Creating Revenue with Your Real Estate Investment: The Ins and Outs of Short-Term Rentals in Grand County
Having a mountain home is on so many people's bucket list. How could you not love quick and easy access to those deep-powder days, out-the door trails that are hallmarks of a wealth of Grand County properties, cool summer evenings soaking in a sunset over the mountains from your backdoor, and the laid-back escape from urban life?
Often purchasing a mountain property without rental income potential might not be financially realistic. Other times, homeowners simply want to capitalize on those days their place would otherwise be empty in order to optimize their investment. And other investors recognize the draw of our beautiful mountain valley and use their properties to primarily generate revenue. Regardless of the motivation, if you're thinking about purchasing a property to potentially use as a short-term rental (or you already own one and are considering the option), it's important to familiarize yourself with the ins and outs of short-term rentals here in Grand County. So we've gathered all the information for you to use as a resource should you consider generating short-term rental revenue from your mountain property!
SHORT-TERM RENTAL FEES + REGULATIONS
In Colorado, a short-term rental is defined as a property rented consecutively to "one entity" for 29 or less days. Each town has its own stipulations around short-term rentals, so if you're looking to invest in a mountain property, it's helpful to know the fees and regulations for the properties you're considering. Not sure if your property is within city limits or falls within "Unincorporated Grand County"? Check this map.
WINTER PARK
If you're operating an STR in the town of Winter Park, you'll need to purchase a business license ($60/year). Should you be using a short-term rental company to manage your property, a business license isn't necessary. Owners are also required to pay a $150 annual registration fee, to be renewed yearly on October 1, regardless of when the initial registration fee was paid. A $400 per bedroom fee was recently proposed and not approved - the town has indicated they might pursue a higher number. While nothing is set in stone, it's good to be aware of a potential per bedroom fee in the future!
Learn more about how to register for a Winter Park STR here, and read through the town's adopted STR policy here.
FRASER
The annual STR application fee for properties located in the town of Fraser is $150, renewed yearly on the date of initial registration. A business license is also required for property management companies; if the homeowner is operating the rental independently, a $40/year STR operating license is required. Fraser also collects annual permit fees based on the number of bedrooms in the STR. Currently, feed are $250 per bedroom; however, they will increase to $350 per bedroom starting October 1, 2025.
Learn more about Fraser STR requirements here.
GRANBY
The town of Granby charges a one-time STR application fee of $100. Their annual permit fee as of January 1, 2024 is $728 per bedroom.
Granby also has some additional requirements for homeowners to register an STR, including installing a "Knox Box" with keys for first responder access and getting a rental inspection from Grand Fire District 1. See their application checklist for more details.
Learn more about their regulations and adopted policies so you can be ready to rent your Granby property!
GRAND LAKE
Grand Lake structures their short-term rental fees and regulations a little differently, utilizing occupancy rather than rooms to determine annual fees. There is a one-time application fee of $165.00 for first-time licenses. An annual nightly rental license fee is also required when the license is renewed (based on occupancy):
- 1–4 person occupancy: $600.00
- 5-8 person occupancy: $750.00
- 9+ person occupancy: $900.00
Learn more about Grand Lake's STR application checklist, rules, and regulations here.
UNINCORPORATED GRAND COUNTY
If your property (or potential property!) doesn't lie within the town limits of Winter Park, Fraser, Granby, or Grand Lake in East Grand County, it will fall under Grand County's short-term rental guidelines. County fees are based on maximum advertised occupancy, charging $100 per occupant (with a maximum of 16 occupancy eligible for permits).
Check out all you need to know about Grand County STR rules and regulations here.
SALES TAX ON STRS
To help eliminate surprises (especially if you plan to manage your STR on your own), be aware that you'll need to charge sales tax on your nightly rental. You'll be responsible for paying state and local sales tax on your revenue each year. If you utilize platforms like AirBnb and VRBO, they will collect and remit taxes on your behalf. Property management companies typically deal with your sales taxes as well. Learn more about Colorado STR sales tax here.
HOMEOWNERS ASSOCIATIONS
If the property you are considering purchasing is governed by a Homeowners Association, be sure to check the HOA rules around STRs. It is relatively uncommon here, but some HOAs do not allow short-term rentals while others set minimum nightly stays (e.g. 10 days). Others only allow pets for homeowners (not renters), limiting booking potential by preventing you from marketing your home as pet-friendly. Other HOA regulations stipulate quiet hours, parking limitations, and more. Should you be considering a property, we have access to all the HOA documents and are happy help you read the fine print to ensure it's the best fit for your potential STR!
HOW MUCH REVENUE CAN A SHORT-TERM RENTAL GENERATE?
Revenue is dependent on so many factors: the number of beds, location, amenities, views, marketing, and price point. If you're considering purchasing a property that has already been utilized as a short-term rental, we can get the revenue records for you so that you can plan ahead for potential short-term rental income! Winter Park Lodging Company has a helpful "Neighborhood Revenue Projection Map" that highlights potential revenue in the Winter Park area. And most management companies offer a complimentary revenue assessment for your specific property.
HOW TO OPTIMIZE SHORT-TERM RENTAL REVENUE
If you don't already own a mountain property, finding a desirable and easy-to-market property can be key as you embark on your hunt for a mountain property with potential short-term rental revenue.
Consider the location, layout, and amenities. Big views and easy access to Grand County's outdoor opportunities typically make rental properties more desirable. A home layout that allows for a variety of bed sizes (that work for both kids and adults) as well as multiple lounge areas and work-from-home spaces optimize guest interest and return. Amenities like hot tubs, pools, heated garages, ski-in/ski-out, trail access, bus route access, and exercise facilities also keep your rental booked at premium prices.
DO-IT-YOURSELF SHORT-TERM RENTAL
It is 100% possible to manage your short-term rental on your own. But it's important to familiarize yourself with your location's regulations, have cleaners and maintenance resources set up in advance, and have someone local (if not you) who can be available for guest support. Check out our list of local services and resources to help you if you choose to manage your short-term rental yourself.
SHORT-TERM RENTAL MANAGEMENT COMPANIES
Not ready to go the DIY route with your short-term rental? You can hire a management company for support. With varying levels of services offered, you can hire anything from a company that simply markets the property + manages the listing to a full-service provider that utilizes sophisticated technology and at-the-ready support to manage all the details so you can be as hands-off as possible. Percentages charged per booking also vary by company and are typically consistent with the level of service provided (read: a company that charges 10% of the rental cost has its benefits but will not provide the all-inclusive, high-end support found with a significantly higher rate). Most of the management companies that serve the area are either local or run by locals, with the exception of Evolve and Vacasa (which are national companies with a degree of local support), and some companies specialize in certain regions of Grand County. So it's important to do your research and find the property management service that best suits your location, budget, and needs.
Check out some of the companies that serve short-term rental owners here in Grand County: Winter Park Lodging Company, Winter Park Escapes, Visit Winter Park, Stay Winter Park, Winter Park Management, Winter Park House, Mountain House Solutions, SkyRun Winter Park, Grand Mountain Rentals, Grand Escapes, Evolve, and Vacasa.
WE'RE HERE FOR YOU!
If a short-term rental property is on your radar, we have all the information and resources to help point you in the right direction! Our decades of experience learning and understanding HOA regulations, town requirements, and county stipulations makes us your best resource should you be hoping to rent your current property or on the search for a mountain property that capitalizes on short-term rental revenue. Reach out with any questions or to schedule a buyer's consultation - we would love to help you realize your mountain property dream!
Posted by Leah Bishop on
Leave A Comment