All Forum Posts by: James Carlson

@Jon Hand

Denver's a long way from becoming NYC, but it's certainly on an upward trajectory. And with that will come more people looking to cut costs by teaming up in a place. I've had a few clients who were living with roommates before they started a house hunt, so I know those renters exist.

I don't know how open you are to it, but if I were a single guy looking to house hack, I'd rent a room long-term and another room on Airbnb. If you wanted to go big, you could buy a home with an existing basement apartment, rent that short-term on Airbnb, and rent out rooms long-term on the main level.

Either way, it sounds like you're excited about using real estate wisely. That's awesome. Good luck!

@Jason Jebeles

First off, congratulations on taking a big step. Airbnb is awesome. 

The short answer to your question is: Yes, you absolutely need an insurance product specifically catered to short-term rentals. There are companies out there specializing in this area. Proper Insurance is a good one. Slice is another interesting one. (Shameless plug: my wife @Erin Spradlin actually just wrote a BP blog post about the need for STR insurance.)

I am not an insurance agent -- insert obligatory disclaimer here -- but I can almost guarantee you that your normal homeowner's policy will not cover you, which makes sense. There is a certain risk insurance companies are covering you for living in your home, which is not the same level of risk as inviting guests into your home on a routine basis. 

Like @Myka Artis and @Shelby Pracht said, I don't really trust the Airbnb coverage. One small correction, though. Airbnb has two products they say cover hosts: The Host Guarantee, which is $1 million of protection against damage to your property and the Host Protection, which is $1 million of insurance protecting you against liability. (Someone breaks a leg in your place and sues, etc.) Either way, Shelby's point is important: I've heard some people have okay experiences, but others have not. Their coverage areas are not as robust as, say, Proper Insurance's coverage areas. Anyway, do some of your own research, but the big takeaway is to not rely on your existing coverage. If you do, you'll likely pay in the end.

Again, congratulations and good luck!

@Matt H.

Welcome to BP and awesome idea! I love ADUs (or mother-in-law suites or basement apartments or carriage houses ...) Under Denver's new Airbnb law, they are the only way you can do a short-term rental full-time. (Damn primary residence rule and all.) 

I know a few builders specializing in ADUs. Feel free to PM me. Congrats on being in one of the few small pockets of Denver that allows for new-build ADUs. That's great.

Airdna isn't a bad product, for sure, but just like Airbnb's smart pricing, I don't fully trust it. It's all an average, and if you do above average work, then you will be pricing too low. I mean a 2br/1ba condo in Cap Hill totally remodeled inside, with an exposed brick wall, and tastefully designed with Room & Board is just not going to rent the same as a 2br/1ba condo in Cap Hill that's crap inside and has been stuffed with whatever second-hand Nebraska Furniture Mart couch you could find.

I'd always do your own research. Act as a guest on Airbnb, find places the same size as yours in the same area with similar furnishings that are getting booked. Whatever that price is, undercut it for a few stays to build up some positive reviews and then start raising your price. 

I agree with @Matt M. about the lower turnover of a traveling nurse. On the spectrum of money-making -- between long-term renting and Airbnb-style short-term renting -- that 3-6 month furnished rental is in the middle, both in terms of price and work. My wife and I own two furnished rentals and do pretty well with them, so that's always a fall-back if Airbnb becomes tedious. (Though, still, if you're in the right area in Denver -- and no ADU-allowable area is bad -- you should be able to hire a property manager specializing in Airbnb and still make a better profit.)

Good luck!

Whether house-hacking with Airbnb, short-term renting your place while on vacation or looking to buy an Airnbb investment property, you need to know the laws first. 

Littleton provides a unique investment opportunity through short-term rentals like Airbnb and VRBO. Unlike many cities along the Front Range, Littleton has no restrictions on short-term rentals and -- as of now -- has no plans to do so.

Come grab a drink and learn:

-- What kinds of short-term rentals are allowed

-- What taxes you need to pay and how to collect them

-- How to protect yourself with the right insurance

-- Whether the city may change their laws in the future

-- Broad overview of best practices for hosting

Details:

Sept. 18, 2017
6 - 7:30 p.m.
Tavern Littleton
2589 W. Main Street
Littleton, CO

Free, but please RSVP here on Bigger Pockets or register at my site so I can try to give the venue a headcount. 

Whether you're looking to use Airbnb while house-hacking in Denver or you want to short-term rent your place while you're on vacation, you need to know the laws. 

Come grab a drink and learn all about:

• The primary residence rule
• City enforcement efforts
• Tax collections
• Cities friendly to Airbnb investment (hint: Colorado Springs)
• What insurance you need
• Duplexes, basements & carriage houses
• HOA restrictions
• Creative workarounds ... and why they probably won't work

Details:

• Airbnb Laws in Denver
• Sept. 12, 2017
• 6 - 7:30 p.m.
• Carbon Cafe & Bar 
• 1553 Platte St, #130

Free, but please RSVP here on Bigger Pockets or register at my site so I can try to give the venue a headcount. 

I love @Garry C. 's language that he uses when requesting reviews. At least on Airbnb -- I'm not about VRBO -- each side has 14 days to leave a review. I usually give guests about five days after their stay to get settled back from wherever they came, but if I haven't seen a review in that time period, then I send out a gentle request. 

I also hadn't really thought about the slightly negative review giving a "human" impression to your reviews, but that's a good point. If all I see are amazing reviews over and over, sure that could be the most amazing rental ever. But it also sounds fishy after awhile. 

Great discussion!

@Matthew Moore

I will definitely post it here on Bigger Pockets and on my website's calendar. I will try to remember to PM you as well to notify you. Cheers.

@Tiffany Miller  

I think I know the place you're talking about. It's at 29th and Poplar, right? That place is like two separate homes on the same lot. I've shown it a few times to people. You're right, totally turn-key, and if I remember it correctly, the photos don't really show the separate spaces as well as it shows in person.

Yes, you could Airbnb that one. I've been pushing it to some clients, but I don't think they want to live in that area. Have you talked with a lender about how much you'd have to put down? Because if you have $45k to invest, that's more than enough for a down payment on a primary residence. You can put down as little as 5% on a conventional loan, 3.5% for FHA, or even less if you qualify for one of the Colorado's homebuyer assistance programs. (And the income qualification standards for those programs are surprisingly high.)

I have a few workshop/happy hour events coming up where I talk about the Airbnb laws in the metro area. One on 9/12, the other on 9/20 for Denver. (I have another later in the month in Colorado Springs.) I'll post them here on BP when I finalize them.

Yes, @Tiffany Miller, as @Kevin Grinstead correctly pointed out, some of the cities just outside of Denver have more permissive laws ... as of now. But if you're considering any place in the immediate metro area for Airbnb or short-term rentals, I'd operate with the idea that any permissive city could become a more restrictive city in the next year or two. Just as a few examples, Lakewood doesn't have laws, but they've got a city council committee looking at them. Centennial doesn't restrict Airbnb (or VRBO) but says they may look at it in late 2017/early 2018. Arvada doesn't specifically address short-term rentals but has hired a consultant to start developing ideas.

(My wife and I are dorks and have started writing reports on the Airbnb laws in various Colorado cities, which is why we know this stuff.)

All that said, it doesn't seem to matter for your goals, Tiffany. You are talking about hosting in your own home, and I would venture to say that any city that does eventually pass a law will pass something similar to Denver's. (Aurora, for instance, is the only other city in the Denver metro area to pass a specific Airbnb/STR law, and it looks almost identical to Denver's.)

Good luck!

Yeah, @Brandon Raeburn as @Ben Vargas said, if a building has three or more units in it, then you can't rent it without you also being on the premises. This essentially outlaws all short-term rentals (or Airbnbs) in New York City. Now, are thousands still doing it? They sure are.

But the risk -- even if not super big -- is there. Violation fines start at $1,000 simply for advertising a listing (not even for renting it). The fines go to $5,000 and then $7,500 after that. And I thought the Airbnb laws in Denver were tough.