All Forum Posts by: James Carlson

@Scott F. 

Others have offered some great thoughts already. As @Myka Artis said, don't worry too much about a bad review. It happens to the best of hosts. I also agree with @Avery Carl and some of the others that laying out expectations in the clearest terms in the listing is a good way to avoid problems. (Not saying you didn't do this.) Guests will forgive a lot if they know what to expect.

I'll just add that, if you have not already done so, you should write responses to their reviews. Even if they brought some snark to their review, do not give it back. I like to respond as professionally as possible and eat crow if I have to. ("I hate to hear about your experience. That is below the standards I set for this space, and I have taken steps to correct [INSERT PROBLEMS]") It sucks if you don't agree with their review, but you've got to see it from the outside. If you respond with snark, the potential future guest only sees two people sniping at each other and they don't know which one is right, so they just steer clear.

Keep on keeping on!

@Steve K. @Myka Artis Thanks for the shout-outs. 

@Tiffany Miller Welcome to Bigger Pockets and to the idea of investments. Congrats on taking an initial step! I certainly love the idea of Airbnb to create some supplemental income. It's tough to say where you should buy and what kind of place you should buy without knowing more about your goals. Have you talked to a lender yet? That's always a good start. 

East Colfax has some nice smaller single-family homes. The 'hood is not "there" yet, by any means, but it's coming along. If you were to house-hack with Airbnb out there, you'd likely get a fair number of either nurses/medical professionals or family visiting relatives at the UC Health hospital out there. For a private room in that area, if done right, can get $40-$60/night. I see some units out there that have a fair number of reviews, so the occupancy is probably pretty good.

If you're looking at that East Colfax area because of the price point, you could also consider Barnum/Ruby Hill/Athmar Park areas, which have some smaller SFHs in that same general price point. You could do the same thing with Airbnb in those places.

If you're willing to spend more (and if used that $43k as part of a low down payment on a primary residence, then you could get into something bigger), then you could look at a SFH with a basement apartment, which would draw more money. You could rent the basement apartment out and rent out a room in your place up top.

Or you could look for a duplex or triplex. Though, as Steve mentioned, Denver's Airbnb law only allows you to short-term rent your primary residence. (Denver is much stricter than, say Colorado Springs, which has no restrictions on Airbnb uses in any number of residences.) In the duplex/triplex scenaior you could rent a room in your primary place, and on the other side either A) rent long-term unfurnished or B) furnish it and rent to traveling nurses for a bit more per month.

Anyway, there are a lot of different options to explore. Good luck!

@Charles Peralta

No one else has thrown out the standard line, so I guess I need to do it ... If you happen to visit Denver before your move, you should come to the BP meetups in Denver. They're pretty well attended and it's a good mix of vets and newbies -- the former are always free with their knowledge, the latter are always eager to learn. It's a fun environment.

@Josh C. I'll echo @Tanya H.'s request for that bank. That sounds too good to be true. But now I'm intrigued.

@Chad G. I didn't even have to pay you for such kind words. Thanks for the shout out.

@Vanessa Homuth Happy to chat anytime to see if we would work well together. I will also echo @Garry C. and say that you should stop by a meetup. It's a good mix of people there who are free and open with what they know. 

And welcome to Denver. It's a pretty great place to live right now. 

@Leigh Ann Smith

Interesting question, for sure. I will echo a few posters' comments.

@Ariel Smith's suggestion is spot on. Log out, go back in and act as a guest trying to book your property. You'll get their perspective. 

@Myka Artis might have the lowdown on how Airbnb in Texas is collecting taxes, but @Kevin Lefeuvre is right, it's all locally based. Here in Colorado, who collects what varies wildly from city to city. In Denver, neither Airbnb nor VRBO collect the 10.75% lodger's tax. (The city is going through the legislative process of changing their tax laws to allow it soon.) In Colorado Springs, an hour south of here, Airbnb and the city have an agreement where Airbnb will collect the tax and remit to city coffers. VRBO, meanwhile, collects the Colorado Springs lodger's tax separately but does not remit it, so it's still up to the host to pay it to the city. 

@Kevin Grinstead

ADU builders
I have contacts in Denver who can help build an ADU (or mother-in-law suite, granny flat, whatever you want to call the accessory dwelling unit). The two that I know are opposite ends. One is is a high-end builder who is carving out a niche in ADUs -- even advertising to the small pockets Denver that are zoned for ADUs. The other is a small operation who did a low-fi garage conversion for someone in Sunnyside. PM me if you want those names.

Airbnb laws in Denver/ADUs
Yes, Denver allows Airbnb or short-term rentals (STRs) only in your primary residence. But in my talks with the excise and license guy who oversees STRs, he has explicitly said that a basement apartment, mother-in-law suite/carriage house are considered accessory uses to your primary residence and can be rented full-time, all-the-time on Airbnb (or VRBO or pick your STR platform). This view has been reinforced at the Short-Term Rental Advisory Committee and is laid out on the city's Airbnb FAQ pageas well.

I work with a lot of buyers who are trying to find that basement apartment because if done right -- good furnishings, well-designed, bright photographs, and good customer service -- you can make a killing doing this on Airbnb. 

@Brady Boyer

I would just echo @Marcia Maynard 's point about insurance. DO NOT rely on any traditional homeowners or rental insurance to cover your short-term rental. Airbnb says they have coverage, but I don't trust them because a) they have split loyalties between the hosts and the guests and b) you have to file with them even though they don't actually operate the policies.

Opt for a company that specializes in short-term rental insurance. There are a couple out there. I like Proper Insurance the best. They will cover your whole place or just a room, and their coverage areas are broader than others. (For owners, Proper's plans replace your traditional homeowner's policy.) 

STR insurance might be a little more, but the peace of mind is well worth it.

@Rebecca Baggett

That's awesome. It's one of the few ways you can rent out a completely "separate" place on Airbnb short-term in Denver and comply with the city's new laws. Keep us up to date on how it goes.

@Rebecca Baggett

Awesome to hear about your ADU. There are very few pockets around Denver that allow for an ADU, so consider yourself lucky. (BTW, are you going to keep it for guests, rent it long-term or short-term rent it with Airbnb? If my incessant posts about Airbnb don't reveal my preferences enough, I'd opt for the latter to A) give you flexibility to host guests when they come and B) take advantage of the short-term rental revenue.)

About the permitting ... I'll let others who might have first-hand knowledge chime in, but if you're working with a builder, they should know. I know a few builders -- one, in particular, that is carving out a niche with ADUs -- if you need any recommendations.

Cheers!