All Forum Posts by: Robin Searle

I bought a house in the Old Colorado City area of Colorado Springs several years ago that was built in 1900. Just get a thorough inspection from a trusted inspector. The biggest concern for me because I know that area well was foundation issues. I’d also recommend a sewer scope. Check regional building for the age of the furnace, water heater etc and if they are nearing end of life be sure to plan on replacement costs. Have the roof checked out. Also look at the type of electrical wiring as that can be an expensive repair if it needs to be updated. Mine has been a fantastic property that we use for short term rentals. Good luck! 

@Chris Seveney happening now in Colorado.  Senate Bill 24-033 is being considered. In it's original form it would potentially quadruple (yep - quadruple!) the property taxes on short term rentals across the state. They are revising it but I anticipate it will be a significant increase at some point.  I agree with you - you can't spend and spend and then not look for every place possible to try to raise revenue.

I’m curious why you wouldn’t just furnish and short term the other two units and leave it zoned residential? I bought a property in Colorado Springs zoned R4 and converted the detached 3 car garage behind the existing cottage into a 2 bed 2 bath upstairs and studio on the lower level and drywalled between the 3 garage spaces so each unit has their own enclosed garage. I tried mixing long term and short term but found doing all three short term worked better. Commercial properties are taxed at a much higher rate in Colorado and there is a pending bill at the state that may change STRs to a similar tax rate. At that point I may switch to a combo of Short and medium term. 

Do you have enough friends and family who are willing to pay the rates you need to meet your financial goal? I think that’s where you start. In my experience friends and family usually expect a heavy discount. With my place in Florida I rent it at high season rates one time a year and let friends and family use it for just my utility and cleaning cost. 

@James Carlson so if you do short term (30 days or less) just below the 200 day threshold and then do medium term the rest of the year, you still pay residential rates? I can see a lot of owners switching to that model. Not sure that will accomplish whatever the proponents of this bill are after. 

@James Carlson the reason I think he's speaking about second home owners in summit primarily is because what STR owner who doesn't use their property as a second/vacation home would rent less than 100 days a year?

It sounds like he wants to protect people in places like Summit county who bought a second home and need to STR to afford it which is great. But there are a lot of us who are single people (not corporations) who bought property and poured hundreds of thousands into it - (yes my husband and I spent a ton creating a triplex out of a single family on an R4 lot before he died of COVID) to make a great property specifically to short term rent. This was and is a huge part of my retirement plan. I hope they consider that all STR owners are not huge corporations!

@James Carlson I do think this bill will pass but the big unknown is exactly what the new tax rate will be. It's my understanding it will make a new category of "lodging" so won't be the same as commercial. I've heard it may increase tax rates to up to 4x current residential rates. Honestly I don't think it will go that far. For me personally with a triplex of STRs in Colorado Springs I'm watching and waiting. It wouldn't go into effect until 2025 with taxes due in 2026. The bill is due to be reviewed on Feb 13th. Lots of options as far as raising nightly rates as other STRs shut down, converting to MTR or LTR or doing an exchange to another state. I do think this bill will have a big negative impact on tourism in Summit County. Overall I think nationwide it's getting very tough to get into the STR space and make money and the fact that a municipality can tank your business at any time calls for a strong back up plan from the start!

It so much depends on whether it's an STR and what restrictions there are and if the permit - if there is one - transfers. In Colorado Springs it doesn't. Now the STR value doesn't really matter. In addition you'll need a cash buyer since an appraiser will not include value of furniture or potential rental value in their valuation. Lots to consider with your plan!

Call Chuck Milligan with Geoquest. You need a structural engineers opinion.  Not saying they aren’t honest but most if not all of the foundation companies in the Springs are not structural engineers and there is a profit motive that you have to be aware of. Chuck is very good and very honest and he has nothing to sell other than his expertise. I’ve used him on several listings. There are other great engineers in town as well. If they do recommend some work, then you can start talking with the foundation guys.