Helping buyers and sellers of Denver lofts and condos since 1978. Our brokers are experts in the downtown Denver market and have helped hundreds of buyers and sellers with their real estate transactions.
Recently there has been much speculation regarding rental rates and home prices in Denver. While the debate "Is now a better time to buy or to rent?" continues, we find solid evidence that the rent rates for lofts and condos in downtown Denver will continue to rise in 2015. What does this mean for you as an investor? It depends. At Cliffdwellers we work with each of our clients to determine what is the best plan of action based on the following 4 factors:
Landlord Risk Tolerance
Each investor that we work with has a unique risk tolerance for vacancy and turnover expenses as well as their own cash flow situation. Most of our Landlords have the ability to carry the property even if it were to go vacant for a short time and so they often opt to maximize their long term returns by staying current with the market rent. When market shift we advise our landlords on what the going rent should be for their specific property, taking into account the amenities in the building, the finishes in the unit, what floor the unit is in the building as well as the views available. If you elect not to raise rents for a fear of vacancy, you can be costing yourself quite a bit of money over time, on the other hand, if you get greedy and raise rents beyond what the market will support, then you will have vacancy and vacancy is the biggest expense you can have as a landlord.