Is Crested Butte, Colorado Good for Airbnb Investment?

To start an Airbnb in Crested Butte, Colorado, begin by researching the town's short-term rental regulations, which require a business license from the Town of Crested Butte and compliance with their Short-Term Rental Ordinance that limits rentals to no more than 30 days and requires properties to be owner-occupied or have a local contact within 30 minutes. Obtain necessary permits including a Colorado state sales tax license, Gunnison County lodging tax permit, and ensure your property meets fire safety codes and has proper smoke/carbon monoxide detectors. Find a suitable property within the town limits that's zoned for short-term rentals, keeping in mind Crested Butte's limited inventory and high property values ranging from $800,000-$2,000,000+ for suitable homes. Furnish the property with mountain-appropriate amenities including quality bedding, kitchen essentials, outdoor gear storage, reliable WiFi, and heating systems capable of handling winter temperatures below -20°F. Create listings on platforms like Airbnb and VRBO with professional photography showcasing mountain views and proximity to skiing at Crested Butte Mountain Resort, pricing competitively at $200-$600+ per night depending on season and property size. Manage the property by establishing relationships with local cleaning services like Alpine Cleaning or Mountain Maids, maintenance contractors familiar with high-altitude challenges, and consider hiring property management companies such as Crested Butte Lodging or East West Resorts if you're not local, while maintaining the required guest registry and remitting the 4.2% Gunnison County lodging tax and 8.25% state sales tax monthly.

To identify profitable short-term rental properties in Crested Butte, Colorado, focus on locations within walking distance to the ski base area, downtown historic district, or along the free shuttle route, as these command premium rates year-round. Target properties with 2-4 bedrooms, mountain views, hot tubs, ski storage, and parking, as these features are highly valued by visitors to this ski resort town. Analyze pricing using AirDNA and STR data for Crested Butte specifically, noting that peak winter rates can reach $400-800+ per night for quality properties, while summer rates typically range $200-500, with shoulder seasons offering opportunities for competitive positioning. Research competition by studying existing STR listings on Airbnb and VRBO within a 2-mile radius of the mountain base, paying attention to occupancy rates, guest reviews, and amenities offered by top performers. Utilize tools like Mashvisor, AirDNA, and local MLS data through Crested Butte real estate agents familiar with STR regulations, while also consulting the Town of Crested Butte's short-term rental licensing requirements and connecting with local property management companies like Crested Butte Lodging or Three Peaks Property Management to understand operational costs and market dynamics in this high-altitude resort community where properties under $1.5M can still generate strong returns if properly positioned.

To obtain an Airbnb/STR permit in Crested Butte, Colorado, you must first apply through the Town of Crested Butte Planning Department located at 507 Maroon Avenue or online via their municipal website portal. Required documents include a completed short-term rental license application, proof of property ownership or lease agreement with landlord consent, certificate of liability insurance (minimum $1 million coverage), floor plan showing maximum occupancy, parking plan demonstrating adequate off-street parking, and a signed good neighbor agreement. The application fee is approximately $350 annually with a $50 processing fee, and renewal fees are $250 per year. The timeline typically takes 4-6 weeks for initial approval, with applications reviewed monthly by the planning commission. Crested Butte specific requirements include a maximum occupancy of 2 people per bedroom plus 2 additional guests, mandatory 24/7 local contact person within 30 minutes of the property, compliance with the town's 3% accommodation tax, adherence to quiet hours from 10 PM to 8 AM, provision of adequate trash and recycling containers, and maintaining the property's residential character. Properties must also meet all building and fire safety codes, and the town limits the total number of STR permits available, so applications are processed on a first-come, first-served basis when permits become available.

Short-term rentals (STRs) are legal in Crested Butte, Colorado, but operate under strict regulations implemented by the Town of Crested Butte. As of 2023, the town requires STR operators to obtain a business license and comply with zoning restrictions that limit STRs primarily to commercial and mixed-use zones, while prohibiting them in certain residential areas to preserve long-term housing stock. Properties must meet safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers, and operators must collect and remit local lodging taxes. The town has implemented a cap on the total number of STR licenses available and requires annual renewals. Recent changes around 2022-2023 included stricter enforcement of noise ordinances, mandatory local contact person requirements for emergencies, and enhanced parking regulations. STRs are prohibited in some residential neighborhoods designated for workforce housing, reflecting the town's ongoing efforts to balance tourism revenue with housing availability for local workers in this popular ski resort community.

The most attractive Airbnb investment areas in Crested Butte, Colorado include the Historic Downtown District, which offers year-round appeal with proximity to restaurants, shops, and summer festivals like the Wildflower Festival and Fall Colors events, generating consistent bookings from tourists seeking walkable convenience. The Skyland area and neighborhoods near the Crested Butte Mountain Resort base provide excellent winter investment opportunities due to direct ski access and summer mountain biking trails, attracting outdoor enthusiasts willing to pay premium rates for slope-side convenience. The East River Valley corridor, particularly areas along Gothic Road, appeals to nature photographers and wildflower enthusiasts visiting the renowned wildflower displays and ghost town of Gothic, creating strong summer demand. The Whetstone Mountain area offers more affordable entry points while still providing mountain views and access to hiking trails, making it attractive for budget-conscious travelers and families. Properties near the Four-Way Stop intersection benefit from central location advantages, serving both winter skiers and summer festival-goers attending events like the Music Festival and Arts Festival, while the Paradise Divide area attracts backcountry enthusiasts and provides unique high-altitude experiences that command higher nightly rates during peak seasons.

In Crested Butte, Colorado, Airbnb hosts are subject to multiple lodging taxes including the Colorado state sales tax of 2.9%, Gunnison County sales tax of approximately 1.5%, and the Town of Crested Butte lodging tax of 4.5%, totaling roughly 8.9% in combined taxes on short-term rental accommodations. The Town of Crested Butte requires hosts to obtain a business license and collect the municipal lodging tax directly from guests, with monthly remittance due by the 20th of the following month along with required occupancy reporting forms. Colorado state and county sales taxes are collected through the Colorado Department of Revenue's online system with monthly or quarterly filing depending on volume, and Airbnb may collect and remit state taxes automatically for some hosts through their platform since 2019. Stays of 30 days or longer are typically exempt from lodging taxes, and some jurisdictions provide exemptions for stays by government employees or certain non-profit activities, though hosts must maintain detailed records of all bookings and tax collections for compliance purposes with both state and local authorities.

Starting an Airbnb in Crested Butte, Colorado requires significant upfront investment due to the area's premium mountain resort market. Property purchase costs average $1,200,000 for a median 3-bedroom mountain home or condo suitable for short-term rentals. Furnishing costs typically run $35,000-50,000 for quality mountain-themed furniture, appliances, linens, and outdoor equipment that appeals to ski and summer recreation guests. Initial setup expenses include $8,000-12,000 for professional photography, listing optimization, welcome materials, and technology like smart locks and WiFi upgrades. Permits and fees total approximately $2,500-4,000 including short-term rental licenses, business registration, and potential HOA approval fees. Insurance costs $3,500-5,000 annually for specialized short-term rental coverage that protects against guest damages and liability. Utilities average $400-600 monthly including electricity, gas, water, internet, and cable services essential for guest satisfaction. First six months operating costs reach $15,000-20,000 covering cleaning services ($150-200 per turnover), property management fees (20-30% of revenue), maintenance, supplies, marketing, and platform fees to Airbnb and VRBO. Total startup investment ranges from $1,264,000 to $1,291,600, making Crested Butte one of Colorado's most expensive markets for Airbnb investment due to limited inventory and high demand from year-round outdoor recreation tourism.

Airbnb properties in Crested Butte, Colorado demonstrate strong profitability potential with average nightly rates ranging from $200-450 during peak ski season (December-March) and $150-300 during summer months, generating annual revenues of $45,000-85,000 for well-positioned properties. Operating expenses typically include 25-30% for property management fees, $8,000-12,000 annually for utilities, $3,000-5,000 for maintenance and cleaning, $2,000-4,000 for property taxes, and $1,500-3,000 for insurance, resulting in total expenses of approximately $25,000-40,000 per year. Successful properties achieve profit margins of 35-55%, with ski-in/ski-out condos near the base area commanding premium rates and achieving 70-80% occupancy rates during peak seasons. Key success factors include proximity to Crested Butte Mountain Resort lifts, professional property management through companies like Crested Butte Lodging or Alpine Edge, high-quality furnishings and amenities, and strategic pricing that capitalizes on events like the Wildflower Festival in July. Properties within walking distance of downtown Crested Butte or offering mountain views consistently outperform those requiring shuttle access, with some premium 3-4 bedroom homes generating over $100,000 annually while maintaining expenses below $45,000, resulting in net profits exceeding $55,000 per year.

Airbnb investments in Crested Butte, Colorado typically generate annual ROI of 12-18% due to the area's strong ski tourism and summer outdoor recreation demand, with cash-on-cash returns ranging from 8-14% depending on property location and amenities. Properties within walking distance to the ski base or downtown area command premium nightly rates of $300-600 during peak winter season (December-March) and $200-400 during summer months (June-September), while shoulder seasons see rates drop to $150-250 per night. Most investors achieve profitability within 18-24 months, with luxury properties and those offering ski-in/ski-out access reaching break-even faster at 12-18 months. The market benefits from Crested Butte's limited inventory due to strict development regulations and its reputation as a premier destination resort, with occupancy rates typically running 65-75% annually for well-managed properties, though investors should factor in seasonal maintenance costs, property management fees of 20-30%, and the need for substantial upfront capital given median property prices of $800,000-1.5 million for investment-suitable properties.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including in Crested Butte, Colorado. Local real estate agents like those at Crested Butte Real Estate and Crested Butte Sotheby's International Realty have expertise in the area's vacation rental market and understand local regulations affecting Airbnb properties. National services include Awning, which provides market analysis and property management for short-term rentals, and Mashvisor, an investment property analysis platform that offers Airbnb profitability data for mountain resort markets. BiggerPockets connects investors with local experts and provides market insights, while AirDNA offers detailed short-term rental market analytics for Crested Butte. Local property management companies like Crested Butte Lodging and Three Peaks Property Management can provide insights into which properties perform best as vacation rentals. RedAwning and Vacasa also operate in the area and can offer guidance on property selection based on their rental performance data. Additionally, local mortgage brokers specializing in investment properties and vacation rental financing can help identify suitable properties that meet lending criteria for profitable Airbnb investments in this popular Colorado ski destination.