In my blog last week Does a faulty outlet make a property uninhabitable, it now does under CO law, I asked the question what impact does Colorado’s housing legislation have on rental prices? The results were unanimous in agreement that the recent changes in Colorado’s laws on rentals is making rents increase
Colorado’s rents are increasing because of new housing legislation
I was pretty surprised that 100% of respondents felt that Colorado’s recent housing legislation has increased costs for landlords leading to higher rent rates. The interesting part is that my email list is a wide cross section of genders, political affiliations, income levels, etc… and yet still there wasn’t a single person that said that the recent legislation will lower rent prices in Colorado
Top comments regarding housing legislation increasing rent costs:
Deferred maintenance is normal in rental properties. Evidence is the bill itself. So when an owner has an increase in costs, but must maintain a certain profit, costs will be passed on. This also reduces the supply of decent rentals. The overall effect of less supply will be higher rent prices.
As landlords realize the Resi rentals no longer make sense from a return % and the potential for substantial financial exposure from this bill, bad tenants who take advantage of the bill, the # of rental homes will decline as current rentals are sold to homeowners. You are correct this is not beneficial for anyone long term.
The laws make some owners like me sell my residential units which are bought by owner occupants and that reduces supply which raises rents. Also, the return has to be higher for the owners that keep their properties due to increased costs and risks.
Summary
It is sad that the objective of the legislature is supposedly to make housing more affordable, but from the survey results it is apparent that the opposite is happening. Hopefully our legislature will take notice and do the opposite of what they are doing now to help Colorado become more affordable. Thank you everyone who participated in the survey, your insights are amazing
Additional Reading/Resources
https://coloradohardmoney.com/colorado-habitability-bill-impact-on-owners/
https://coloradohardmoney.com/colorado-property-taxes-jump-40-percent/
We are a Colorado Private/ Hard Money Lender funding in cash!
If you were forwarded this message, please subscribe to our newsletter
I need your help as my goal in writing these articles is to provide the best information/insight on Colorado Real Estate that you cannot get anywhere else! Please like and share my articles on linked in, twitter, facebook, and other social media and forward to your friends/associates I would greatly appreciate it.
Glen Weinberg personally writes these weekly real estate blogs based on his real estate experience as a lender and property owner. He is the owner of Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in Bloomberg, Businessweek ,the Colorado Real Estate Journal, National Association of Realtors Magazine, The Real Deal real estate news, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
Glen resides in Colorado, lends in Colorado, owns property in Colorado, and services loans in Colorado which provides a unique real estate prospective of what is actually happening on the ground both in Denver and throughout Colorado. My goal of this real estate blog is to provide an honest assessment of what I see happening in Colorado real estate and how it will impact real estate owners, buyers, realtors, mortgage professionals, etc…
Fairview is the recognized leader in Colorado Hard Money and Colorado private lending focusing on residential investment properties and commercial properties both in Denver and throughout the state. We are the Colorado experts having closed thousands of loans throughout the Front range, Western slope, resort communities, and everywhere in between. We also live, work, and play in the mountains throughout Colorado and understand the intricacies of each market.
When you call you will speak directly to the decision makers and get an honest answer quickly. We are recognized in the industry as the leader in Colorado hard money lending with no upfront fees or any other games. Learn more about Hard Money Lending through our free Hard Money Guide. To get started on a loan all we need is our simple one page application (no upfront fees or other games)
Tags: Denver hard money, Denver Colorado hard money lender, Colorado hard money, Colorado private lender, Denver private lender, Colorado ski lender, Colorado real estate trends, Colorado real estate prices, Private real estate loans, Hard money loans, Private real estate mortgage, Hard money mortgage lender, Hard money mortgage lender, residential hard money loans, commercial hard money loans, private mortgage lender, Hard Money Lender, Private lender, private real estate lender, residential hard money lender, commercial hard money lender, No doc real estate lender