Many cities around the country are experiencing a tightening rental market and higher prices as a result, but in Denver, rental prices are soaring at even higher levels. A number of factors have contributed to the current situation in the Denver rental market. Among those factors are higher home prices combined with faster sales times. As a result, a large number of landlords in the Denver metro area have opted to cash out. This has left even fewer homes available for rent, thus escalating rent prices.
Exacerbating an already tight rental market in Denver is the fact that the metro area has continued to gain popularity among young adults. Many of these prospective renters are moving in from other states. The thriving economy in Denver has proven to be a significant draw for many people from out-of-state. In 2013, Colorado was among the top states in the country for employment growth.
Results of a Tightening Market in Denver
The situation has left prospective tenants in Denver scrambling to find available properties. It is not uncommon for large crowds to now gather at rental property showings and multiple applications have become standard. Vacant units also now experience shorter turnaround times. The Denver Post reports that many rental properties now turn over in less than two weeks once they became available.
Metro Denver is now ranked among the top ten most expensive cities in the country for leasing an apartment relative to income, according to a report published by the Denver Business Journal. Rents in the Denver area are now growing at a rate faster than any other area in the country. Metro Denver rents increased more than triple the annual average in the United States, reports the Denver Post.
Landlords Falling Victim to Rental Scams
In an effort to gain an edge on the competition, many renters are resorting to submitting applications without ever having seen the property. Unfortunately, this has resulted in the potential for scams and some people are all too willing to take advantage of that opportunity. Channel 9 News reports that one landlord found himself the victim of such a scam when someone copied one of his property ads word for word but with a significantly lower price. The property owner reported that at least 20 individuals saw the duplicate ad and even contacted him, wondering if he had lowered the price. When the scammer encouraged prospective renters to drive by the property and even look in the windows, the property owner was forced to put a sign on the property informing prospective renters that they should not rent the house without contacting him personally and not to leave a deposit check.
Given the current situation in the Denver rental market, landlords need to take every step possible to protect their investments. Conducting a tenant background check and accepting online rental applications through a service such as VerticalRent can help property owners to stay on top of tenant applications and properly screen prospective tenants.