Denver Airbnb

A Denver law that went into effect on Jan. 1, 2017 allows short-term rentals on Airbnb (or VRBO) as long as it's in their primary residence. What does this mean for investors?


Either you opt to buy an Airbnb in Colorado Springs , which has more permissive Airbnb rules, or get creative in Denver. For those looking to maximize short-term rental revenue in Denver -- beyond just renting while on vacation -- there are a few options ... including some interesting work-arounds.


Buy a home with a basement apartment or carriage house.

Denver's Airbnb law allows residents to short-term rent any part of their primary residence. A carriage house or basement or attic apartment counts as accessory to the primary residence. (These units are sometimes called Accessory Dwelling Units, or ADUs.)


We've cultivated special MLS searches to capture homes like this for our clients.


Buy the above ... but do it with a tenant

The city's short-term rental regulation also allows tenants to rent their primary residence with landlord permission. Now, this opens up an interesting possibility.


We have clients who have bought a home with a basement apartment or carriage house, rented the smaller space to a long-term tenant and had the tenant obtain Denver's short-term rental license and Airbnb the main house. 


How you agree to split the revenue is between you and your tenant.


For more information about Denver's Airbnb law, check out Airbnb Investment Properties or download our Denver Airbnb laws report .



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