More residents in Northern Colorado are choosing to rent affordable housing during a time when qualifying for a home mortgage is extremely difficult and when homeowners are losing their homes to foreclosure. The Colorado Division of Housing released the 3rd quarter vacancy rate survey yesterday and the vacancy rates for both Fort Collins (2.8%) and Greeley (3.9%) fell to the lowest levels since 2001. As the demand for affordable housing increases, so will the rental rates. Gordon Von Stroh, the author of the report, said '...given how vacancies are declining significantly in Fort Collins, Greeley, Colorado Springs and other areas as well, it’s clear that empty units are now relatively scarce and that increases in rent levels are likely to follow.'
With the availability of apartments and condos decreasing, sellers of vacant single family homes would be wise to consider marketing their homes for rent. This will give the seller income until the home can sell and provide temporary housing for those in need. Offering a lease to purchase is another way provide revenue to the Seller while allowing time for the buyer to secure a mortgage. Hiring a real estate professional and/or property management company to assist with market analysis, marketing, pre-qualifying tenants, paperwork and management is essential. As renters become more desperate, the more likely they are to distort the truth about their financial status and it is imperative for landlords to verify job status, credit and prior rental history.
Renters, as well, are encouraged to do their due dilligence when researching a specific property. Confirm that the Landlord is the owner of record and that they are current on their mortgage. Have an attorney or a real estate professional preview the contracts on your behalf before signing anything or giving a security deposit. I've had many rental clients recently tell me they are looking for a new rental because 1) the home they rented is now in foreclosure or 2) the home is in disrepair and the landlord is unwilling to fix the problems. Having a home inspection completed before moving in would be well worth the cost to save yourself future headaches with maintenance issues. Being well informed before making a decision to rent, buy, sell or lease has always been valuable - in the current market with fear and insecurity rising, it is even more so.
This is Lori Jarrett, "Keepin' it real."
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