It’s a Great Time for Denver Short-Term Rentals

[Alexa Ferguson]

As summer rolls in and temperatures heat up, so does the short-term rental market in Denver. As a personal example, my Airbnb unit near Sherrelwood is already booked every night in June and and July except for two nights, and August is filling up quickly.

If you're interested in this strategy, how can you properly analyze a property to know if it will perform well as a STR?

Calculating Revenue: Your estimated monthly income = Occupancy Rate x Calendar days in month x Average daily rate.

Be sure to also account for seasonality - are you in a beach or mountain town, for example? Adjust your occupancy rates to account for changing popularity in your destination.

Calculating Expenses: Be sure to take into account rehab, furnishing costs, financing, taxes, insurance, utilities, property management, repairs and maintenance.

Putting these together, you will be able to assess whether any property would be a good fit for a STR.

If you have any thoughts or questions about STRs in the Denver area, I’d love to hear from you!

[Ben Einspahr]

Great explanation and info!! @James Carlson

@Jim Stanley, Check out Airdna.co. That is a great tool for running comps for similar properties to yours. It will give you average nightly rate along with monthly occupancy rate.

Before I started Airbnb’ing my property in Arvada, I had the same concern with my neighbors you did and ended up doing the same exact thing James mentioned above- I talked to all my surrounding neighbor and explained to them my intentions of operating an Airbnb in the mother-in-law suite above my garage. Most importantly, I gave them my cell to contact me ASAP if there were any issues with parking or noise. However, this was for a 1 bed/1bath. Not an 5 bed/ 2.5 bath.

If you do decide to go the STR or MTR route, I have a cleaner I have used for about 3 year- super affordable. She covers areas from Arvada to Aurora and even down to Littleton.

Feel free to shoot me a message if you would like my cleaners contact info.

Cheers