Denver, CO: Rental Property ROI Analysis
|75 US City Avg.
Boasting 300 days of sunshine per year, a thriving cultural and arts scene, diverse neighborhoods, the surrounding beauty of the Colorado Rocky Mountains and seven professional sports teams, it is fairly easy to understand why so many new residents are called to the Mile High City year after year. Denver is also no stranger to accolades and awards. The Daily Beast ranked Denver third as a
"top city of the future" among young adults, while Shape and Forbes Magazine named the city No. 5 on their Top 10 Fittest Cities in America list.
Denver is also home to a booming real estate market, where homes for sale only last 25 days prior to being sold. This statistic and others in the All Property Management Q2 2104 Rental Ranking Report ranked
Denver as the 4th BEST market for rental investment in the West.
What data is this based on?
To calculate the All Property Management Rental Ranking Report, we explore a number of different sources, including current government housing and jobs data, as well as housing appreciation forecasts for 75 cities across the United States. We look at specific factors such as home vacancy rates, capitalization rates, home value appreciation rates, annual job growth, change in rental rates, and average days a property stays on the market to determine which U.S. cities are poised to give investors the highest return on their rental investment.
Denver, Colorado moved up two spots this quarter to attain its fourth-place finish. While it ranked relatively low in housing value appreciation compared to the 75 Metropolitan Statistical Areas that All Property Management evaluates for the Rental Ranking Report, it did quite well in the areas of average "days on market," average vacancy rates, and year-over-year job growth. As previously mentioned, a home in Denver lasts only 25 days on the market before being sold - the fastest of all the national markets. This indicates an active real estate market where rental properties are in demand. Likewise, with a vacancy rate of 5.2 percent, the Denver rental market has room for additional rental units to hit the market. Other positives for the city include strong year-over-year job growth of 2.75 percent, and a rental rate increase of 2.31 percent over the past year.
What does a high-ranking mean?
Is owning a rental property in Denver profitable?
Quite simply, there has never been a better time to consider rental property investment in Denver and the surrounding areas.
The real estate market is hot in Denver; the Rental Ranking Report suggests that investors take advantage of limited rental property options to generate income as rental prices increase.
Thinking about renting out your Denver property? Seek the assistance of a local, qualified property manager and automate your rental profit.
Get free quotes emailed to you from 5 competing Denver property management companies to compare rates and calculate the ROI. Or call 1-877-780-4510 to speak with a representative.
Our team at All Property Management specializes in connecting property owners with property agents in communities across the country. Expert property managers can assist with setting rental rates, advertising your property, screening and managing tenants, collecting rent, managing vendor relationships, and ensuring you are complying with local, state, and federal housing regulations, thus taking the hassle and worry out of managing your property. We look forward to working with you and welcome the opportunity to help you with all your property management needs.