The Denver rental market, as with most Real Estate markets, is seasonal. As the weather begins to cool off and we enter the holidays, leads begin to slow down, prices begin to drop, and the total of people looking to move dwindles. It’s understandable. Who wants to move when there’s the chance of a blizzard or when family is coming into town? And while every landlord hopes not to have a vacancy during the winter months, sometimes you can’t avoid it. Tenants move out. While you may not have control over your tenants vacating, there are actions you can take to help get you Denver rental property leased to qualified tenants quickly and start earning again!
Price, Price, Price!
The most important thing to keep in mind while trying to lease your Denver rental during the slower winter season is your price. Homes don’t always rent at peak prices during the winter like they do during the summer. There are a few reasons for this. The number of people looking to move is significantly lower than between May and August. That being said, the best thing you can do is research. As soon as you’re notified that your Denver rental is going to become vacant, check the rental market and see what comparable homes are going for currently. If your tenants gave advance notice, be sure to check again once it gets closer to see if rates have changed. Be realistic when choosing your starting point by assessing what comparable homes are currently going for, not what you’ve gotten in the past. Markets change and you’re dealing with an entirely new pool of tenants.
Once you’ve set that starting price, be sure to make adjustments quickly. If you wait too long, your ad begins to appear stagnant as the days on market begin to climb. If you’re not seeing any activity after a week of advertising at a specific price, try lowering it. If you’re still not seeing any leads come in after that, continue to adjust the price aggressively. This time last year, we found that properties had to reduce over $80 on average before they rented. It may hurt to do so, but keep in mind that a lower price is better than nothing at all. You don’t make any money while the home sits vacant!
The First Impression of Your Denver Rental
The first impression of your Denver rental is the most important, so make sure your advertising pictures are pulling their weight. Try to take pictures with the lights on or during the day so rooms don’t appear dark and gloomy. When showing the home to prospective tenants, make sure the walk ways are clear of snow and all the lights turned to provide a welcoming appearance.
Let’s Make A Deal!
There’s a reason you see so many concessions during this time of the year! The goal is to fill your vacancy as quickly as possible and offering one month free or other discounts speaks volumes to those who are looking to move around the holidays. You can also offer various lease terms at differing rates to help drive interest. That way your Denver rental property no longer sits vacant and you push the lease expiration date back into a more desirable time frame.
Just A Reminder
When in doubt, remember these three things to help get your Denver property rented during the slower winter season: #1) Price competitively and adjust accordingly; #2) Be flexible. Offer lease terms that are not only desirable to you, but to your tenant as well, and be ready to make a deal; #3) Hire a professional property management company like Real Property Management Colorado to help fill your vacancy quickly to qualified tenants. With our 20+ years of experience in the property management business, our team knows how to effectively market and rent your Denver property no matter what season!