Rental Property Investor · Fort Collins, CO · Member since 2016 · 59 posts · 20 votes
Hello,
I recently put an offer on a house in Fort Collins with an idea of potentially turning the basement into an Airbnb. I'm completely new to this, but according to Fort Collins website my future address isn't valid for a STR (Short Term Rental) zone. However I see Airbnb's all over the place on VRBO, so I am wondering if I'm missing something. Has anyone run into this before, even outside of Fort Collins? Is this something that can be negotiated with the city if it meats safety standards?
I have no idea what the zoning is in your area but you may simply be using the wrong wording. Maybe ask about something like a “homestay”. It is different than just an str. Str refers to renting your home for less than 30 days at a time. “Homestay” permits where I am apply to renting just part of your home for less than 30 days at a time.
in Fort Collins i have a client that wanted to something similar to what your idea is. She actually has a second floor unit at her house. Hearing and reading the same information she went down to the building department to get the info from the horses mouth.
You will need to apply for a license for the airbnb, but here is where the catch is. You will need to live at the residence full time.
i am sure you have heard of the couple in Denver who falsely told Denver's building department that they lived at the residence where the airbnb as located. They are now facing fraud charges. So, be careful and absolute in your conversation with the city. I think you will be surprised as to how helpful they will be.
Because she is a full time resident at the house, yes, they will issue her a license to operate a airbnb. For her the only other requirement was off street parking which she meets also.
@Don Pope oh that’s great to hear. I have an inspection this weekend and will hopefully close in November. Probably should’ve done some research before hand but I’m just starting out and learning and I know there will be some hard lessons on the way, that’s part of it. Thank you Don
Why not just rent out the basement as regular long term rental? Also you can look at leasing for greater than 30 days which is not considered short term. Think traveling nurses.
how is the basement setup... ie seperate entrance, bath, kitchen, proper egress?
The basement I think is perfect for a long term rental. It has its own bedroom which is quite large, it’s own bathroom with a dual sink, and large space adjacent from the rooms. All with with a total of 3 egress windows. I was just considering Airbnb as this is my first home and exploring options. Zoning was something I hadn’t heard of prior to my offer.
Are you a Fort Collins real estate investor? If so and if you’re interested it would be interesting to hear your ideas.
Seems like a good idea to lower your costs by renting out the basement.
CSU grad students can be very good renters and often times are happy with a studio or one bedroom (and might not mind going through your house with a key. I just re-read Don's comments and I agree that a travelling nurse or similar would be a good idea. Some of who wants it for rental space will depend on the location.
One other thought would be to see how difficult it would be to add a little kitchenette space. It could make it a little easier to rent.
Since you are new to the area and zoning, I would also mention that you need to have a little caution with how many unrelated parties are living on the property; if you haven't already, definitely take a look at those guidelines.
I have no idea what the zoning is in your area but you may simply be using the wrong wording. Maybe ask about something like a “homestay”. It is different than just an str. Str refers to renting your home for less than 30 days at a time. “Homestay” permits where I am apply to renting just part of your home for less than 30 days at a time.
@Mathew Fuller Fort Collins has pretty strict zoning requirements for STRs. You can see the map on the link below. You may see some properties outside of the zone on AirBnB. These properties were operating as STRs before the zoning was put in place and the city grandfathered their licenses. Feel free to PM me with any specific questions you have. I have a couple of properties in Fort Collins I use as STRs.
Thanks for the heads up, I have already read the zoning law for unrelated people in a single residence and it’s no more than 3 unrelated people, so I’m clear on that, but thanks for the heads up!
To answer one of your initial questions as to why you see so many VRBOs and AirBnbs on the market that are in random zones, it is because they more than likely have been grandfathered in. About 2 years ago, when Fort Collins put in place the ordinance on STRs, they gave all of the operating STRs a chance to get licensed and be grandfathered in. Moving forward from that time, the zoning is the only thing that dictates whether you can or can't operate a STR. I wouldn't try to skirt it either, as the city has hired a third party that tracks and watches Airbnb and VRBO and other sites for non licensed operators.
Sounds like a great option for you is the long term rental. Good luck!
You might check with the Bldg adept on turning the basement into a long term rental/ they may consider it a duplex and not a dingle-family home anymore.