Thinking about turning your New Castle property into a long-term rental? You are not alone. Many owners want steady income without the daily churn of short-term guests. In this guide, you will see why long-term rentals fit New Castle, what current Colorado laws mean for you, and the simple steps to launch with confidence. Let’s dive in.
Why long-term rentals fit New Castle
Steady local demand
New Castle is a small, close-knit town with a population around 4,900, which supports a consistent, year-round renter base. You see a majority of homes owner-occupied, with about 70 to 76 percent owner-occupied and roughly 23 to 25 percent renter-occupied, and vacancy that tends to be low around 4 to 5 percent. These figures point to healthy demand and limited supply for quality rentals. Local employment in healthcare, schools, government, and services across Garfield County helps keep leases stable. You can review town and county context through the Town’s demographics page and county economic resources, such as the New Castle demographics page and Garfield County’s economic development overview.
- Town context: New Castle demographics
- County economy: Garfield County economic development
- Occupancy snapshot: ZIP 81647 housing stats
Rents that support stability
Recent marketplace snapshots show average asking rents near $2,400 as of October 1, 2025, with a small number of active listings at any given time. Because New Castle is a small market, averages can swing with only a few listings, so verify live comps before you set your price. Still, that level supports predictable monthly cash flow when paired with careful screening, solid maintenance, and smart renewals. See the latest snapshot here: New Castle rental market trends.
STR upside is limited here
Short-term rentals exist, but New Castle is not a high-volume resort town. The Town requires a 5% lodging tax on stays under 30 days, and county rules apply for properties in unincorporated areas. Between tax compliance, frequent cleaning, guest turnover, and marketing, many owners find the incremental income does not outweigh the added workload compared with a year-long lease. Learn more about the Town’s lodging tax and the county’s short-term rental guidance.
What Colorado law means for landlords
Colorado updated several landlord-tenant laws that shape how you lease long term. Plan your documents and operations around these points:
- SB23-184, effective Aug 7, 2023. Adds tenant protections that affect screening and some deposit practices. See the bill page: SB23-184.
- HB24-1098, effective Apr 19, 2024. Introduces “for-cause” nonrenewal rules in many situations, so you need a qualifying reason not to renew a tenancy. Read more: HB24-1098.
- SB24-094 habitability updates, effective 2024–2025. Strengthens tenant remedies, expects landlords to begin remedial action within 72 hours for certain conditions, and requires new habitability statements in rental agreements starting Jan 1, 2025. Overview: Colorado Lawyer feature on 2024 changes.
- HB25-1249, effective Jan 1, 2026. Updates security deposit rules and clarifies “normal wear and tear.” Plan to adjust deposit policies before the effective date. Summary: DRE HB25-1249 overview.
Bottom line: update your lease, notices, screening criteria, deposit policies, and repair workflows to stay compliant.
Numbers and operations to plan
Income and vacancy
Long-term rentals tend to deliver consistent monthly income with fewer vacant days than a short-term strategy in a non-resort town. With a stable local workforce and limited rental inventory, well-maintained units usually lease quickly when priced to the market. Reduce vacancy by starting renewals early and offering fair, predictable increases.
Costs to budget
Build a simple pro forma before you list. Typical costs include:
- Property taxes and insurance
- Routine maintenance and emergency repairs
- Utilities you include in rent
- Property management fees if you do not self-manage
- Compliance and habitability response costs
A practical rule is to set aside 5 to 10 percent of gross rent for ongoing maintenance and admin, plus a separate reserve for capital items like roof or HVAC.
Management approach
Decide if you will self-manage or hire a local property manager. Many owners choose professional management for tenant placement, inspections, 24-hour repair coordination, and compliance. For long-term management, fees often range from 6 to 12 percent of monthly rent, with separate leasing fees. Factor this into your pricing.
STR vs LTR at a glance
- Long-term rentals: steadier income, fewer turnovers, simpler compliance cadence, and a tenant base tied to local employers.
- Short-term rentals: potential for higher gross in peak periods, but more operational work, a 5% lodging tax for stays under 30 days, required local compliance, and more frequent wear and tear.
Your step-by-step plan
- Verify restrictions. Confirm mortgage covenants, investor guidelines, and any HOA rules about leasing before you market the property.
- Price with real comps. Pair a rent CMA with active local listings and the latest New Castle rent snapshot to set a competitive ask.
- Update documents. Use a current Colorado lease, add the required habitability statement, and align your deposit policy with 2026 changes.
- Choose management. Decide between self-managing and hiring a local property manager, and line up vendors for cleaning and repairs.
- Build a repair plan. Set budgets and response timelines so you can begin remedial action quickly when needed.
- List and lease. Market to local workforce renters, use a clear screening process that follows state rules, and target 12-month terms with renewal options.
Partner with a local advisor
You do not need to figure this out alone. With two decades of Roaring Fork Valley experience, Monica advises owners from Aspen to New Castle on pricing, leasing strategy, and compliance. If you are considering a long-term rental, connect with Monica Viall to review your numbers, local demand, and the steps to launch smoothly.
FAQs
Why are long-term rentals attractive in New Castle?
- You benefit from steady local demand, low vacancy, and a renter base tied to year-round employers, which can mean fewer turnovers and more predictable cash flow.
How much rent can I charge in New Castle right now?
- Recent snapshots show average asking rents around $2,400 as of Oct 1, 2025, but small-market data can swing. Verify against current comps and active listings before you list.
Are short-term rentals taxed differently in New Castle?
- Yes. Stays under 30 days in town are generally subject to a 5% lodging tax, and county rules apply in unincorporated areas. Compliance and turnover costs can erode short-term margins.
What recent Colorado landlord laws should I prepare for?
- Plan for for-cause nonrenewal rules, updated habitability requirements with quick repair timelines, and new deposit definitions taking effect Jan 1, 2026. Update your lease, notices, screening, and deposit policies.
Should I hire a property manager in New Castle?
- If you prefer hands-off operations or do not live nearby, a local manager can handle leasing, compliance, and maintenance. Budget for a typical long-term management fee in the 6 to 12 percent range.
