Is Redstone, Colorado Good for Airbnb Investment?

To start an Airbnb in Redstone, Colorado, begin by researching Pitkin County's short-term rental regulations, which typically require a business license and may have occupancy limits and safety requirements specific to this small historic town of approximately 100 residents. Contact Pitkin County's planning department to obtain necessary permits, including a short-term rental license (estimated cost $200-500 annually) and ensure compliance with fire safety codes and septic system regulations common in rural Colorado areas. Find a suitable property by working with local real estate agents familiar with Redstone's Victorian-era cabins and modern mountain homes, with average property prices ranging $800,000-2,000,000 due to the area's proximity to Aspen and Crystal River. Furnish the property with rustic mountain décor, high-quality linens, fully equipped kitchen, reliable Wi-Fi, and outdoor amenities like fire pits or hot tubs that appeal to visitors seeking authentic Colorado experiences. List your property on Airbnb and VRBO with professional photography highlighting Redstone's scenic beauty, nearby activities like fishing, hiking, and winter sports, and the town's historic charm including the Redstone Castle. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider hiring a property management company like Aspen Snowmass Vacation Rentals or RedAwning, while maintaining competitive pricing of $150-400 per night depending on season and property size, with peak rates during summer and winter months when tourists visit for outdoor recreation and the annual Redstone Art Festival.

To identify profitable short-term rental properties in Redstone, Colorado, focus on properties within walking distance of the Crystal River and close to outdoor recreation access points, as this historic coal mining town attracts visitors seeking authentic mountain experiences and proximity to Marble and the Crystal Mill. Target 2-4 bedroom cabins or historic homes built between 1900-1980 with original character features, wood-burning fireplaces, and mountain views, as these align with the area's rustic charm that guests expect. Analyze pricing by researching comparable STRs in nearby Carbondale and Glenwood Springs (30-45 minutes away) where nightly rates range $150-400 depending on season, then adjust downward 15-20% for Redstone's smaller market size while accounting for peak summer and fall foliage seasons when rates can increase 40-60%. Research competition using AirDNA and Mashvisor to identify the limited existing STR inventory (estimated 15-25 active properties), focusing on occupancy rates which likely average 45-65% annually due to seasonal demand patterns. Utilize local resources including the Redstone Community Association for area insights, Pitkin County planning department for zoning regulations, and partner with Carbondale-based property management companies like Vacasa or local operators who understand the Crystal Valley market dynamics and can provide realistic revenue projections for this niche mountain destination.

To obtain an Airbnb/STR permit in Redstone, Colorado, you must first contact the Pitkin County Planning Department since Redstone falls under county jurisdiction rather than having its own municipal government. Submit your application through the Pitkin County website or in person at 530 E Main Street, Suite 201, Aspen, CO 81611, providing required documents including property deed or lease agreement, floor plans, parking plan, septic system certification, fire safety inspection report, and liability insurance documentation of at least $1 million coverage. The application fee is approximately $500-800 with additional inspection fees of $200-400, and the process typically takes 6-12 weeks for approval. Redstone-specific requirements include compliance with the historic district guidelines since the town is a designated historic area, adherence to the Colorado River headwaters environmental regulations, proof of adequate septic capacity for increased occupancy, designated off-street parking for guests, and compliance with noise ordinances due to the small community setting. You must also register with the Colorado Department of Revenue for state lodging taxes and obtain a Pitkin County business license, with annual renewal required including updated insurance documentation and any property modifications approval.

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 occupancy limits, parking requirements, and noise ordinances. Properties must meet safety standards including smoke detectors and emergency egress requirements. The county has implemented a cap on the total number of STR licenses available and requires a minimum 30-day rental period in some residential zones to preserve long-term housing stock. Recent changes in 2022-2023 included stricter enforcement mechanisms and increased penalties for violations, with fines up to $1,000 per day for unpermitted operations. Some homeowners associations in Redstone may have additional restrictions through their covenants. The county also requires STR operators to collect and remit lodging taxes, and properties must be registered with the state of Colorado for tax purposes.

The best areas for Airbnb investment in Redstone, Colorado are primarily concentrated around the historic downtown district near the Redstone Castle and along the Crystal River corridor. The Redstone Boulevard area is particularly attractive due to its proximity to the iconic Redstone Castle (built in 1902 by coal baron John Cleveland Osgood), which draws thousands of tourists annually for tours and events. The Crystal River Valley neighborhoods offer excellent investment potential because of their access to world-class fly fishing, hiking trails, and scenic beauty that attracts outdoor enthusiasts year-round. The historic Coke Oven area provides unique charm with its preserved industrial heritage from the early 1900s coal mining era, appealing to history buffs and photographers. Properties near the Redstone Inn benefit from overflow accommodation needs during peak summer and fall seasons when the inn reaches capacity. The Avalanche Creek vicinity is ideal for investors targeting winter sports enthusiasts, as it provides easy access to nearby Aspen and Snowmass ski areas while offering more affordable lodging alternatives. These areas collectively benefit from Redstone's position as a gateway to the Maroon Bells-Snowmass Wilderness, consistent summer festival tourism, fall foliage season visitors, and business travelers attending corporate retreats at luxury venues in the valley.

Airbnb properties in Redstone, Colorado are subject to multiple lodging taxes including Colorado state sales tax of 2.9%, Pitkin County lodging tax of approximately 2-4%, and potential municipal lodging taxes that can range from 2-8% depending on local ordinances. These taxes are typically collected automatically by Airbnb through their tax collection service for most jurisdictions, with the platform remitting payments directly to the Colorado Department of Revenue and local tax authorities on a monthly basis. Property owners may still need to register with the Colorado Department of Revenue and obtain a sales tax license, and should verify local registration requirements with Pitkin County and any applicable municipal authorities. Exemptions generally apply to stays exceeding 30 consecutive days which are considered long-term rentals rather than transient lodging, and some jurisdictions may exempt stays under a certain dollar threshold or for specific purposes like medical treatment. The total effective tax rate for short-term rentals in Redstone typically ranges from 6-14% when combining all applicable state, county, and local lodging taxes.

The total cost to start an Airbnb in Redstone, Colorado is approximately $875,000-$1,050,000. Property purchase represents the largest expense at $750,000-$900,000 for a median mountain cabin or home suitable for vacation rental in this exclusive historic town. Furnishing costs range $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 costs $2,000-$3,500. Permits and fees total $1,500-$2,500 covering business licenses, short-term rental permits, and Pitkin County regulations. Insurance including liability and property coverage specifically for short-term rentals runs $3,000-$4,500 annually. Utilities including electricity, gas, water, internet, and cable average $400-$600 monthly or $2,400-$3,600 for six months. First six months operating costs including cleaning services, maintenance, supplies, platform fees, and marketing total $8,000-$12,000. Additional considerations include potential HOA fees, snow removal services essential in this mountain location, and higher utility costs due to elevation and seasonal heating demands.

Airbnb properties in Redstone, Colorado, demonstrate strong seasonal profitability with average nightly rates ranging from $200-400 during peak summer and fall months (June-October) when tourists visit for outdoor activities and aspen viewing, generating annual revenues of $35,000-65,000 for well-positioned 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 40-50% for properties managed efficiently. Success factors include proximity to the Crystal River, scenic mountain views, hot tubs, and rustic cabin aesthetics that appeal to Denver and Colorado Springs visitors seeking weekend retreats. A typical 3-bedroom cabin purchased for $800,000 in 2021 generates approximately $50,000 annually with $22,000 in expenses, yielding a 3.5% cash-on-cash return plus property appreciation of 8-12% annually. Properties within walking distance of the general store and with private hot tubs command premium rates, while those requiring extensive winter maintenance or lacking reliable internet connectivity underperform, with occupancy rates dropping to 20-30% during shoulder seasons (November-April) compared to 70-85% during peak periods.

Airbnb investments in Redstone, Colorado can expect annual ROI of 12-18% based on the area's proximity to Aspen and Crystal River Valley recreational activities, with cash-on-cash returns typically ranging from 8-14% depending on property acquisition costs and financing structure. Properties in Redstone generally achieve profitability within 18-24 months due to strong seasonal demand from skiing, hiking, and fishing tourists, with peak summer and winter months generating $200-400 per night for well-appointed cabins and mountain homes. The market benefits from limited hotel inventory and Redstone's historic charm as a former coal mining town, driving occupancy rates of 65-75% annually, though investors should factor in higher maintenance costs due to mountain weather conditions and the need for professional property management given the remote location approximately 45 minutes from Aspen.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Redstone, Colorado, offering comprehensive market analysis and property recommendations. Local real estate agents serving the Redstone area include Coldwell Banker Mason Morse (established 1976), Engel & Völkers Roaring Fork Valley, and Joshua & Company Real Estate, who have expertise in vacation rental properties in the Crystal River Valley. National services like Mashvisor (founded 2014), BiggerPockets, and AirDNA provide market analytics and investment property identification tools for the Redstone market. Regional Colorado-based companies such as Colorado Mountain Properties, Aspen Snowmass Sotheby's International Realty, and Slifer Smith & Frampton Real Estate have specialized vacation rental divisions that assist investors in the Redstone area. Additional services include RedAwning (property management and acquisition consulting), Vacasa (founded 2009, offering investment property sourcing), and local property management companies like Crystal River Property Management and Roaring Fork Lifestyle that also help investors identify profitable Airbnb opportunities in Redstone's luxury mountain vacation rental market.