But the rules changed enough over the last few years that a spreadsheet built on older assumptions will quietly lie to you. Most of the risk here is regulatory, not market.

What to know

Four things worth knowing first.

Long-term rentals require a licence

Denver requires a residential rental licence for essentially all long-term rentals, and it comes with an inspection. Operating without one carries real penalties, and it is the first thing to verify on any property you are considering.

Short-term rental rules are the big trap

Inside Denver city limits, short-term rentals are limited to your primary residence. Surrounding municipalities differ sharply from each other. This is the single thing investors most often get wrong, and it can invalidate an entire thesis.

Underwrite taxes on current values

Colorado’s property tax treatment has been revised repeatedly. Use current assessed values and current rates — the seller’s older tax bill will understate what you will actually pay.

Rent growth is uneven across the metro

Pockets near transit and employment centres behave very differently from the outer ring. A metro-wide average is not a useful input for a specific address.

Before you commit

Three questions to ask.

Is this property licensed, and would it pass inspection as it stands today?

What are the actual expenses for the last twenty-four months — not the pro forma?

What is the short-term rental rule in this specific municipality, not the metro generally?

Who can help

Agents who work this specifically.

Every inquiry goes directly to the agent you pick — it is never shared, scored, or sold on.

JO

Jide Okafor

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Aurora & East Investment Multi-Family

Specialties are stored as real fields, not adjectives — which is exactly why an assistant can match this agent to “a Denver agent who knows small multi-family.”

Common questions

Investment property in Denver — the questions people actually ask.

Do I need a licence to rent out a property in Denver?

Yes. Denver requires a residential rental licence for essentially all long-term rentals, including an inspection. Verify a property’s licence status before you buy rather than after.

Can I buy a Denver property purely to use as a short-term rental?

Not within Denver city limits, where short-term rentals are restricted to your primary residence. Surrounding municipalities set their own rules, so the answer depends entirely on the specific address.

How should I underwrite Colorado property taxes?

On current assessed values and current rates, not on the seller’s existing tax bill. Colorado’s assessment treatment has changed repeatedly in recent years, and an old bill can materially understate your carrying cost.

Other situations

Looking for something else?