Thornton is the fastest growing suburb of Denver and currently the sixth most populous city in Colorado. The recent increase of people moving to Thornton has sparked a ton of new development and addition of amenities. Some of the best amenities are the Carpenter Recreation Center, The Denver Premium Outlets and Orchard Town Center.
Thornton is also well-known for it’s outdoor space including playgrounds, dog parks, skate parks and extensive trail systems.
There are many reasons why Thornton is an excellent place to invest in real estate, including the average price of a home is lower than many Denver suburbs. Older homes tend to be single family builds, but with the increase of population has increased the demand for apartments, townhomes and other multi-family options.
Short-term rentals are permitted in the city of Thornton only at primary residences following specific guidelines.
Licenses are required to operate a short-term rental. The annual fee to obtain a STR license is currently $180. Operators must also submit lodging tax to the city.
Residence are able to use all or part of their property for a STR, meaning they can rent the entire house, a room or an ADU.
Number of STRs an owner can occupy
Cost for a STR license
A perfect middle ground between the income potential of a short-term rental and the stability of a long-term rental. Mid-term rentals are furnished units that are rented to guests for 30+ days. People who seek out mid-term rentals are traveling nurses and professionals on temporary assignment or people displaced from their homes for a duration of time. It’s become a popular investment strategy because in many areas, like Thornton there is no rental license required. Use services like AirDNA to calculate what your potential rents could be.
Year over year increase in MTR nights sold
No license required for rentals
The “rent by the room” investment strategy involves renting out individual rooms within a single property, such as a house or apartment, rather than leasing the entire unit to a single tenant. This approach has gained traction as it allows investors to maximize rental income by catering to multiple tenants simultaneously. Each tenant pays for their designated room and shares common areas like kitchens and living rooms. This is a popular strategy among house hackers who choose to rent out the rooms in the house they are living in. In Thornton you’re legally able to house 6 unrelated people in one rental unit.
Average Room Rent
Primary Room Rent
Long-term rentals are a smart strategy for a more hands-off approach and a buy and hold mindset. In an appreciating market, like Thornton, if the property’s rent can cover the mortgage, plus an additional 10% for vacancies and repairs, then you’re property is increasing in value the longer you hold it. Check out the latest rent estimates on Rent-O-Meter or Zillow to see what your property might get for rents.
Avg. Rent 3 bed / 2 bath
Avg. Rent 2 bed / 1 bath
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