How to Airbnb in the 303

Posted by Rebecca Jones-Egloff on Friday, October 4th, 2019 at 1:50pm.

Most people think of Airbnb as a San Francisco company. Its headquarters are there, and that’s where the first Airbnb rental took place; so we guess that’s fair. But do you know what city really cemented the future of the now-billion-dollar business? That’s right, the 303!

If it were up to San Fran, we would all still be booking hotels instead of renting strangers’ houseboats. And the concept of Airbnb real estate investing in Denver--or any other hub, for that matter--would not exist for us to discuss.

Airbnb...Born in Denver?

See, back in 2007 two roommates couldn't make rent. But they could see the potential in a hotel-room shortage in their city thanks to an upcoming design conference. So they bought three air mattresses, set them up in their loft, and created airbedandbreakfast.com. During the conference, three guests each paid $80 to air-mattress-surf with the boys. 

That was Airbnb’s first launch, but it fizzled out. Two more tries brought similar results, until the team moved their focus to the 2008 Democratic National Convention in Denver. It was here that the crew hit the streets selling cereal to tourists for $40/box--branded as Obama O's and Cap'n McCains--with information Airbnb. The stunt earned them $30,000 and a lot of attention, and it secured Denver’s place in Airbnbs company history. 

Denver Hearts Airbnb

Today, Denver’s still a big part of the Airbnb story, with over 5,000 properties available to be rented. Hosts can choose to rent an entire home or apartment or to rent a private room within the property, or a shared room. But Denver’s got a clear preference. About 74 percent of folks rent out the whole house or apartment. The average nightly cost of those short-term rentals is $155. 

Rules to Rent By

Before you enter the rarified world of Airbnb hosting in the Mile High City, you’ll need a license. Short-term rental licenses--for rentals of 1-29 days--have been required to operate an Airbnb since 2017. To be eligible for that short-term license, the property you’re looking to rent needs to be your primary residence. The local government defines that as “a residence which is the usual place of return for housing,” of which an individual can only have one. 

City and county ordinances also require you to apply for a business license and then post the business file number that you’re issued in all of your online listings for the property. Finally, you’ll need to apply for a lodger’s tax ID, and to collect the 10.75 percent lodger’s tax with each transaction. And remember: the money that you make renting your Airbnb is income, so you’ll need to report it as such. 

Design your Space

Based on your property’s location, its size and its amenities you can start making some assumptions about who will rent it. Are you expecting budget-conscious families? Outdoorsy young people? Harried conference goers? Knowing this will help you to customize the look of your space. Next, think about what yourkind of travelers need. Are they business travelers who would appreciate access to a printer? Families with kids who would love to know that a washer and dryer are on-site, stocked with stain stick and detergent? 

When it comes to your property’s decor, stay true to the location and your taste. If your guests wanted stripped-down homogeneity, they would be at a hotel. They're interested in staying in your space. Of course, that doesn't mean that out-there decor will get your return bookings. But the personality of place plays well on Airbnb. Include framed photos of the city, coffee table books on the area and other local touches. 

A Word about Photos

Ever noticed how good the photos are on Airbnb? There are two reasons for that. The first one is that hosts understand the power of good styling, lighting and photography to get their property booked; hosts earn about 40 percent more when they use professional photos of their place. But the second one is Airbnb’s photography servicethat’ll connect you with a local pro, and help you pay for it. 

Once you’ve got your place decorated and fully tidied and cleaned, reach out to Airbnb. They’ll send over a pro to photograph your space, taking 2-3 photos per room and the shots will be reviewed by Airbnb. You pay nothing to the photographer at the time. Instead Airbnb will automatically deduct the cost of your photo shoot from future payouts.

How to be a Host

You don’t have to hang out with your renters in order to host on Airbnb. But you--or someone you hire--will indeed need to tend to the space. Not only does it need to be cleaned in between hostings, Airbnb’ers expect some specific essentials. Your ratings--and therefore the demand for your space--will plummet if guests don’t find fresh linens, toilet paper and soap upon arrival, for instance. Users of the service have grown to expect personal service as well as some goodies in the fridge or pantry. One host reports being dinged by a renter for not putting out a welcome note and a fruit bowl!

Airbnb also requires you to make sure your smoke detectors, carbon monoxide detectors and fire extinguishers are present and in working order. If you aren’t able to be in town to take care of those tasks when your Airbnb is being rented, you can hire an Airbnb property manager. 

Be a Thoughtful Tour Guide

Whatever you decide--to play on-call host yourself, or to outsource that job--create the property binder yourself. This is where you’ll set forth the house rules, the Wifi password and 911 information as well as other local emergency info. But it’s also your opportunity to be that local guide that sets Airbnb apart. Consider listing all of the local places you love to frequent: coffee shosp, book stores, gluten-free donut spots. You might also want to customize a few tours. 

For instance: here’s what’s in walking distance if you love art or music. Here’s how to spend a day in Denver if it’s your first time. Here are five things to do nearby when it’s raining. Each tour should start and end at your property, which gives you a bunch of chances to detail different ways to get around. 

And then there are the helpful tips about our city that might comfort visiting flatlanders. Perhaps you’ll include an entry on dressing in layers to prepare for experiencing all four seasons in a day. Or where to grab the gear needed to tackle their first 14er.

Enjoy your Passive Income!

For many veteran Airbnb hosts the opportunity to meet interesting people and share the city they love with newcomers is priceless. The good news, however, is that there isa price associated with that service nonetheless. Your home is one of your biggest investments, and one you’ll be paying for anyway. Airbnb offers an excellent way to subsidize your housing costs while still enjoying the home that you love. 

(But Keep Watching for New Rules!)

In many localities where Airbnb’s in business, complaints have mounted about the added stress that the company’s operations place on the community. And Denver is no exception. What’s that mean for you? 

Well, pressure from constituents may mean additional rules about what’s required in order to be an Airbnb host. Among the proposed changes in Denver is a rule requiring those who rent out their homes through Airbnb to alert their insurance company before they do--and to use their personal homeowner's insurance to cover the transaction, rather than the insurance Airbnb provides to hosts. Another rule would let Denver officials reject more short-term rental licenses if they believed that the welfare of the immediate neighborhood where it’s located would be negatively impacted by the property being rented.   

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