Listing your house for rent in Colorado is a great way to make money and still retain equity in ownership. You can opt for a long-term tenant to earn a consistent monthly income, list it on a short-term rental site to bring in money while you travel, or enjoy owning a vacation home without stressing about paying a mortgage on a property you visit only a few times a year. According to the IRS, 10.6 million Americans earn income from rental properties, and there are at least 17.7 million rental homes in the U.S. That statistic isn’t even considering the number of rental properties owned by corporations, but rather individuals like you and me, earning money by renting out a second home. If you’re thinking about buying a second home and wondering how to list your property for rent, keep reading to learn how to optimize your decision.
Determine Whether Your Area Caters to Renters
The first step to listing your property for rent is determining whether or not you can profit from being a landlord, which varies greatly depending on the rental market in your area, your mortgage payment, and the condition of your property. You can start by researching local rental and real estate market trends to see how much similar properties rent for and if that number offsets your mortgage. For example, in the Delta County real estate market, the median gross rent between 2016-2020 was $837 per month, whereas the average monthly homeowner costs were $1,285. Based on those numbers, renting out a single-family home in Delta County may not be profitable. However, renting out a specialty property, like a cabin on the Grand Mesa, may be a more profitable venture. According to AirDNA data, the average daily rate for a house near the Grand Mesa is $152, and the average occupancy rate is 77%, resulting in a revenue of $2,560 per month. Always get to know your local market before you decide how to list your property for rent.
How To List Your Property For Rent
Once you determine whether you want to rent your property on a short-term or long-term basis, you must select the best medium to advertise your listing. For short-term rentals, Airbnb and Vrbo are the two most popular websites/applications, allowing landlords a platform to post their listings and match them with potential tenants based on search criteria. You can also try some websites or apps to find a long-term tenant, such as Zillow or Facebook Marketplace. However, if you go this route, you may have to field a lot of irrelevant inquiries. The final option is to work with local real estate agents or property managers to help place tenants in your property. The caveat is that these professionals charge professional fees, so you must work those into your profit projections.
Unique Rental Property Ideas
Even if you don’t own a second home, there are plenty of other ways to capitalize on your local rental market. For one, if you own land, you can rent your land or a part of it to local farmers to keep their livestock or grow crops. Additionally, if you have an extra room in your primary residence, you can consider renting it out on a short-term basis to tourists who want a taste of the Western Colorado lifestyle. Finally, you could look into purchasing a commercial property instead. You may find a better deal, and Delta County’s commercial economy is growing. If you can own something that other people need, there’s always an opportunity to profit from it.
Finding a Suitable Rental Property in Delta County
Working with knowledgeable local real estate agents can help you find the perfect property with rental potential in Delta County. I own multiple residential, commercial, and pieces of land throughout Delta County, and each helps me profit in a different way. My associate brokers and me at United Country Real Estate Western Land & Lifestyle Properties, specialize in listing properties that cater to different lifestyles in Western Colorado, which also happen to be a big draw for potential renters. You can browse some of my active listings here, and feel free to reach out to me at 970-986-2955 for more questions about purchasing a rental property on the Western Slope.