Last chance to buy an STR investment in Wheat Ridge

[James Carlson]

For anyone interested in short-term rentals in the Denver area ... it's last call for Wheat Ridge.

The city of Wheat Ridge, directly west of Denver, has allowed Airbnb investment properties for a few years. But they capped the number of STRs to 2% of the housing stock of each city council district. Welp ... three of the city's four districts have now reached that STR cap.

The only district with STR licenses still available is District III. As of Oct. 11 -- two weeks ago -- there were 22 licenses available. I'm awaiting word on the updated numbers, but I suspect there are actually fewer than 22 as of today.

For those who care, District III starts about a mile west of Denver and runs all the way out to Golden in the foothills. I have a client who bought a few years ago and has been doing well out in that district. If you really want to buy in another district, there is a waiting list to get in when someone drops out, but that could be a year or two. (The strategy, if you were set on one of those capped districts, would be to furnish it and rent it as a medium-term rental for traveling nurses and remote workers while you wait for an STR license to open up.)

[James Carlson]

@Ginger Pruitt

Others have chimed in, but thought I'd put my two cents in about any other Denver-area cities that allow for STRs or Airbnb rentals full-time.

Last I talked to the city of Wheat Ridge was on Nov. 18. At that time, they still had 22 licenses available in District III. 

-- Centennial allows them with almost no restrictions. 

-- Arvada allows them but with a 240-night max STR rental. (I don't think this is that limiting as you just put a medium-term renter -- traveling nurse, remote worker, etc. -- in for the slow period of the season and you make about what you'd make if you were doing short-term rentals during that time.)

-- Northglenn allows them with little restriction. Prices are nice up there relative to the rest of the metro, but demand is not going to be as great either.

-- Unincorporated Adams County doesn't currently have any laws about STRs. You can do it because it's not actively prohibited. They are working on a proposal to actively allow it in the ordinances. I have a call to my planning department contact to get an update on that proposal.

Good luck!