Looking for a rental market that has witnessed tremendous success with Airbnb vacation rentals? Then consider the Colorado Springs real estate market! Airbnb Colorado Springs is one of the best Airbnb markets in the nation, and for good reason. The market is one of the most profitable Airbnb locations in the US and has a complementary legal framework set in place. But before jumping on board, you must first find the answers to the following questions:
- How is the Airbnb Colorado Springs market performing in 2019?
- What are the Airbnb regulations in Colorado Springs?
- Why should real estate investors consider the Colorado Springs housing market?
- Where should investors buy rental property in the market?
To learn the answers to these four questions, keep reading!
Related: Colorado Springs Housing Market Forecast 2019: Time to Invest?
Airbnb Colorado Springs 2019: City-Level Data
Let’s start with the first question: How is the Airbnb Colorado Springs market looking this year? The best way to answer this question is to use the median and average statistics of an Airbnb investment property in the Colorado Springs real estate market. Where can you obtain such information? Right here, at Mashvisor! Mashvisor’s investment property calculator allows investors to learn about the statistics of any market or investment property. To learn more about Mashvisor’s calculator, click here! In the meantime, here is the data on the average Airbnb rental property in Colorado Springs.
Pricing
- Median Property Price: $406,869
- Price per Square Foot: $164
- Price-to-Rent Ratio: 22
Airbnb Investing
- Rental Income: $2,227
- Cap Rate / Cash on Cash Return: 2.9%
- Occupancy Rate: 46%
As you can see, the Airbnb Colorado Springs market is very, very profitable, with high Airbnb rental income and Airbnb return on investment. We’ll get more into why you should invest in Colorado Springs in a moment, but we need to answer a more important question now.
Is Airbnb Legal in the Colorado Springs Real Estate Market?
Before you can even consider investing in Airbnb Colorado Springs properties, you need to know if they are legal. Fortunately, they are legal, and well regulated, as a matter of fact. So, what are the Airbnb regulations in Colorado Springs? The three primary regulations in the market relate to a short-term rental license, taxes, and neighborhood rules.
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Short-Term Rental Permit
Airbnb Colorado Springs hosts are required to obtain a short-term rental permit when renting out vacation homes. This includes both entire units or partial units. Also, a license is required for hosts who rent out the property for less than 30 days at a time. The license comes with a $119 annual fee. For information on how to apply for the short-term rental permit, visit the Colorado Springs government website.
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Taxes
Hosts of non-owner occupied rentals are required to pay certain taxes. These include a State Sales Tax (2.9%), Colorado Springs Sales Tax (3.12%), and the Colorado Springs Lodger’s Tax (2%). For more information on the local taxes, check out the Airbnb Colorado Springs help page.
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Miscellaneous Operating Conditions
Airbnb hosts are also required to follow various operating conditions, some of which include neighborhood rules. These include:
- Maintaining weekly residential trash collection services
- Parking in private driveways shall be utilized first with overflow parking on the street where permitted
- Having a 24-hour point of contact on file with the city’s Planning Department who can respond within one hour of an emergency
- Forbidding the hosting of weddings or large social or commercial events at the Airbnb Colorado Springs investment property
Related: 13 US Cities with the Least Airbnb Legal Issues in 2019
Why You Should Invest in Airbnb Colorado Springs
Next, what are the reasons an investor should buy an Airbnb Colorado Springs property? There are four main reasons: rental income, appreciation, relative affordability, and the strong tourism in Colorado Springs.
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Rental Income
The average rental income of Airbnb Colorado Springs vacation rentals is very impressive. This figure is over $2,200, which is a key incentive to invest in the market. The average Airbnb return on investment is equally admirable at 2.9%. However, it is important to realize that these are merely averages. An actual Colorado Springs real estate investment can generate higher income and returns.
Find top-performing investment properties now using Mashvisor.
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Real Estate Appreciation
The Colorado Springs real estate market also benefits from appreciation. During the last 10 years, Colorado Springs has been in the top 10 percent in national appreciation rates. During the last 12 months, the market had a rate of 7.32%. This rate is more than 70 percent of other cities and towns in the state and more than 77.7% of cities and towns in the nation, according to NeighborhoodScout. The market’s appreciation rate during the latest quarter was 1.28%, which equates to an annual rate of 5.24%.
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Relative Affordability
Even though (according to Zillow) the Colorado Springs market is a seller’s market in 2019, the market is relatively affordable in the state. The city’s median property price is $406,869. This is more than the national median of $308,000, but it is lower than the state’s median of $550,963, according to Mashvisor’s data.
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Tourism Statistics
One of the most significant factors in the success of Airbnb Colorado Springs is the city’s tourism. It’s easy to see why, as the city is at the base of Pikes Peak and the Rocky Mountains, which attract 5 million visitors annually. Tourism is the third-largest employer in the city, providing more than 20,000 jobs and generating more than $474 million in earnings. These strong tourism statistics have made making money with Airbnb easy for investors. In 2017, over 72,000 guests visited the city through Airbnb, generating over $2.1 million in host income.
The 5 Best Neighborhoods in Colorado Springs for Airbnb
Finally, what are the best neighborhoods in Colorado Springs for making money with Airbnb? According to Mashvisor, these neighborhoods include Northwest Colorado Springs, Northeast Colorado Springs, Southeast Colorado Springs, West Colorado Springs, and Central Colorado Springs.
Northwest Colorado Springs
Pricing
- Median Property Price: $390,030
- Price per Square Foot: $160
- Price-to-Rent Ratio: 20
Airbnb Investing
- Rental Income: $2,578
- Cap Rate / Cash on Cash Return: 3.9%
- Occupancy Rate: 36.5%
Northeast Colorado Springs
Pricing
- Median Property Price: $369,108
- Price per Square Foot: $158
- Price-to-Rent Ratio: 20
Airbnb Investing
- Rental Income: $2,616
- Cap Rate / Cash on Cash Return: 3.8%
- Occupancy Rate: 49.7%
Southeast Colorado Springs
Pricing
- Median Property Price: $269,335
- Price per Square Foot: $155
- Price-to-Rent Ratio: 19
Airbnb Investing
- Rental Income: $2,085
- Cap Rate / Cash on Cash Return: 3.8%
- Occupancy Rate: 51%
West Colorado Springs
Pricing
- Median Property Price: $504,690
- Price per Square Foot: $182
- Price-to-Rent Ratio: 34
Airbnb Investing
- Rental Income: $2,657
- Cap Rate / Cash on Cash Return: 3.4%
- Occupancy Rate: 52%
Central Colorado Springs
Pricing
- Median Property Price: $335,854
- Price per Square Foot: $214
- Price-to-Rent Ratio: 22
Airbnb Investing
- Rental Income: $2,233
- Cap Rate / Cash on Cash Return: 3.2%
- Occupancy Rate: 64%
All in all, Airbnb Colorado Springs is a definitive method of investing in real estate in the city. To start searching for Colorado Springs houses for sale, click here to start your 14-day free trial with Mashvisor!
Related: How to Do Investment Property Research in 10 Steps
