What to charge for rent? (Denver, Craig: apartments, leasing, condo)

[summergrl227]

I've recently purchased a 3 family home in the Denver area, specifically The Baker/Wash Park area. I will occupy one unit which is already vacant, and the other unit is going to be vacant soon. It is a 2 bedroom, 1 bathroom main level unit. The house is old and Victorian - some of the original features are still there! About 800-1000 square feet I estimate. It is however, lacking both a dishwasher and a has no washer or dryer. My question is - what is a fair rent to charge? The tenants there now pay $1000 but they've lived there forever - they are moving because the main tenant is changing jobs. I know that a girlfriend of mine rents a 1 bedroom in cap hill for $1300 but that's really all I have to compare to since I've never rented in Denver. I've tried looking on craigslist, but honestly can't find anything available in my area that looks even remotely comparable. Any thoughts?? I'm hoping to find good tenants who will stay there long term - not just people passing through the night.

[DenverBound41]

Originally Posted by summergrl227

I've recently purchased a 3 family home in the Denver area, specifically The Baker/Wash Park area. I will occupy one unit which is already vacant, and the other unit is going to be vacant soon. It is a 2 bedroom, 1 bathroom main level unit. The house is old and Victorian - some of the original features are still there! About 800-1000 square feet I estimate. It is however, lacking both a dishwasher and a has no washer or dryer. My question is - what is a fair rent to charge? The tenants there now pay $1000 but they've lived there forever - they are moving because the main tenant is changing jobs. I know that a girlfriend of mine rents a 1 bedroom in cap hill for $1300 but that's really all I have to compare to since I've never rented in Denver. I've tried looking on craigslist, but honestly can't find anything available in my area that looks even remotely comparable. Any thoughts?? I'm hoping to find good tenants who will stay there long term - not just people passing through the night.

Without a dishwasher or washer/dryer I would think about $1.40-$1.50 sq/ft. Maybe a tad more if parking is included.

[summergrl227]

That's about the range I was thinking. It's a very "unique" set up with the building being so old. Apartment is a bit oddly laid out. There is a 3 car parkway but I haven't decided weather or not I will offer parking. I'm already having issues with the current tenant and all of his cars so it might just be best to let them find their own parking.

[2bindenver]

You can run a test ad on craigslist for free.

[Lafleur]

My GF rents one of those brand new 2-BR apartments in the Baker neighborhood. I've also been shopping around the area. Most of the brand new 2-BR apartments go for about $1700-ish. They're about 1100 sq ft, include washer/dryer and have a ton of amenities (dog washing station, workout area, rec room, etc.). I'd say if you have an older 2-BR property in the Cap Hill area around 800-1000 sq ft, $1200-$1400 seems about right.

[hawkbill]

Start high and come down if you need to.

[JohnnyDenver]

Originally Posted by hawkbill

Start high and come down if you need to.

Exactly. There is no rent control in Denver. See what the market will stand. If you can get 2k a month, other landlords will hear about it and you'll be a hero.

[eatsDEN]

don't worry about the odd layout or lack of dishwasher, washer, dryer...
as to the parking, you could limit the new tenants to one car on the drive if you wanted...

I suggest reading up on leasing/rental agreements, etc. -- you'll want to craft one that is somewhat more landlord friendly than are generally available as generic forms - Consider how the utilities will be split if your units do not have separate metering for water/electricity/etc.; how to handle trash/recycling/etc., yardwork contributions, anything you
can think of...

from a contract perspective, it's better to have clarity than murkyness from my experience.
As far as pricing, stay competetive - but understand that if you are a little under market - that can help to reduce turnover... it all depends on if you need the cash-flow, or would rather deal with tenant screening less often.

You may also want to think about if you want to and are able to do with respect to background checks, etc.

Good luck in your adventure.... it can certainly be quite rewarding....

[Burton Edwards]

Good evening how are you. Ive recently moved to the Denver area and work downtown. Ive been here 5 months and plan on staying a very long time. Im looking for a place to rent and would be interested in discussing monthly rates if your looking for tenants to lease to.

[JD401]

Originally Posted by Lafleur

My GF rents one of those brand new 2-BR apartments in the Baker neighborhood. I've also been shopping around the area. Most of the brand new 2-BR apartments go for about $1700-ish. They're about 1100 sq ft, include washer/dryer and have a ton of amenities (dog washing station, workout area, rec room, etc.). I'd say if you have an older 2-BR property in the Cap Hill area around 800-1000 sq ft, $1200-$1400 seems about right.

That price for Cap Hill would also depend on building amenities. Condo building with amenities, with some rentals available, would go higher than that possibly depending on the unit. I think 700 sq ft 1bdr in our 1960s building is going for around $1500. W/D and parking would add to that.

Like others have said, test it on Craigslist. Response or lack thereof will tell you if your price is right.