Are you considering making a rental property investment in Golden, Colorado? It is true that renting out a home or making an investment in a rental property may be financially lucrative; however, you should have a thorough understanding of the interest rates in Golden, CO, and understand how they affect the rental property industry. More importantly, you should have the aid of an effective Golden property management service when investing in rental properties.
Many people believe that the only people who need to be mindful of interest rates are those who want to buy a home and borrow money. However, interest rates are one of the most important things you need to consider before investing in a rental property in Golden, CO. Interest rates have a significant impact on the property market, and as a result, they will eventually affect the rental market as well.
As homeowners, is it better for you to rent out your property rather than sell it considering today’s interest rates? Is now a good time for investors to invest in a rental property? We’ll address these questions and more in this article. Read on to learn more!
Real Estate Interest Rates
According to Forbes, a 30-year traditional mortgage interest rate is averaging at 6.44 percent as of January 2023. This is over twice as much as it was at the beginning of 2022 — 3.22 percent. According to Realtor, the current rates in Golden, Colorado, are 6.78 percent for a 30-year fixed loan, 6.08 percent for a 15-year fixed loan, and 6.49 percent for a 5-year Adjustable Rate Mortgage (ARM).
Interest rates are rising across America — including in Golden, Colorado — resulting in increased rent costs. However, despite high interest rates, landlords are not struggling to find tenants. According to Point2, renters occupy 39 percent of real estate in Golden, Colorado, with only a 2.9 percent rental vacancy rate. Investing in a rental property in Golden can be profitable with the aid of a top-notch property management Golden company to take care of all your rental property needs.
What Causes Interest Rates To Rise?
When investing in a rental property, it is crucial to understand the causes of interest rate changes and increases. Understanding interest rates and what influences them may help homeowners determine whether to sell or rent their property, and investors can make informed choices about how and when to invest in a rental property in Golden, Colorado.
Supply and Demand
The supply and demand for property loans is the most frequent driver of interest rate changes. Interest rates will rise if there is an increase in loaning demand while rates will fall if the loan demand is low. In addition, the amount of credit accessible to the industry declines when borrowers choose to postpone debt repayment.
Inflation affects almost everything in the market. Interest rates increase when inflation is high; low inflation also brings down interest rates. High inflation increases interest rates as a result of lenders increasing their rates to make up for the depreciation in the buying amount that they will receive.
Global factors that influence consumer spending habits can also impact interest rates. These factors include:
- Global changes in money value
- Government borrowing from other countries
- Central bank’s monetary policy and changes
- Foreign competitions
- Political unrest
The U.S. Federal Reserve, which acts as the country’s central bank, has the authority to change interest rates as they see fit. A variety of national or international issues can influence the government’s choices to change interest rates. Government officials usually do so to standardize interest rates among banks and loan providers.
The Impact of Interest Rates on Rental Properties
While interest rates influence every area of the economy, they particularly affect the real estate market, rental properties, and real estate investors — both positively and negatively.
Rising Demand in Rental Properties
Many individuals would rather rent a property than buy one since rising interest rates are making it difficult for consumers to make payments on and purchase a home using a loan. When interest rates rise, the demand for rental homes rises as well, which may be advantageous for investors and owners of rental properties.
Rental Unit Availability Can Decline
Rising interest rates may also affect the availability of rental homes in the Golden, Colorado area because they may make it more difficult for investors to buy new rental properties and more challenging for owners to make improvements and maintain their rental properties so that they are available for rent.
High Rental Rates
Despite the increased demand for rental properties, the cost of renting will also rise. For example: if the rental property is subject to a loan, the investor or property owner may need to raise the rent to meet the high interest rates on the loan. This can be an issue for tenants, but it might also make it difficult for landlords and investors to find tenants willing to pay their asking rent.
Work With a Professional Property Management Company for Your Rental Property
As a property owner, you don’t need to worry about interest rates since you can choose to rent your homes rather than sell them. All you have to do is work with a reputable rental property management company that has the knowledge and experience to effectively manage your rental property in the current rental market.
Laurel Property Services, Inc. is a top-ranked Golden, CO property management company that can help you satisfy all your rental property management needs. If you are a property owner wanting to rent out your property or an investor seeking to invest in rental property, we can help you with the challenges and requirements associated with owning a rental property.
Regardless of the state of the rental property market, we are experts in managing rental properties and have tried-and-true tactics to safeguard your investment and boost your income.
Experts in Golden Property Management
The core business of Laurel Property Services is rental property management and we have played a significant role in the Golden community since 1988. We have a proven track record of success working with investors and property owners to manage their rental properties and help them reach the pinnacle of success.
Working with us will provide you the certainty that you are working with real estate industry professionals and experts, particularly when it comes to managing rental properties in Golden, Colorado. Our extensive knowledge and experience in the industry will help you overcome any challenges the current rental property market presents.
Benefits of Working With Us
Here are the most crucial benefits of working with Laurel Property Services:
- Accurate pricing and effective payment collection: While high-interest rates are causing disruptions in Golden rental prices, we are knowledgeable in the industry and can help you determine the best price that satisfies both your profit demands and the needs of your renters. We can assist you with collecting payments most efficiently and securely to preserve your cash flow and income.
- High-quality tenants: It might be challenging for some to acquire renters in today’s rental market due to the high-interest rate. However, because of our expertise and connections, we can quickly locate exceptional renters that are ideal for your property. At Laurel Property Services, we don’t accept just any renters. We identify excellent tenants that are qualified to rent your property and won’t cause you any problems.
- Full legal compliance: We are a fully licensed business with licensed professionals that can handle all of your rental property management needs. We also make sure that our procedures adhere to industry standards — we are well-versed in all renting matters and can defend you against legal actions. We make sure to cover any significant issues with renters to ensure that we prevent potential legal problems.
- Free consultation: We offer free, no-obligation consultations to talk about your rental property management challenges and the solutions that the experts at Laurel Property Services can offer. You make sure you’re engaging with a reliable team that can best meet your demands and surpasses your expectations in your search for expert Golden property management.
- Marketing: Our Golden property management service includes complete marketing and advertising tactics to reach out to potential quality renters in Golden CO to make sure that your rental property is occupied. We’ll help you preserve your cash flow and revenue.
- Property maintenance: We have a specialized team for prompt repairs and maintenance for your rental property. You won’t have to be concerned about the hassle of upkeep, which is one of the frequent causes of difficulty in renting a house.
Laurel Property Services: Your Local Property Management Experts
Since 1988, Laurel Property Services has provided Golden, Colorado, and the neighboring towns in Jefferson County with high-quality, comprehensive property management. We are experienced in dealing with different types of tenants, properties, and market conditions. Our expertise and experience can give you peace of mind knowing that we are more than capable of managing your rental property and assisting you in reaching your business goals.
Contact us today and learn more about how our property management service can help your rental property business achieve greater success.