Why Should I Purchase a Rental Property in Boulder, CO
If you are thinking about purchasing rental property in Boulder, CO, your first step is to research the area to see if it fits your investment strategy. Making a smart, informed decision starts by looking at the right data and having an experienced Boulder, CO property manager as a part of your team.
As an investor, it is important to ensure the property you purchase is going to give you the type of return that aligns with your strategy and goals. This could be cash flow, appreciation, or both. How is the real estate market in the city? What are the growth trends? The data will help you decide if the market fits in your real estate investment plan.
About Boulder, CO
Located just half an hour from Denver, Boulder offers its residents rich cultural events, outdoor activities, and thriving businesses that include tech startups. The city offers over 200 miles of hiking and biking trails with scenic views of the Rocky Mountains. Boulder is home to the University of Colorado with over 30,000 students.
- Population: 106,271
- Median age: 29
- Median household income: $64,183
- Cost of living is higher than the national average
- #1 Small Metro Areas for Teleworking
- #17 Mid-size Cities, Most Secure US Places
- Happiest City in the US – National Geographic
Boulder real estate
- Average home value: $738,400
- 6.1% appreciation in the past year
- 70.3% appreciation over the last 10 years
The average home value in the area is high, but there is a wide range in home prices available in the area. Being a college town, a good portion of the more affordable units available are apartments.
Industry and Economy in Boulder
- 2.66% current job growth (above the national average)
- 44.4% future job growth (above the national average)
- 2.3% unemployment rate (below US average)
Boulder has diversity when it comes to the industries that support its economy, and the University of Colorado supplies the area with a highly educated workforce. There are a high number of jobs in industries such as aerospace, bioscience, cleantech, and IT/Software. The Bioscience industry in particular stems from the ongoing research conducted at the university. Boulder is home to numerous startups contributing to the growing tech industry in Colorado.
Almost a third of the population are students at the University of Colorado. If student housing is part of your strategy, this may be a market that offers opportunities for you. Boulder offers a wide variety of housing units at multiple price points. Run the numbers on several types of units to determine if cash flow or appreciation potentials meet your goals.
A Boulder property manager knows the rental market in the area. They know which areas are best for purchasing rental property and can be an important addition to your team.
How to Accurately Set Rent for my Boulder, CO Rental Property
As an investor it is important to limit the time your property sits vacant. Pricing your rental correctly helps reduce the time on market. Your rent rate should be comparable with similar properties (size, number of bedrooms, etc) for rent in the area.
When determining your rent rate, you want to look at the city statistics. Is the city growing? You also want to look at the property types in the area. Offering a type of home people are looking for can also affect the rent rate. Since one third of the population are students, are more people looking for apartments? These are some of the statistics you need consider.
Rental Statistics in Boulder, CO
- $1,725 for a 2-bedroom house
- $2,420 for a 3-bedroom house
- Days on market: 47 days
- Occupancy rate: 93.7%
The data shows that properties are renting quickly in the area and stay occupied. That’s good news if you own investment property in Boulder. It is important to know what the days on market is so you can budget for the vacancy time.
- 57% renter-occupied
- 42% owner-occupied
Because a large percentage of the population are university students, there is a high demand for rentals in the area. Whether you are looking to offer student housing or rentals for families, there may be opportunities for you in the Boulder area. Student rentals vs family rentals are different strategies, and you will want to run the numbers to see what type of unit offers the returns you are looking for.
Why Should I Hire a Property Management Company in Boulder, CO
When deciding whether to self-manage or hire a property management company in Boulder, what should you take into consideration? Most people purchase rental property for the passive income and aren't looking to take on a second job. Time is a big consideration. How valuable is your time?
If you self manage the property, not only will you need to take care of the day to day operations but you must comply with laws and regulations. Each step in the leasing process must comply with laws. This means you are going to be spending a significant amount of time keeping up with the every-changing local, state, and federal laws that apply to your rental property. If you hire a property manager, their job is to ensure your property is compliant.
What does a Boulder property management company do for you?
The primary benefit of hiring a management company is they will take care of the operations portion of your investment business and ensure you are complying with laws.
Operational tasks include:
- Getting the property rent ready and up to code
- Marketing and advertising the rental property
- Leasing process and enforcement
- Collecting rent and evicting when necessary
When you have a property manager, you no longer have to deal with middle of the night emergency maintenance calls. Are you trying to manage a rental property remotely? For out of town owners, it is peace of mind that someone local is there to handle emergencies.
Typical maintenance issues in the area include:
- Adding caulk or weather stripping to doors and windows
- HVAC filter replacement
- Water heater draining
- Air conditioning inspection and cleaning
Laws and Regulations
Each step in the rental process may have laws and regulations that apply to it. For example, there are things you cannot ask on an application without violating a Fair Housing or discrimination law. At Mynd, we have in-house counsel to ensure that our processes and procedures comply with the law.
A few examples of laws and regulations that would apply to your Boulder rental:
- Tenants not withholding rent until repairs are complete.
- A rental license is required for the occupancy of any residential rental property inside the City of Boulder.
- All rental properties in the city of Boulder must conform to Boulder’s Property Maintenance Code.
A property manager knows how to handle issues like these and has access to volume discounts with quality vendors. Their job is to ensure your tenant is safe, your property is cared for, and laws are complied with.
Ready to hire a property manager?
How much is your time worth? Property management might cost less than you think for the peace of mind and time savings that it provides. Mynd offers three tier pricing for Boulder Property Management services so you can select the level of service that fits your needs. Mynd is ready to be your valued partner in over 19 markets.
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In the meantime, learn more about ways to start with a smaller downpayment here.