Denver is alive with residential real estate, and not just in the traditional ways. Along with the usual ebb and flow of homeowners buying and selling homes is a variety of investment homeownership options that go above and beyond what you might expect. For buyers in the market for an investment property home, there are actually four different leading options for how you can put a condo, duplex, or single-family home to profitable and rewarding use.
These four investment home options include:
- Traditional Long Term Rentals
- Airbnb Vacation Rentals
- Student Housing
- Corporate Housing
While you can choose to do any of these four things with a home you already own, you’ll likely see better results if you choose your investment style first and then select a home that perfectly suits your plans. Let’s take a closer look at the four ways to make great use of a Denver investment home:
1) Traditional Long-Term Rental
- Unfurnished
- 1-2 Year Lease
- Predictable and Stable
Traditional rentals are what you likely are most familiar with. The owner takes the role of a landlord and rents out the home to a person, couple, or family to use as their primary residence. Leases average at about a year long with a high chance of renewal year over year. The biggest challenge with traditional rentals is setting the rental rate correctly to cover all of your expenses, cover irregular maintenance and emergency costs, and turn a profit while also maintaining local competitive pricing.
In Denver right now, there is a high demand for family homes and traditional rentals, especially in quieter neighborhoods near schools and parks. Single-family homes make the best traditional rentals.
2) Airbnb Vacation Rental
- Beautifully Furnished
- Hospitality Hosting: Managed Like a Hotel Room
- Guest Frequency = Potential Profits
Airbnb opened up an entirely new world of investment home possibilities by popularizing and creating a widespread market for vacation rentals. Vacation rentals are managed like hotel rooms where guests book one night at a time, with a possibility of special weekly or monthly rates. If you always wanted to run a Bed & Breakfast or get into the hospitality business, this is a great way to get started.
Vacation rental hosts furnish each home, apartment, or condo like a tiny luxurious hotel room complete with beds, tables, chairs, TVs, bathroom amenities and kitchen supplies. You can then charge competitive nightly rates and welcome nightly or weekly guests from all over the world. Denver is a high-demand region with a constant customer base for traveling and local Airbnb guests.
3) Fast-Turnover Student Housing
- Minimally Furnished
- 6 Month – 1 Year Lease
- High Demand
- First Time Renters
- Roommates & Subletting
Student housing is another great alternative for your investment home properties, particularly homes and apartments nearby a Denver college campus. There is never a shortage of students who need housing near campus or close enough to drive if they drive themselves. Renting to students can be exciting and is much faster-paced than traditional renting, though it is handled in much the same way. Students benefit from minimal furnishings like beds and mattresses, tables, and chairs but do not need amenities like towels or kitchen supplies.
SPECIAL REQUIREMENTS
The thing to remember about students is that they have special housing requirements and complications. Many are first-time renters who may need some help with on-time payments or normal maintenance. Students must also live based on the semester schedule and are often gone during holidays and summer breaks. They may benefit from 6-month leases though some will stay in one place for all 4 years of school. They also sublet frequently and need to switch out roommates on a regular basis. So if you’ve got a property near a college and are looking for adventure, consider specializing in student housing.
4) Professional Corporate Housing
- Professionally Furnished
- Lease Depends on Business Partnerships
- Quiet Well-Behaved Guests
Finally, there’s corporate housing. Corporate housing is specifically designed and marketed for professionals on business trips or who must temporarily live in a city away from home for work purposes. Corporate housing can be booked by the traveling professional themselves or booked by a company on their behalf.
Corporate housing properties should be furnished like business hotel rooms with all the basics and plenty of available outlets. You can choose to partner with a corporate housing network, management company, a specific business, or use vacation rental platforms targeting corporate travelers. Corporate guests are usually quiet, well-behaved, and spend most of their time either at a desk or away at work.
Learn More About a Denver Investment Home
Which type of Denver investment property is right for you? It all depends on how you want to make your profits and what kind of involvement you would enjoy most as a landlord, host, or student rental mentor. Contact us today to find out more about how each Denver residential property could be put to it’s best use as a traditional rental, vacation rental, student housing, or corporate housing.
