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Is Your Denver Rental Still Worth It?

  • Writer: Barb Dittert
    Barb Dittert
  • Feb 6
  • 2 min read

Owning a rental property can be a great investment, but in Denver’s evolving market, it’s important to assess whether your rental is still a smart financial move. Rising costs, shifting regulations, and changing tenant demands all impact profitability. Here’s how to evaluate your investment and determine the best next steps.

Assessing Your Cash Flow

A profitable rental should generate positive cash flow. To evaluate yours, calculate:

  • Gross Rental Income: Total rent collected per year.

  • Operating Expenses: Mortgage, taxes, insurance, maintenance, and property management fees.

  • Net Cash Flow: Subtract operating expenses from rental income.

If your cash flow is negative or minimal, it may be time to consider other options.

Understanding Market Trends

Denver’s rental market fluctuates based on supply, demand, and economic factors. Key indicators to monitor include:

  • Rental Vacancy Rates: High vacancies may indicate an oversaturated market.

  • Rent Growth Trends: Are rents rising, stabilizing, or declining in your area?

  • Home Values: If property values have significantly increased, selling could yield better returns than renting.

Evaluating Maintenance and Upkeep Costs

Older properties often require more repairs, impacting profitability. Consider:

  • Age of Major Systems (roof, HVAC, plumbing, electrical).

  • Frequency of Tenant Repairs & Turnover Costs.

  • Projected Maintenance Costs Over the Next 5 Years.

If ongoing maintenance is becoming a financial burden, selling might be a strategic decision.

Reviewing Denver’s Regulatory Environment

New laws and regulations impact landlord expenses and responsibilities. Recent updates include:

  • Rental Licensing Requirements.

  • Tenant Protection Laws & Eviction Restrictions.

  • Potential Future Rent Control Measures.

If compliance is becoming too costly or time-consuming, offloading the property could be beneficial.

Considering Alternative Investment Opportunities

Is your rental property the best use of your capital? Compare returns with other investments:

  • Stock Market & REITs (potentially higher liquidity and passive income).

  • 1031 Exchange into a Different Property (to defer taxes and upgrade investments).

  • Passive Real Estate Investments (investing in syndications or funds instead of direct ownership).

Weighing Your Selling Options

If your rental property is no longer the right investment, selling could be a practical move. There are two main ways to sell:

  • Selling on the MLS: Listing with a real estate agent can maximize sale price but may take longer, require repairs, and involve commissions.

  • Selling Off-Market: A direct cash sale can be faster, with no need for repairs, showings, or contingencies.

Each option has pros and cons, depending on your timeline, financial goals, and willingness to navigate the traditional market.

What Are Your Next Steps?

If your rental is no longer a strong investment, you have options:

  • Improve Management with a professional property manager.

  • Renovate & Increase Rents if the market supports higher pricing.

  • Sell Off-Market for a hassle-free, fast cash sale.

  • List on the MLS to maximize sale price if you have the time and resources.

If you’re unsure about your rental’s future, we can help you evaluate your options with no pressure—just expert insights. Contact us today!


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