Is Keystone, Colorado Good for Airbnb Investment?

To start an Airbnb in Keystone, Colorado, begin by researching Summit County's short-term rental regulations, which require a business license and short-term rental permit with annual fees around $200-400, plus compliance with occupancy limits typically 2 people per bedroom plus 2 additional guests. Contact Summit County Planning Department at (970) 453-3480 to obtain the necessary Short-Term Rental License and ensure your property meets fire safety codes, parking requirements (usually 1 space per bedroom), and trash management protocols. Find a suitable property in Keystone through local realtors like Breckenridge Associates Real Estate or Slifer Smith & Frampton, focusing on condos or homes near Keystone Resort with good ski access, expecting investment costs of $400,000-800,000 for condos and $800,000-2,000,000 for homes. Furnish the property with mountain-appropriate amenities including ski storage, boot dryers, hot tub access if available, high-quality linens, full kitchen equipment, WiFi, and winter/summer recreational gear, budgeting $15,000-30,000 for complete furnishing. List your property on Airbnb, VRBO, and local platforms like Summit County Lodging, setting competitive rates of $150-400 per night depending on size and season, with peak winter rates 50-100% higher than summer. Manage the property by either self-managing or hiring local companies like RedAwning or Vacasa (charging 15-25% management fees), ensuring 24/7 guest support, professional cleaning between stays ($100-200 per turnover), and maintaining relationships with local service providers for maintenance, snow removal, and emergency repairs.

For identifying profitable STR properties in Keystone, Colorado, focus on locations within 1-2 miles of Keystone Resort with ski-in/ski-out access or shuttle proximity, prioritizing properties near River Run Village, Lakeside Village, or Mountain House base areas. Target 2-4 bedroom condos or townhomes built after 1990 with mountain views, hot tubs, fireplaces, updated kitchens, and parking for 2+ vehicles, as these features command premium rates of $200-500+ per night during peak ski season (December-March) and summer months (June-August). Analyze comparable properties on Airbnb and VRBO within a 2-mile radius, noting that successful properties typically achieve 60-75% occupancy with average daily rates of $250-400 in winter and $150-300 in summer, generating annual revenues of $50,000-150,000 depending on size and location. Research competition density using AirDNA, STR Helper, or Mashvisor to identify undersaturated areas, while monitoring Summit County's STR regulations and licensing requirements through their official website. Utilize tools like Rabbu, PriceLabs for dynamic pricing, and analyze historical performance data from 2019-2023 to account for seasonal fluctuations, with properties closer to lifts and amenities typically showing 20-30% higher revenue potential than those requiring shuttle access.

To obtain an Airbnb/STR permit in Keystone, Colorado, you must apply through Summit County's Community Development Department since Keystone is an unincorporated area within Summit County. Begin by submitting a Short-Term Rental License application online through Summit County's permitting portal or in-person at 208 Lincoln Avenue in Breckenridge. Required documents include a completed application form, proof of property ownership or lease agreement with landlord consent, floor plan showing maximum occupancy, parking plan demonstrating adequate off-street parking, septic system inspection (if applicable), and contact information for a local responsible party available 24/7. The application fee is approximately $200-300 annually, with additional inspection fees of around $150. You must also provide proof of liability insurance with minimum $1 million coverage naming Summit County as additional insured, business license registration, and sales tax license through Colorado Department of Revenue. The property must comply with Summit County's STR regulations including maximum occupancy limits based on bedrooms and septic capacity, quiet hours from 10 PM to 7 AM, parking requirements of one space per bedroom plus one additional space, and trash management protocols. The approval timeline typically takes 4-6 weeks after submitting a complete application, including required inspections for safety compliance, septic system functionality, and parking adequacy. Once approved, you must display the permit number in all rental listings and renew annually by December 31st with updated documentation and fees.

Short-term rentals (STRs) are legal in Keystone, Colorado, but operate under Summit County's comprehensive regulations established around 2019-2020. The county requires STR operators to obtain a business license, pay accommodation taxes, and comply with occupancy limits typically based on septic system capacity and parking availability. Properties must meet safety requirements including smoke and carbon monoxide detectors, fire extinguishers, and emergency egress plans. STRs are prohibited in certain residential zones and deed-restricted affordable housing units, while permitted properties face restrictions on noise, parking (usually 2 vehicles maximum), and guest behavior. Recent changes include stricter enforcement mechanisms, increased penalties for violations, and enhanced neighbor complaint processes. Keystone, being primarily a resort community with many condominiums and vacation homes, has a relatively permissive approach compared to other Summit County areas, though operators must still register with both the county and state, maintain local contact information, and ensure properties don't exceed maximum occupancy limits which typically range from 2-4 people per bedroom depending on the specific zoning and septic capacity.

The best areas for Airbnb investment in Keystone, Colorado are the River Run Village area, which offers ski-in/ski-out access to Keystone Resort and attracts winter sports enthusiasts from December through April, generating peak rental rates of $300-500 per night during holidays. The Lakeside Village district near Keystone Lake provides year-round appeal with summer activities like hiking, biking, and lake recreation, plus proximity to the Keystone Conference Center which drives corporate retreat bookings. The Mountain House base area is ideal for budget-conscious investors, offering slightly lower property costs while maintaining strong rental demand from families and groups seeking affordable ski access. Argentina Bowl vicinity, though requiring shuttle access, attracts advanced skiers and offers lower acquisition costs with solid rental potential during peak seasons. The Snake River area provides a more secluded experience for guests seeking luxury mountain retreats, commanding premium rates of $400-700 per night, especially during Keystone's summer concert series and winter holiday periods, with properties here benefiting from both Keystone and nearby Breckenridge tourism traffic.

Airbnb properties in Keystone, Colorado are subject to multiple lodging taxes including Colorado state sales tax of 2.9%, Summit County lodging tax of 2.5%, and the Town of Keystone lodging tax of 4.5%, totaling approximately 9.9% in combined taxes on short-term rental accommodations. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Colorado around 2017-2018. Airbnb remits the collected taxes monthly to the appropriate state and local tax authorities on behalf of hosts, though individual hosts remain responsible for registering with local jurisdictions and ensuring compliance. The Town of Keystone requires short-term rental operators to obtain a business license and register for tax collection, with remittance due by the 20th of each month following the collection period. Exemptions are generally limited to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and certain government or non-profit organization bookings may qualify for exemptions with proper documentation.

To start an Airbnb in Keystone, Colorado, expect total costs around $850,000-$950,000. Property purchase represents the largest expense at $700,000-$800,000 for a median 2-3 bedroom condo or townhome in this ski resort town. Furnishing costs range $25,000-$35,000 for quality mountain-style furniture, appliances, linens, and ski equipment storage. Initial setup including professional photography, listing creation, and marketing materials costs $2,000-$3,000. Permits and fees total approximately $1,500-$2,500, covering short-term rental licenses, business registration, and Summit County compliance requirements. Insurance runs $3,000-$4,000 annually for comprehensive short-term rental coverage. Monthly utilities average $300-$400 including electricity, gas, water, internet, and cable, totaling $1,800-$2,400 for six months. First six months operating costs including cleaning services ($200 per turnover), property management (20-30% of revenue), maintenance reserves, supplies, and marketing add another $15,000-$20,000. Additional considerations include HOA fees averaging $300-$500 monthly and potential property management software subscriptions at $50-$100 monthly.

Airbnb properties in Keystone, 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 $40,000-80,000 for well-managed properties. Operating expenses typically include 25-30% for cleaning and maintenance, 10-15% for property management fees, 8-12% for utilities, and 5-8% for insurance and taxes, resulting in net profit margins of 35-45% for successful operators. Success factors include proximity to Keystone Resort lifts, high-quality furnishings and amenities, professional photography, dynamic pricing strategies, and maintaining superhost status through excellent guest experiences. Properties within walking distance of the gondola or River Run Village command premium rates, with some luxury 3-4 bedroom condos generating over $100,000 annually, while budget-friendly 1-2 bedroom units still achieve solid returns of $25,000-45,000 per year. The market benefits from Keystone's year-round appeal, strong corporate retreat bookings, and limited hotel inventory, though competition has intensified since 2020 with new hosts entering the market, making professional management and differentiation increasingly important for maintaining profitability.

Airbnb investments in Keystone, Colorado typically generate annual ROI of 12-18% due to the area's strong ski tourism and year-round outdoor recreation demand. Cash-on-cash returns generally range from 8-14% annually, with properties near Keystone Resort and River Run Village commanding premium rates of $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 25-30% down payment on properties averaging $600,000-$900,000. The market benefits from consistent occupancy rates of 65-75% annually, driven by Keystone's proximity to Denver (90 minutes), Vail Resorts' ownership ensuring reliable snow conditions, and the area's appeal for both winter skiing and summer hiking/biking activities. Properties with 3-4 bedrooms and hot tubs typically outperform, generating gross rental yields of 15-22% before expenses, while net yields after management fees, cleaning, and maintenance average 10-15%.

STRSearch leads the market in Airbnb investment property analysis for Keystone, Colorado, providing comprehensive data on rental performance and market trends. Local real estate agents specializing in short-term rental investments include Summit County Properties, Keystone Real Estate Company, and Breckenridge Associates Real Estate, all of whom have extensive knowledge of the Summit County vacation rental market. National services like Mashvisor, AirDNA, and BiggerPockets offer market analysis tools and investment calculators specifically for Airbnb properties in ski resort towns like Keystone. RedAwning and Vacasa provide property management services that help investors maximize rental income, while companies like AirBnB Automated and HostGPO offer operational support for short-term rental management. Local property management firms such as Summit County Mountain Retreats and Keystone Resort Lodging specialize in managing vacation rental properties in the area. Investment-focused real estate brokerages like Roofstock and Awning (now part of Loftium) have historically provided turnkey Airbnb investment opportunities in Colorado mountain towns, though availability varies by market conditions and inventory.