Gunnison, Colorado, is a highly profitable and stable market for short-term rentals, with a median occupancy rate of 64%, an average daily rate of $168, and an average annual host income of $36,000, making it an attractive location for investment.
Thriving Short-Term Rental Market in Gunnison, Colorado
Gunnison, Colorado, is experiencing a robust short-term rental market, making it an attractive destination for both hosts and travelers. The median occupancy rate for Airbnb listings in Gunnison stands at an impressive 64%, indicating strong demand for short-term rentals. On average, a typical listing is booked for 234 nights per year, with an average daily rate of $168. This translates to an annual revenue of approximately $36,000 for hosts, highlighting the profitability of investing in short-term rentals in the area. The lenient regulatory environment further supports the growth and stability of this market, making Gunnison an ideal location for those looking to capitalize on the short-term rental boom.
Short-Term Rental Regulations in Gunnison, Colorado for 2024
Sales and Local Marketing District Taxes
- Any rental of a unit for less than 30 consecutive days is taxable, and owners are required to collect and remit sales tax.
- A 4.00% Gunnison County Local Marketing District Tax must be charged to customers and remitted quarterly on the "Local Marketing District Tax Return" (DR 1490).
Licensing and Permits
- All new owners must obtain a new short-term rental (STR) permit. Some jurisdictions may limit the time frame for applying for new permits.
- In the Town of Crested Butte, the permit application window is from October 1st to October 31st. New owners may have to wait until the next application window if they purchase a home outside this period.
Zoning and Block Face Limitations
- In the Town of Crested Butte, only two STRs are allowed per block face in certain zones (R1, R1A, R1C, R2D, R1E, R2, R2c, R3C, B3, B4).
Parking Regulations
- Parking is allowed at the same number of spaces and location as the underlying zoning. On-street parking without rights can result in a $250 fine. Campers or RVs cannot be parked at a STR location for more than 24 hours, also resulting in a $250 fine.
Occupancy and Safety Regulations
- Properties must comply with septic, building code, and land use regulations. For example, a recent regulation in Gunnison County limited occupancy in a remote cabin to six guests, citing violations of multiple regulations.
Personal Property Taxes
- Properties rented for profit, regardless of the duration, are subject to personal property taxes. However, residential improved property used for short-term rentals does not lose its residential assessment rate unless it is exclusively rented short-term.
Grandfathering
- Existing STR properties that were in violation of current zoning and block face concentrations before the new regulations in 2022 may be grandfathered. However, if these properties sell, do not renew, or have their permits revoked, they will no longer be grandfathered.
Data Collection and Transparency
- Gunnison County and other mountain towns are working towards creating transparency and accountability in STR regulations. Local governments aim to collect data from companies like Expedia, Airbnb, and VRBO to enforce regulations effectively.
Future Regulatory Developments
- There are ongoing efforts to enact state-wide STR regulation and taxation legislation, including a draft bill (SB24-33) that could increase the property tax rate for STR properties and establish a statewide database and uniform reporting system.
Top Neighborhoods for Airbnb Revenue in Gunnison, Colorado
1. Downtown Gunnison
- Appeal: Downtown Gunnison is highly appealing due to its central location, allowing guests to walk to all the downtown restaurants, coffee shops, and the grocery store. It is also just one block from the free bus to Crested Butte, making it an ideal base camp for family vacations and those without a car. Properties like the "Downtown Gunnison 3 bd 2 ba" are highly rated for their cleanliness, kid-friendly environment, and proximity to Western Colorado University.
2. Neighborhoods near Western Colorado University (WCU)
- Appeal: These neighborhoods are popular due to their close proximity to WCU, making them perfect for students, faculty, and visitors to the university. Properties such as the "Sunny Gunni Loft" and "Craftsmen Cabin" offer convenient walking distances to the campus, as well as to Main Street shops and restaurants. The free shuttle to Crested Butte is also a significant advantage.
3. Areas near the Gunnison River
- Appeal: Neighborhoods along the Gunnison River, such as those featuring the "Rock'n River Retreat" and "Gunnison Riverside Cabin", are appealing for their scenic views and direct access to the river. These properties often come with amenities like private river frontage, hot tubs, and proximity to hiking and biking trails, making them ideal for nature lovers and those seeking a tranquil getaway.
4. Main Street and Surrounding Areas
- Appeal: The areas around Main Street in Gunnison are attractive because of their vibrant community feel. Guests can easily access shops, restaurants, and local amenities while staying in places like "The Pine Street Carriage House" or "Blue Door Loft in Gunnison". These properties are highly rated for their cleanliness, stylish interiors, and convenient locations.
5. Neighborhoods Close to Harman Rocks and Black Canyon National Park
- Appeal: Neighborhoods that offer easy access to outdoor recreational areas such as Harman Rocks and Black Canyon National Park are highly sought after. Properties like the "Blue Door Loft in Gunnison" and "Freedom of the Hills near Crested Butte" are favored for their proximity to these natural attractions, making them perfect for adventure seekers and nature enthusiasts.
Furnishing and Design Tips for an Inviting Airbnb in Gunnison, Colorado
Define Your Property's Aesthetic
- Align your furniture and decor with the local style, incorporating elements that reflect Gunnison's mountainous and natural surroundings. Consider a mix of rustic, modern, and mountain-themed elements.
Choose Functional and Comfortable Furniture
- Opt for sturdy, easy-to-clean furniture. For example, use sofas with washable covers and beds with storage drawers to maximize space and convenience.
- Select comfy, lightweight chairs that are easy to move around and can support various weights.
Utilize Smart Storage
- Incorporate space-saving furniture like sofa beds, folding tables, and ottomans with hidden storage compartments. Use beds with drawers, wall hooks, and stackable containers to keep the space tidy and organized.
Enhance Natural Light and Space
- Measure your rooms to determine the best layout that allows for plenty of space to move around and does not block natural light sources.
Focus on Guest Comfort and Amenities
- Ensure the kitchen is well-equipped with essentials like a coffee maker, microwave, toaster, kettle, and basic cookware. Add extras like a blender and sharp knives for added convenience.
- Provide a dedicated workspace with a sturdy desk, comfy chair, good lighting, and easy access to power outlets. High-speed internet is crucial for business travelers and digital nomads.
Incorporate Local and Natural Elements
- Use natural materials such as wood and stone to reflect the area's stunning outdoor setting. Incorporate local artwork and decor to enhance the guest experience and provide a sense of place.
Ensure Accessibility and Safety
- Consider making your Airbnb accessible to guests with disabilities by adding features like ramps, wide doorways, and grab bars in bathrooms. Install smoke detectors, carbon monoxide detectors, and a first aid kit for safety.
Maintain and Update Seasonally
- Update your furniture during the off-season or plan short gaps between bookings for minor updates to minimize disruption. Involve your cleaning crew in the process to ensure they are aware of any new furniture or layout changes.
Use Mirrors and Lighting to Enhance the Space
- Use mirrors to make your Airbnb feel bigger and brighter. Ensure there is ample lighting, including desk lamps, to create a welcoming atmosphere.
Stick to Your Theme
- If you have a theme, stick to it but opt for timeless, sturdy pieces that will last. Avoid flimsy or cheaply made furniture, such as beds with plastic legs.
Discover Gunnison, Colorado: Local Attractions and Insider Tips
Local Attractions
Outdoor Adventures
- Black Canyon of the Gunnison National Park:
- Explore the steep and dark-colored walls of the Black Canyon, rising 2,000 vertical feet from the river. Visit the South Rim Visitors Center and take in the view of Painted Wall.
Note: Free permits are required for day-use and overnight trips, and reservations for campgrounds should be made in advance.
Curecanti National Recreation Area:
Enjoy boating, fishing, and hiking around the Blue Mesa Reservoir, Morrow Point Reservoir, and Crystal Reservoir. Rent boats or join a guided boat tour.
Hartman Rocks Recreation Area:
Engage in desert mountain biking, hiking, rock climbing, horseback riding, trail running, and winter activities like Nordic skiing and snowshoeing.
Gunnison River:
- Float the river, which features Class I and II rapids, or visit the Gunnison Whitewater Park for more advanced rafting and kayaking.
Cultural and Historical Sites
- Gunnison Pioneer Museum:
Explore an open-air museum with thirty buildings showcasing life on the frontier, including historic horse-drawn vehicles, frontier carpenter’s shops, and train artifacts.
Local Art Galleries:
- Visit galleries in downtown Gunnison, such as the Gunnison Gallery, to see works by local Colorado artists.
Scenic and Recreational Spots
- Blue Mesa Reservoir:
The largest body of water in Colorado, offering sailing, fishing for lake trout, and boating activities.
Lake Irwin and Taylor River:
- Enjoy fishing, wildflower hikes, and stand-up paddleboarding in these gold-medal waters.
Insider Tips
Stargazing
- Gunnison Valley Observatory:
- Take advantage of the clear night sky at the Gunnison Valley Observatory, which offers public access to a professional-quality telescope. Black Canyon of the Gunnison National Park is also a designated International Dark Sky Park.
Festivals and Events
- Crested Butte Wildflower Festival:
- Attend the festival in July for garden tours, hikes, and photography workshops amidst the vibrant wildflowers.
- Cattlemen’s Days:
- Experience a three-day celebration in July with rodeo competitions, live music, and vendors.
- Gunnison Car Show and High Octane Arts and Crafts Festival:
- Enjoy these festivals in August, featuring hundreds of cars and handmade crafts.
Seasonal Activities
- Winter Sports:
- Ski at Crested Butte Mountain Resort or Monarch Ski Area. For a more local experience, ski at Cranor Hill in Gunnison.
- Summer Trails:
- Explore over 1,000 miles of summer trails through two million acres of public lands. Use the Colorado Trail Explorer (COTREX) for trail maps.
Local Culture
- Downtown Gunnison:
- Wander through the historic downtown area, visiting boutiques, cafes, and unique shops along Main Street.
- Arts Centers and Galleries:
- Discover the vibrant arts scene in both Gunnison and Crested Butte, with numerous galleries and arts centers hosting events and performances.
By sharing these attractions and tips, you can help your guests make the most of their visit to Gunnison, Colorado.
Practical Tips to Run a Successful Short-Term Rental Business in Gunnison, Colorado
To ensure the success and compliance of a short-term rental business in Gunnison, Colorado, several key practices must be implemented:
Noise Regulations and Guest Communication
Inform guests about quiet hours and strict noise regulations in Gunnison. Clearly communicate these rules in the listing description, welcome message, and through a digital or physical house manual. Violations can result in fines or the revocation of the business license, so it is crucial to set clear expectations.
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 also cover the use of appliances, heating and cooling systems, and any specific rules or regulations of the property.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with clear instructions on how to access the property, and include photos to help them navigate any specific steps or features, such as parking areas.
Parking Instructions
Ensure that guests are well-informed about parking regulations and availability. Include photos and detailed instructions in the house manual to avoid any confusion or potential fines. This is particularly important given Gunnison's strict parking regulations.
By adhering to these practical tips, you can enhance the guest experience, maintain compliance with local regulations, and ultimately run a successful short-term rental business in Gunnison, Colorado.
Here is a brief list of house cleaning providers in Gunnison, Colorado:
House Cleaning Services in Gunnison, CO
J & K Services Inc
- Offers commercial and residential cleaning services.
- Locally owned and operated in Gunnison County.
- Fully licensed and insured.
Care.com House Cleaning Services
- Provides a list of affordable house cleaning options starting at $23.00/hr.
- Allows searching by rates, reviews, and experience.
Angie's List House Cleaners
- Features a list of the top-rated house cleaners in Gunnison, CO.
- Includes real reviews and ratings.
Walmart House Cleaning Services
- Offers cleaning services for various parts of the home, including bathrooms, kitchens, and bedrooms.
- Contact available through phone or in-person visit.
Short-Term Rental Management Fees in Gunnison, Colorado
In Gunnison, Colorado, managing short-term rentals involves a range of fees that can vary significantly based on the level of service provided. Full-service management, which includes comprehensive tasks such as guest communication, marketing, and maintenance, typically ranges from 20% to 30% of the rental revenue. For instance, companies like Summer Airbnb management charge starting at 20% of the booking revenue, excluding cleaning fees, to manage all aspects of the rental property.
On the other hand, basic services that may only include listing and booking management can be less expensive, often falling in the 10%-20% range. Additionally, property owners may incur extra fees for services like cleaning, repairs, and design enhancements to keep the property attractive and well-maintained for guests. These additional costs can add to the overall management expense but are crucial for maintaining high occupancy rates and positive guest reviews.