One of our favorite topics of discussion is the rental market in Golden, Colorado, and what the current trends are. As local property management experts, it’s our job to stay up to date so we can bring you real-time information based on the data, analytics, and insights that we collect across the local market and the industry.
We always have something new to tell you.
And here’s what we can tell you about the rental market trends in Golden right now. If you’re a real estate investor in the current market, you’re in luck. If you’ve chosen this market to purchase your first investment property or to grow an existing portfolio, you’re also in luck.
The rental market is booming in this suburban city located less than 20 miles west of downtown Denver. However, as more investors flock to Golden to capitalize on these lucrative opportunities, the competition is getting steeper. This means you have to be smarter.
To stay ahead of the game and increase your short term and long term profits, it’s important to stay up-to-date on the latest rental market trends in Golden. Let’s explore some of these trends and give you the inside scoop on how to stay ahead of the competition.
Increase in Rental Demand
Here’s a trend that should come as no surprise – more people want rental housing.
That’s our first trend to note: the ongoing increase in rental demand in Golden. Many new tenants who are moving into the area are drawn to the city’s picturesque scenery and close proximity to Denver. In fact, Golden’s population has grown by over 10 percent in the last decade. This increase in population has led to a higher demand for rental properties. To stay competitive in this market, consider investing in multi-family properties or offering additional amenities like private outdoor space or in-unit laundry. These are the things that a lot of tenants today are looking for.
What’s driving the population explosion? In many ways, it’s the way remote work has scaled and put areas like ours on the map. With more and more people working from home and not returning to the office, there’s more flexibility and freedom in choosing where to live. A lot of remote workers are moving out of the larger, crowded, and more expensive cities into areas like Golden, where there’s a high quality of life but a relatively lower cost of living.
We don’t expect the rental demand to dampen any time soon. If you’re an investor thinking about buying here, we believe you’ll have a strong pool of tenants for many years. The demand for good rental homes will only continue to increase, especially as mortgages are more expensive thanks to interest rates being high. Many people who might have purchased a home are choosing to continue renting in this market.
Rental Rates Have Risen Dramatically
More good news: rental values are higher than they’ve ever been.
With rental demand on the rise and that demand outpacing supply, rental prices in Golden have also increased. According to Zumper, RentCafe, and other online sites, the average rents in Golden are hovering right around $2,000 per month, depending on location and property size.
As you do the math to determine what you’ll earn and likely spend on an investment property, you can factor in a rather comfortable rental range for your Golden investment.
While rents have begun peaking and even dropping since the extreme rent hikes about a year ago, they’re still pretty high in our market. You should not worry about having to lower your rents anytime soon. Certainly, we do not have a crystal ball or any unique psychic powers, but we do expect that rents will continue to remain steady in our market. You should prepare for stabilizing rents simply because they cannot go much higher right now, but even as they settle into a comfortable place for both owners and tenants, those rental values will remain high enough that you can increase what you earn every time you sign a lease renewal.
As we head towards the end of this year and the early part of next year, we expect to continue seeing well-qualified residents who can afford the higher rental values that the market demands. Their expectations will also be higher, so you’ll have to be prepared for that. Think about what you can offer that attracts good tenants and justifies a higher rent.
Tenants are More Concerned with Sustainability
There’s been a growing focus on keeping properties green and focusing on sustainability.
Recently, we were surprised at a study that revealed rental properties, on average, use more energy and natural resources than properties that are owner-occupied. This is of course mostly dependent on human behavior, but if there are ways to make your rental property more efficient, now is the time to invest in those upgrades.
As more renters become eco-conscious, they are looking for rental properties with sustainable features like energy-efficient appliances, smart thermostats, and solar panels. To stay competitive in this market, consider investing in sustainable upgrades for existing rental properties or building new properties with sustainable features.
You don’t have to completely renovate your property to be zero-waste and completely green. However, if there are some small and potentially impactful changes that you can make to increase the sustainability of your property, tenants will notice. You’ll be competitive on the market, and you’ll notice lower energy bills and less maintenance. Here are a few ideas:
- Replace older appliances with efficient models that have the Energy Star rating
- Switch out your fluorescent light bulbs for LED bulbs
- Seal doors and windows to reduce warm air escaping in the winter and cool air escaping in the summer
- Check your water heater settings and lower it to 120 or 125 degrees (no lower than 110)
- Install smart thermostats that automate room temperature
These updates and upgrades will do wonders for your property value, decrease utility bills, and help your property to stand out in the Golden rental market.
Technology Trends are Real
Tenants are looking for well-maintained rental homes in good neighborhoods.
They’re also looking for some serious technology when they rent a property.
This is a fairly recent trend that we tell all of our investor and landlord clients to take seriously. Tenants want ease and convenience, and smart home tech provides that.
Our job as your Golden property manager is to help you understand what’s worth your investment when it comes to upgrading and providing these amenities – because this tech is definitely not cheap.
Do your tenants really need it? Not all of it. But, we’ve identified what the most popular features are. Residents are currently using and enjoying smart thermostats, and apps that allow them to turn on lights and lock doors remotely.
The appreciation high quality tenants have for smart home technology will only grow, and the property owners and managers who can provide it will have an easier time attracting and retaining high-quality residents.
There are additional benefits to installing smart home technology in your investment properties.
- You’re providing your tenants with greater control and convenience. They’ll respond favorably to rental homes offering smart home technology. You’re likely to increase your tenant retention rates, thus avoiding expensive turnovers and vacancies.
- Smart locks allow remote access, which is both secure and convenient. The smart locks or digital keypads allow for easy property showings, and they also allow for maintenance workers to get inside the property without someone running over there to meet them or make another key.
When you’re willing to invest in these technologies for your rental property, you’ll find you have access to a variety of advantages, from efficiency leasing and managing and maintaining your property to cost-savings to increased tenant retention and higher rental values.
What do these trends mean for your rental property right now? We can have a conversation about that.
As the rental market continues to evolve in Golden, CO, it’s important to stay ahead of the competition as a real estate investor. By focusing on rental demand, rising rental prices, sustainability, and smart home technology, you can invest in profitable rental properties and make informed decisions to help your investments grow. So, whether you’re a seasoned investor or just starting out in the rental market, keep these trends in mind to stay competitive and succeed in Golden, CO.
We are here to help you decide what makes the most sense for your property, whether we’re talking about upgrades or rental values. Let’s find a way to maximize what you’re earning in the current market. Please contact us at Laurel Property Services, Inc. In addition to providing property management in Golden, we also serve Wheatridge, Morrison, Lakewood, Arvada, and Genesee, CO.
