Is Ridgway, Colorado Good for Airbnb Investment?

To start an Airbnb in Ridgway, Colorado, begin by researching local regulations through the Town of Ridgway's municipal office, as the town requires short-term rental licenses and has specific zoning restrictions that limit rentals to certain residential areas while requiring properties to be owner-occupied or have designated local management. Obtain necessary permits including a business license from the town clerk ($50-100 annually), sales tax license from Colorado Department of Revenue, and ensure compliance with fire safety codes and building inspections. Find a suitable property in approved zones, typically single-family homes or condos in residential areas, with prices ranging $400,000-800,000 for purchase or $2,000-4,000 monthly for rental properties. Furnish the space with mountain-appropriate amenities including quality bedding, kitchen essentials, outdoor gear storage, heating systems suitable for winter temperatures, and WiFi, budgeting $15,000-25,000 for complete furnishing. List your property on Airbnb, VRBO, and other platforms with professional photography highlighting mountain views and proximity to outdoor activities like skiing at nearby Telluride (30 minutes away), emphasizing the property's access to hiking, fishing, and scenic drives. Manage the property by establishing cleaning protocols between guests ($75-150 per turnover), coordinating with local property management companies like Ridgway Rentals or Telluride-based services if not self-managing, maintaining 24/7 guest communication, and ensuring compliance with the town's noise ordinances and parking requirements while collecting and remitting the required 8.9% state and local lodging taxes.

To identify profitable short-term rental properties in Ridgway, Colorado, focus on locations within walking distance of downtown's Main Street corridor or properties offering mountain views and outdoor access, as this historic mining town attracts visitors seeking authentic Colorado experiences and proximity to outdoor recreation. Target properties with 2-4 bedrooms, rustic or mountain contemporary features, outdoor spaces like decks or patios, and amenities such as hot tubs, fireplaces, and ski/bike storage that appeal to adventure tourists visiting nearby Telluride Ski Resort (30 minutes away) and outdoor enthusiasts exploring the San Juan Mountains. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against similar properties, noting that Ridgway typically commands $150-300 per night depending on size and amenities, with peak seasons during summer hiking months and winter ski season. Research competition through Airbnb and VRBO searches, identifying gaps in the market such as pet-friendly options or properties catering to larger groups, while noting that Ridgway has fewer STR options than nearby Telluride, creating opportunity for well-positioned properties. Utilize tools like Rabbu for local STR regulations compliance, STR Helper for performance tracking, and connect with Ridgway-specific resources including the Ridgway Area Chamber of Commerce and local property management companies like Telluride Rentals By Owner to understand seasonal demand patterns, permitting requirements, and market dynamics in this growing gateway community to the San Juan Mountains.

To obtain an Airbnb/STR permit in Ridgway, Colorado, you must first contact the Town of Ridgway Planning Department at Town Hall located at 201 N Lena Street, as Ridgway requires a Conditional Use Permit for short-term rentals in residential zones. Submit an application including a completed CUP form, site plan showing parking and property layout, proof of property ownership or lease agreement, floor plans indicating maximum occupancy, neighbor notification list within 200 feet of the property, and a $350 application fee plus $75 for public notice publication. Required documents also include a business license application, sales tax license from the Colorado Department of Revenue, and proof of liability insurance with minimum $1 million coverage. Ridgway-specific requirements include limiting occupancy to 2 people per bedroom plus 2 additional guests, providing adequate off-street parking (typically 1 space per bedroom), maintaining quiet hours from 10 PM to 7 AM, posting emergency contact information visible to guests, and ensuring compliance with fire safety codes including smoke and carbon monoxide detectors. The application process typically takes 60-90 days including a public hearing before the Planning Commission, and annual renewal is required with a $100 fee. Contact the Town Clerk at (970) 626-5308 for current forms and to schedule pre-application meetings, as regulations may have been updated since 2023.

Short-term rentals (STRs) are legal in Ridgway, Colorado, but operate under specific municipal regulations that require property owners to obtain a business license and comply with zoning restrictions. The town allows STRs in most residential zones but prohibits them in certain areas near schools and requires properties to meet safety standards including smoke detectors, carbon monoxide detectors, and adequate parking. Ridgway implemented stricter regulations around 2019-2020 following concerns about housing availability and neighborhood character, establishing limits on the number of STR permits issued and requiring owners to designate a local contact person available 24/7 for complaints. Properties must also comply with occupancy limits based on bedrooms and septic capacity, maintain liability insurance, and pay applicable lodging taxes to both the town and Ouray County, with violations potentially resulting in permit revocation and fines up to $1,000 per day.

The most promising Airbnb investment areas in Ridgway, Colorado include the historic downtown district along Sherman Street and Liddell Drive, which offers walkable access to local restaurants, shops, and the Ridgway Railroad Museum while maintaining authentic small-town charm that attracts tourists year-round. The residential neighborhoods near Ridgway State Park, particularly areas along Highway 550 north of town, provide excellent investment potential due to proximity to water recreation, fishing, and camping activities that draw visitors from May through October. Properties in the Ridgway Ranch and River Park subdivisions are highly desirable for their mountain views and easy access to both the Uncompahgre River and outdoor recreation, appealing to adventure tourists visiting for hiking, fishing, and photography. The areas near the Ridgway Creative District benefit from the town's growing arts scene and annual events like the Ridgway Rendezvous of Art, attracting cultural tourists and workshop attendees. Properties with views of the San Juan Mountains, particularly those in elevated areas south and west of downtown, command premium rates due to their scenic appeal and proximity to both Ouray (15 minutes) and Telluride (45 minutes), making them ideal for visitors exploring multiple destinations in the region.

Airbnb properties in Ridgway, Colorado are subject to multiple lodging taxes including Colorado state sales tax of 2.9%, state lodging tax of 2%, and Ouray County lodging tax of approximately 3-4%. The Town of Ridgway may impose an additional municipal lodging tax of 2-3%. These taxes typically apply to stays of less than 30 consecutive days and are collected from guests at the time of booking through Airbnb's automatic tax collection system for most jurisdictions. Property owners must register with the Colorado Department of Revenue and Ouray County for tax collection purposes, with remittance generally required monthly or quarterly depending on volume. Airbnb automatically collects and remits state and local taxes in Colorado as of 2019, though hosts remain responsible for ensuring compliance and may need to file returns even when Airbnb collects taxes. Exemptions typically include stays of 30 days or longer, certain government and nonprofit travelers, and properties used as primary residences for extended periods, though specific exemption criteria vary by jurisdiction and hosts should verify current requirements with local tax authorities.

Starting an Airbnb in Ridgway, Colorado requires approximately $650,000-750,000 in total initial investment. Property purchase represents the largest expense at $580,000-650,000 based on median home prices in this scenic mountain town as of 2023-2024. Furnishing costs typically range $25,000-35,000 for a complete setup including beds, linens, kitchen appliances, living room furniture, and outdoor gear appropriate for the area's recreational activities. Initial setup costs including professional photography, listing creation, and marketing materials run $2,000-3,000. Permits and fees in Ouray County include short-term rental licenses, business registration, and potential HOA approvals totaling $1,500-2,500. Insurance premiums for short-term rental coverage average $3,000-4,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable services cost approximately $1,000-1,500. First six months of operating expenses including utilities ($800/month), cleaning services ($150 per turnover), supplies and maintenance ($300/month), property management software ($50/month), and marketing ($200/month) total roughly $9,000-12,000, bringing the complete startup investment to the upper range of initial estimates.

Airbnb properties in Ridgway, Colorado demonstrate strong profitability potential with average nightly rates ranging from $150-$400 depending on property size and amenities, generating annual revenues of $35,000-$85,000 for well-managed properties with 60-70% occupancy rates. Operating expenses typically include 25-30% for cleaning and maintenance, 3% Airbnb service fees, 8-12% property management if outsourced, utilities averaging $200-$300 monthly, insurance premiums of $1,200-$2,000 annually, and property taxes around $3,000-$8,000 yearly, resulting in net profit margins of 35-45% for successful operators. Success factors include proximity to outdoor recreation areas like the San Juan Mountains, unique property features such as mountain views or hot tubs, professional photography, responsive guest communication, and seasonal pricing strategies that capitalize on peak summer hiking season and winter skiing demand. Properties within 15 minutes of Telluride Ski Resort command premium rates, with luxury cabins and homes generating $100,000+ annually, while smaller condos and apartments typically yield $25,000-$45,000 profit margins after expenses, making Ridgway's Airbnb market particularly attractive due to limited hotel inventory and strong tourism demand from outdoor enthusiasts year-round.

Airbnb investments in Ridgway, Colorado typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the town's proximity to Telluride Ski Resort and year-round outdoor recreation activities. Properties in Ridgway's historic downtown area and those with mountain views command premium nightly rates of $150-300, while standard residential properties average $100-180 per night during peak seasons (December-March for skiing, June-September for hiking and festivals). Initial profitability usually occurs within 18-24 months for well-positioned properties, with investors typically seeing positive cash flow after 6-12 months once accounting for mortgage payments, property management fees of 20-25%, cleaning costs, and seasonal maintenance. The market benefits from limited hotel inventory in the immediate area, forcing visitors to seek alternative accommodations, though investors should expect occupancy rates of 60-75% annually with stronger performance during Telluride's ski season and summer festival periods.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors looking in Ridgway, Colorado. Local real estate agents like Telluride Properties and Ridgway Real Estate have extensive knowledge of the area's vacation rental market and zoning regulations. National services such as AirDNA provide market analytics and revenue projections for Ridgway properties, while Mashvisor offers investment property analysis tools specific to the Colorado mountain market. RedAwning and Vacasa provide property management services that can help investors maximize their Airbnb returns in the region. Local companies like San Juan Property Management and Ouray County Vacation Rentals offer specialized short-term rental management services. Real estate investment firms such as Roofstock and BiggerPockets connect investors with Airbnb-suitable properties in mountain communities like Ridgway. Additionally, local agents from Coldwell Banker Mason Morse and LIV Sotheby's International Realty have experience helping clients identify properties with strong vacation rental potential in the Ridgway area, leveraging their understanding of seasonal tourism patterns and local regulations that affect short-term rental profitability.