If you are currently a homeowner and are looking for a way to add to your investment portfolio, owning a Denver rental property could be the solution.
With more people looking for ways to diversify their income and investments, real estate investing has become a great option. However, it is important to know owning a Denver rental property is a long term investment. It will continue to survive the market, just like any long term investments do. In fact, according to the US Census Department, rents have increased every decade since 1950.
When some people lost their homes to foreclosure, they had to move into the rental market. When jobs and the economy are booming, there is still a part of the population entering rental housing (under age 30) and exiting the home ownership crowd (over age 65).
Currently thirty six percent of US homes are renter occupied. [source: NMHC tabulations of 2013 American Community Survey microdata] And that trend doesn’t seem to be changing, especially in Denver.
Denver Rental Property Trends
In Denver, we follow or beat the national trend. Year over year, rental rates continue to rise. In the Denver area for the last year, rents have seen an increase of over 11% due to a shortage of units. Nationally, rents are increasing faster than home prices are.
Svenja Gundell, the senior director of economic research at Zillow said:
“Places hard hit like Seattle, San Francisco and Denver are having a hard time keeping up and building enough units to satisfy demand…” [source: http://money.cnn.com/2015/05/21/real_estate/rent-prices-rising/]
Some home sellers are choosing to keep their homes as an income property rather than selling it. When relocating to another city or just moving into a place that better fits them, they choose to become a landlord. These type of movers have maintained the property, so additional investments are low compared to homeowners who purchase a new income property.
With year over year rental rate increases that don’t appear to be ending, Denver rental property investing is a way to add diversity to your portfolio. Call 720 989 1996 and contact Legacy Properties-PM Property Management for more information about how to leverage a Denver rental property to your benefit today.
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