And Why Renting Still Makes Sense
Estimated Read Time: 5 minutes
Key Takeaways:
- Even if your current rent feels low, renting still offers long-term benefits like appreciation, tax advantages, and cash flow.
- Strategic updates, rent adjustments, and alternative leasing models can improve returns.
- Selling may not be the best move—especially if you’re positioned to benefit from future market growth.
- Working with a property manager can help you optimize performance without the overwhelm.
If you’re a property owner in Colorado and feel like your rental income isn’t keeping up with the market—or your rising expenses—you’re not alone. With fluctuating conditions and economic pressure, many landlords are asking the same question: Is it still worth renting out my property?
The answer? Yes, it is.
Here’s why—and what you can do to make the most of your rental even when numbers feel tight.
Why Renting Still Makes Sense
Despite market challenges, renting offers consistent long-term advantages:
Property Appreciation: Colorado real estate values continue to grow over time.
Tax Benefits: Mortgage interest, repairs, depreciation, and property taxes can all be deductible.
Cash Flow Offset: Even modest rent helps cover your costs.
Flexibility: Keep the property until the market improves, or sell when the timing is right.
Market Cycles Are Temporary: Rates may be soft now, but demand in key areas remains strong.
1. Adjust Rent to Market Rates (Legally)
Colorado allows landlords to raise rent—there’s no statewide rent control—but you must follow legal requirements:
Rent increase under 10% = 30-day written notice
Rent increase 10% or more = 60-day written notice
Limit: You can only increase rent once every 12 months
Make sure your rates are competitive. A rent analysis or help from a property manager can ensure you’re not leaving money on the table.
2. Upgrade Strategically
You don’t need a full remodel to justify a rent increase. Targeted, cost-effective improvements often lead to better residents and higher income:
- Updated appliances
- Fresh paint and modern flooring
- Minor kitchen or bathroom upgrades
- Improved landscaping or curb appeal
These changes can reduce vacancy and increase your property’s perceived value—boosting rent naturally.
3. Explore Alternative Rental Models
If traditional leasing isn’t yielding strong returns, consider switching things up:
- Mid-term rentals (30–90 day furnished stays for traveling professionals)
- Corporate housing for business travelers
- Room-by-room student rentals near universities
- Short-term vacation rentals (where permitted)
Each strategy has trade-offs but can increase your income dramatically if aligned with your property and location.
4. Work with a Property Manager
A property manager can help you:
- Accurately price your rental
- Reduce vacancy through stronger marketing
- Screen better residents
- Coordinate cost-effective maintenance
- Stay legally compliant
Even with a management fee, owners often end up ahead—especially when time and stress are factored in.
5. Think Twice Before Selling
Selling may seem tempting if rent is underwhelming, but ask yourself:
- Will you lose out on future appreciation?
- Are you selling in a buyer’s market?
- How much will you owe in capital gains?
- Where else would you invest that performs better?
Keeping the property rented allows time for the market to bounce back while your asset continues working for you.
6. Stay Legally Compliant
Make sure your operations follow Colorado law:
- Use proper notice periods for rent increases
- Follow lease terms closely
- Abide by fair housing laws
- Stay current on local rental licensing or inspection requirements
Consulting with a professional can protect you from costly mistakes.
Final Thoughts
If your rent feels too low right now, don’t panic—and don’t sell just yet. The Colorado rental market is still a solid long-term investment. With some strategic tweaks, your rental property can deliver more value than you might think.
Still unsure what to do next? Reach out to our team—we’re happy to review your property’s performance and help you map out your next best move.
