All Forum Posts by: James Carlson

@Aimee Lawrence . You're smart to consider Airbnb. I love it, and if you can find the right property, it can be a huge money maker. I get a lot of questions about short-term rental (STR) laws in my Airbnb class and from other STR owners. I'm currently compiling a report on the STR regulations for cities along the Front Range. I'd be interested in any stories about this that @Adam Eaton can find. I actually reached out to Fort Collins' zoning department about this a week ago. This is the response I received:

The City of Fort Collins at this time does not have any specific rules governing short term rentals such as Airbnb, but the planning and zoning board has convened and written new rules which will be published into our land use code, tentatively by the end of the month. 

I'm waiting to hear back about what exactly that means. 

Hey @Jason L. I was just reading about @Nicole Jones ' investments in Fresno. She might have some opinions on this. 

@Nicole Jones . That's interesting that you say your place performed better than Airdna predicted. I think as with so many rules and tools, they're not hard and fast. Similarly, I tell students in my Airbnb class to never use Airbnb's smart pricing for the same reason. I always got way more than what they recommended. Technology's great. But it's still no match for knowing your market and your own space's desirability. 

I hear you about the control. I wouldn't even let my own wife clean our Airbnb rentals because I was so particular about them. That was dumb of me. While I advocate maintaining high standards, you've got to trust others and relinquish control at some point if you want to expand. Sounds like you understand that well. I wish you luck in your move. Cheers!

Hey @Joey Saah. I'm certainly a big fan of Airbnb and short-term rentals. But it largely depends on the demand in your area. If you're in a resort town, it sounds like it could work. If you can get the people, you should bring in significant money. Some factors to consider:

Local regulations
This is a biggie. Many cities and towns are cracking down on Airbnb. Many of the cities that allow it, like Denver, allow it only in someone's primary residence. Is that true for your area? If so, Airbnb may be out.

Market demand
Do a simple search on Airbnb.com for listings similar to yours in your area. Look at their reviews? When were they posted? Are they getting a lot of reviews? And even if they are, are teh reviews spread out over multiple years or are they concentrated? (You want to get a sense of how often they're being booked.) In my experience, not every guest leaves a review. Many don't. So you can't totally rely on the reviews to tell you anything. You could also try a pay service like Mashvisor or Airdna.co (no 'm'). They have data on occupancy rates for certain areas.

Level of work you can put in
To do an Airbnb right, you either need to hire a property management company that specializes in STRs or you need to do it yourself. Sounds like you won't be there, so you need to look up Airbnb property management companies and see if you can find one that works in your area. 

Happy to answer any other questions. I love talking about this stuff. Good luck!

I'm helping a buyer who wants a home in Park Hill, Mayfair, or Congress Park. He wants the option to build a carriage house out back and so I was going to set up a search filtered through zoning descriptions with a '1' attached to the last letter -- U-SU-C1, for example, or U-TU-B1. Those allow for one accessory unit on the property. But I then looked at the zoning map, and there are no such zoning designations in this buyer's desired areas.

Am I missing something? Are there any "secret" pockets of this type of zoning sprinkled throughout the zoning overlays? Maybe on a corner lot or something? 

Thanks for any help.

Hey @Colin Carr . You're not crazy. The market is tight right now, and finding a deal that meets the 1% rule, much less the 2% rule, is tough. That said, good deals are out there and with patience and maybe a little creativity, you can find them. My wife and I own two condos in Cap Hill that are doing well for us, one I bought through a letter-writing campaign to owners. 

As with everything, though, you should establish your own criteria and not be too bound by the rules. They're quick and easy tools, but they're not the end all be all. For instance, you can find deals that cash flow but won't meet the 2% rule or the 1% rule. Are you looking to buy and hold for appreciation in 15, 20 years? Are you looking to cash flow right now? Give some thought to your goals and then develop a search around them.

Good luck!

Hey @Ryan Hilbun. You can sync calendars on both platforms to make life easier. I could try to explain here, but just google it, and you'll find the answer. I know @Michael Greenberg's got a place or two down in Arizona -- Scottsdale, even, I believe. You might touch base with him about the market. 

Hi @MarieChele Porter. As Denver's biggest fan, I'd have to second @Matt W.'s mention of the Mile High City. As with a lot of markets, it's knowing what style of home to buy in what area. If you're looking for great cash flow, this might not be your market, but in terms of long-term potential appreciation, I love Denver. It's becoming one of the go-to destinations for rich millennials, and it's home prices -- while admittedly higher than Denverites would like them -- are still relatively cheap compared to many of the other "cool" cities people want to live in. Those are my two cents.

Good luck with everything!

@Kevin Shuler . Good question. (And you're right about not finding answers. I was a journalist for 10 years whose job it was to find bills, laws, ordinances and still ... it's super difficult to find the actual language of any law.)

For Denver, a "primary residence" as defined in the municipal code, Chapter 33, Article III, sec. 33-46(4) is: 

• "...a residence that is the usual place of return for housing as documented by at least two of the following: motor vehicle registration, driver's license, Colorado state identification card, voter registration, tax documents, or a utility bill. A person can only have one primary residence."

I can't for the life of me find Aurora's actual language. That might be because the ordinance just got passed, and while it's been adopted, it hasn't been codified. That said, I'm guessing they have a similar definition as Denver's because the Aurora STR FAQ document says if the city needs to verify primary residence, it will do so be requesting any of the following: "driver's license, voter's registration, state ID card, tax documents, utility bills, and any other document proving the STR unit is the primary residence."

Hope that helps. Feel free to inquire further. I love talking about this stuff. Cheers!

@Jordan Norwood. I saw you mention a carriage house and just had to chime in. Don't know if you're looking to lease it out as a long-term rental, but you might consider renting it on Airbnb. A little up-front money in furnishings to make it look sweet, and you could do quite well with a short-term rental (STR), especially in LoHi. What's great is that a carriage house is one of the few legal ways to Airbnb full-time in Denver under the new STR law. (The law, which went into effect Jan. 1, allows STRs only in your primary residence, but a carriage house is considered an accessory unit to your primary and is allowed.) Just thought I'd throw that out there. Good luck!