Colorado is one of the most popular tourist destinations in the United States. Every year, millions of people flock to the Rocky Mountains to ski, hike, and enjoy the scenic views. As a result, there is a high demand for rental properties in Colorado. However, with so many options to choose from, it can be challenging to know where to invest.
To help you make the best decision, we’ll explore the different aspects of the Colorado rental property market and where the best places are to invest in rentals. So, whether you’re a first-time investor or an experienced landlord, read on to find out the best places in Colorado to own rental property right now.
What to Consider When Looking for the Best Places to Own Rental Property in Colorado
When looking for the best places in Colorado to own rental property, a few key factors should help guide your decision. We want our readership to have complete knowledge of how they can find great investments! Here are some details about what to consider when searching for a rental property in Colorado.
The Current State of the Colorado Housing Market
First and foremost, you need to consider the current state of the market. Is it a buyer’s market or a seller’s market? What is the average rental price in the area? How much demand is there for rentals? These are all essential factors to consider when searching for the best places to own rental property in Colorado.
Another key factor to consider is the vacancy rate. This rate will give you an indication of how easy it is to fill your property with tenants. A high vacancy rate means more properties are available for rent than tenants are looking to rent, so it may be harder to fill your vacancy. On the other hand, a low vacancy rate indicates a high demand for rentals, and your property is more likely to get rented quickly.
It’s also important to look at the historical performance of the rental market in the area you’re considering. The historical performance will give you an idea of how stable the market is and how well rentals have performed in the past. If the market is known for being volatile, it may not be the best place to invest in rental property. However, if rentals in the area have consistently performed well, it’s a good sign that the market is stable, and you’re more likely to see a return on your investment.
Current Colorado Housing Statistics
Median Sales Price
The median sales price of a single-family home in Colorado is $599,000 as of May 2022, a 15.2% increase from 2021 at $520,000.
Number of Days on Market
The average number of days on the market until sale landed at 22 days compared to 26 days in 2021.
Fair Market Rent Prices
The Fair Market Rent established by the Department of Housing and Urban Development (HUD) in Colorado for a 2-bedroom home is $1,088 per month as of 2021.
The Best Places in Colorado to Own Rental Property Right Now
Once you’ve considered the market conditions and the vacancy rate, you can start narrowing your search to specific areas. To help you out, we’ve compiled a list of the best places in Colorado to own rental property right now.
Colorado Springs is a great place to own rental property for many reasons. The city has a beautiful setting, with the Rocky Mountains providing a stunning backdrop. The scenery alone is enough to attract renters, but New Castle also has a lot to offer in terms of outdoor activities, such as hiking, climbing, and skiing. Colorado Springs has a high demand for rentals and low vacancy rates. Prices are also relatively affordable, making Colorado Springs an attractive market for investors and renters. The average rent price in Colorado Springs is $1,200, and the city’s population is 647,825 as of 2021.
The Mile High City is always an excellent place to invest in rental property. With a population of 678,465, Denver is the largest city in Colorado. It has a thriving economy booming with job opportunities, so there is always a high demand for rental properties. The city’s average rent is $1,605, and Denver is home to many young professionals looking for apartments or houses to rent. The city also has a wide variety of recreational activities and cultural attractions, making it an attractive place to live.
Located just northwest of Denver, Boulder is a thriving city with a lot to offer residents and visitors. The city is home to a diverse population of 317,780, including students, professionals, families, and retirees. Boulder is also an outdoor enthusiast’s paradise, with plenty of hiking, biking, climbing, and skiing opportunities. The average rent for a 2-bedroom home in Boulder, CO, is $1,724. To make the deal even sweeter, Boulder has recently been named the number one best place to live in the United States by U.S. News & World Report for the second consecutive year.
New Castle, with a population of 57,945 and an average rent price of $1,212, is another appealing option for rental property owners in Colorado. First, the town is located in a beautiful setting, nestled in the mountains of Colorado. New Castle offers plenty of charming shops and restaurants in town and recreation opportunities like hiking and biking trails. Additionally, New Castle is within easy driving distance of major cities like Denver and Boulder, making it a convenient location for commuters. New Castle has a strong economy and healthy housing market, which helps ensure that your investment will be wise.
Once you’ve found your property and are ready to rent out your new investment, it’s time to start thinking about your next steps. EZlandforms.com has a wide range of resources to help support you through every phase of the landlord lifecycle including, tenant screening services and resources to create legal colorado leasing agreements that will have you and your investment covered.
Owning rental property can be a great way to earn income and build long-term wealth. With the right location and preparation, you can be on your way to success. Our list of the best sites to own rental property in Colorado covers a range of cities, from large metropolitan areas to smaller towns. No matter your budget or preferences, you’re sure to find a place on this list that will suit your needs.
*Average rent price is based on Fair Market Rent for a 2-bedroom home in Colorado as of 2021 as determined by the HUD.