Denver Rental Concessions Reach a New High: What Landlords Need to Know

The Denver rental market is experiencing an interesting shift. After years when landlords benefited from tight inventory and strong tenant demand, renters now have more choices—and property owners are having to compete harder for qualified tenants.

Recent rental market data referenced by Zillow shows that Denver leads the nation in rental concessions, with approximately 68% of vacant rental properties offering some type of move-in special or concession.

For Colorado landlords and real estate investors, the message is becoming increasingly clear: pricing, property condition, and positioning matter more than ever.

Denver Rental Supply Is Outpacing Demand

Denver currently has approximately 4,600 rental properties available, with an average asking rent around $2,000 per month. That’s down from roughly $2,200—a decline of approximately 10%.

When renters have more options, they gain negotiating power. Instead of simply comparing monthly rent, prospective tenants can compare properties offering reduced deposits, free rent, move-in incentives, upgraded amenities, and other concessions.

That creates an increasingly competitive environment for landlords.

Multifamily Properties Are Feeling the Most Pressure

The biggest impact appears to be within the multifamily market.

Approximately 3,018 multifamily properties are currently being offered for rent at an average of about $1,693 per month, representing a decline of approximately $165 per month, or roughly 10%.

New apartment communities are also creating additional competition. Today’s newer multifamily developments often offer attractive finishes, modern appliances, fitness centers, community spaces, and significant leasing incentives.

That competition doesn’t only affect apartment owners.

These newer communities can also attract renters who historically may have preferred a privately owned condo, townhome, or single-family residence.

Single-Family Rentals Are Holding Up Better

There is some encouraging news for owners of single-family rental properties.

Our Zillow notes show approximately 1,066 single-family homes available for rent, with an average asking rent of approximately $2,995 per month. Unlike the multifamily segment, single-family rental rates have remained relatively steady.

Single-family homes continue to offer advantages that apartment communities often cannot easily duplicate: private yards, additional living space, garages, neighborhood locations, privacy, and room for families and pets.

That doesn’t mean single-family landlords can ignore what’s happening in the broader market, however.

When a brand-new apartment offers beautiful finishes and a substantial move-in concession, renters may be willing to reconsider what type of property they want.

In This Market, Your Rental Has to Shine

When rental inventory increases, tenants can afford to become more selective.

Properties with dated flooring, worn paint, older appliances, deferred maintenance, or poor presentation become much more difficult to lease when renters can choose from numerous competing properties.

Before placing a rental on the market, owners should take a critical look at:

• Interior paint and overall cleanliness
• Flooring and carpet condition
• Kitchen and bathroom finishes
• Appliances
• Lighting and fixtures
• Landscaping and exterior appearance
• Professional photography and marketing
• Overall move-in readiness

You don’t necessarily need to completely remodel a rental property. However, clean, updated, well-maintained properties are going to have a significant advantage over properties that feel tired or neglected.

Pricing Strategy Is More Important Than Ever

One of the biggest mistakes a landlord can make in a declining rental market is chasing the market downward.

For example, an owner may list a property at $2,500 hoping to achieve last year’s rental rate. After several weeks without a tenant, the price is reduced to $2,400. A few weeks later, it’s reduced again.

Meanwhile, competing properties may have already adjusted to $2,300—or are offering concessions that effectively put them at that level.

The landlord is constantly reacting to the market instead of staying ahead of it.

Vacancy can quickly become more expensive than accepting a slightly lower rental rate.

A property sitting vacant for one additional month at $2,500 represents $2,500 in lost revenue. In many cases, pricing competitively from the beginning can produce a better financial result than holding out for an additional $100 or $200 per month.

Should Landlords Offer Concessions?

With concessions becoming increasingly common, landlords should at least consider them as part of their leasing strategy.

A move-in special can sometimes be preferable to permanently reducing the advertised monthly rent.

For example, rather than reducing rent by $150 every month, an owner might offer a one-time move-in incentive to attract a qualified tenant while preserving the property’s established rental rate.

The right strategy depends on the property, competition, vacancy level, and owner’s long-term goals.

What Should Denver Rental Property Owners Do Now?

We believe landlords should prepare for a competitive rental environment through the winter months and potentially into 2027.

This isn’t the time to automatically assume that last year’s rent is today’s market rent.

Owners should closely evaluate competing properties, price aggressively, make necessary updates before listing, present the property professionally, and remain willing to adjust quickly when the market provides feedback.

The goal isn’t simply to achieve the highest advertised monthly rent.

The goal is to maximize the property’s overall return while minimizing vacancy and attracting a well-qualified tenant.

Need Help Evaluating Your Rental Property?

At NeXstep Real Estate Group, we help Colorado property owners navigate both the leasing and property management sides of real estate investing.

If you own a rental property and aren’t sure how your current rent compares with today’s market, we can help evaluate the property, review competing rentals, recommend improvements, and develop a leasing strategy designed for current market conditions.

Before your property sits vacant, let’s make sure it’s positioned to compete.