Airbnb Denver: Is It Worth Investing in 2022?

Are you wondering if it’s good to invest in Airbnb Denver this year? Denver’s tourism industry makes this city a hot destination for tourists.

The Denver housing market is currently facing a historic low inventory—this means we can anticipate an increase in home prices this year as the demand for housing continues to soar. Additionally, as the tourism industry gradually recovers from the pandemic, we can also expect an influx of tourists in Denver, which will result in a growing demand for vacation rentals. This is one of the reasons why it’s a wise idea to consider investing in Airbnb Denver in 2022.

Denver is the capital of Colorado and is known as the “Mile High City” because it sits at an elevation of one mile above sea level. It is home to 19th-century buildings, museums, art collections, and mountain parks, and it offers one of the best beers in the United States. Denver is one of the favorite destinations of visitors who love to explore history, culture, and arts, as well as those who want to get close to nature.

Related: Colorado Housing Market Forecast 2022

Is Airbnb Denver Colorado a Profitable Location?

One of the key factors that can help determine if a city can be a profitable location for short-term rentals is its tourism industry. Before you decide to invest in Airbnb Denver, you should first consider the tourist attractions that are within or nearby the city. It’s also important to know how often in a year tourists visit this place. 

For example, are there yearly events that can help drive visitors to Denver? Do visitors come to Denver all year round or only during a particular season? The seasonality of its tourism is another essential factor that can tell you whether you can get your property occupied throughout the year or not.

Travel and Tourism in Denver 

The tourism industry in Denver is mostly focused on its arts, culture, history, and music. This means visitors can go to Denver and enjoy a trip to one of their museums any time of the year. That’s why investing in Denver Airbnb rentals is a good idea as it doesn’t just limit the visitors to a specific season. Moreover, Denver is also known for its parks and scenic attractions, making this city a favorite destination option for nature lovers and adventure seekers. 

Denver features the nearby Rocky Mountains as a backdrop, and it has more than 300 days of sunshine per year. It is also a jumping-off point for ski resorts, which is one of the reasons that drive tourists to the area. Generally, Denver offers a variety of sights and attractions for everyone, and it is considered a great place for vacation for young couples, families with kids, groups of friends, and even lone travelers.

Given the strong tourism industry in Denver, real estate investors can get more income opportunities if they choose to buy investment properties in Denver. Since this city attracts visitors all year long no matter what the season is, owners of Airbnb Denver can have their properties occupied especially if it’s located in the right neighborhood and when combined with strategic Airbnb investing methods.

Related: How to Find the Best Area for Airbnb Investment

Things to Do in Denver Colorado

There are many reasons why visitors love to flock to Denver, Colorado, heightening the demand for Airbnb Denver properties. The Mile High City is home to various arts, museums, performing arts, shopping centers, parks, and beer festivals. It is also a go-to destination for those who are looking for outdoor adventures and sports. 

During the summer season, a few of the outdoor activities that many locals and visitors enjoy doing include hiking and biking along Denver’s adventurous trails, playing golf, and strolling through one of the city’s nature parks. Those who love water sports can try water activities like kayaking, stand-up paddleboarding, or go on a guided fly-fishing tour. During the winter season, tourists go to nearby ski resorts for winter activities like downhill skiing, snowboarding, cross-country skiing, snowshoeing, and snowmobiling. 

Denver also offers a number of indoor adventures for those who prefer to stay away from the sun, such as escape rooms and arcades, ax throwing, archery, bocce, bowling, and billiards. These activities are good no matter the season, providing more options for visitors any time of the year.

To be successful in Airbnb Denver real estate investing, you need to familiarize yourself with the different tourist attractions, activities, and destinations in Denver. This can help you choose the neighborhood that’s best for Airbnb investing, so you can maximize your earnings from your Denver vacation rental properties. 

Here are five of the most popular destinations that are often frequented by both local and international visitors while in and around Denver, Colorado:

Denver Museum of Nature and Science

The Denver Museum of Nature and Science is one of Denver’s top cultural attractions and treasured landmarks. It features more than 700-thousand square feet of award-winning wildlife dioramas, gems and minerals, mummies, its famous dinosaur skeletons, remains of Ice Age animals, and one of the largest nuggets of gold found in Colorado. This is one of the top family-friendly destinations in Denver. It is located on Colorado Blvd., sitting in City Park’s southeast corner. You may want to consider buying an Airbnb Denver property near this area. 

Red Rocks Park and Amphitheater

Red Rocks Park and Amphitheater is about 15 miles from the city center and is considered the most revered attraction around Denver. The amphitheater is a popular destination for both local residents and tourists from around the world who love going to concerts and performing arts. Visitors can get there from Denver either by car or by the Red Rocks Shuttle, which offers round-trip options departing from Denver Union Station and Colfax Avenue. 

Denver Botanic Gardens

Buying an Airbnb Denver investment property near the Denver Botanic Gardens provides a higher chance that your rental property gets occupied. The Denver Botanic Gardens offers year-round events and features native plants and sustainable, environmentally responsible practices. This is one of the largest botanical gardens in the United States, which houses 43 individual gardens with plants from all over the world.

Denver Art Museum

A paradise for artists and art lovers, the Denver Art Museum houses a vast collection of arts, including American Indian, African, European, Asian, Oceanic, Spanish colonial, and pre-Columbian arts. It is one of the largest art museums between Chicago and the West Coast. At Denver Art Museum, visitors can explore art and creativity through hands-on activities, extensive art collections, and world-class exhibitions. 

Confluence Park

Confluence Park is a unique and scenic destination that is located near other attractions like the Downtown Aquarium, the Children’s Museum of Denver at Marsico Campus, and Elitch Gardens Theme and Water Park. Visitors often come here to take a scenic ride along the river, sunbathe on the sandy banks, go for a kayaking adventure, and enjoy panoramic views of downtown Denver. Finding an income property to invest in near this area can help you boost your occupancy rate and rental income.

Related: How to Determine Rental Demand Before Buying an Investment Property

Why Should You Invest in Airbnb Denver?

The tourist attractions mentioned above are only five of the many tourist destinations in Denver, Colorado. Denver has a wide variety of attractions, activities, and events that welcome visitors any time of the year. While it’s important to make sure that Denver has several tourist sites for guests to visit, it’s also crucial to consider the Denver real estate market data to determine if it’s a good location for Airbnb real estate investing.

Here’s the Denver Airbnb real estate market data from Mashvisor as of February 2022:

• Airbnb Listings: 1,733
• Monthly Airbnb Rental Income: $3,540
• Airbnb Cash on Cash Return: 3.49%
• Airbnb Daily Rate: $172
• Airbnb Occupancy Rate: 71%
• Median Property Price: $535,549
• Average Price per Square Foot: $2,120
• Number of Listings for Sale: 61
• Days on Market: 56
• Walkscore: 57

Based on the above data, there is a high average occupancy rate of 71% for short-term rentals in Denver. This only proves that there is an influx of visitors in this city, opening wide opportunities for real estate investors who are planning to invest in Airbnb Denver Colorado. However, there is currently a shortage of housing inventory—with only 61 properties available for sale, finding investment properties in Denver is going to be very challenging. 

Best Denver Neighborhoods for Airbnb Rentals

Once you have decided to invest in Airbnb Denver rentals, you need to choose the right neighborhood for your Airbnb business. The best neighborhoods for vacation rentals are those that are near most tourist attractions and close to public transport. 

Based on Mashvisor data as of February 2022, the following are Denver neighborhoods with high Airbnb returns and occupancy rates:

• Elyria Swansea
  • Number of Airbnb Listings: 68
  • Monthly Airbnb Rental Income: $6,076
  • Airbnb Cash on Cash Return: 9.92%
  • Airbnb Average Daily Rate: $183
  • Airbnb Occupancy Rate: 62%
  • Walkscore: 67
• Cheesman Park
  • Number of Airbnb Listings: 50
  • Monthly Airbnb Rental Income: $2,174
  • Airbnb Cash on Cash Return: 5.40%
  • Airbnb Average Daily Rate: $170
  • Airbnb Occupancy Rate: 62%
  • Walkscore: 64
• Sun Valley
  • Number of Airbnb Listings: 198
  • Monthly Airbnb Rental Income: $6,879
  • Airbnb Cash on Cash Return: 5.39%
  • Airbnb Average Daily Rate: $162
  • Airbnb Occupancy Rate: 77%
  • Walkscore: 56
• Belcaro
  • Number of Airbnb Listings: 76
  • Monthly Airbnb Rental Income: $6,094
  • Airbnb Cash on Cash Return: 5.26%
  • Airbnb Average Daily Rate: $194
  • Airbnb Occupancy Rate: 70%
  • Walkscore: 45
• Civic Center
  • Number of Airbnb Listings: 361
  • Monthly Airbnb Rental Income: $5,523
  • Airbnb Cash on Cash Return: 3.88%
  • Airbnb Average Daily Rate: $130
  • Airbnb Occupancy Rate: 81%
  • Walkscore: 91
• Capitol Hill
  • Number of Airbnb Listings: 91
  • Monthly Airbnb Rental Income: $2,708
  • Airbnb Cash on Cash Return: 3.52%
  • Airbnb Average Daily Rate: $174
  • Airbnb Occupancy Rate: 72%
  • Walkscore: 92

Are you ready to invest in Airbnb Denver? You can start searching for available investment properties using Mashvisor’s Investment Property Search tool. Just type in your preferred neighborhood and we’ll provide you with a list of properties available for sale.

What Are the Rules and Regulations for Airbnb in Denver CO?

If you want to become an Airbnb host in Denver, it’s necessary that you understand the local laws associated with hosting short-term rentals. In Denver, short-term rentals are residential properties that are available for rent for one to 29 days. 

To host an Airbnb rental, you need to get a short-term rental license. The property being rented must be your primary residence, and one person can have only one primary residence. To apply for a short-term rental business license, you need to download the application guide for short-term rentals, where the step-by-step procedure for application is outlined. Be prepared to present documentation that proves your listing is your primary residence. You’ll need a copy of your Colorado Driver’s License or Colorado identification card, and at least two of the following:

• Proof of valid motor vehicle registration
• Proof of voter registration
• Federal or state tax returns or other financial documentation
• Utility bills

If you are not the property owner—for instance, you’re only renting the property for the long-term and you want to do an Airbnb arbitrage—you will need permission from the property owner to operate short-term rentals in the property. You will need to provide a copy of your lease and documented permission from the property owner when you apply for a license.

Your short-term rental business license should be renewed annually to keep it active. It’s important to note that no license is required if you only rent for 30 days at a time. However, it must be indicated in the booking calendar of any online platform that the rental period should be 30 days.

Subscribe to Mashvisor to Invest in Denver Airbnb Rentals

Denver, Colorado is a great place for vacation rentals. In order to ensure that you’re investing in a profitable income property, it’s important to determine which neighborhood is best to invest in. Choose a neighborhood that is near several tourist spots, has a high walk score, or one that’s near public transport.

Mashvisor can help you find the right Airbnb Denver property by providing tools that can assist you in determining whether or not the property can be a profitable Airbnb investment. Mashvsior also offers a comprehensive real estate market data analysis and helps you decide on the best real estate strategy for a particular investment property. 

You can start by searching the Mashvisor database, which contains thousands of properties for sale. Simply type in the city or your preferred neighborhood, and you will be provided with a list of properties available for sale in or near that area. 

Click on the property that interests you, and Mashvisor will provide an in-depth Airbnb analysis to help you make an informed investment decision. This includes the average monthly rental income, Airbnb cap rate, average daily rate, occupancy rate, median home value, comparable insights, and more. You can also use the mortgage calculator to help you see a general overview of your possible income and expenses, as well as your monthly cash flow. 

If you want to learn more about Mashvisor and our services, schedule a free demo or start a free trial here.