STR question for Denver and surrounding

[Sara Holda]

Hey Denver Real Estate Friends.

Currently in Nashville, where the attack on Airbnb is REAL. absolutely no STR permits to be issued in 2022.

I’m looking at Denver as an option to get started with my first Airbnb. My question to y’all is, is arbitrage legal in Denver or surrounding cities?  

I have $20k liquid, a 740 credit score, and I’m ready to get my feet wet. Is Denver a good option for someone like me?

Thanks a ton and looking forward to getting started!

-Sara 

[Luka Milicevic]

@Sara Holda That's not true of Nashville. STR permits are still going to be issued. As mentioned above previously RM zoning was allowing non owner occupied STRs, but come Jan that will no longer be allowed as NOO.

The STR situation changes hourly in Nashville, but there are still some options to do STRs.

Personally, I would avoid any sort of Airbnb arbitrage. That used to be a thing a few years ago and it caused so many issues for STR renters and landlords that landlords started putting clauses in their leases specifically not allowing STRs.

A couple things you have to consider with rental arbitrage is that anything that breaks in the house is an emergency for you, but not your landlord. For example, if the A/C goes out your landlord is going to consider that a non emergency repair. However, for you and your guests that is a repair that needs to be done NOW. Your landlord isn't going to pay any after hours, or weekend repair rates, and so you are most likely going to have to pay for those out of your own pocket, even though it's technically not your responsibility. 

One other thing to consider, is if you are looking to do an out of state or long distance STR, you might want to consider an area that welcomes such a thing. Think areas that survive on tourism. The reason I say that is you won't run into STR regulation as much in those areas as they are key to the economy.

I don't mean this post to be discouraging at all, I just want to give you a few things to think about that you might not have considered. 

Always remember....just because your realtor, or some other "expert" says something doesn't make it true. Do your own research!!!!