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!