Real Estate Investing

Denver, Colorado

It’s no longer a secret that Denver is an amazing place to live. Denver is a perfect mix of city life, outdoor activities, cultural experiences, beloved sports teams and exceptional weather. 

Even though Denver is a bustling city with over 700,000 residents and high rise buildings one can catch a stunning mountain view from nearly every angle or find an expansive park for recreation in every neighborhood. 

If you want to live in the thick of nightlife or on a more family friendly street, there is a Denver neighborhood that will suit your needs. Download the Moving to Denver Resources Guide to learn more about each neighborhood. 

Investing Strategies

Short Term Rentals

Short-term rentals are only permitted in Denver for an owner’s primary residence. Owners are required to obtain a short-term rental license. The fee to acquire a rental license is $50 for the application and $100 annually for renewal. 

An accessory-dwelling unit can be used as a short-term renal by a property owner or long-term renter who is living in the primary structure on the property. The owner cannot live in the ADU and rent the primary residence. 

City Regulations

Number of STRs an owner can occupy

1

Cost for a STR permit

$50

Medium Term Rentals

A perfect middle ground between the income potential of a short-term rental and the stability of a long-term rental. Mid-term rentals are furnished units that are rented to guests for 30+ days. People who seek out mid-term rentals are traveling nurses and professionals on temporary assignment or people displaced from their homes for a duration of time.  It’s become a popular investment strategy because in many areas, like Denver there is no rental license required. Use services like AirDNA to calculate what your potential rents could be. 

Calculate Rents

Year over year increase in MTR nights sold

29%

No license required for rentals

< 30 days

Rent-By-The-Room

The “rent by the room” investment strategy involves renting out individual rooms within a single property, such as a house or apartment, rather than leasing the entire unit to a single tenant. This approach has gained traction as it allows investors to maximize rental income by catering to multiple tenants simultaneously. Each tenant pays for their designated room and shares common areas like kitchens and living rooms. This is a popular strategy among house hackers who choose to rent out the rooms in the house they are living in. 


Note: As of July 1, 2024 Governor Polis prohibited residential occupancy limits in Colorado through HB24-1007. This act eliminated previously held occupancy limits by counties and cities. 

Average Basement Room Rent

$825

Average Room Rent

$925

Primary Room Rent

$1,150

Long-term rentals

Long-term rentals are a smart strategy for a more hands-off approach and a buy and hold mindset. In an appreciating market, like Denver, if the property’s rent can cover the mortgage, plus an additional 10% for vacancies and repairs, then you’re property is increasing in value the longer you hold it. Check out the latest rent estimates on Rent-O-Meter or Zillow to see what your property might get for rents. 

Rent Estimates:

Avg. Rent 3 bed / 2 bath

$3,300

Avg. Rent 2 bed / 1 bath 

$2,500

Denver Facts

Schools

633 schools
B Avg. Rating
Learn more about the schools at Great Schools.org

Crime Rate

Review the current crime rates for Denver here: Community Crime Map

Location

Downtown Denver – 0 mins
DIA – 32 mins
Summit County – 85 mins

Check out the latest listings in Denver

Denver House for Sale

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