Owning your first short term rental in Colorado Springs can be a rewarding way to build wealth and generate income, thanks to our city’s year-round tourism, military relocations, and outdoor attractions. From Pikes Peak visitors to families exploring Garden of the Gods, demand for short-term rentals remains strong. Here’s a clear overview of what to expect, how to get started, and key local considerations.
Why Short Term Rentals in Colorado Springs? Colorado Springs ranks among top destinations for short-term rentals due to its mix of tourism, events (like the Pikes Peak International Hill Climb & The Ascent ), and proximity to military bases. Average occupancy rates hover around 60–70% in popular areas, with nightly rates often $150–$300 depending on size and season. Many owners see 8–12% annual returns after expenses, making it attractive for supplemental income or investment.
Steps to Launch Your First Short Term Rental
- Choose the Right Property Focus on locations with high demand: Fountain or Peyton for affordability near Fort Carson, or Briargate/Northgate for families and tourists. Look for homes with 3+ bedrooms, modern kitchens, and outdoor space—features that boost bookings. Woodland Park and Manitou Springs are also great choices for out-of-city and close-to-mountain vibes.
- Understand Local Regulations Colorado Springs requires a Short-Term Rental (STR) license for properties under 30 days. Check zoning rules, HOA restrictions, and occupancy limits. Register with the city and pay applicable taxes (including 5.5% city lodging tax).
- Set Up and Market Furnish for comfort: high-speed Wi-Fi, quality beds, and local touches like trail maps. List on platforms like Airbnb and Vrbo, and build a direct booking site for lower fees. Professional photos and competitive pricing are essential.
- Manage Operations Decide between self-managing or hiring a property manager (common in COS for 10–20% of revenue). Factor in cleaning, maintenance, and guest communication to maintain high ratings.
Challenges and Tips for Success Competition is growing, so stand out with excellent reviews and unique perks. Insurance costs can be higher due to wildfire risks—shop specialized policies. Track expenses for tax deductions (e.g., depreciation, supplies). A great resource for evaluating a properties income potential is AirDNA.
For detailed regulations, visit the City of Colorado Springs Short-Term Rental page.
Ready to explore owning your first short term rental in Colorado Springs? Call, text, or visit thebaconpartners.com/contact for guidance on finding investment properties or navigating the market.
Want help understanding the full home-buying process? Check out my article here: Steps to buying a home in Colorado Springs.
I’m Andrew Bacon, a Top Colorado Springs Real Estate Broker in Colorado Springs. I take care of my clients as family and aim to provide them with the necessary information and tools to navigate the complex markets in Colorado and around the US.
As a member of the Pikes Peak & Denver Metro Association of Realtors, I enjoy staying aware of current cultural trends and economic drivers.Check back regularly for new articles on all things real estate along Colorado’s Front Range.
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