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Should You Convert Your Denver Real Estate into an Airbnb?

July 23, 2018

Are you looking for ways to diversify your Denver real estate? Consider converting a unit into an Airbnb. Airbnb’s are popular in the Denver area, and a great way to mix up owning a property. It allows you the flexibility to rent out a place on your own terms, which is great if you need to use your rentals, have family coming into town, or other circumstances. Explore the world of Airbnb to see if it is the right choice for your property.

What is Airbnb?

Airbnb is a website that allows homeowners or property owners the opportunity to rent out a space to guests. Owners can make their location available for rent, which tenants then can use for vacation, work trips, or other rental needs. To help keep locations secure, Airbnb secures $1,000,000 in damages for those who rent out their spaces. In addition, they also cover tenants of the rentals in the event they get hurt. Airbnb units are growing in popularity as they are available in prominent areas at prices more affordable than hotels. Renters will know they are getting an experience different than a hotel, however, be sure to keep units clean and ensure they are consistent with the photos.

Popularity in Denver

Denver is one of the nation’s top tourist destinations. This makes it a premier place for an Airbnb rental. With an average of about 30 million annual business, people are looking for alternatives for their stay. Airbnb is making it affordable. Not only are people getting to stay in a great unit for a price within their budget but helps them connect to the local scene better. Airbnb properties in Denver are more than 50 percent, showing that people are very interested in properties.

Denver Legalities

If you would like to rent out a space through Airbnb, it is important to follow the law. This will help keep you out of hot water in the future. First, you will need a short-term rental license. This will give confirmation that renters are approved to stay in your space. All elements about this license can be found in the Denver short-term rentals FAQ. Next, you will need to provide documentation that the rental is your primary place of residence and is insured. You will also need liability insurance and abide by building and housing standards. Be prepared to save nearly 11 percent per night on your rental for taxes due to the city’s Lodger’s Tax. This will allow you to make money but not be surprised when tax time rolls around. You will also need to provide safety information to tenants about local safety.  

Whether you choose to rent out your property as an Airbnb or are looking to rent it out to tenants, DenCo Property Management and Sales can help. As your local real estate expert, our team will be sure you are making smart investments that last long-term. Explore our recommendations about insider ways Denver real estate can supplement your income. From there, call us at 303-722-9688 to see how we can help you get the most of your rental.