Is Aurora, Colorado Good for Airbnb Investment?

To start an Airbnb in Aurora, Colorado, begin by researching local regulations as Aurora requires short-term rental operators to obtain a business license and comply with zoning restrictions that limit rentals to no more than 120 days per year in residential areas. Contact Aurora's Planning Department to verify your property's zoning allows short-term rentals and obtain necessary permits including a business license ($75-150 annually) and potentially a special use permit depending on your zone. Find a suitable property in permitted areas, focusing on neighborhoods near Denver International Airport or downtown Aurora for higher demand. Furnish the space with quality basics including comfortable beds, linens, kitchen essentials, WiFi, and safety equipment like smoke detectors and fire extinguishers as required by Aurora fire codes. Create your Airbnb listing with professional photos, competitive pricing ($80-200 per night depending on size and location), and highlight proximity to DIA and Denver attractions. Register for Colorado state sales tax (2.9%) and Aurora local lodging tax (approximately 3-5%), then manage bookings through automated systems, coordinate cleaning between guests, maintain 24/7 communication availability, and ensure compliance with Aurora's noise ordinances and parking requirements which typically limit guest vehicles to designated spaces.

To identify profitable short-term rental properties in Aurora, Colorado, focus on locations within 15-20 minutes of Denver International Airport, near the Anschutz Medical Campus, or close to major attractions like Cherry Creek State Park and the Aurora Reservoir. Target 2-4 bedroom single-family homes or condos built after 1990 with modern amenities, parking spaces, and outdoor areas that can accommodate business travelers and families visiting the medical district or using DIA as a hub. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by 40-60%, typically finding sweet spots in the $300,000-$500,000 purchase range in neighborhoods like Stapleton, Lowry, and Southlands. Research competition by analyzing existing Airbnb and VRBO listings within a 2-mile radius, identifying gaps in amenities or pricing, and noting that Aurora's proximity to Denver creates demand from both leisure travelers seeking lower-cost alternatives to downtown and business travelers needing airport access. Utilize tools like Rabbu, BiggerPockets market data, and the Aurora Economic Development Council's reports while monitoring Denver metro STR regulations, as Aurora allows short-term rentals with proper licensing and the market benefits from consistent demand due to the medical campus, airport proximity, and outdoor recreation access.

To obtain an Airbnb/STR permit in Aurora, Colorado, you must first register your short-term rental with the City of Aurora's Planning Department by submitting an application through their online portal or visiting the Municipal Center at 15151 E. Alameda Parkway. Required documents include a completed STR application form, proof of property ownership or lease agreement with landlord consent, a site plan showing the property layout, parking availability documentation, and proof of liability insurance coverage of at least $500,000. The application fee is approximately $200-300 with an annual renewal fee of around $150. Aurora requires STR properties to be owner-occupied or have a local contact person within 25 miles, maintain adequate off-street parking (typically 2 spaces), comply with occupancy limits based on bedrooms plus 2 additional guests, and follow noise ordinances with quiet hours from 10 PM to 7 AM. Properties must also meet fire safety requirements including smoke detectors in all bedrooms and common areas, and carbon monoxide detectors if applicable. The approval process typically takes 4-6 weeks after submitting a complete application, and you cannot operate your STR until receiving official permit approval. Annual inspections may be required, and violations can result in fines ranging from $500-2,000 or permit revocation.

Short-term rentals (STRs) are legal in Aurora, Colorado, but subject to specific regulations implemented in 2019. The city requires STR operators to obtain a business license and comply with zoning restrictions that limit rentals to no more than 120 days per year in residential zones, while commercial and mixed-use areas have fewer restrictions. Properties must meet safety requirements including smoke and carbon monoxide detectors, and operators must provide local contact information and respond to complaints within two hours. Aurora prohibits STRs in certain residential neighborhoods and requires a minimum 500-foot separation between licensed STR properties in some zones. The city has established occupancy limits based on bedrooms and parking requirements, and violations can result in fines up to $2,000 per day. Recent enforcement efforts have focused on unlicensed operators, and the city maintains a registry of approved STR properties that must be renewed annually.

The best Airbnb investment areas in Aurora, Colorado include the Fitzsimons district near the University of Colorado Anschutz Medical Campus, which attracts medical professionals, researchers, and families visiting patients at the major hospital complex. The Aurora City Center area offers proximity to the light rail system providing easy access to downtown Denver and Denver International Airport, making it ideal for business travelers and tourists. The Southlands lifestyle center vicinity appeals to visitors seeking shopping and dining experiences while being close to Cherry Creek State Park for outdoor recreation. The Stapleton border area benefits from overflow demand from Denver's popular Stapleton neighborhood while offering more affordable property prices. The area near the Aurora Reservoir and Cherry Creek State Park attracts outdoor enthusiasts and families looking for recreational activities. Additionally, neighborhoods close to the Anschutz Medical Campus consistently generate demand from medical students, visiting doctors, and patients' families requiring extended stays, while the proximity to major highways like I-225 and I-70 makes these areas convenient for both Denver commuters and travelers heading to mountain destinations.

In Aurora, Colorado, Airbnb hosts are subject to multiple lodging taxes including the state sales tax of 2.9%, Colorado lodging tax of 2%, Arapahoe County lodging tax of 1%, and Aurora's local lodging tax of 4.75%, totaling approximately 10.65% in combined taxes on short-term rental stays. The Colorado Department of Revenue requires hosts to register for a sales tax license and collect state and local taxes from guests, with monthly remittance due by the 20th of the following month for most operators. Airbnb typically collects and remits these taxes automatically for hosts through their platform since 2017, though hosts should verify their specific situation and may need to register independently with the Colorado Department of Revenue and local jurisdictions. Aurora requires short-term rental operators to obtain a business license and comply with local regulations, with some exemptions potentially applying to rentals of 30 days or longer which may be considered long-term leases rather than lodging, though stays under 30 days are generally subject to all applicable lodging taxes regardless of the property type or rental frequency.

Starting an Airbnb in Aurora, Colorado requires approximately $520,000-$580,000 in total initial investment. Property purchase costs around $450,000 based on Aurora's median home price as of 2023. Furnishing a 3-bedroom property typically costs $15,000-$25,000 including furniture, appliances, linens, and decor from retailers like IKEA, Wayfair, and local stores. Initial setup expenses including professional photography, listing creation, and marketing materials run $2,000-$3,000. Permits and fees include Aurora's short-term rental license ($200 annually), business license ($50), and potential HOA approval fees totaling approximately $500-$1,000. Insurance premiums for short-term rental coverage average $2,500-$4,000 annually through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, gas, water, internet, and cable cost roughly $1,500-$2,500. First six months operating costs including utilities ($1,200), cleaning services ($2,400), maintenance ($1,500), property management software like Airbnb or VRBO fees ($600), restocking supplies ($800), and marketing ($500) total approximately $7,000. Additional considerations include potential property management fees of 10-20% if outsourced and emergency repair funds of $5,000-$10,000.

Airbnb properties in Aurora, Colorado typically generate average nightly rates of $85-120, with occupancy rates around 65-75% annually, resulting in gross revenues of $20,000-35,000 per year for a standard 2-3 bedroom property. Operating expenses including mortgage payments, property taxes ($2,500-4,000 annually), insurance ($1,200-2,000), utilities ($2,400-3,600), cleaning fees ($3,000-5,000), maintenance ($2,000-4,000), and Airbnb service fees (3% host fee plus guest fees) typically consume 60-75% of gross revenue. Properties near Denver International Airport and the Aurora Reservoir command premium rates, with some hosts reporting net profit margins of 15-25% after all expenses. Success factors include proximity to DIA (properties within 10 miles see 20-30% higher bookings), professional photography, competitive pricing strategies, and maintaining superhost status. A case study of a 3-bedroom home near Southlands Mall purchased for $420,000 in 2021 generated $32,000 in gross revenue with $24,000 in total expenses including mortgage, yielding an 8% net return, while a smaller 2-bedroom condo near the light rail achieved 18% margins due to lower acquisition costs and strong business traveler demand.

Airbnb investments in Aurora, Colorado typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the city. Properties near Denver International Airport and the Aurora Reservoir tend to perform better, with investors seeing profitability within 18-24 months of initial investment. The average daily rate for Airbnb properties in Aurora ranges from $85-$140, with occupancy rates averaging 65-75% annually. Initial investment costs including down payment, furnishing, and setup typically range from $40,000-$80,000 for a standard 2-3 bedroom property, with monthly gross revenues averaging $2,500-$4,200. Market analysis from 2023-2024 shows Aurora's proximity to Denver and lower property costs compared to downtown Denver create favorable conditions for short-term rental investments, though investors should factor in Aurora's specific STR regulations and licensing requirements which can impact initial setup costs by $1,000-$2,500.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Aurora, Colorado by providing data analytics and market insights. Local real estate agents specializing in Airbnb investments in Aurora include Denver Metro Realty Group, Colorado Investment Properties, and Mile High Property Advisors, who have expertise in the Denver metropolitan area's short-term rental market since around 2018-2020. National services like AirDNA (founded 2015), Mashvisor (established 2016), and BiggerPockets (launched 2004) offer comprehensive market analysis and property search tools for Aurora's vacation rental market. Local property management companies such as RedAwning Colorado, Vacasa (operating in Colorado since 2017), and Denver Short Term Rental Management provide end-to-end services for investors. Additional specialized services include Awning (a national Airbnb investment platform launched in 2019), Roofstock (expanded into short-term rentals around 2020), and local consultants like Colorado STR Consulting who help investors navigate Aurora's specific zoning laws and licensing requirements that were updated in 2019-2021.