em!
The Denver-Aurora-Lakewood Housing Market Area (hereafter, Denver HMA) is coterminous with the Denver-Aurora-Lakewood, CO Metropolitan Statistical Area. The Denver HMA, in north-central Colorado at the eastern edge of the Rocky Mountains, has an estimated population of 2.86 million. For purposes of this analysis, the HMA is divided into three submarkets: (1) the Denver County submarket, which is coterminous with the city of Denver; (2) the Northwest submarket, comprising Adams, Broomfield, Clear Creek, Gilpin, Jefferson, and Park Counties; and (3) the Southeast submarket, comprising Arapahoe, Douglas, and Elbert Counties.
More info: https://www.google.com/search?ei=PzRfW8eEDJG9jgT9i4LgDA&q=aurora+rental+market&oq=aurora+rental+market&gs_l=psy-ab.3..0i22i30k1l3.6740.7694.0.7808.6.6.0.0.0.0.152.688.3j3.6.0....0...1c.1.64.psy-ab..0.6.658...0i22i10i30k1.0.oBYrSsElXiM
Echo Summit, one of Colorados most respected property managers, has been on the front lines of the Denver area rentals for over a decade.
As much as rents have risen in metro Denver this decade, the increases could have been even higher absent the second-largest surge in apartment construction of any major metro area in the country, according to a new report from Apartment List.
Metro Denver added $12 billion worth of new apartments between 2000 and 2016. That ranks 11th among the nation’s 25 largest metros in dollar terms, but second only to Seattle after adjusting for the size of the population.
According to the Post: Metro Denver absorbed 11,821 new apartments last year, up from 11,056 in 2016. That represents the most in records going back to 1981, although the 1970s had years with more robust construction. For the second quarter in a row, both the average and median rent for an apartment in metro Denver fell, while vacancy rates shot up 6.4 percent from 5.4 percent in the third quarter and 5 percent in the second. The average rent dropped to $1,396 at the end of December versus $1,420 at the end of September, while the median rent fell to $1,353 from $1,370.
Over the past few months, I have reviewed many, many home-grown and ‘Realtor-provided’ tenant leases for individual investors and homeowners who are trying to go it alone in the property management route. I have been shocked by what I have seen.
My philosophy is that manageing your own property is always the #1 option… no matter what a PM company says, nobody will give it the care and attention that you will.
Tenant leases are different. This is where you can loose your shirt, your home, and sometimes both. I have spent over $20,000 in legal, financial and other fees over the years on creating the ‘perfect’ lease. Even with a perfect lease, it is easy for a career rental abuser to make the ‘apparently perfect’ application package. You will love them. You will empathize with them. You will want to have a drink with them. Then they will squat in your property for 6 months without paying rent, knowing there is nothing you can do.
Please, please, if you DO do your own tenant leasing, make sure you:
- Do not give more than 5 days grace period before posting a Pay or Quit noitice. This will be their first test for you.
- ENFORCE late fees. Behavior is learned, not inherited.
- Mandate they carry renters insurance. I make them add myself or Echo Summit as an additional insured under the Liability section.
- Include a PAYMENT OF FUTURE RENT provision that allows you to accept partial rent payments in the middle of the evicton process (otherwise, you have to re-start the eviction clock every time you collect a penny)
- Here are some good free forms that I am happy to share with you
- Many other elements to consider, but at least make sure of these.
Echo Summit has had long lasting success in the Aurora rental market. Denver Post had a great recent article: Single-family homes converting to rentals faster than apartments in Denver and Aurora
Denver and Aurora have relied heavily on apartment construction to house their growing populations, but they have also seen a surge in single-family homes converted to rentals since 2007, according to a new study.
RentCafe, an apartment search engine, counted 27,300 new apartments and 11,000 new single-family home rentals in Denver between 2007 and 2016. That works out to a 37 percent increase in single-family homes for rent, primarily from conversions, and a 35 percent gain in apartments, primarily from new construction.
In Aurora, the number of apartments rose by 7,700, or 25 percent, while the number of single-family home rentals shot up by 4,500, or 38 percent.
Denvers hottest neighborhoods from Denver Post Another great article! What are metro Denver’s hottest neighborhoods for home buyers? Think south Denver, north Aurora and Lowry, among others Home price appreciation approaching 40 percent in three ZIP codes For more info: https://www.denverpost.com/2018/06/01/what-are-metro-denvers-hottest-neighborhoods-home-buyers/
Managing millennial expectations in Denver Rental Housing
According to Rental Housing Journal:
High turnover in the maintenance ranks is a problem in multifamily housing, especially among millennial maintenance personnel. They like easy-to-use technology applications on their smart phones and not old paper-based maintenance processes. That is why the company, Facilgo, did the study to research these questions.
- How do millennials' expectations for faster maintenance affect property management maintenance organizations?
- Are millennial maintenance personnel leaving multifamily due to the lack of technology solutions available in their day-to-day jobs? What can be done to retain them?
- What strategies are companies using to make their maintenance processes more efficient?
- How will these new strategies help retain millennial maintenance personnel and satisfy millennial residents?
- What will happen if companies don't do anything to cater to millennials' needs?
For more info:
Property management usually has more to do with ‘grey’ areas than it does with black and white. There is no more grey right now than with medical marijuana and outright legalization of marijuana through Amendment 64.
The big issue, of course, is that federal and state laws differ from one another. On the federal level, HUD enforces the federal Fair Housing Act (Amended, Title II of the Americans with Disabilities Act, and § 504 of the Rehabilitation Act of 1973, to be exact). HUD’s viewpoint is that marijuana use, even for medical purposes, should not be allowed. HUD is against housing providers granting reasonable accommodation requests related to medical marijuana, even in states like Colorado that have a Constitution that allows it.
So where does this leave the landlord?...
See our complete paper on the subject: https://www.echo-summit.com/references