Airbnb & VRBO Performance in Durango Colorado.

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Durango, Colorado: Airbnb & VRBO Vacation Rental Market Overview

Durango, Colorado, boasts a thriving short-term rental market with a median occupancy rate of 67%, an average daily rate of $167, and an annual host income of $42,000, making it a highly profitable and stable investment opportunity.

Market overview

Thriving Short-Term Rental Market in Durango, Colorado

Durango, Colorado, is experiencing a robust and lucrative short-term rental market, driven by its appealing blend of natural beauty, outdoor recreational activities, and rich cultural heritage. The city boasts a impressive median occupancy rate of 67%, indicating a high demand for short-term rentals throughout the year.

On average, a typical short-term rental listing in Durango is booked for 245 nights annually, with an average daily rate of $167. This translates to an annual revenue of approximately $42,000 per listing, highlighting the profitability of investing in the local Airbnb market. The peak seasons, which include summer months for hiking, biking, and river rafting, and winter months for skiing and snowboarding, further boost occupancy rates and daily rates, making Durango an attractive destination for both hosts and travelers.

Short Term Regulations

Short-Term Rental Regulations in Durango, Colorado for 2024

General Requirements

  • Definition: Short-term rentals are defined as dwellings rented for periods of 1 to 29 days. Rentals of 30 days or longer are not considered short-term rentals and are not regulated by the City of Durango.

Zoning and Permits

  • Limited Use Permit (LUP): Short-term rental operators must obtain a Limited Use Permit (LUP) prior to establishing or advertising their rental. This permit is required for all short-term rentals.
  • Zoning Restrictions: Short-term rentals are only permitted in specific zones, including the Central Business zone, Mixed-Use zones, select Planned Development zones, and Established Neighborhoods (EN) 1 & 2. There are caps on the number of permits available in these zones.

Caps on Permits

  • EN-1 and EN-2 Zones: There is a cap of 22 vacation rentals in EN-1 and 17 in EN-2. Other zones have development-specific caps, and many have reached their limits, requiring properties to be placed on a wait list.

Compliance and Regulations

  • Business License: Operators must maintain a City business license.
  • Taxes: Short-term rental operators must collect and remit required lodgers’ and sales taxes to the City.
  • On-Site Requirements: Properties must meet standards for on-site parking, occupancy, trash and recycling procedures, and compliance with the City’s noise ordinance.

Neighborhood Restrictions

  • Density Regulations: In Established Neighborhood zones, a second vacation rental is not allowed on the same street segment as an existing permitted vacation rental without Planning Commission approval, and a third vacation rental is not permitted on the same street segment.
  • HOA and City Agreements: Vacation rentals are not allowed in certain areas (e.g., Twin Buttes, Three Springs, Rock Ridge, Sky Ridge) unless specifically permitted by HOA documents and agreements with the City.

Enforcement

  • Code Enforcement: The City takes enforcement of vacation rental regulations seriously and prioritizes the discovery of illegal vacation rentals. Complaints can be submitted to the City’s Code Enforcement Division.

Permit Transfer and Renewal

  • Non-Transferable Permits: Vacation rental permits are non-transferable. The sale or transfer of a property with a vacation rental LUP automatically invalidates the permit.

Additional Requirements

  • Proof of Compliance: Properties must comply with specific requirements outlined in the City’s Land Use and Development Code, including standards for occupancy, parking, and noise.
  • Emergency Contact: A point person must be available 24 hours a day to respond to emergencies.
Neighborhood Performance

Top Neighborhoods for Airbnb Revenue in Durango, Colorado

1. Downtown Durango

  • Appeal: Downtown Durango is highly appealing due to its central location, allowing easy access to restaurants, bars, shopping, and grocery stores. Guests can walk to the river trail, hiking and biking trails, and enjoy the vibrant downtown atmosphere.
  • Amenities: Many rentals in this area feature modern amenities such as fully equipped kitchens, air conditioning, private balconies, and access to washer/dryers. The proximity to Fort Lewis College and other local attractions makes it a favorite among guests.

2. Historic Jarvis Suites

  • Appeal: Located in the heart of downtown Durango, the Historic Jarvis Suites offer a blend of historic charm and modern comforts. Guests appreciate the well-stocked kitchens, pull-out couches, and large upstairs bedrooms. The area is close to restaurants, bars, and shopping, making it highly convenient.
  • Amenities: These suites often include amenities like private balconies, shared patios with barbecues, and assigned parking spots, enhancing the guest experience.

3. Uptown Durango

  • Appeal: Uptown Durango is attractive for its mix of modern living and mountain town charm. Rentals here are often described as open and airy, with high ceilings and contemporary designs. The area is close to various eateries, breweries, and outdoor activities like fishing, biking, and hiking.
  • Amenities: Guests enjoy amenities such as private outside spaces, dining tables, and grills, along with easy access to trails and local attractions.

4. Purgatory Resort Area

  • Appeal: For those interested in skiing and mountain activities, the Purgatory Resort area is highly appealing. Rentals here offer quick access to the slopes and other mountain amenities like hot tubs, pools, and fitness centers.
  • Amenities: Properties in this area often feature luxurious amenities such as hot tubs, pools, and fully equipped kitchens, making them ideal for families and groups of skiers.

5. Galaxyland and Intown Areas

  • Appeal: These areas are popular for their modern guest houses and convenient in-town locations. Guests appreciate the private roads, high ceilings, and neutral tones with vibrant color accents, creating a refined and comfortable stay.
  • Amenities: Rentals here typically include private outside spaces, modern kitchens, and easy access to downtown Durango, making them perfect for short or long-term stays.

These neighborhoods are highly sought after due to their combination of convenient locations, modern amenities, and easy access to Durango's various attractions and outdoor activities.

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Design Tips

Furnishing and Design Tips for an Inviting Airbnb in Durango, Colorado

Defining Your Aesthetic

  • Align your furniture and décor with Durango's unique Southwest-inspired style, blending it with homey comforts that travelers crave.

Layout and Space Utilization

  • Measure your rooms to determine the best layout, ensuring ample space to move around and unobstructed natural light sources.
  • Opt for open-concept floorplans to facilitate easy movement between living, dining, and sleeping areas.

Furniture Selection

  • Choose sturdy, easy-to-clean furniture such as sofas with washable covers, and avoid real or faux leather.
  • Select beds with storage options like drawers to maximize space and ease of cleaning.
  • Use memory foam mattresses for durability and comfort.

Lighting and Mirrors

  • Ensure good lighting throughout the property, and use mirrors to make the space feel bigger and brighter.

Kitchen Essentials

  • Equip the kitchen with essentials like a coffee maker, microwave, toaster, kettle, and basic cookware and utensils.
  • Provide ample counter space, cabinets stocked with cookware, and modern appliances to facilitate home cooking.

Comfort and Amenities

  • Include plush sofas, loveseats, eye-catching area rugs, and unique wall art to create a welcoming atmosphere.
  • Offer outdoor seating areas with patio furniture, ideal for enjoying the fresh air and mountain views.

Technology and Connectivity

  • Ensure seamless access to Wi-Fi or high-speed internet for guests, especially business travelers and digital nomads.
  • Provide amenities like large flat-screen televisions for entertainment.

Storage and Organization

  • Use smart storage solutions such as beds with drawers, wall hooks, and stackable containers to keep the space tidy.
  • Offer designated spots for guests' personal items, like luggage racks.

Accessibility and Safety

  • Consider making your Airbnb accessible to guests with disabilities by including features like ramps, wide doorways, and grab bars in bathrooms.
  • Install smoke detectors, carbon monoxide detectors, and provide a first aid kit.

Additional Luxuries

  • Offer upgraded extras like hot tubs, vaulted ceilings, floor-to-ceiling windows, and specific inspiring views to enhance the guest experience.
  • Provide pet-friendly options to accommodate guests with canine companions.

Personal Touches

  • Include a hairdryer, basic toiletries, and a first-aid kit to make a significant difference in guest comfort.
  • Ensure high-quality, durable towels in neutral colors that can be bleached for hygiene.
Insider Tips

Discover Durango, Colorado: Top Attractions and Insider Tips

Local Attractions

1. Mesa Verde National Park

  • A must-visit for its ancient cliff dwellings and archeological sites of the Ancestral Puebloan people. Book ranger-led tours in advance for unique access.

2. Durango & Silverton Narrow Gauge Railroad

  • Take a scenic 45-mile ride through the San Juan Mountains on a historic steam locomotive. This train is a National Historic Landmark and offers stunning views and access to remote areas.

3. San Juan National Forest

  • Explore the unspoiled beauty of this forest for hiking, mountain biking, ziplining, and more. It's a great place to find solitude and enjoy nature.

4. Vallecito Lake

  • Perfect for fishing, boating, camping, and horseback riding. Enjoy summer fishing, fall fly fishing, or winter ice fishing in this picturesque lake area.

5. Lake Nighthorse

  • A new recreational spot just two miles from downtown Durango, offering swimming, boating, and fishing opportunities.

6. Purgatory Resort

  • A family-friendly resort with year-round activities including skiing, snowboarding, mountain biking, and disc golf. Only a 30-minute drive from downtown Durango.

7. Downtown Durango

  • Stroll through historic buildings, visit art galleries, enjoy local restaurants and breweries, and experience the unique shops and culture of this National Historic District.

8. Animas River

  • The heart of Durango, offering gentle floats, whitewater rafting, and other river adventures for all ages and abilities.

9. Durango Hot Springs + Resort

  • Relax in the oxygenated waters of this hot spring, which also features kids- and adults-only sections, food trucks, spas, and dry saunas. Opened in 2019, it's a great spot for relaxation.

10. Wildlife Museum and Hatchery

- Visit Colorado’s oldest state-owned fish hatchery and learn about the process of raising fish from egg to release. The adjacent wildlife museum showcases Colorado’s native animals.

Insider Tips

Seasonal Activities

  • Spring (April-May) is ideal for mild temperatures, smaller crowds, and events like the Taste of Durango and Durango Wine Experience.
  • Fall (September-October) offers pleasant weather, gentler river adventures, and stunning foliage in the San Juan National Forest.

Getting Around

  • While a car is convenient for exploring surrounding forests and parks, you can also use the Main Ave Trolley, rideshares, and tours to get around.

Local Culture

  • Experience Durango’s Old West heritage by visiting historic saloons like the Diamond Belle Saloon, located in the Strater Hotel, and enjoy period entertainment and decor.

Culinary Scene

  • Durango boasts a vibrant culinary scene with farm-to-table restaurants, local breweries, distilleries, and unique dining experiences like the Bar D Chuckwagon Suppers.

Outdoor Adventures

  • Don’t miss opportunities for mountain biking, horseback riding, and snowmobiling in the San Juan Mountains. The area is also great for skiing, snowshoeing, and dogsledding during winter.

By sharing these attractions and insider tips, you can help your Airbnb guests make the most of their visit to Durango, Colorado.

Practical Tips

Practical Tips to Run a Successful Short-Term Rental Business in Durango, Colorado

To ensure a smooth and profitable short-term rental business in Durango, Colorado, several practical tips can make a significant difference. First, it is crucial to adhere to the city's noise regulations by informing guests about quiet hours. This can be done through a clear communication in the booking description and a reminder in the house manual, helping to avoid potential conflicts with neighbors.

Creating a comprehensive digital and physical house manual is essential. This manual should include detailed instructions on how to use appliances, Wi-Fi passwords, and other important information about the property. This not only enhances the guest experience but also reduces the number of inquiries and issues that may arise during their stay.

A simplified check-in process can greatly improve guest satisfaction. Utilizing smart locks eliminates the need for physical key exchanges, allowing guests to check in at their convenience. Additionally, providing detailed parking instructions accompanied by photos can help guests navigate the property easily, reducing the likelihood of parking-related issues.

By implementing these strategies, you can ensure a well-organized, guest-friendly environment that fosters positive reviews and repeat bookings, ultimately contributing to the success of your short-term rental business in Durango, Colorado.

Local Vendors

Here is a brief list of house cleaning, repair, and maintenance providers in Durango, Colorado:

House Cleaning Services

  • Lucky Services: Offers weekly home cleanings, move-out cleans, garage organization, and other related services. They also provide errands, dog walking, and more.
  • Soap Bubble Cleaning: A local company serving residential, vacation, and commercial properties in La Plata County.
  • Ashley's Custom Cleaning: Provides professional cleaning services with over 20 years of experience in the greater La Plata area, including Durango.

General House Maintenance and Errands

  • Lucky Services: In addition to cleaning, they offer yard clean-up, dump runs, moving help, poop pick-up, grocery delivery, and other maintenance tasks.

Additional Resources

  • Care.com: Lists multiple house cleaning services in Durango, allowing users to compare rates, reviews, and experience.
  • Angi: Provides a list of top-rated house cleaners in Durango, with details on average costs and service variations.
Management fees

Durango, Colorado: Understanding Short-Term Rental Management Fees

In Durango, Colorado, short-term rental management fees typically range from 10% to 30% of the rental revenue, varying significantly based on the level of service provided. Full-service management, which includes comprehensive services such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum, often ranging between 20% to 30% of the monthly rental income.

Basic or partial management services, which may only include marketing or customer service, can be less expensive, falling within the 10% to 20% range. Additionally, property owners may incur extra fees for services like cleaning, repairs, or design, which can be charged separately or included in the overall management fee. It is crucial for property owners to understand these fee structures and additional costs to make informed decisions about managing their vacation rentals in Durango.

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Why choose RedAwning

RedAwning is a tech leader in full-service short-term rental management, powered by our exclusive, unmatched tools.
Other property managers
Cost
Starting at 10%
25-40%
Guest communications
5-15 mins / 24 hours a day
1 hour+
Host communications
Dedicated phone and text line with no time on hold
Chat bots, hold lines and email threads
Insurance
Robust liability and dwelling coverage for every reservation
Spotty coverage with low claim approval rates
Contract
No cancellation fees
No contract lock-in
Just 90 days notice to cancel
Cancellation penalties
Number of Channels Your Listing is On
50+
2-4

Experience in numbers

Rest well knowing your property is managed by an experienced team powered by world-class technology.
+10-30%
in gross revenue
4.8 stars
guest rating
14+ years
managing STRs

Short Term Rental Calculator

Find out how much your property in Durango should generate as a short term rental and look at the performance of properties around yours.

35,000+ Properties
Hosts stay with RedAwning
1,000,000,00 Nights Booked
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50+ Top Booking Channels
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Furnishing checklist

This comprehensive checklist ensures that your rental is guest-ready with all the essentials to create a comfortable and memorable experience in Durango.

Living Room
Seating: Sofa, armchairs, and ottomans
Coffee Table
Entertainment: Smart TV (with streaming apps) and remote control
Decor: Area rug, wall art, plants, and throw pillows
Lighting: Floor lamp or table lamps
Charging Stations: Power strips or outlets with USB ports
Bedrooms
Beds: High-quality mattress with mattress protector
Linens: At least two sets of sheets per bed
Pillows: Hypoallergenic pillows (2-4 per bed)
Blankets: Extra throw blankets or quilts
Nightstands: With lamps or charging docks
Closet or Storage: Hangers, dresser, or luggage rack
Blackout Curtains or Shades
Bathrooms
Towels: Bath towels, hand towels, washcloths (2 sets per guest)
Shower Curtain & Liner
Toiletries: Shampoo, conditioner, body wash, hand soap
Bathroom Essentials: Toilet paper, tissues, trash bin
Hairdryer
Mirror: Full-length or wall mirror
Dining Area
Dining Table: Seating for the maximum number of guests
Place Settings: Placemats or tablecloths
Centerpiece: Vase with flowers or decorative piece
Kitchen
Appliances: Refrigerator, microwave, toaster, coffee maker, kettle
Cookware: Pots, pans, baking trays
Utensils: Forks, knives, spoons, spatulas, tongs
Dinnerware: Plates, bowls, glasses, mugs (2 sets per guest)
Cutting Board & Knives
Basic Spices & Condiments: Salt, pepper, oil
Cleaning Supplies: Sponge, dish soap, paper towels, trash bags
Outdoor Space (if applicable)
Seating: Outdoor chairs, benches, or lounges
Table: For outdoor dining or drinks
Lighting: String lights or outdoor lanterns
Grill: With necessary utensils and instructions
Outdoor Trash Bin
Extras to Elevate Guest Experience
Welcome Basket: Snacks, water bottles, or wine
Guidebook: Local recommendations and house rules
Board Games or Books: Entertainment for guests
Umbrella & Flashlight
Iron & Ironing Board
Laundry: Washer, dryer, and detergent (if available)
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⇤ Airbnb Statistics for Colorado