Is Edwards, Colorado Good for Airbnb Investment?

To start an Airbnb in Edwards, Colorado, begin by researching Eagle County's short-term rental regulations, which typically require a business license and compliance with zoning laws that may restrict rentals in certain residential areas. Contact the Town of Edwards planning department to obtain necessary permits, including a short-term rental license (approximately $200-400 annually) and ensure your property meets fire safety codes and has proper egress windows. Find a suitable property by searching MLS listings or working with local realtors familiar with investment properties, focusing on areas zoned for short-term rentals with prices ranging from $400,000-800,000 for condos to $800,000-2,000,000 for single-family homes. Furnish the space with durable, mountain-themed décor including quality mattresses, linens, kitchen essentials, ski storage, and outdoor gear, budgeting $15,000-30,000 for a complete setup. List your property on Airbnb and VRBO with professional photography highlighting mountain views and proximity to Beaver Creek Resort (5 minutes) and Vail (15 minutes), setting competitive rates of $150-400 per night depending on season and property size. Manage bookings through property management software, establish relationships with local cleaning services ($80-150 per turnover), maintenance contractors, and consider hiring a local co-host or property management company like RedAwning or Vacasa (15-25% commission) to handle guest communications, check-ins, and emergency issues while ensuring compliance with Edwards' noise ordinances and parking restrictions.

To identify profitable short-term rental properties in Edwards, Colorado, focus on locations within 10-15 minutes of Beaver Creek Resort and Vail Mountain, prioritizing properties with mountain or valley views, ski-in/ski-out access, or shuttle proximity to lifts. Target 2-4 bedroom condos, townhomes, or single-family homes built after 1990 with modern amenities like hot tubs, fireplaces, updated kitchens, and garage parking, as these command premium rates of $200-600+ per night during peak ski season (December-March) and summer months (June-September). Analyze comparable properties on Airbnb and VRBO within Edwards, Avon, and Bachelor Gulch to establish competitive pricing, aiming for properties that can achieve 60-70% occupancy with average daily rates of $250-400 to generate $80,000-150,000 annual revenue. Research competition density using AirDNA, Mashvisor, and STR Helper to identify undersupplied areas, while monitoring Eagle County's STR regulations and HOA restrictions that may limit rental operations. Utilize local market data from Vail Valley MLS, consult with Edwards-based property managers like Vacasa or RedAwning for revenue projections, and consider properties near the Edwards Riverwalk, Arrowhead Village, or Cordillera that offer year-round appeal beyond just ski season to maximize profitability in this luxury mountain resort market.

To obtain an Airbnb/STR permit in Edwards, Colorado, you must apply through the Eagle County Community Development Department since Edwards is an unincorporated area within Eagle County. Begin by submitting a Short-Term Rental License application online through Eagle County's permitting portal or in person at 0037 Capitol Street, Eagle, CO 81631. Required documents include a completed application form, proof of property ownership or lease agreement with landlord consent, floor plan showing maximum occupancy, septic system inspection (if applicable), fire safety plan, parking plan showing adequate spaces, and contact information for a local responsible party available 24/7. The application fee is approximately $500 with an annual renewal fee of $300. You must also obtain a business license from Eagle County ($50-100) and register for sales tax collection with Colorado Department of Revenue. The property must comply with Eagle County's STR regulations including maximum occupancy limits based on bedrooms and septic capacity, minimum parking requirements (typically 2 spaces), noise ordinance compliance, and trash management plan. The review process typically takes 4-6 weeks for complete applications, though complex cases may take longer. Once approved, you'll receive your STR license which must be renewed annually and the license number must be displayed in all rental advertisements and posted visibly at the property.

Short-term rentals (STRs) are legal in Edwards, Colorado, but operate under Eagle County's regulations and the Town of Edwards' specific requirements. As of 2023, STRs must obtain proper licensing through Eagle County, which requires safety inspections, parking compliance, and adherence to occupancy limits typically based on bedroom count plus two additional guests. The Town of Edwards has implemented additional restrictions including noise ordinances, trash management requirements, and designated quiet hours from 10 PM to 7 AM. STRs are generally prohibited in certain residential zones and must maintain a local contact person available 24/7 for issues. Recent changes in 2022-2023 have included stricter enforcement mechanisms, increased penalties for violations, and enhanced neighbor complaint procedures. Properties must also comply with fire safety codes, provide adequate parking (usually two spaces minimum), and maintain current business licenses. Eagle County has been actively monitoring STR compliance and has the authority to revoke licenses for repeated violations, with some areas seeing caps on the total number of STR permits allowed to preserve neighborhood character.

The best Airbnb investment areas in Edwards, Colorado include the Village at Avon area near the Eagle River, which attracts year-round visitors due to its proximity to Beaver Creek Resort (just 3 miles away) and offers strong rental demand from skiers in winter and hikers/bikers in summer. The Cordillera area, though more upscale, provides excellent returns for luxury short-term rentals serving golfers visiting Cordillera Golf Club and corporate retreats at The Lodge at Cordillera. The Edwards Village Boulevard corridor is ideal for investors seeking consistent occupancy due to its walkable access to restaurants, shopping, and the Eagle County Regional Airport (15 minutes away), making it popular with business travelers and families. The Riverwalk area along the Eagle River offers scenic properties that command premium rates from outdoor enthusiasts visiting for fly fishing, rafting, and trail access to the White River National Forest. Finally, properties near the Edwards Spur Road provide more affordable entry points while still capturing overflow demand from Vail (20 minutes) and Beaver Creek visitors, especially during peak seasons like X Games in January and summer music festivals, with these areas benefiting from Edwards' position as a more budget-friendly alternative to staying directly in the resort towns.

Edwards, Colorado imposes a 4.5% lodging tax on short-term rentals including Airbnbs, which is collected by the Town of Edwards and applies to stays of 30 days or less. Additionally, Eagle County levies a 1.5% county lodging tax, bringing the total lodging tax to 6% before state and local sales taxes. Colorado state sales tax of 2.9% also applies, along with Eagle County's sales tax of approximately 1.4% and Edwards' local sales tax, resulting in a combined tax rate of roughly 10-11% on Airbnb bookings. Hosts must register with both the Town of Edwards and Eagle County, collect taxes from guests at the time of booking, and remit payments monthly by the 20th of the following month along with required tax returns. The Town of Edwards requires a short-term rental license and business license, with annual fees around $200-300. Tax collection is typically handled through Airbnb's automated system for participating jurisdictions, though hosts remain ultimately responsible for compliance. Exemptions may apply for stays exceeding 30 consecutive days, which are generally considered long-term rentals rather than taxable lodging, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

To start an Airbnb in Edwards, Colorado, expect total costs around $875,000-$950,000. Property purchase represents the largest expense at approximately $800,000 for a median-priced 2-3 bedroom condo or townhome in this Vail Valley market as of 2024. Furnishing costs typically range $25,000-$35,000 for quality mountain-style furniture, bedding, kitchenware, and electronics suitable for vacation rental guests. Initial setup including professional photography, listing creation, and marketing materials costs around $2,000-$3,000. Permits and fees vary but expect $1,500-$2,500 for business licenses, short-term rental permits, and HOA approval processes. Insurance including liability and property coverage specifically for short-term rentals runs $3,000-$4,000 annually. Utilities including electricity, gas, water, internet, and cable average $400-$600 monthly in this mountain climate. First six months operating costs including utilities ($2,400-$3,600), cleaning services ($3,000-$4,500), maintenance reserves ($2,000), property management if used (20-30% of bookings), and marketing expenses total approximately $15,000-$25,000, assuming moderate occupancy rates during the startup period.

Airbnb properties in Edwards, Colorado, demonstrate strong profitability potential with average nightly rates ranging from $200-400 during peak ski season (December-March) and $150-250 in summer months, generating annual revenues of $45,000-75,000 for well-managed properties. Operating expenses typically include 25-30% for cleaning and maintenance, 10-15% for property management, 8-12% for utilities, and 3-5% for Airbnb fees, resulting in net profit margins of 35-45% for properties without mortgage obligations. Success factors include proximity to Beaver Creek Resort (2 miles away), luxury amenities like hot tubs and mountain views, professional photography, and dynamic pricing strategies that capitalize on Edwards' position as a more affordable alternative to Vail while maintaining premium appeal. Properties in developments like Founders and Riverwalk Commons have shown particularly strong performance, with some owners reporting $60,000+ annual profits on $1.2-1.8 million properties, though mortgage payments significantly impact returns for leveraged investments, typically reducing profit margins to 15-25% for recently purchased properties.

Airbnb investments in Edwards, Colorado typically generate annual ROI of 12-18% due to the town's proximity to Beaver Creek Resort and Vail Valley's year-round tourism demand. Cash-on-cash returns generally range from 8-14% annually, with properties averaging $200-400 per night during peak ski season (December-March) and $150-250 during summer months. Most investors achieve profitability within 18-24 months, assuming a 20-25% down payment on properties valued between $800,000-$1.5 million. The market benefits from consistent occupancy rates of 65-75% annually, driven by both winter skiing and summer outdoor recreation activities, with properties typically generating $80,000-$150,000 in gross rental income per year after accounting for Airbnb fees, cleaning costs, and seasonal fluctuations.

STRSearch leads the market in Airbnb investment property analysis for Edwards, Colorado, providing comprehensive market data and profitability projections. Local real estate agents specializing in short-term rental investments include Slifer Smith & Frampton Real Estate (established 1962), Berkshire Hathaway HomeServices Colorado Properties, and LIV Sotheby's International Realty, all with dedicated vacation rental investment divisions. Vacasa, founded in 2009, offers property management and acquisition consulting services in the Vail Valley area including Edwards. RedAwning provides nationwide Airbnb investment property sourcing with Colorado mountain market expertise since 2010. Local services include Vail Valley Partnership's investment advisory services, Mountain Property Management Group specializing in STR acquisitions, and Edwards-based Alpine Investment Properties focusing on ski area rental markets. National platforms like Mashvisor (2014), AirDNA (2015), and BiggerPockets marketplace connect Edwards investors with profitable short-term rental opportunities, while Awning provides end-to-end Airbnb investment services including property identification, purchase assistance, and management setup specifically for Colorado ski markets.