Airbnb Colorado Springs, Colorado: Market Data, Laws & Investor Guide

Are you looking to tap into the booming short-term rental market? Colorado Springs, Colorado is the perfect place to start your Airbnb business in 2024. This vibrant city offers a unique blend of natural beauty, thriving tourism, and a business-friendly environment that makes it an attractive destination for both hosts and guests.

Colorado Springs has experienced a surge in popularity among travelers in recent years. In 2022, the city welcomed over 23 million visitors, a 10% increase from the previous year. This growth trend is expected to continue, with experts predicting a further 15% rise in visitor numbers by 2024. The increasing demand for accommodations presents a golden opportunity for aspiring Airbnb entrepreneurs.

What sets Colorado Springs apart is its diverse appeal. The city boasts stunning natural attractions like Garden of the Gods and Pikes Peak, drawing outdoor enthusiasts from around the globe. Meanwhile, its rich history and cultural scene, including the Colorado Springs Fine Arts Center and the Olympic Training Center, attract a wide range of visitors.

Moreover, Colorado Springs offers a supportive environment for short-term rental businesses. The city's regulations are more lenient compared to other major cities, allowing hosts greater flexibility in operating their rentals. The local government also provides resources and support for small businesses, including grants and training programs.

Financially, starting an Airbnb in Colorado Springs can be highly rewarding. According to recent data, the average daily rate for a short-term rental in the city is $150, with an occupancy rate of 75%. This translates to a potential monthly revenue of $3,375 for a single listing. With the right strategy and marketing, hosts can maximize their earnings and build a profitable business.

In conclusion, Colorado Springs offers an unbeatable combination of growing tourism, diverse attractions, and a supportive business environment, making it the ideal city to launch your Airbnb business in 2024. By tapping into this thriving market, you can create a successful and rewarding venture in one of America's most beautiful destinations.

Colorado Springs Short-Term Rental Market Analysis

Colorado Springs has seen steady growth in its short-term rental market over the past few years. Here are some key statistics and insights:

Occupancy Rate and Nightly Rates:

• In 2023, the average occupancy rate for short-term rentals in Colorado Springs was 68%, up from 65% in 2022.
• The average daily rate in 2023 was $125, a slight increase from $122 in 2022.

Seasonality:

1. Colorado Springs experiences seasonal fluctuations in Airbnb demand. The peak months are typically June through August, coinciding with summer travel.
2. Occupancy rates by season in 2023 were: 26% in April-June, 30% in July-September, 23% in October-December, and 21% in January-March.

Growth Rate and Tourism Industry:

1. Colorado Springs saw a 3% increase in active Airbnb listings in 2023 compared to 2022.
2. Visitation to the Pikes Peak region, which includes Colorado Springs, grew from 24 million in 2022 to 24.8 million in 2023, a 3.3% increase.
3. Total visitor spending in the region increased from $2.8 billion in 2022 to $2.9 billion in 2023.

Key Events and Festivals:

1. Pikes Peak International Hill Climb (June)
2. Colorado Springs Labor Day Lift Off (September)
3. Pikes Peak or Bust Rodeo (July)
4. Colorado Springs Comic Con (August)

Booking Durations and Mid-Term Rentals:

1. The average length of stay for overnight visitors to Colorado Springs in 2023 was 3.5 nights.
2. While data on the monthly rental market is limited, there is demand for mid-term stays from various demographics, including military personnel, visiting professionals, and those seeking temporary housing.

In conclusion, Colorado Springs' short-term rental market has demonstrated consistent growth, fueled by increasing tourism and a variety of annual events. With a balanced mix of seasons and booking durations, the city presents opportunities for Airbnb hosts to cater to diverse guest needs.

Best Neighborhoods in Colorado Springs for an Airbnb Business

When searching for the ideal location to start an Airbnb in Colorado Springs, hosts should consider factors such as proximity to popular attractions, up-and-coming areas, and tourist hotspots. Here are the top 5 neighborhoods in Colorado Springs for launching a successful Airbnb business:

1. Downtown Colorado Springs

Downtown Colorado Springs is a prime location for Airbnb hosts due to its walkability, vibrant atmosphere, and proximity to popular attractions like the Colorado Springs Fine Arts Center and the U.S. Olympic & Paralympic Museum.

1. Average Occupancy Rate: 72%
2. Average Daily Rate: $135
3. Estimated Annual Revenue: $35,500
4. Seasonality: High season from June to August, shoulder season from April to May and September to October

According to Zillow, the median home value in Downtown Colorado Springs is $450,000. Mashvisor data indicates that a 2-bedroom property provides the best return on investment in this neighborhood.

2. Old Colorado City

Old Colorado City is a historic district known for its charming boutiques, art galleries, and restaurants. Its proximity to Red Rock Canyon Open Space and Garden of the Gods makes it an attractive location for Airbnb guests.

1. Average Occupancy Rate: 68%
2. Average Daily Rate: $120
3. Estimated Annual Revenue: $29,700
4. Seasonality: High season from June to August, shoulder season from April to May, and September to October

The median home value in Old Colorado City is $425,000 according to Zillow. Mashvisor suggests that a 1-bedroom property offers the highest return on investment in this area.

3. Manitou Springs

Manitou Springs is a picturesque town just west of Colorado Springs, known for its mineral springs, unique shops, and the popular Manitou Incline hiking trail. Its quirky charm and proximity to outdoor activities make it a desirable location for Airbnb guests.

1. Average Occupancy Rate: 65%
2. Average Daily Rate: $110
3. Estimated Annual Revenue: $26,100
4. Seasonality: High season from June to August, shoulder season from April to May, and September to October

Zillow reports a median home value of $475,000 in Manitou Springs. According to Mashvisor, a 3-bedroom property provides the best return on investment in this neighborhood.

4. Broadmoor

The Broadmoor neighborhood, located near the luxurious Broadmoor Hotel, offers a upscale experience for Airbnb guests. Its proximity to Seven Falls and the Cheyenne Mountain Zoo makes it an attractive location.

1. Average Occupancy Rate: 60%
2. Average Daily Rate: $180
3. Estimated Annual Revenue: $39,400
4. Seasonality: High season from June to August, shoulder season from April to May, and September to October

The median home value in Broadmoor is $800,000 according to Zillow. Mashvisor indicates that a 4-bedroom property offers the highest return on investment in this neighborhood.

5. Northgate

Northgate is an up-and-coming neighborhood in northern Colorado Springs, offering easy access to the U.S. Air Force Academy and stunning views of the Front Range. Its growing popularity and affordable housing prices make it an attractive option for Airbnb hosts.

• Average Occupancy Rate: 62%
• Average Daily Rate: $100
• Estimated Annual Revenue: $22,600
• Seasonality: High season from June to August, shoulder season from April to May, and September to October

Zillow reports a median home value of $375,000 in Northgate. According to Mashvisor, a 2-bedroom property provides the best return on investment in this neighborhood.

When choosing a neighborhood to start your Airbnb business in Colorado Springs, consider your target audience, budget, and the unique features each area offers. By leveraging local knowledge and data-driven insights, you can make an informed decision and maximize your return on investment.

Maximizing Your Revenue Through In-Demand Amenities and Properties in Colorado Springs

Setting competitive prices is crucial for maximizing your Airbnb revenue in Colorado Springs. Consider factors such as seasonality, local events, and competitor pricing when determining your rates. Utilize dynamic pricing tools like PriceLabs to optimize your pricing strategy based on real-time market demand.

To stand out in the competitive Colorado Springs market, incorporate these in-demand amenities that top-performing listings often feature:

• Hot tub: Listings with hot tubs consistently outperform those without. Adding a hot tub can increase your nightly rate and occupancy.
• Mountain views: Capitalize on Colorado Springs' stunning scenery by highlighting mountain views in your listing. Properties with mountain views tend to command higher prices.
• Outdoor space: Guests value private outdoor areas like patios, decks, and fenced yards. Listings with well-maintained outdoor spaces attract more bookings.
• Fireplace: A cozy fireplace is a sought-after amenity, especially during colder months. Listings with fireplaces often see higher occupancy rates.
• Pet-friendly: Allowing pets can significantly expand your potential guest pool. Pet-friendly listings tend to have higher occupancy and can charge a pet fee for additional revenue.

In terms of property types, houses are the most popular in Colorado Springs, followed by apartments and condos. Here's a breakdown of average property prices and potential STR revenue by bedroom count:

Houses:

• 1-bedroom: Average price $350,000, potential monthly revenue $2,200
• 2-bedroom: Average price $450,000, potential monthly revenue $3,000
• 3-bedroom: Average price $550,000, potential monthly revenue $3,800
• 4-bedroom: Average price $700,000, potential monthly revenue $4,500

Apartments/Condos:

• Studio: Average price $150,000, potential monthly revenue $1,400
• 1-bedroom: Average price $200,000, potential monthly revenue $1,800
• 2-bedroom: Average price $300,000, potential monthly revenue $2,400

By incorporating these in-demand amenities and focusing on popular property types, hosts can maximize their revenue potential in the thriving Colorado Springs short-term rental market. Stay competitive by monitoring market trends and adapting your strategy accordingly to ensure long-term success.

Understanding Colorado Springs Short-Term Rental Regulations

Colorado Springs has its own set of short-term rental regulations aimed at balancing the benefits of the short-term rental market with the potential challenges it presents to local communities. To operate a short-term rental in Colorado Springs, hosts must obtain a valid permit and display it along with the Good Neighbor Guidelines within the rental unit.

Non-owner occupied short-term rentals are prohibited in single-family zoning districts for anyone applying after the ordinance passed, and they must be at least 500 feet from another short-term rental property in all other zoning districts. There is no limit on the number of owner-occupied vacation rentals, but there are regulations related to non-owner-occupied properties.

To apply for a license, hosts must submit an application, a notarized affidavit, two forms of proof of residence, a rental listing, and property insurance. Short-term rental licenses are valid for one year and cost $119. Hosts must also have a valid business license and pay relevant taxes, including a county sales tax of 1.23%, a city sales tax of 3.12%, and a city lodging tax of 2%.

Colorado Springs Airbnb regulations have changed in recent years, with a new law passed in December 2019 restricting Airbnb investments in certain ways. However, legally permitted STRs prior to the December 2019 meeting are grandfathered in.

Read our full STR regulations guide for more detailed information on Colorado Springs's short-term rental regulations, including insights from local hosts and a closer look at other policies.

Keys to Success as a Colorado Springs Airbnb Host

Becoming a successful Airbnb host in Colorado Springs requires a combination of strategic planning, attention to detail, and a commitment to providing exceptional guest experiences. By understanding the local market, incorporating popular amenities, and effectively managing your property, you can position yourself for success in this thriving short-term rental market.

Popular Amenities and Design Themes in Colorado Springs

To attract guests and stand out from the competition, consider incorporating these popular amenities and design themes in your Colorado Springs Airbnb:

• Mountain-inspired decor: Embrace the natural beauty of Colorado Springs by incorporating rustic, mountain-inspired elements into your interior design.
• Fitness-friendly amenities: Many guests seek out properties with fitness amenities like yoga mats, resistance bands, and free weights.
• Home theater: Vacation rentals with a home theater setup are popular among Colorado Springs guests looking for entertainment options.
• Outdoor living spaces: Capitalize on the stunning surroundings by offering well-appointed outdoor areas like patios, decks, and fire pits.

How to Attract Colorado Springs Customers

To effectively market your Airbnb and attract customers in Colorado Springs, consider the following strategies:

• Highlight local experiences: Partner with local businesses and tour operators to offer unique, authentic experiences that showcase the best of Colorado Springs.
• Leverage social media: Use platforms like Instagram and Facebook to showcase your property's unique features and engage with potential guests.
• Optimize your listing: Craft a compelling listing description, use high-quality photos, and include relevant keywords to improve your visibility on Airbnb.
• Offer competitive pricing: Monitor market trends and adjust your pricing strategy to remain competitive while maximizing your revenue potential.

Potential Challenges and Guidelines for Success

Operating an Airbnb in Colorado Springs comes with its own set of challenges. Here are some potential risks to be aware of, along with guidelines for success based on insights from experienced hosts:

• Seasonality: Colorado Springs experiences seasonal fluctuations in demand, with peak seasons during summer and winter. Plan accordingly and adjust your pricing strategy to maintain consistent occupancy.
• Regulations: Stay up-to-date with local short-term rental regulations, including licensing requirements, zoning restrictions, and tax obligations.
• Maintenance and cleaning: Ensure your property is well-maintained and thoroughly cleaned between guests to avoid negative reviews and maintain a high rating.
• Communication: Respond promptly to guest inquiries and maintain open lines of communication throughout their stay to address any concerns and provide a positive experience.
• Community engagement: Get involved in the local host community by attending events, sharing knowledge, and collaborating with other hosts to stay informed and adapt to market changes.

By incorporating these strategies and guidelines, you can navigate the challenges of being an Airbnb host in Colorado Springs and create a successful, rewarding short-term rental business.

Using BNBCalc to Find Profitable Properties in Colorado Springs, Colorado

Starting a short-term rental business in Colorado Springs can be a lucrative venture, but it's essential to find the right property to maximize your return on investment. BNBCalc is a powerful tool that can help aspiring business owners navigate the process of finding and analyzing profitable properties in the Colorado Springs market.

1. Analyze Properties Using BNBCalc

BNBCalc allows users to input property details, such as address, purchase price, and estimated expenses, to generate a comprehensive financial analysis. The platform provides key metrics like cash flow, cap rate, and return on investment, enabling users to make data-driven decisions when evaluating potential investments.

2. Benchmark Comparable Rentals

BNBCalc's market data feature allows users to compare their property to other nearby rentals in the area. By analyzing the performance of comparable listings, users can gain insights into pricing strategies, occupancy rates, and revenue potential, helping them optimize their own listing to fetch top dollar.

3. Determine the Right Price and Property Size

Using BNBCalc's property analysis tools, aspiring business owners can determine the optimal number of bedrooms, bathrooms, and purchase price to maximize their revenue potential. The platform's interactive financial modeling allows users to adjust variables and see the impact on their projected returns, helping them make informed decisions about property size and pricing.

4. Make an Offer

Once you've identified a property that meets your investment criteria, use BNBCalc's financial analysis to determine a fair purchase price that aligns with your desired returns. BNBCalc has partnered with STR lenders like Brian Bockholdt at Alliant Credit Union to help investors get prequalified for financing at competitive rates, streamlining the process of making an offer on your chosen property.

5. Use Our Tax Calculator

BNBCalc's tax calculator helps users estimate potential tax deductions, including those related to bonus depreciation. By understanding the tax implications of your short-term rental investment, you can optimize your tax strategy and maximize your overall returns.

6. Come Up With a Buy Box

When creating a buy box for your Colorado Springs short-term rental investment, consider the following qualities:

• Location: Focus on properties in popular neighborhoods with high demand, such as Downtown Colorado Springs, Old Colorado City, and Manitou Springs.
• Property type: Single-family homes and condos with 2-3 bedrooms tend to perform well in the Colorado Springs market.
• Amenities: Look for properties with in-demand amenities like hot tubs, mountain views, and outdoor living spaces.
• Cap rate: Aim for a cap rate of 7% or higher to ensure a solid return on investment.
• Cash flow: Prioritize properties that generate positive cash flow from day one, taking into account all expenses and financing costs.

By using BNBCalc's comprehensive suite of tools and focusing on properties that align with your buy box criteria, aspiring business owners can find and acquire profitable short-term rental properties in the thriving Colorado Springs market.

Ready to start your Airbnb journey in Colorado Springs? Use BNBCalc to analyze potential properties and make informed investment decisions. Our powerful tool provides comprehensive data to help you maximize your profits. Check out this pre-analyzed Colorado Springs Airbnb opportunity and see how BNBCalc can help you succeed in the short-term rental market. Visit BNBCalc.com today and take the first step towards building your Airbnb business.