Check out 8 reasons why Colorado is a top investment location!

 

It’s no secret that Real Estate has long been hailed by many as one of the best long-term investments an individual can make. However, many potential investors feel an air of insurmountable doubt surrounding the time, maintenance and costs associated with owning a property.

 

Short Term Rentals (STR) refer to properties that are rented for periods of 30 days or less. The property could be a multi-family home, condo, apartment, townhome, or cabin. They’re completely furnished and geared towards providing similar comforts to renters as if they were staying with a friend or family member. Third-party Home Sharing Platforms such as Airbnb, VRBO, Vacasa, and Guesty make it easy for Hosts to market their properties and aid Travelers in finding suitable lodging with flexibility and amenities sometimes not offered by other traditional lodging.

 

The post-pandemic travel and tourism landscape has shifted favorably towards these more private & unique rentals, for millions of guests around the world. Recently, with higher demand for travel than ever, Colorado has been experiencing a red-hot STR market, with record high occupancy rates and increased revenue for owners.

 

Continue reading to find out 8 reasons why Colorado is one of the best spots to invest in a Vacation Rental right now.

 

The allure of Colorado is never disappearing. More sunny days a year than Miami, a booming tourism and workforce culture, and incredible seasonality make Colorado a top spot for investors looking to purchase property or build their portfolio.

 

Loved by many for its lively and historic Ski & Winter Sports culture, winter sports fanatics flock by the hundreds of thousands every year to experience some of the most notorious mountains and powder conditions in North America. Mountain towns and Ski resorts are areas that generate extremely high returns on investment properties.

 

Summer is another booming time for outdoor recreation enthusiasts. During the dry months, Rock Climbers, Mountain Bikers, and Hikers come from all over the world to ride trails and summit peaks around the state.

 

Although Spring starts at the end of March, Colorado winter sometimes lasts through April due to the climate. While hiking year-round is enjoyed by many, Spring is a wonderful time to renew along the trails and prairies that burst with wildflowers as the snow begins to melt away. Many enjoy our lovely natural hot springs around this time of year.

 

Fall is one of the most beautiful times to visit Colorado as the weather is usually fair, and the foliage begins to cover the mountains in shades of yellow and red. Fall is a lively time with Farmer's Markets finishing up for the season and fun festivities like Oktoberfest.

 

Because Colorado is, and will remain a desirable place for the foreseeable future, the appreciation of your property and ultimate return on investment will be positive. Any agent will tell you there’s no guarantee that property values will fall or rise during any particular period in time, but even conservative economists think Colorado’s real estate markets aren’t going anywhere.

 

Post-pandemic life has changed the workforce landscape and what ‘work’ looks like. Flexibility to work remotely has encouraged many to live where they’ve always desired, and not be restricted to one area. A diversified economy, a growing group of remote workers, a booming eco-tourism market, Denver’s active and youthful ambiance, coastal migrants with tech money, and amazing quality of life mean’s Colorado rental market is always hot.

 

One of the most frustrating aspects of real estate is dealing with the maintenance involved in owning a property. Short Term Rentals require a turnover process between guests, which keeps vigilance high. The attentiveness required to operate a STR usually equates to less wear and tear on the property. Cleaning teams can alert you of maintenance needs that may have been missed or not reported by guests, who usually have a card on file to cover incidentals.

 

Generally, short-term & vacation rentals pull in two to three times the revenues of a traditional long-term rental. For truly unique properties, this can be higher. Colorado is a wonderfully creative area, and many choose to ‘theme’ their STR. This could be a fun and creative way to personalize or create a priceless experience. Colorado Ski Chalet, Outdoor Enthusiasts Escape, Groovy Denver Getaway! Get Creative and have fun, this tactic could also optimize your bookings and increase income.

 

If you were buying a pure investment property, lenders require a 20% down payment and charge a higher interest rate. But if you buy a Colorado vacation rental as a second home, many lenders will require only 10% down and can use primary residence mortgage rates.

 

The ability to refinance your initial investment but retain the hard asset that can generate income passively and cash flow you while tenants pay down your mortgage.

 

Vacation Home? Enough said.