All Forum Posts by: James Carlson

@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!

@Kimberly G. I can tell you about my experience with furnished rentals in Denver, but it's probably not something you can translate to the Jacksonville market as every market is different. @Matt M. was talking specifically about traveling nurses. However, I actually use "traveling nurse" as short-hand for anyone needing temporary furnished housing. Yes, I have had a few actual traveling nurses. They were both at my smaller furnished studio, and they paid between $1,600 and $1,800. (To @Eric C. , I use Craigslist exclusively.) But I've also rented to people moving to Denver and looking for transitional housing while they search for their permanent house. I've had a government worker on temporary assignment, a law student clerkng at the Supreme Court, and others. So in my experience, yes, traveling nurses will pay more than $1,300, and do will a lot of other people. Now I like to think I put more thought into design, staging and photography than most, so I hope that my places stand out. But there is definitely a market out there.

@Matt M. Oh, I didn't realize you were asking about the traveling nurse model. My wife and I do really well with it here in Denver. It's not Airbnb money, but it's about 50% more than a traditional, unfinished long-term rental. We've had a few days vacancy at one of our Capitol Hill spots, and we once had two weeks vacancy at our other, but that was because I dropped the ball on posting it. Other than that, we've been full in the few years we've been doing it. We have to turn it over a bit more, but we don't mind for the extra cash. Traveling nurses are usually on 13 week contracts and often have the option to renew. We're actually partnering with some fellow BPers to buy another furnished rental here soon. PM me if you have any questions about this.

@Matt M.  

I don't know the price comparison that well. A cursory look shows a 1br in, say a Cap Hill smaller building up to around 16 units, is starting at $190 on the very low end and going up to $240 on the higher end. Two-bedrooms in similar complexes start at $240 and go upward, but again, that is a super broad analysis.

I'll you know if I find anything else out. 

Okay, BP nation. (Or just BP Denverites.) 

I've got a client wanting to buy a small condo in the heart of Denver to furnish and rent out to traveling nurses. (I like this model, as it's something my wife and I do, and is a way for those without much money to get into the rental market.)

My buyer is wondering if she decides to go back to long-term renting if a 1br or 2br condo has a better return. I've run a few numbers, but my wife and I only own really small spaces, so I'm interested in others' thoughts on this. 

@Craig Teeter

Yes, a broad question indeed. I think @Angela Yan is generally correct that cities and "hip" areas tend to fare better on Airbnb while the traditional vacation rental home (lakehouse, ski house, etc.) fares better on VRBO. (That, itself is a broad generalization.)

Like @Blair Russell , when I was doing Airbnb here in Denver, I could have been booked exclusively on Airbnb. I also put our spaces on VRBO, though, at much higher rates and synced the calendars. If someone wanted to book for more on VRBO, great. Otherwise, my sweetspot price on Airbnb would fill it up eventually.

I think as @Leigh Ann Smith found out, Craigslist is pretty good for getting that furnished medium-term traveling nurse crowd. At least it is for us here in Denver. Our two condo rentals are both furnished and we use CL exclusively to get traveling nurses. It's not Airbnb money, but it tends to be about 50% more than a conventional long-term unfurnished rental. (And here in Denver, any way you can juice the rents is a helpful tactic.)

I know @Michael Greenberg was (and maybe still is) experimenting with his own platform, which is obviously the best way to go if you know how to build a website and get its SEO value up. (Cut out the middle man!)

In short, there are tons of ways to market STRs!

@Conrad Kostrzewa  

Awesome to hear. Denver is a pretty great place for Airbnb and short-term rentals. I've talked with the Airbnb rep here in Colorado numerous times, and he tells me Denver is one of their biggest untapped markets. Tons of demand, not enough hosts. So, whether house-hacking or renting  your own place while out on vacation, it can definitely be worth the work. See you Monday.