If you’re moving, upsizing or relocating, you might wonder whether to keep your Denver home as a rental instead of selling. Sometimes renting builds long-term wealth; other times selling is the clear winner. Here’s how to think it through.
Step 1: Run the real rental numbers
Start with a realistic monthly rent for your home, then subtract every cost:
- Mortgage principal and interest
- Property taxes and landlord insurance
- HOA dues, if any
- Repairs and maintenance (plan for surprises)
- Vacancy between tenants
- Property management, typically a percentage of rent if you don’t self-manage
If the result is close to zero or negative, you’re relying on appreciation to make renting worthwhile.
Step 2: Compare it with what selling gives you
Selling turns your equity into cash you can use for your next home, investments or paying down debt. Get a free home valuation and estimate your costs to sell to see your likely net proceeds.
Step 3: Think about taxes
If the home has been your primary residence, you may qualify for the federal capital gains exclusion on a sale, but that eligibility depends on how long you’ve lived in it, and renting it out for several years can affect it. Rental income and depreciation also change your tax picture. Talk with a CPA before deciding.
Step 4: Be honest about being a landlord
Being a landlord means screening tenants, handling repairs and following Denver and Colorado rental rules, which include licensing requirements for many Denver rentals and tenant protection laws. A property manager can take this on, at a cost.
When renting often makes sense
- You have a low mortgage rate and strong positive cash flow
- You may move back to Denver within a few years
- You want a long-term investment and are comfortable being a landlord
When selling often makes sense
- You need the equity for your next home
- The rent wouldn’t cover your costs
- The home needs significant work before it could be rented
- You don’t want the responsibility of tenants
Get both numbers side by side
We can give you a market value for selling and a realistic rent estimate, so you can compare the two with your CPA. Call or text Adrienne at (303) 597-8720.
General information only, not tax or legal advice.