The short-term rental market in Pagosa Springs, Colorado, is thriving, with an average Airbnb occupancy rate of 51%, daily rates of $249, and monthly revenues of $27,996, making it an attractive and lucrative investment opportunity.
Thriving Short-Term Rental Market in Pagosa Springs, Colorado
Pagosa Springs, Colorado, is experiencing a robust short-term rental market, making it an attractive destination for both investors and tourists. The area boasts an impressive occupancy rate, with short-term rentals on Airbnb and Vrbo averaging a 55% occupancy rate.
The daily rates for these rentals are also noteworthy, with an average daily rate of $249, contributing to a significant monthly revenue of $27,996. This strong performance is further highlighted by the growing demand and revenue growth, with active listings increasing by 8% over the past year.
Overall, Pagosa Springs presents a lucrative opportunity for those investing in short-term rentals, with its high occupancy rates and substantial daily revenues making it a standout in the vacation rental market.
Short-Term Rental Regulations in Pagosa Springs, Colorado for 2024
Town of Pagosa Springs Regulations
Licensing and Permits
- A Vacation Rental license is required for all short-term vacation rentals within the Town of Pagosa Springs boundaries. Any owner renting a property for less than 30 consecutive days must apply for a Vacation Rental License.
Density Caps
- There is a 10% cap on short-term rentals in certain residential neighborhoods to reduce the density of STRs.
Compliance and Enforcement
- Property owners must comply with all ordinances, resolutions, and regulations, including safety and habitability standards, and lodgers’ tax collection, reporting, and remittance requirements.
- The Town maintains a website for Vacation Rental Licenses where owners can apply and get information on regulations.
Violations and Penalties
- Critical Violations by STR owners and managers can result in revocation of the vacation rental permit and fines. Operational violations by guests can result in suspension of the permit and fines.
Archuleta County Regulations (Applicable Outside Town Boundaries)
Licensing and Permits
- A Vacation Rental Permit (VRP) is required for all short-term rentals in Archuleta County outside the Town of Pagosa Springs. New owners must apply for their own permit before advertising their property for short-term rentals.
Permit Renewal and Denials
- Renewal applications must be submitted with payment before the expiration date of the old permit. If a dwelling is not compliant with regulation standards, the permit may be denied, and fines will apply for renting without a permit.
Notification and Disclosure
- Property owners must notify the relevant property owners association (e.g., Pagosa Lakes Property Owners Association) before applying for a VRP. Forms such as the Vacation Rental Statement of Authority, Neighbor Notification, and Property Disclosure are required.
Taxes and Fees
- Owners must comply with sales and lodging tax requirements. Additional fees may apply, such as the annual assessment fee for PLPOA short-term rentals.
Complaints and Enforcement
- A 24-hour vacation rental complaint line is available for reporting non-compliant STRs. Online complaint forms can be submitted through the Archuleta County website.
General Requirements
Transparency and Data
- The Archuleta County Short-Term Rental Task Force aims to publish data on the total number of STR properties, permitted STR properties, and non-permitted STR properties to ensure transparency and compliance.
Management and Contact Information
- Proposed rules aim to ensure that the Community Development Department has the names and contact information for the property owner, property manager, and emergency contact.
Infrastructure and Community Impact
- Regulations are being considered to balance the economic benefits of STRs with the impacts on local communities and infrastructure, including the quality of life for full-time residents.
Top Neighborhoods for Airbnb Revenue in Pagosa Springs, Colorado
Neighborhoods Generating High Airbnb Revenue
1. Downtown Pagosa Springs
- Appeal: Central location, close proximity to local amenities, restaurants, and shops. Guests can easily access the town's main attractions, including the Pagosa Hot Springs.
- Revenue Potential: High demand due to its convenient location, making it an ideal spot for short-term rentals.
2. Pagosa Lakes
- Appeal: Scenic views, access to lakes, and a variety of recreational activities. This area is popular for families and outdoor enthusiasts.
- Revenue Potential: Offers a range of investment properties with good cash on cash returns, attracting guests looking for a lakeside experience.
3. Aspen Springs
- Appeal: Growing community with potential for robust growth, offering modern amenities and a quieter atmosphere compared to downtown.
- Revenue Potential: Attractive for investors and guests alike due to its growth potential and newer properties, which can command higher rental rates.
4. Areas Near Wolf Creek Ski Area
- Appeal: Proximity to the Wolf Creek Ski Area, making it a prime location for winter sports enthusiasts. The area also offers scenic trails and outdoor activities.
- Revenue Potential: High demand during ski season and year-round for those seeking outdoor adventures, contributing to higher occupancy rates and revenue.
5. Areas Near Chimney Rock National Monument and San Juan National Forest
- Appeal: Close to natural attractions, hiking trails, and historical sites. These areas are popular for nature lovers and those seeking a more secluded experience.
- Revenue Potential: Attracts guests looking for a mix of natural beauty and recreational activities, ensuring a steady stream of bookings throughout the year.
These neighborhoods are appealing to guests due to their unique blend of natural beauty, recreational opportunities, and convenient access to local amenities, making them highly profitable for Airbnb hosts in Pagosa Springs.
Crafting an Inviting Airbnb in Pagosa Springs: Design and Furnishing Tips
Embrace the Natural Beauty
- Incorporate Earthy Tones: Use a color palette that reflects the natural surroundings of Pagosa Springs, including shades of green, brown, and blue to bring the outdoors in.
- Add Natural Textures: Incorporate natural materials such as wood, stone, and woven fibers to create a cozy and organic atmosphere.
Highlight Local Culture and History
- Decorate with Local Art: Feature artwork and crafts from local artists and artisans to give your space a unique and authentic feel.
- Incorporate Historical Elements: Use vintage items or replicas that reflect the area's rich history, such as Native American or pioneer-era artifacts.
Utilize Mountain-Inspired Furnishings
- Choose Rustic Furniture: Opt for rustic, wooden furniture pieces that evoke the feel of a mountain cabin.
- Add Cozy Accents: Include plush throw blankets, comfortable seating areas, and warm lighting to create a welcoming and cozy atmosphere.
Bring in the Outdoors
- Maximize Natural Light: Ensure that your space is well-lit by maximizing natural light through large windows or skylights.
- Incorporate Plants: Add plants and greenery to your space to bring a touch of the outdoors inside and enhance the natural ambiance.
Reflect the Area's Outdoor Activities
- Display Outdoor Gear: Showcase outdoor gear such as hiking boots, fishing rods, or ski equipment to highlight the area's recreational opportunities.
- Provide Guides and Maps: Offer guides, maps, and brochures of local trails, waterfalls, and other outdoor attractions to encourage guests to explore.
Create a Relaxing Ambiance
- Hot Springs Inspiration: Incorporate elements that reflect the area's famous hot springs, such as a spa-like bathroom or a relaxing reading nook with a natural water feature.
- Comforting Amenities: Provide amenities like a fireplace, a hot tub, or a sauna to help guests unwind and relax.
Celebrate Local Crafts and Breweries
- Feature Local Crafts: Display local crafts, such as handmade pottery or textiles, to add a personal touch to your space.
- Stock Local Beverages: Offer local craft beers or wines in your welcome package or mini-bar to give guests a taste of the area's culinary scene.
Ensure Practicality and Comfort
- Provide Storage for Gear: Include ample storage for guests' outdoor gear to keep the space organized and clutter-free.
- Comfortable Seating Areas: Create multiple comfortable seating areas for guests to relax and enjoy the views or each other's company.
Discover Pagosa Springs: Local Attractions and Insider Tips
Outdoor Adventures
- Hike to Piedra Falls:
A family-friendly hike to a stunning waterfall, just a half-mile walk from the trailhead. Be cautious of poison ivy along the Piedra River.
Explore the San Juan River:
Enjoy tubing, kayaking, or whitewater rafting in the summer. Shuttle services and tube rentals are available in town.
Wolf Creek Ski Area:
Known for the most snow in Colorado, this ski area offers affordable family fun with varied terrain and short lift lines. Take lessons from local skiers and snowboarders.
Hot Air Balloon Rides:
- Capture aerial views of the San Juan Mountains and participate in the set-up and inflation of the balloon. Enjoy the annual ColorFest Weekend in September.
Natural Wonders
- The World's Deepest Hot Springs:
Soak in the mineral-rich waters at The Springs Resort & Spa, Healing Waters Resort, or Overlook Spa. Each offers a unique hot spring experience.
Chimney Rock National Monument:
Explore the history of the Ancestral Puebloans through guided tours of this celestial observatory and seasonal calendar site. It's a short drive from Pagosa Springs.
Treasure Falls and Other Waterfalls:
- Visit Treasure Falls, Silver Falls, and Piedra Falls for breathtaking views. Each waterfall offers a unique hiking experience.
Local Culture and Events
- Friday Night Junk Show:
Watch local river enthusiasts perform stunts and tricks on the San Juan River in downtown Pagosa Springs. It's a fun and lively event.
Farmer’s Market:
Attend the weekly farmer’s market from May to October at the East Side Market to sample local produce, jewelry, and crafts.
Local Breweries:
- Visit one of the three award-winning craft breweries in Pagosa Springs to taste local beers and enjoy the town's hospitality.
Insider Tips
- Check Road Conditions:
Some roads, like the one to Piedra Falls, can become impassable during wet months. Always check the road conditions before heading out.
Use Local Guides and Rentals:
For activities like rafting, kayaking, or tubing, use local guide services and rental shops for the best experience and equipment.
Explore Downtown:
Stroll through the charming downtown area to discover unique shops, restaurants, and the historic riverwalk trail.
Attend Local Festivals:
- Participate in events like the ColorFest Weekend in September or the Winterfest in January for hot air balloon festivals and other local celebrations.
Additional Recommendations
- Growing Domes Tour:
Visit the Growing Domes for a unique gardening experience and to learn about sustainable agricultural practices.
Historic Trains:
- Take a ride on the Durango & Silverton Narrow Gauge Railroad or the Cumbres & Toltec Scenic Railroad for scenic views and historical insights.
By sharing these attractions and tips, you can help your guests make the most of their visit to Pagosa Springs and enjoy the full range of activities and experiences this beautiful town has to offer.
Practical Tips to Run a Successful Short-Term Rental Business in Pagosa Springs, Colorado
To ensure a successful and compliant short-term rental business in Pagosa Springs, Colorado, several practical tips are essential. First, it is crucial to inform guests about noise regulations and quiet hours to maintain harmony with the local community. This can be done through clear communication in the booking description and a digital or physical house manual that outlines the rules.
Creating a comprehensive house manual, both digital and physical, is vital. This manual should include detailed instructions on how to use appliances, Wi-Fi passwords, and other essential information to make the guest's stay smooth and enjoyable.
Simplifying the check-in process can significantly enhance guest satisfaction. Utilizing smart locks eliminates the need for physical key exchanges and provides guests with immediate access to the property. Additionally, providing detailed parking instructions accompanied by photos can help guests navigate the property easily and avoid any potential issues.
By adhering to these tips and complying with local regulations, such as obtaining a valid business license and collecting the necessary taxes and lodging fees, you can ensure a successful and hassle-free short-term rental business in Pagosa Springs.
Here is a brief list of house cleaning providers in Pagosa Springs, Colorado:
House Cleaning Services
Maid in the Mountains, LLC
- Locally owned and operated professional cleaning service.
- Offers one-time cleaning, regular cleaning, and move in/out cleaning.
- Also provides animal waste cleanup services.
- Licensed, insured, and a member of the Pagosa Springs Chamber of Commerce.
Care.com House Cleaning Services
- Provides a list of affordable house cleaning options starting at $23.50/hr.
- Allows searching by rates, reviews, experience, and more.
Angi House Cleaning Services
- Lists top-rated house cleaners in Pagosa Springs with 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.
Managing Your Pagosa Springs, Colorado Vacation Rental: Understanding Fees and Services
Pagosa Springs, Colorado, a picturesque town nestled in the San Juan Mountains, is a popular destination for outdoor enthusiasts and those seeking relaxation in natural hot springs. For property owners considering short-term rentals, managing these properties can be streamlined through various management services. Typically, management fees for vacation rentals in Pagosa Springs range from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management, which includes guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum. In contrast, basic services that may only include listing and booking management could be more affordable. Additionally, property owners may incur extra fees for cleaning, repairs, or design services to ensure their rentals remain attractive and well-maintained for guests. Choosing the right management service can help balance the costs and ensure a smooth, profitable rental experience.