You've recently purchased an investment property. Your plan at the moment is to flip it and sell it. Might we suggest renting it instead?
There are several benefits of owning a rental property and not selling in Denver, Colorado. Find out what these benefits are by reading below!
1. The Ability to Make Money from It Far into the Future
When you sell a home that you flip, you only get paid once. Yes, it's a great deal of money. However, it doesn't offer a revenue stream.
When you rent out a home, on the other hand, you establish a steady stream of income. You charge monthly rent from year to year and are even able to raise the price of rent over time.
Over the long run, this results in much greater income than selling, especially in a popular area like Denver.
2. The Ability to Sell Down the Line
You may be able to sell your investment property for a lot of money right now. However, consider how much more you could sell for in, say, 20 years.
Since 2004, the average sale price for Denver homes has gone up from $260,000 to around $610,000. That's substantial growth over the span of just two decades and highlights the future growth potential of the Denver property market. Don't be surprised if Denver homes see similar cost growth over the next two decades.
3. A Place for You to Stay
Another benefit to owning a rental property is that you yourself could use it as a place to stay from time to time. This is particularly true if you're renting it out on a nightly basis, for instance, through Airbnb.
This would effectively give you a home away from home. You could move elsewhere and yet still vacation in Denver from time to time without having to pay for additional lodging.
4. You Don't Have to Do All the Work
You might want to sell your property to rid yourself of the responsibility of taking care of it. After all, managing a rental property takes a good deal of time and effort.
Fortunately, if you choose to use your property as a rental, you don't have to do all the work to maintain it. You can hire a property management company to help you.
A property management company will not only perform maintenance on the property, but it will also handle responsibilities like payment collection, tenant communication, and otherwise. Having someone else perform these tasks for you makes it much easier to own a Denver rental property.
And Those Are the Benefits of Owning a Rental Property and Not Selling in Denver, Colorado
And there they are, the benefits of owning a rental property and not selling in Denver, Colorado. As you can see, holding onto that investment and turning it into a rental property wouldn't be a bad idea.
Interested in doing so? Need property management services for a rental property in Denver? If so, we here at PMI Property Management are the ones to see.
Contact us now to discuss your property management needs!
