Mid Term Rentals - COS

[Cameron Enger]

Hello Colorado Springs Family, 

I'm looking at purchasing a new primary and renting our current one out. Debating between long term and mid term. Do mid term rentals have the same requirements as long terms in Colorado Springs, or are they more similar to short term (require permits, etc)?

Thank you

[Zachary Deal]

It depends on the city so always best to check directly with them. Typically if you are renting for over 30 days at a time it is not considered an STR.

It looks like Colorado Springs has the same 30 day requirement: https://coloradosprings.gov/planning-and-development/page/sh...

[Joey Banasihan]

Hey @Cameron Enger! I believe that link is helpful but it depends on how you structure your MTR and your audience. When using a platform like Furnish Finder targeting travel nurses with typical contracts for 13 weeks or more, you will follow the same process at LTR with screening, creating a lease, etc. in which your rental will be more than 30 days (you can also require a minimum rental amount, aka. 2 months or longer). There is still the same amount of upfront costs and hospitality needed as a STR, just a little different.

The LTR route will not have the upfront costs, rather just ongoing maintenance and/or management (pending if you self manage or not), but pending on your goals the cash flow may not be as high pending your current mortgage, interest rate, etc.  Happy to talk more, I have a good friend who has two MTR's in COS that she has found some good success with.  Good luck!

[James Carlson]

@Cameron Enger

Under Colorado Springs rental laws, if you rent a space for 30 days or longer, it's treated as a long-term rental in the eyes of the city. It might as well be a 1-year lease. It's all the same. No permit required. 

We do medium-term rentals in Denver and Colorado Springs. If they're in a decent enough location, you furnish them well, take good photographs, they'll perform well. 

Our units get roughly 1.4x the rents that a long-term renal would get. And we see the upfront costs of furnishing a unit are usually paid for by the increased rents in 12-18 months. 

Good luck with your new purchase. That's exciting. 

[Brian Bohrer]

Hey @Cameron Enger,

It is true that there are no additional permits required when renting for longer than 30 days per stay in Colorado Springs.  But, in my humble experience it seems you really have to stand out among your competition to have a successful mid-term rental in this competitive market.  

Similarly to Short-Term rentals, the market is becoming a bit saturated and you must be able to offer amenities, location, marketing or pricing that place you above your competition.  With all these factors, plus the cost to furnish the home, it can really add to your initial investment with no promise of a return.

If you need to move quickly and are not confident in your skills to self manage your long-term rental, I would love to speak with you about leasing your property as a professional landlord!  My company solves many of the headaches of traditional property management all while saving you time, money and the hassles of dealing with tenants and toilets!

I would love to connect if you are interested!

Have a great rest of your day :)