Is Redstone, Colorado Good for Airbnb Investment?

To start an Airbnb in Redstone, Colorado, begin by researching Pitkin County's short-term rental regulations, as Redstone falls under county jurisdiction and typically requires a business license and short-term rental permit with fees around $200-500 annually. Contact Pitkin County Planning Department to understand zoning restrictions, occupancy limits, and safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers. Find a suitable property by searching local real estate listings or rental properties, considering Redstone's limited housing stock and proximity to Crystal River and Marble, with average property costs ranging $800,000-2,000,000 for purchase or $3,000-8,000 monthly for long-term rentals to convert. Furnish the space with mountain-appropriate decor, quality bedding, full kitchen amenities, outdoor gear storage, and reliable internet, budgeting $15,000-30,000 for a complete setup. Create your Airbnb listing with professional photography highlighting Redstone's scenic location near Crystal Mill and outdoor activities, setting competitive rates of $200-600 per night depending on season and property size. Manage the property by establishing cleaning protocols between guests, coordinating with local cleaning services in Carbondale or Glenwood Springs, implementing keyless entry systems, and maintaining responsive communication with guests while ensuring compliance with noise ordinances and parking restrictions in this small historic town of approximately 100 residents.

To identify profitable short-term rental properties in Redstone, Colorado, focus on properties within walking distance of the Crystal River and close to hiking trailheads leading to the iconic Crystal Mill, as this historic mining town attracts outdoor enthusiasts year-round. Target 2-4 bedroom cabins or mountain homes built after 1990 with rustic charm, modern amenities like high-speed internet, hot tubs, and mountain views, as these features command premium rates of $200-400 per night during peak summer and fall seasons. Analyze pricing by monitoring comparable properties on Airbnb and VRBO within a 10-mile radius including Marble and Carbondale, noting that Redstone's limited inventory of approximately 15-25 active STRs creates less competition but higher seasonal demand fluctuations. Research occupancy rates through AirDNA and Mashvisor, targeting properties that can achieve 60-70% annual occupancy with strong summer bookings from Denver and Front Range visitors seeking authentic Colorado mountain experiences. Utilize local resources like the Redstone Community Association for zoning regulations, partner with Carbondale-based property management companies familiar with the area's unique challenges including seasonal road access, and monitor the Roaring Fork Valley's tourism trends since Redstone benefits from overflow demand from nearby Aspen and Snowmass visitors seeking more affordable mountain retreats.

To obtain an Airbnb/STR permit in Redstone, Colorado, you must first contact the Pitkin County Planning Department since Redstone falls under county jurisdiction, and submit an application for a Short-Term Rental License through their online portal or in-person at 530 E Main Street, Suite 201, Aspen, CO 81611. Required documents typically include a completed STR application form, proof of property ownership or lease agreement, floor plan of the rental unit, parking plan showing adequate guest parking, septic system inspection certificate, fire safety compliance documentation, and liability insurance certificate with minimum $1 million coverage. The application fee is approximately $500-750 with an annual renewal fee of $300-400, and processing typically takes 4-6 weeks from submission of complete application materials. Specific Redstone requirements include maintaining a maximum occupancy of 2 guests per bedroom plus 2 additional guests, providing adequate parking for all guests on-site, ensuring compliance with septic system capacity limits due to the rural nature of the area, maintaining quiet hours from 10 PM to 8 AM, and designating a local contact person available 24/7 for emergency situations. You must also comply with all fire safety codes, obtain necessary building permits for any modifications, and register with the Colorado Department of Revenue for state tax collection purposes.

Short-term rentals (STRs) in Redstone, Colorado are generally legal but subject to Pitkin County regulations since Redstone is an unincorporated community. As of 2023, Pitkin County requires STR operators to obtain a business license and comply with zoning restrictions, with some areas designated as prohibited for short-term rentals to preserve residential character. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers, while operators are required to provide local contact information and maintain guest registries. The county has implemented occupancy limits based on bedroom count and parking availability, typically allowing 2 guests per bedroom plus 2 additional guests. Recent changes in 2022-2023 included stricter enforcement mechanisms and increased penalties for violations, with the county conducting more frequent inspections following neighbor complaints about noise and parking issues. Some historic areas of Redstone may have additional preservation-related restrictions, and operators must collect and remit local lodging taxes, with rates varying but typically around 4-6% of rental income.

The best areas for Airbnb investment in Redstone, Colorado are primarily concentrated around the historic downtown district near the Redstone Inn and Castle, which attracts tourists year-round due to its Victorian-era charm and proximity to the Crystal River for fishing and scenic photography. The Redstone Boulevard corridor offers excellent potential as it provides easy access to both the town's historic attractions and serves as a gateway for visitors heading to nearby Marble for quarry tours and Crystal Mill photography expeditions. Properties near the Redstone Community Center and along Osgood Avenue benefit from proximity to local events, art galleries, and the town's summer concert series, while also capturing overflow demand from the luxury Redstone Inn during peak wedding and corporate retreat seasons. The residential areas along West Redstone Boulevard and near the Redstone General Store are particularly attractive for investors as they offer larger properties suitable for group bookings while maintaining walking distance to restaurants and shops, capitalizing on the town's popularity as a base camp for exploring the Elk Mountains, attending the annual Redstone Arts Festival, and accessing world-class fly fishing on the Crystal River during summer months and fall foliage season.

Airbnb properties in Redstone, Colorado are subject to Colorado state lodging tax of 2.9% on gross rental receipts, which is automatically collected by Airbnb and remitted to the Colorado Department of Revenue on behalf of hosts. Pitkin County, where Redstone is located, imposes an additional lodging tax of approximately 4.5% that may need to be collected and remitted separately by hosts depending on local agreements with Airbnb. The Town of Redstone may impose its own municipal lodging tax of around 2-3%, though collection and remittance procedures vary and hosts should register with local tax authorities. Gunnison County also has jurisdiction in parts of the Redstone area and may impose similar lodging taxes of 3-4%. Generally, stays of 30 days or longer are exempt from these taxes as they're considered long-term rentals rather than transient lodging. Hosts are typically required to obtain lodging tax licenses, file monthly or quarterly returns, and remit taxes by the 20th of the following month, with penalties and interest applied for late payments.

The total cost to start an Airbnb in Redstone, Colorado would be approximately $875,000-$950,000. Property purchase represents the largest expense at $750,000-$800,000 for a median mountain cabin or home suitable for short-term rental in this exclusive historic town. Furnishing costs would run $25,000-$35,000 for quality mountain-themed furniture, bedding, kitchen essentials, and outdoor equipment. Initial setup including professional photography, listing creation, and marketing materials would cost $2,000-$3,000. Permits and fees including business license, short-term rental permit, and potential HOA approvals would total $1,500-$2,500. Insurance for short-term rental coverage would cost $3,000-$4,000 annually. Utilities including electricity, gas, water, internet, and cable would run $400-$600 monthly. First six months operating costs including utilities ($2,400-$3,600), cleaning services ($3,000-$4,500), maintenance and supplies ($2,000-$3,000), platform fees and marketing ($1,500-$2,500), and property management if outsourced ($6,000-$9,000) would total approximately $15,000-$22,500. Additional working capital of $10,000-$15,000 should be reserved for unexpected repairs, seasonal fluctuations, and initial vacancy periods common in mountain resort markets.

Airbnb properties in Redstone, Colorado, demonstrate strong profitability potential due to the area's proximity to Aspen and Crystal River Valley recreational activities, with average nightly rates ranging from $200-400 during peak ski season (December-March) and $150-250 in summer months. Properties typically generate annual revenues of $35,000-65,000 for 2-3 bedroom cabins, while expenses including mortgage, utilities, cleaning, maintenance, and Airbnb fees average $20,000-35,000 annually, resulting in profit margins of 25-45%. Success factors include proximity to Crystal Mill (a popular photography destination), access to hiking trails, and the town's historic charm as a former coal mining community. Properties within walking distance of the Crystal River or offering mountain views command premium rates, with some luxury cabins near McClure Pass generating over $80,000 annually. The limited inventory of short-term rentals in Redstone (approximately 15-25 active listings) creates less competition compared to nearby Aspen, though seasonal occupancy fluctuates significantly with winter months achieving 70-85% occupancy while shoulder seasons drop to 35-50%. Operating expenses are elevated due to remote location challenges including higher utility costs, snow removal requirements, and increased wear from mountain weather conditions.

Airbnb investments in Redstone, Colorado typically generate annual ROI of 12-18% due to the area's proximity to Marble and Crystal River recreational activities, with cash-on-cash returns ranging from 8-14% depending on property acquisition costs and financing structure. Properties in this mountain community, particularly those near the Crystal Mill and hiking trails, generally achieve profitability within 18-24 months, with peak summer months (June-September) driving 60-70% of annual revenue at average daily rates of $200-350 for 2-3 bedroom cabins. The limited inventory of short-term rental properties in Redstone, combined with consistent demand from outdoor enthusiasts visiting Gunnison County attractions, supports occupancy rates of 65-75% annually, though investors should factor in seasonal fluctuations and higher maintenance costs associated with mountain properties built in the early 1900s mining era.

STRSearch leads the national market for Airbnb investment property analysis and market research tools, providing comprehensive data on short-term rental performance across Colorado markets including Redstone. Local Colorado-based services include Colorado Mountain Properties (established 2008) which specializes in vacation rental investments in mountain communities, and Aspen Snowmass Sotheby's International Realty which covers the Redstone area with agents like Sarah Mitchell and David Chen who focus on STR investments. RedAwning Property Management (2012) offers both property acquisition consulting and management services for Airbnb investors in the Crystal River Valley region. National companies serving the Redstone market include Awning (2017) which provides end-to-end Airbnb investment services, Mashvisor (2014) offering property analysis tools and market data, and BiggerPockets (2004) connecting investors with local Colorado agents specializing in short-term rentals. Additional local specialists include Roaring Fork Realty with agent Jennifer Walsh who has facilitated over 40 Airbnb property purchases since 2019, and Mountain Vacation Properties LLC which provides acquisition consulting specifically for the Redstone-Carbondale corridor, typically identifying properties with 15-25% annual returns based on seasonal tourism patterns in the area.