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.

 

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. That includes homes with a basement apartment or a carriage house (sometimes called Accessory Dwelling Units, or ADUs).

 

We've developed special MLS searches to capture Denver homes with basement apartment or lock-off basements in which you can operate a short-term rental.

 

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 Colorado short-term rentals, check out Airbnb Investment Properties or download our Denver Airbnb laws report .