Property Management Trends in Denver for 2019 and Beyond
By Alexander Hassoulas, founder of Upkeep Media
Investing in real estate can be lucrative. As a matter of fact, real estate has produced more millionaires than any other business. With proper research, a good plan, and the right price, just about anyone can become a property investor. Denver’s real estate scene just keeps getting hotter and hotter. Last year was an especially strong year for the Mile High City’s real estate market. Investors will be particularly pleased to hear that the hot streak continues into 2019, and possibly beyond. So, what makes Denver such a good investment destination? Here are a few good reasons:
- Property prices are on a steady rise. According to Green Street, prices are up by 23 percent since 2017 – the biggest rise of any U.S. city outside of San Francisco. A single-family home now goes for sale for as much as half a million dollars.
- The outdoor recreational scene is rich. Tourist’s numbers keep on growing year after year. Good attractions include the Denver Botanic Gardens, Rocky Mountain National Park, Mount Evans, and Mount Sneffels.
- The population is on an upward swing. Ranked as 7th among the nation’s largest metros, Metro Denver’s population is among the fastest-growing in the nation. Statistics from the United States Census Bureau shows a leap of more than 388,000 people in the Metro area over a span of just eight years.
- The economy is booming. Did you know that Denver’s economy is as large as that of New Zealand? According to new data released by the Metro Denver EDC and Development Research Partners, the economy will continue to thrive in 2019 in both the Metro Denver and across the state.
- Denver is relatively landlord-friendly. Colorado is a landlord’s dream, especially if you compare it to the West Coast. If a tenant hasn’t paid rent, you can immediately begin evictions. There is no limit to how much you can charge for late fees. You even don’t have to notify your tenant when accessing the property.
- As can be seen, Denver’s real estate market is on fire! Thus, if you’re considering investing, or getting into the property management business, this is the right time to do so. Besides, if you’re already a rental property owner or a property manager, it is advisable to keep an eye on the housing market and trends in order to improve your business.
With that in mind, here are six predictions for Denver Real Estate in 2019 and beyond:
Prediction #1: Technology
Technology is penetrating every part of our society. Technology helps in creating efficiencies and helps maximize a property’s performance. Landlords and property managers can incorporate technology in the day-to-day running of their rental business to
lessen errors and therefore run their properties smoothly and successfully.
Prediction #2: Amenities
Another trend that is set to be eye-catching for Denver landlords in 2019 will involve amenities. Landlords will be keen to listen to what kinds of amenities the tenants want and need.
The following is a list of amenities that savvy landlords should strive to offer their tenants:
- A Smart Home – Millennial renters love technology. Examples of smart technologies include those for security systems and lighting, thermostats, camera systems, and appliances.
- Washer/Dryer – Tenants want a washer/dryer in their rental unit. It helps make the home more desirable to renters.
- Walk-in Closets/Storage Space – You will be sure to impress potential tenants if your rental unit has enormous walk-in closets.
- Outdoor Spaces – Providing an outdoor space will help you stand out from your competition. A fenced-in yard, patio, deck, or balcony are all desirable to tenants.
- Flexible Pet Policies – Deciding to allow pets will help improve your property’s desirability. 68% of people own a pet , according to the National Pet Owners Survey.
Prediction #3: Customization
There will be a shift towards tailor-made property management solutions. Managers that take specifics such as property type, location and overall nature of landlords and tenants into consideration to provide a custom experience, will prosper.
Prediction #4: Demographic Trends
To be successful in 2019, landlords will need to consider the various needs of the demographics. According to realtor.com, millennials are the largest generation in the Centennial State at about a quarter of the population. What’s more, a large proportion of millennials are approaching the age of thirty. Broadly speaking, this is an age at which that demographic is transitioning to a more stable lifestyle.
“Millennials are now the largest part of the population and as such they make a large percent of the rental and home buying markets. We, as property managers, landlords and real estate agents, need to factor in their wants and needs and allow them to live their lifestyle,” says Marina Gorbounov, a founder and owner of Denver-based Evolve Real Estate & Property Management.
Another interesting demographic is that of baby boomers. They make up 22 percent of the state’s population, with many having already retired or nearing retirement. Baby boomers are often healthy and active. And, if they can afford it, are looking to trade their 5-bedroom houses for a smaller home situated in areas with high walkability scores. Most, if not all, of their children are gone and they don’t want to maintain empty space. The following table summarizes what boomers and millennials want.
What Boomers Want, What Millennials Want:
– Community services – Dog-friendly breweries
– Minimal extra space – Light-rail access
– Quiet space – Music venues
– Well-maintained surroundings – Work-from-home area
– Single-level floor plans or a master bedroom on the first floor
– Open floor plans
Prediction #5: Single-family vs. Multi-family homes
Saving on construction or refurbishment prices, single-family rental homes became favorable options for investors following the housing market decline in 2007. In the past three years, they have grown up to thirty percent. Single-family homes are the most common housing type in Denver. They account for 45.85 percent of the city’s housing units, as per Neighborhoodscout.com.
Other housing types in Denver include small apartment buildings (5.79%), row houses and other attached homes (7.85%), and high rise apartments or large apartment complexes (40.18%).
Prediction #6: Growing Rental Market
In 2016, Forbes recommended breaking up large homes into multiple apartments. This was due to the sheer demand for housing stock that existed then. Much like then, Denver is today experiencing a scarce housing inventory, and prices are rising much faster than wages. As such, the same strategy could be applied today. This will help accommodate the younger population that is considering renting as opposed to owning.
There you have it. Six property management trends in the Metro Denver area for 2019 and beyond. As a landlord or property manager keen to succeed in Denver, knowing what will probably work for your rental business might be the break you have been looking for.