Colorado is one of the best cities in the US for real estate investment. Discover the best tool to find vacation rentals for sale in Colorado.
Table of Contents
- Is Colorado a Good Place to Buy Vacation Rentals?
- How to Find Vacation Rentals for Sale in Colorado in 3 Steps
- 6 Things to Consider When Finding Vacation Rentals for Sale in Colorado
- 10 Best Cities in Colorado for Vacation Rentals
If you don’t have the right tool, finding the perfect vacation rentals for sale in Colorado can be challenging. It is a shame because Colorado is one of the best places in the United States to go for a holiday. It is one of the most popular cities due to its reputation as a world-class skiing destination. Also, the state is home to gorgeous landscapes, making it a haven for vacationers.
You will find the most beautiful vacation rentals in places like Aurora, Denver, and Lakewood. Among other cities in Colorado, they are home to beautiful mountains, breweries, parks, forests, and skiing resorts. In this article, you will learn how to find the best vacation rentals for sale in Colorado and give your renters a fantastic experience.
Buying a rental home in Colorado is easy if you factor in the fact that many Americans love the state. But not all vacation homes are equal. Even though people troop in and out of Colorado every year, it is your job to identify and own the best vacation rentals, so your renters have a great experience. Mashvisor can help you find good rentals for sale in Colorado.
Is Colorado a Good Place to Buy Vacation Rentals?
This is an easy question to answer. Yes! Colorado is an excellent place to buy vacation rentals. Even if you ignore the fact that Colorado is an amazing state for vacationers, its real estate market may be one of the best in the United States. Here are some data about Colorado real estate market that might whet your appetite:
- Median Property Price: $1,006,196
- Average Price per Square Foot: $797
- Days on Market: 109
- Monthly Vacation Rental Income: $3,386
- Vacation Rental Cash on Cash Return: 2.22%
- Vacation Rental Cap Rate: 2.26%
- Vacation Rental Daily Rate: $253
- Vacation Rental Occupancy Rate: 49%
- Walk Score: 46
The State of Colorado’s Real Estate Market
Colorado has one of the lowest property taxes in America, being the third most tax-friendly state. It has 5,997 current listings as of August 2022, and the median price of a property in Colorado is $1,006,196. Currently, it holds the record as the eighth-best state when it comes to annual Airbnb rental income.
Recently, there has been high population growth in Colorado. It makes the state one of the best places to find vacation rentals for sale. Colorado’s population as of 2022 is estimated to be around 5.8 million. As if this is not enough, it is estimated that the state will grow to approximately 8.7 million residents by 2050.
Related: Colorado Housing Market Forecast 2022
Tourism in Colorado
Tourism is huge in Colorado, and it’s the ideal summer vacation site for travelers, primarily because of its amazing landscapes and natural beauty. In 2019, 86.9 million tourists visited Colorado and spent an average of $24.2 billion. Due to this influx of tourists every year, households in Colorado save up to $707 in taxes annually.
Every city in Colorado has its unique offerings and charm to entice tourists. That is why you must find good vacation rentals for sale in Colorado to accommodate the large number of tourists coming in year after year.
Vacation Rental Regulations in Colorado
The Colorado legislature passed a bill allowing counties the authority to start licensing short-term rentals in 2020. Some of these counties, among others, include Eagle County, Hinsdale County, and Larimer County. The bill states that If you want to host your property on Airbnb, you need a short-term rental business license.
Short-term rentals can typically be defined as houses rented out for less than 30 days. Therefore, some areas have decided to add restrictions like occupancy and parking limits. Also, if you have your license to rent, you must renew it after two years. You must also provide proof of insurance, and there must be someone around who will be available in case of emergencies.
Some areas hire companies that monitor short-term rental properties to ensure that they comply with the rules and regulations.
How to Find Vacation Rentals for Sale in Colorado in 3 Steps
Finding vacation rentals for sale in Colorado is easy, especially if you have the right tool. Below are three steps you can take to find the best vacation rentals in Colorado.
1. Know the Type of Property You Want
Colorado is home to plenty of short-term rental properties. Plus, they come in different types, shapes, and sizes. Also, these properties are beautiful to the eyes and alluring to the pockets, especially when you know how much income they bring in monthly. Therefore, it is easy to get confused about the type of property you want to buy.
Knowing precisely what you want is vital in your search for vacation rentals. Do you want a villa, a bungalow, an apartment, a condo, a cottage, or a combination of two or more? Knowing what you want will save you many weeks or months of agonizing through properties.
Mashvisor provides a tool that can help make finding a good rental property for sale in Colorado easier. All you need to do is use its Property Finder tool. Enter the state you want and the number of bedrooms and bathrooms, and let the tool find the best properties on sale.
2. Research the Market
Now that you know the type of property you want, it is time to figure out how much the property brings in every month. Also, take note of the median property price, the cash on cash return rate, and the monthly rental income. It will be wise to know the city where this type of property flourishes more; it is the best place to look for properties that are for sale.
The population growth rate of the city should also be noted. First, you want to ensure that the city has a healthy number of people living there and that it is attractive to vacationers. It will be disappointing to find the property of your dream only to realize that tourists refuse to visit that city, thereby causing you to lose money.
Mashvisor can provide specific data about the neighborhood of the property you want. It will show you whether the neighborhood is worth investing in or not. This is accomplished by showing you the cash on cash return of the neighborhood, its occupancy rate, the average rental income of the neighborhood, and its median rental rate.
3. Understand the Short-Term Rental Regulations
Before you buy the property you want, ensure that you are aware of the state’s short-term rental regulations and fully understand what is required of you. In Colorado, every investor must obtain a short-term rental business license before renting out a property. The license is $200; it is non-refundable, non-transferable, and should be renewed every two years.
You will need certain documents before you can rent out your property; they include proof of voter registration, driver’s license, utility bill, tax returns, and car registration. You will also need to provide your proof of insurance coverage. Do not forget your proof of ownership of the property.
Related: Short-Term Rental License: What Real Estate Investors Need to Know
4. Use Mashvisor
After obtaining all the information you need, insert them into Mashvisor’s Property Finder tool, and you will be shown excellent properties that match your preference. Go through the properties and pick the one that suits you best.
Research the real estate market in your preferred location and use Mashvisor to find the best vacation rentals for sale according to your preferences.
6 Things to Consider When Finding Vacation Rentals for Sale in Colorado
Before you start looking for vacation rentals for sale in Colorado, there are six major things you must consider, including:
1. Price of the Property
The price of vacation rental properties in the mountainside differs from property prices in other locations. And because Colorado is home to beautiful skiing mountains, the price tag on these properties on sale is not cheap. It is not all gloom and doo; there is a bright side. You get to price your rent high.
Even though the price of these properties is on the high side, you can still find affordable properties on sale because there are motivated sellers everywhere, even in Colorado. Note that condos are usually cheaper than single-family homes, except on rare occasions when the condos have beautiful mountain views.
The average price of condos in Colorado is $565,000, while that of a single-family home is $1,097,500. Also, note that property on sale with a clear view of the Colorado mountains will cost around 20% and 30% more than the same property without a view. When you use Mashvisor’s property finder tool, you will see how much each property costs.
2. Average Monthly Rental Income
The only reason you are looking at properties on sale in Colorado is to rent them out and make some money, right? Then, you must look into the average rental income of the properties in Colorado. It will give you an estimate of how much the property makes every month. With the rental income information, you can decide whether to buy the property or not.
A vacation rental property in Colorado would not only serve as a great vacation destination, but it will also make you a decent sum of money monthly, especially if you own a property in areas like Keystone, Breckenridge, and Copper Mountains. It is because these places are packed from November to April, and also, from June to August.
You can also use a tool like Mashvisor to help you discover how much monthly rental income the property will earn. Mashvisor’s neighborhood analysis tool will also check to see how much income rentals in an area bring in monthly. It accurately estimates how much your property will earn every month.
3. Location
Since you’re looking at rental properties for sale in Colorado, understand that most of your renters will be vacationers. Therefore, keep them in mind when looking for rental properties to buy.
For instance, Keystone is mainly for families, and the majority of its facilities are geared toward families and kids. Therefore, if you want to rent your property solely to families, check out properties for sale in Keystone.
If you are looking to rent out to skiers, Breckenridge is where you should find properties for sale. The city offers an incredible skiing experience to vacationers, in addition to various shopping and dining options.
4. Laws and Regulations
Before you buy a property, you must be conversant with the laws and regulations governing investors. Some places in Coloradlimiton how many days you can rent out your property, especially if it is for a short-term rental. Also, know whether short-term rentals are allowed in the area you are looking at.
It will be a waste of money if you buy a property and discover that you cannot rent it out. You will be forced to sell. Plus, you will be fined for illegally renting out your property. It is not worth the hassle.
5. Maintenance Costs
Every property will need maintenance at some point. You should budget some money for this purpose. If you live far from your vacation rental property, it might take you a long time before you get to the property, especially when there is an emergency. Plus, check to see if the maintenance cost on a property is high. If it is, it might be better to keep searching.
Mashvisor can help you know the estimated amount you will spend on maintenance monthly. It does so by analyzing the property and its neighboring properties and accurately estimating how much it will cost you to maintain.
6. Marketing Strategy
Marketing strategy is the most important aspect of owning a vacation rental property. You may do all the right things but still have no one showing up to rent your property. It is because you have failedto market the property properlyy. How can you properly market your home so that more tourists come to you? Mashvisor.
As a leading real estate platform in the US, real estate investors use Mashvisor’s platform to list their properties. You should do the same so that when vacationers are looking for a place to stay in Colorado, your property will be shown to them. All you have to do is list the property on Mashvisor, and it will show that property to millions of Americans annually.
Related: 4 Tips to Improve Your Airbnb Marketing Strategy
10 Best Cities in Colorado for Vacation Rentals
Below are the 10 best cities to find vacation rentals for sale in Colorado with the highest Airbnb cash on cash return, based on Mashvisor’s data for August 2022.
1. Broomfield
- Median Property Price: $638,000
- Average Price per Square Foot: $267
- Days on Market: 42
- Monthly Vacation Rental Income: $4,361
- Vacation Rental Cash on Cash Return: 5.26%
- Vacation Rental Cap Rate: 5.98%
- Vacation Rental Daily Rate: $217
- Vacation Rental Occupancy Rate: 78%
- Walk Score: 33
2. Colorado Springs
- Median Property Price: $455,000
- Average Price per Square Foot: $199
- Days on Market: 47
- Monthly Vacation Rental Income: $3,156
- Vacation Rental Cash on Cash Return: 4.32%
- Vacation Rental Cap Rate: 9.91%
- Vacation Rental Daily Rate: $181
- Vacation Rental Occupancy Rate: 81%
- Walk Score: 36
3. Grand Junction
- Median Property Price: $412,500
- Average Price per Square Foot: $224
- Days on Market: 47
- Monthly Vacation Rental Income: $2,644
- Vacation Rental Cash on Cash Return: 3.93%
- Vacation Rental Cap Rate: 7.17%
- Vacation Rental Daily Rate: $150
- Vacation Rental Occupancy Rate: 77%
- Walk Score: 32
4. Wheat Ridge
- Median Property Price: $730,000
- Average Price per Square Foot: $448
- Days on Market: 36
- Monthly Vacation Rental Income: $4,167
- Vacation Rental Cash on Cash Return: 3.56%
- Vacation Rental Cap Rate: 4.34%
- Vacation Rental Daily Rate: $215
- Vacation Rental Occupancy Rate: 80%
- Walk Score: 45
5. Lakewood
- Median Property Price: $595,000
- Average Price per Square Foot: $299
- Days on Market: 36
- Monthly Vacation Rental Income: $3,484
- Vacation Rental Cash on Cash Return: 3.49%
- Vacation Rental Cap Rate: 6.48%
- Vacation Rental Daily Rate: $135
- Vacation Rental Occupancy Rate: 63%
- Walk Score: 43
6. Denver
- Median Property Price: $499,000
- Average Price per Square Foot: $315
- Days on Market: 56
- Monthly Vacation Rental Income: $2,585
- Vacation Rental Cash on Cash Return: 3.12%
- Vacation Rental Cap Rate: 8.10%
- Vacation Rental Daily Rate: $178
- Vacation Rental Occupancy Rate: 81%
- Walk Score: 61
7. Fort Collins
- Median Property Price: $574,900
- Average Price per Square Foot: $261
- Days on Market: 36
- Monthly Vacation Rental Income: $3,318
- Vacation Rental Cash on Cash Return: 3.02%
- Vacation Rental Cap Rate: 8.10%
- Vacation Rental Daily Rate: $190
- Vacation Rental Occupancy Rate: 75%
- Walk Score: 37
8. Glenwood Springs
- Median Property Price: $829,000
- Average Price per Square Foot: $359
- Days on Market: 49
- Monthly Vacation Rental Income: $4,269
- Vacation Rental Cash on Cash Return: 3.00%
- Vacation Rental Cap Rate: 7.24%
- Vacation Rental Daily Rate: $258
- Vacation Rental Occupancy Rate: 79%
- Walk Score: 70
9. Aurora
- Median Property Price: $485,000
- Average Price per Square Foot: $266
- Days on Market: 37
- Monthly Vacation Rental Income: $2,722
- Vacation Rental Cash on Cash Return: 2.92%
- Vacation Rental Cap Rate: 6.77%
- Vacation Rental Daily Rate: $158
- Vacation Rental Occupancy Rate: 77%
- Walk Score: 43
10. Boulder
- Median Property Price: $944,950
- Average Price per Square Foot: $637
- Days on Market: 39
- Monthly Vacation Rental Income: $5,415
- Vacation Rental Cash on Cash Return: 2.67%
- Vacation Rental Cap Rate: 8.31%
- Vacation Rental Daily Rate: $262
- Vacation Rental Occupancy Rate: 83%
- Walk Score: 56
Click here to start searching for profitable Airbnb rental investment properties for sale in Colorado.
The Best Tool to Find Vacation Rentals for Sale in Colorado
Colorado is a vacation haven for many people in the US. That is because of its gorgeous landscape and the variety of outdoor activities it offers. Therefore, as a savvy real estate investor, you should look to own a vacation rental in the state. Plus, the rental income you will earn from your vacation property can be substantial.
Even though Colorado is attractive to tourists and investors, owning a terrible property in a terrible location can make you lose money. It is important to know how to find vacation rental properties listed for sale and what to consider when looking for such properties. Also, It is important to know the best cities to find profitable vacation rental properties.
Mashvisor can help you find lucrative vacation rentals for sale in Colorado with its Property Finder tool. Type in the city where you want your property to be located and the tool, which uses artificial intelligence, will find the best properties in your preferred location. The tool will also show you whether the property and its neighborhood will be profitable.
