Is Centennial, Colorado Good for Airbnb Investment?

To start an Airbnb in Centennial, Colorado, begin by researching local regulations as Centennial requires short-term rental operators to obtain a business license through the city's licensing department and comply with zoning restrictions that typically allow STRs in residential areas with specific occupancy limits. Contact Centennial's Planning Department at 303-754-3400 to verify zoning compliance for your specific property address and obtain the required Conditional Use Permit if needed, which costs approximately $500-800 and takes 4-6 weeks to process. Find a suitable property by focusing on neighborhoods near Centennial Airport, Streets at SouthGlenn, or areas with easy access to Denver Tech Center, ensuring the property meets fire safety codes including smoke detectors in each bedroom and carbon monoxide detectors. Furnish the space with quality furniture from local stores like Denver Mattress Company or West Elm, focusing on comfortable beds, reliable WiFi, and amenities that appeal to business travelers and families visiting the area. Create your Airbnb listing with professional photos highlighting proximity to Cherry Creek State Park, Fiddler's Green Amphitheatre, and downtown Denver (20 minutes away), pricing competitively at $80-150 per night based on local market rates. Manage your property by establishing relationships with local cleaning services like Handy or MaidPro, responding to guests within one hour, and maintaining compliance with Centennial's noise ordinances and parking restrictions while collecting and remitting the required 8.31% combined state and local taxes through Airbnb's automated system or directly to the Colorado Department of Revenue.

To identify profitable short-term rental properties in Centennial, Colorado, focus on locations within 15-20 minutes of Denver International Airport, near major business districts like the Denver Tech Center, and close to outdoor recreation areas such as Chatfield Reservoir and Centennial Center Park. Target 3-4 bedroom single-family homes or townhomes built after 1990 with modern amenities, parking for 2+ vehicles, outdoor spaces, and high-speed internet, as these appeal to both business travelers and families visiting the area. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by 40-60%, typically ranging from $150-250 per night depending on size and location. Research competition by analyzing existing Airbnb and VRBO listings within a 2-mile radius, identifying gaps in amenities or pricing, and noting seasonal demand patterns driven by Denver's business calendar and outdoor recreation seasons. Utilize tools like Rabbu, STR Helper, and local MLS data through Colorado real estate platforms, while consulting Centennial's municipal code for STR regulations and HOA restrictions, and consider partnering with local property management companies like RedAwning or Vacasa who understand the Denver metro market dynamics.

To obtain an Airbnb/STR permit in Centennial, Colorado, you must first contact the City of Centennial Planning Department at 13133 E Arapahoe Road or call (303) 325-8000 to begin the application process, as Centennial requires a Conditional Use Permit for short-term rentals. Required documents include a completed CUP application form, site plan showing the property layout, proof of property ownership or lease agreement, floor plans indicating maximum occupancy, parking plan demonstrating adequate off-street parking, and a neighborhood notification list of properties within 200 feet of your rental. The application fee is approximately $1,500-$2,000, with additional fees for public hearings if required. The timeline typically takes 60-90 days from submission to approval, including a mandatory public hearing before the Planning Commission. Specific Centennial requirements include maintaining the property as your primary residence if operating a homestay, limiting occupancy to no more than 2 guests per bedroom plus 2 additional guests, providing one off-street parking space per bedroom, maintaining a 24/7 contact person available to address issues, registering with the state for sales tax collection, and ensuring compliance with all HOA restrictions if applicable. Once approved, you must renew the permit annually and maintain liability insurance of at least $1 million, with the city conducting periodic inspections to ensure ongoing compliance with safety and zoning requirements.

Short-term rentals (STRs) are legal in Centennial, Colorado, but the city has implemented comprehensive regulations since 2019 to manage their operation. STRs are permitted in residential zones but require a business license and must comply with specific operational requirements including occupancy limits (typically 2 people per bedroom plus 2 additional), quiet hours from 10 PM to 7 AM, parking restrictions (one space per bedroom), and mandatory contact information posting for a local responsible party available 24/7. The city prohibits STRs in certain residential areas where homeowner associations have specific restrictions, and properties must maintain residential character without commercial signage. Operators must collect and remit local taxes, maintain liability insurance, and ensure compliance with fire safety codes. Recent changes in 2021-2022 have strengthened enforcement mechanisms and increased penalties for violations, with the city conducting regular inspections and responding to neighbor complaints. Properties that receive multiple violations can have their STR permits revoked, and the city maintains a registry of all licensed short-term rental properties to ensure compliance with zoning and safety requirements.

The best Airbnb investment areas in Centennial, Colorado include the Dry Creek area near the Denver Tech Center, which attracts significant business travelers working at companies like Lockheed Martin, Arrow Electronics, and Charles Schwab, with properties typically generating 15-20% higher occupancy rates due to corporate demand. The Heritage Greens and Foxridge neighborhoods offer excellent access to Centennial Airport and are popular with aviation professionals and private jet travelers, while the Southglenn area benefits from proximity to major shopping centers and the light rail system connecting to downtown Denver. The Centennial Center Park district is particularly attractive due to its location near the Centennial Center Park amphitheater, which hosts concerts and events throughout the summer months, driving seasonal demand from 2019-2024. Properties near the South Suburban Parks and Recreation facilities, including the South Suburban Ice Arena and Goodson Recreation Center, perform well year-round due to sports tournaments and family travel, with average daily rates 10-15% above the metro average during peak sports seasons.

In Centennial, Colorado, Airbnb hosts are subject to multiple lodging taxes including the state sales tax of 2.9%, Arapahoe County lodging tax of 1%, and the City of Centennial lodging tax of approximately 3.5%, totaling around 7.4% on short-term rental bookings. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2017-2018 for most Colorado jurisdictions. Airbnb remits the state and county portions directly to the Colorado Department of Revenue monthly, while city taxes are remitted to Centennial's finance department on a monthly basis. Hosts may still need to register with local tax authorities and file periodic returns even when Airbnb collects taxes, and should verify their registration status with the City of Centennial and Colorado Department of Revenue. Exemptions are generally limited and may include stays exceeding 30 consecutive days, which would be considered long-term rentals rather than transient lodging, though hosts should confirm current exemption criteria with local tax authorities as regulations can change.

The total cost to start an Airbnb in Centennial, Colorado is approximately $485,000-$565,000. Property purchase represents the largest expense at $450,000 (median home price in Centennial as of 2024). Furnishing costs range from $15,000-$25,000 for a complete 3-bedroom setup including furniture, appliances, linens, and decor. Initial setup costs including professional photography, listing creation, and marketing materials total around $2,000-$3,000. Permits and fees in Centennial include business license ($50), short-term rental permit ($200), and potential HOA approval fees ($100-$500). Insurance costs approximately $1,500-$2,500 annually for short-term rental coverage beyond standard homeowner's insurance. Utilities including electricity, gas, water, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs including cleaning services ($150 per turnover), supplies and amenities ($200 monthly), property management software ($50 monthly), and maintenance reserves ($200 monthly) total approximately $6,000-$8,000. Additional considerations include potential property management fees (20-30% of revenue if outsourced) and marketing costs for initial bookings ($1,000-$2,000).

Airbnb properties in Centennial, Colorado demonstrate strong profitability potential with average nightly rates ranging from $85-150 depending on property size and amenities, generating monthly revenues of $2,500-4,500 for well-managed properties with 60-70% occupancy rates. Operating expenses typically include 25-30% for Airbnb fees and payment processing, $200-400 monthly for cleaning services, $150-300 for utilities, $100-200 for supplies and maintenance, and property management fees of 10-20% if outsourced, resulting in total operating costs of approximately 45-55% of gross revenue. Properties near Centennial Center Park and Cherry Creek State Park command premium rates, with successful hosts reporting net profit margins of 25-35% after expenses, translating to annual profits of $8,000-18,000 per property. Success factors include proximity to Denver International Airport (20 minutes), professional photography, responsive communication, consistent 4.8+ star ratings, and targeting business travelers and families visiting nearby attractions like the Denver Tech Center. Case studies from 2023 show that 3-bedroom homes near South Suburban Golf Course achieved 75% occupancy with $140 average nightly rates, generating $38,000 annual revenue with $24,000 net profit, while 2-bedroom condos averaged $95 nightly rates with 65% occupancy, producing $22,000 revenue and $12,000 net profit annually.

Airbnb investments in Centennial, Colorado typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in desirable neighborhoods near Centennial Center Park and Cherry Creek State Park command premium nightly rates of $120-180, achieving 65-75% occupancy rates throughout the year. Initial investment recovery and profitability typically occurs within 18-24 months, with single-family homes and townhomes performing best due to proximity to Denver Tech Center and major employers like Arrow Electronics and United Launch Alliance. The market benefits from consistent business travel demand, outdoor recreation tourism, and Denver International Airport accessibility, with properties averaging $15,000-25,000 in annual net income after expenses on investments of $150,000-250,000 in down payments and renovations.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in Centennial, Colorado. Local real estate agents like those at Coldwell Banker Realty, RE/MAX Alliance, and Keller Williams DTC have developed expertise in the Airbnb investment market in the Denver metro area including Centennial since around 2015-2018. National services such as Mashvisor, BiggerPockets, and AirDNA provide market analysis and property identification tools for the Centennial market. Local companies like Denver Short Term Rental Management and Colorado Airbnb Solutions offer full-service property acquisition and management services. Real estate investment firms such as Roofstock and Awning have expanded their short-term rental property services to include the Centennial area. Local agents specializing in investment properties include teams at LIV Sotheby's International Realty and 8z Real Estate who have been active in the STR market since approximately 2016-2019. Additional services like RedAwning and Vacasa provide market analysis and property management that can assist with investment property identification in Centennial's growing short-term rental market.