Commerce City, Colorado, is experiencing robust short-term rental performance, with a median occupancy rate of 65%, an average daily rate of $113, and an average annual host income of $25,000, making it a highly stable and profitable market for Airbnb investors.
Thriving Short-Term Rental Market in Commerce City, Colorado
Commerce City, Colorado, is experiencing a robust and profitable short-term rental market. With a median occupancy rate of 65%, indicating that typical listings are booked for 237 nights per year, the city stands out as a favorable destination for Airbnb hosts. The average daily rate for these rentals is a substantial $113, contributing to an average annual host income of $25,000. This strong demand, coupled with lenient short-term rental regulations, makes Commerce City an attractive and stable investment opportunity for those considering entering the short-term rental market.
Short-Term Rental Regulations in Commerce City, Colorado for 2024
Licensing and Registration
- Commerce City has established a Short-Term Rental Registration Program, as outlined in Ordinance 2583, which requires owners to register their short-term rental properties.
Eligibility and Ownership
- Only property owners can operate short-term rentals. It is essential to ensure that the property is owned by the person or entity operating the short-term rental.
Zoning and Location
- Short-term rentals must comply with local zoning regulations. Non-owner-occupied rentals are subject to specific spatial regulations, such as being at least 500 feet away from another non-owner-occupied rental and avoiding single-family zoning districts, though specific rules may vary.
Safety and Amenities
- Properties must meet safety standards, including the provision of operational smoke detectors, carbon monoxide detectors, and fire extinguishers.
Local Contact and Information
- A local contact person’s name and phone number must be provided, along with a brochure detailing local ordinances, rules, and regulations, as well as the local contact’s information.
Taxes
- Short-term rentals are subject to various taxes, including:
- Local Sales Tax: Varies by city or county.
- County Lodging Tax: Between 0.9% and 2%, depending on the county.
- Local Marketing District Tax: Ranging from 1.4% to 4%.
Compliance and Enforcement
- Owners must ensure compliance with all local requirements and regulations. Failure to comply can result in fines and other enforcement actions.
Additional Requirements
- Properties may need to provide additional off-street parking spaces unless exempt (e.g., full house or accessory dwelling unit).
- Owners should be aware of any Homeowners Association (HOA) rules, as many HOAs prohibit short-term rentals.
High-Revenue Airbnb Neighborhoods in Commerce City, Colorado
Neighborhoods Generating Significant Airbnb Revenue
1. Green Valley Ranch
- Appeal: This area is highly rated for its luxury accommodations, proximity to the airport, and major highways. Guests appreciate the convenient location, which is close to amenities like golf courses and just a 60-minute drive from the mountains.
2. Commerce City Urban Conservation
- Appeal: This neighborhood offers a unique blend of urban and natural environments, making it attractive for guests looking for both city amenities and easy access to outdoor activities.
3. Rocky Mountain Wildlife Arsenal and Surrounding Areas
- Appeal: The proximity to the Rocky Mountain Arsenal National Wildlife Refuge is a significant draw, offering guests opportunities for wildlife viewing and outdoor recreation. The area's natural beauty and conservation efforts make it a popular choice.
4. Pioneer Park and Barr Lake State Park Areas
- Appeal: These neighborhoods are appealing due to their scenic parks and lakes, providing guests with opportunities for hiking, fishing, and other outdoor activities. The natural settings and recreational facilities make these areas highly desirable.
5. Dick's Sporting Goods Park and Surrounding Areas
- Appeal: This area is attractive for sports enthusiasts and families, as it is close to Dick's Sporting Goods Park, a major sports venue. The neighborhood also offers a mix of entertainment and recreational activities.
Why These Neighborhoods Are Appealing
- Convenience and Accessibility: Many of these neighborhoods are close to major highways, the airport, and key attractions, making them convenient for travelers.
- Natural Beauty and Outdoor Activities: The presence of parks, wildlife refuges, and lakes provides ample opportunities for outdoor recreation, which is a significant draw for guests.
- Luxury and Comfort: Areas like Green Valley Ranch offer luxury accommodations that cater to a variety of needs and interests, ensuring a comfortable and enjoyable stay.
- Family-Friendly and Pet-Friendly Options: Several neighborhoods in Commerce City offer family-friendly and pet-friendly rentals, which are highly sought after by guests traveling with families or pets.
These factors combine to make these neighborhoods highly profitable for Airbnb hosts and appealing to a wide range of guests.
Tips for Furnishing and Designing an Inviting Airbnb in Commerce City, Colorado
Understand Local Preferences and Amenities
- Outdoor Spaces: Incorporate patios, gardens, or other outdoor areas to capitalize on Colorado's beautiful weather and scenic views.
- Modern Kitchens and Living Areas: Ensure kitchens are fully equipped and living areas are spacious, especially for family-friendly rentals.
Choose Appropriate Furniture and Decor
- Mix of Modern, Rustic, and Mountain-Themed Elements: Combine these styles to reflect the area's natural setting. Use natural materials like wood and stone to create a cozy and inviting atmosphere.
- Statement Pieces: Invest in high-quality, defining pieces such as couches, coffee tables, and dining room tables to enhance the aesthetic appeal of the space.
Enhance Comfort and Aesthetic
- High-Quality Linens and Cozy Seating: Provide comfortable bedding and seating areas to ensure guest comfort and satisfaction.
- Thoughtful Decor: Add local artwork and decor to give guests a sense of place and connection to the local community.
Consider Budget and Priorities
- Budget Management: Identify key areas to splurge on, such as the living room or kitchen, and make budget-friendly choices in other areas.
- Quality Over Quantity: Opt for higher-quality items that will last longer rather than cheaper alternatives that may need frequent replacement.
Pay Attention to Details
- Plants and Greenery: Add plants to corners and spaces to liven up the area and create a welcoming atmosphere.
- Unique Views and Amenities: If possible, highlight unique views, especially of the mountains, and include amenities like hot tubs or fireplaces to enhance the listing's appeal.
Neighborhood-Specific Design
- Reflect Local Vibe: In areas like Rock Creek, Town Center, or near the Flatirons Vista Trail, ensure the design aligns with the neighborhood's character, whether it's family-friendly, modern, or rustic.
Maintenance and Practicality
- Durable and Easy-to-Maintain Items: Choose items like rugs from sources that offer easy maintenance options, such as washable rugs, to simplify upkeep.
- Clean and Well-Maintained Space: Ensure the space is always clean and well-maintained to attract positive reviews and repeat bookings.
Discovering Commerce City, Colorado: Local Attractions and Insider Tips
Local Attractions
Outdoor and Wildlife
- Rocky Mountain Arsenal National Wildlife Refuge:
- Explore over 15,000 acres of urban preserve, home to over 330 species of wildlife including bison, white pelicans, owls, and bald eagles.
Enjoy trails, open space, wildlife tours, hikes, educational tours, and fishing workshops.
Barr Lake State Park:
Located a short drive from the city, offering premier bird watching, fishing, and boating opportunities.
Sand Creek Regional Greenway:
- A 14-mile trail and natural area connecting Commerce City through Denver and Aurora, providing a "wilderness in the city" experience.
Parks and Recreation
- Pioneer Park:
- The city’s largest park, featuring state-of-the-art baseball fields, a year-round skate park, and a waterpark with a zero-depth leisure pool, water slides, and a lazy river.
Also includes a toddler pool with interactive water features and other play structures.
Buffalo Run Golf Course:
- An 18-hole championship golf course with picturesque views of the mountains and prairie.
Sports and Entertainment
- Dick’s Sporting Goods Park:
- Home to the Colorado Rapids Major League Soccer team and one of the country’s largest soccer complexes.
- Hosts soccer matches, concerts, and other events, with a capacity of 18,000 people.
Community Events
- Memorial Day Parade:
The largest Memorial Day Parade in Colorado, featuring military units, bands, floats, vintage cars, and horses.
4th Fest:
Held at Dick’s Sporting Goods Park, includes one of the state’s largest firework displays, live entertainment, and a Colorado Rapids game.
Art Show and Tree Lighting:
- A free event in December at the Commerce City Civic Center, featuring a festive tree lighting and an art show sponsored by the Commerce City Cultural Council.
Insider Tips
Dining
- El Lechon: A food truck serving authentic Mexican street tacos and churros. Check local schedules to catch it.
- Stephanie’s Cafe: A cozy breakfast spot with great coffee and a wide menu of hearty dishes.
- Butcher Block Cafe: A classic American diner with daily specials and friendly service.
Additional Tips
- Explore Local Trails: Commerce City offers 840 acres of parks and open space, along with 25 miles of trails connecting to local and regional routes.
- Visit the Shops at Northfield: A shopping destination near Commerce City, offering a variety of stores and dining options.
- Drive-In Theaters: The 88 Drive-In Theatre is just a few miles away, providing a unique movie-going experience.
By sharing these attractions and tips, you can help your Airbnb guests make the most of their visit to Commerce City, Colorado.
Practical Tips to Run a Successful Short Term Rental Business in Commerce City, Colorado
To ensure the success of your short-term rental business in Commerce City, Colorado, several practical tips can make a significant difference in guest satisfaction and compliance with local regulations.
Noise Regulations and Quiet Hours
Inform your guests about noise regulations and quiet hours to maintain a peaceful environment for both your guests and the neighbors. Include clear guidelines on quiet hours in your digital and physical house manual to avoid any potential issues.
Comprehensive House Manual
Create a detailed digital and physical house manual that includes essential instructions, Wi-Fi passwords, and other important information. This manual should cover everything from appliance usage to emergency contact details, ensuring guests have all the information they need at their fingertips.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with a unique access code and detailed instructions on how to enter the property. This not only enhances convenience but also reduces the likelihood of lost keys.
Parking Instructions with Photos
Include clear parking instructions in your house manual, accompanied by photos to help guests identify the designated parking areas. This can prevent confusion and potential parking violations, especially if there are specific rules or restrictions in the area.
By implementing these strategies, you can enhance the guest experience, reduce potential issues, and ensure your short-term rental business in Commerce City operates smoothly and efficiently.
Here is a brief list of house cleaning providers in Commerce City, Colorado:
House Cleaning Providers in Commerce City, CO
Chloe's Cleaning Company
- Offers general cleaning, deep cleaning, move-in/move-out cleaning, and rental property cleaning.
- Services available on a one-time or regular basis.
- Serves residential and commercial clients in Commerce City and surrounding areas.
Family First Cleaning
- Provides custom cleaning solutions, including maid services, residential cleaning, deep cleaning, move-in/move-out cleaning, and commercial cleaning.
- Uses eco-friendly products and advanced cleaning techniques.
- Family-owned and operated, serving Commerce City and surrounding areas.
Various House Cleaning Services Listed on Care.com
- A list of 20 affordable house cleaning services in Commerce City, with average rates starting at $24.83/hr.
- Services vary by provider, but generally include general cleaning, deep cleaning, and specialized cleaning tasks.
House Cleaners Listed on Angie's List
- A compilation of top-rated house cleaners in Commerce City, with reviews and ratings.
- Providers offer various services including standard cleaning, deep cleaning, and move-in/move-out cleaning.
Commerce City, Colorado: Understanding Short-Term Rental Management Fees
In Commerce City, Colorado, managing a short-term rental property involves a range of services that can impact the management fees, which typically vary from 10% to 30% of the rental revenue. Full-service management, which includes comprehensive tasks such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum. This level of service ensures that all aspects of the rental are handled professionally, maximizing the property's revenue potential. On the other hand, basic services that may only include listing and booking management might be less expensive. Additionally, property owners should be aware of potential extra fees for services like cleaning, repairs, or design enhancements, which can further impact the overall cost of managing their short-term rental property.