2018 saw another year of pretty steady increases in rent, but this year may be different. According to The Wall Street Journal, landlords will have an increase in competition as new builds continue to pop up across the nation. The heightened supply is estimated to give tenant’s the edge and make raising rents a little more difficult.
The National Stats on Raising Rents
Last year, rental rates in the U.S. rose about 3.3% according to RealPage Inc. This is also up from 2017 when rates rose about 2.5%. With over 300,000 apartment units projected to come into the market nationwide this year, many predict that landlords will have a much harder time raising their rents that in previous years.
So What Does This Mean For Your Colorado Springs Rental?
So what about Colorado Springs? Surely, apartments don’t affect the single-family home market. Wrong! Many tenants have turned to the new apartment builds for their luxury amenities, such as fitness rooms, wine coolers, salt-water pools and more. This means that all of the new apartments that are coming available this year will be direct competition for both the single-family home and multi-family home markets.
What To Do?
So what does this mean for landlords in Colorado Springs? Whether you’re renewing the lease or advertising for a new one, the biggest thing to keep in mind is to watch the market. See what other similar properties are renting for and adjust your price accordingly. If your home is vacant, consider looking into a few updates to give your rental the best fighting chance against the newer apartment builds. Make sure your rental is also well maintained. Nothing drives tenants away faster than an over-priced home that’s not well maintained and they don’t consider worth paying for. Be realistic when setting your price and remember to be objective.