Colorado Short-Term Rental

[Brian Fiorillo]

Good morning BP!

This question is targeted towards investors that have short-term rentals in the Crested Butte and Gunnison Colorado market.

I’m working on an off-market property that’s just off highway 135, midway between Crested Butte and Gunnison. I would be purchasing through a 1031 exchange from a property I’m selling in Denver, with the intent to hold as a short-term rental and post on AirBnb / VRBO. I’ve run my preliminary numbers on occupancy and nightly rates, but I’m curious what success others are having in the area. My du diligence shows it’s in an area that does not have any restrictions on nightly rentals.

Any insight would be greatly appreciated!

[James Carlson]

@Brian Fiorillo

I don't have any STRs in Crested Butte, but we have a lot of Airbnb investor clients near Denver, Colorado Springs and the surrounding front range mountain towns.

First off, you're right about the laws. I'm guessing your property is not actually in any city limits. It's in unincorporated Gunnison County, right? If so, Gunnison County is open to STRs. You just have to pay taxes on it. 

If you're looking at Crested Butte on AirDNA, it doesn't have great numbers as an area. But that's true for some other areas of Colorado where I see my short-term rental investors having success. There's always opportunity to be a top-tier or niche property in an area. Does your place have great views? Great outdoor space? Does it have a hot tub? (If not, get one.) Is the design really chic? 

I'm interested to hear from anyone who actually has a property out that way. Just in general, I think Crested Butte has been discovered and is going to continue to be a destination for people coming to Colorado. Good luck!