Softening Rent Prices

[Tim Fode]

Hello all,

I work for a property management company in the Denver CO area. We are having some issues leasing our properties, specifically our B and C properties. We have had to drop rent for multiple properties. I was curious if anyone else was seeing this trend specifically in the Denver metro area.

[Steve K.]

Just had a vacancy near Wash Park where the previous renters had been there for a few years and were paying $2,200. I listed it for $2,600 and had 20 people show up to the open house, got 3 qualified applicants and the unit was filled immediately. Renewed leases on 4 others (in Wash Park and Speer), with 10% increases. Tenants all tell me they'd much rather rent from an individual landlord, the big PM companies have bad reputations apparently. Class A properties in good locations are holding strong. I'm grateful that I sold all of my class C buildings over the past several years, even though they were supposed to cash flow better than the class A buildings, they never did and the rent and value appreciation wasn't nearly as good either. Location, location, location people! The golden rule that I wish I had paid more attention to earlier.