Airbnb investment in Colorado Springs: Now or never?

[James Carlson]

Hey any Colorado Springs BPers! (And those simply interested in Denver's little sister.) 

A new proposed Airbnb ordinance in the Springs has me wondering whether it's now or never to buy an STR investment in some of the most popular areas of that city.

Just last year, the city council passed an ordinance allowing short-term rentals in any kind of investment property. Now things might change. Earlier this month, the city proposed two changes, but the one that's interesting to me is this: 

• A 500' density limit prohibiting any new non-owner occupied Airbnb within 500' of an existing non-owner occupied STR.

The density restriction, which councilman Knight said would be voted on next month, could essentially blot out huge swaths of Colorado Springs to future Airbnb investments. 

Here's the thing. According to the draft language, any existing or new STRs approved prior to the implementation date of the density restriction will be grandfathered in. The draft appears to say implementation date is 90 days after passage of the law. This could create a huge rush in the next few months to get in before the door closes. 

I've nabbed the current permit data from the Colorado Springs Short-Term Rental Alliance (shout out to COSSTRA!) and then mapped the current STRs. There are certainly pockets of the city that A) aren't blotted out by the overlapping 500' circles and that B) are also good areas for Airbnbs. But still, if this passes, many areas -- including most of Old Colorado City and broader downtown -- could be off limits to STR investment in a few months

I see this as a double edge sword. If you don't get in, then you could be out forever. But if you do get in (or are already in) in certain areas, then the city will essentially block all future competition. 

Let the bull rush begin!