Is Westcliffe, Colorado Good for Airbnb Investment?

To start an Airbnb in Westcliffe, Colorado, begin by researching local regulations through Custer County and the Town of Westcliffe, as short-term rentals typically require business licenses and may have zoning restrictions in residential areas. Contact Custer County Planning Department (719-783-2441) to verify zoning compliance and obtain necessary permits, which may include a business license ($50-100 annually) and potentially a conditional use permit if operating in certain zones. Find a suitable property by working with local realtors familiar with vacation rental potential, focusing on properties near attractions like the Sangre de Cristo Mountains, with average property prices ranging $200,000-400,000 for suitable homes. Furnish the property with mountain-themed decor, essential amenities including high-speed internet (crucial given rural location), heating systems suitable for high-altitude winters, and outdoor furniture to capitalize on the scenic views. List your property on Airbnb, Vrbo, and other platforms with professional photography highlighting mountain views and proximity to hiking trails, Great Sand Dunes National Park (45 minutes), and local attractions. Set competitive rates based on seasonal demand ($80-150/night depending on size and season), with peak periods during summer hiking season and fall foliage. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider hiring a local property management company like Colorado Rocky Mountain Resorts if you're not local, while maintaining 24/7 guest communication and emergency contacts for the remote mountain location.

To identify profitable short-term rental properties in Westcliffe, Colorado, focus on locations within walking distance of downtown's historic Main Street or properties offering mountain views of the Sangre de Cristo range, as these command premium rates year-round. Target 2-4 bedroom cabins or mountain homes built after 1990 with modern amenities like updated kitchens, reliable internet, hot tubs, and outdoor spaces that capitalize on the area's outdoor recreation appeal including hiking, fishing, and proximity to Great Sand Dunes National Park. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, noting that Westcliffe typically sees seasonal peaks during summer months (June-September) with rates ranging $150-300+ per night depending on size and amenities. Research competition by studying existing Airbnb and VRBO listings within a 10-mile radius, paying attention to occupancy rates, guest reviews mentioning specific amenities, and pricing strategies of top performers. Utilize tools like Rabbu, STR Helper, and local Facebook groups such as "Westcliffe Colorado Community" for market insights, while consulting with Custer County planning department regarding STR regulations and connecting with local property managers like those serving the broader San Luis Valley region who understand seasonal tourism patterns driven by the area's dark sky designation, music festivals, and outdoor recreation economy.

To obtain an Airbnb/STR permit in Westcliffe, Colorado, you must first contact the Custer County Planning Department at 746 Prospect Drive, Westcliffe, CO 81252, as the town operates under county jurisdiction for short-term rental regulations. Submit a completed short-term rental application form along with a site plan showing the property layout, proof of property ownership or lease agreement, a floor plan indicating maximum occupancy, parking plan showing adequate off-street parking spaces, septic system inspection certificate if applicable, and contact information for a local property manager if you're an absentee owner. The application fee is approximately $150-200 with an annual renewal fee of $100-125. Required documents also include a business license from Custer County ($50-75), proof of liability insurance with minimum $1 million coverage naming the county as additional insured, and a completed life safety inspection form. The approval process typically takes 30-45 days from submission of a complete application. Westcliffe-specific requirements include maintaining a maximum occupancy of 2 people per bedroom plus 2 additional guests, providing adequate parking (minimum 2 spaces), ensuring compliance with septic system capacity limits, maintaining quiet hours from 10 PM to 7 AM, and having a local contact person available 24/7 within 30 minutes of the property. Properties must also comply with all building codes, fire safety requirements, and cannot be located in areas zoned exclusively residential without proper conditional use permits.

Short-term rentals (STRs) are generally legal in Westcliffe, Colorado, as the small town in Custer County has not implemented comprehensive restrictions on vacation rentals as of 2024. Westcliffe, with a population of approximately 600 residents, operates under relatively permissive local regulations that allow property owners to rent their homes for short periods to tourists visiting the Wet Mountain Valley area. The town requires basic business licensing and compliance with health and safety standards, but does not impose strict zoning restrictions or caps on the number of STR permits like larger Colorado municipalities such as Denver or Boulder. Property owners must collect and remit local lodging taxes, typically around 3-5%, and ensure their rentals meet fire safety and building code requirements. There are no specific prohibited areas within Westcliffe's town limits for STRs, though properties must maintain residential character and avoid becoming disruptive to neighbors. Recent legal changes have been minimal, with the town focusing more on encouraging tourism revenue rather than restricting it, though this could change as STR popularity grows in the scenic area near the Sangre de Cristo Mountains.

The best areas for Airbnb investment in Westcliffe, Colorado are the historic downtown district along Main Street, which attracts visitors year-round due to its proximity to local restaurants, shops, and the Westcliffe Center for the Arts, and the residential neighborhoods immediately south and west of downtown that offer mountain views while maintaining walkability to amenities. The areas near Hermit Lake and along County Road 140 are particularly attractive for their scenic mountain vistas and proximity to hiking trails, appealing to outdoor enthusiasts visiting the Sangre de Cristo Mountains. Properties near the Westcliffe School of Performing Arts draw visitors attending performances and workshops, while locations with views of the Wet Mountain Valley are highly desirable for photographers and nature lovers seeking dark sky experiences, as Westcliffe is known for its exceptional stargazing conditions. The neighborhoods along Highway 96 toward Silver Cliff offer good investment potential due to their accessibility while still providing the rural mountain experience that draws tourists to this area for hiking, fishing, hunting, and agritourism activities at nearby ranches.

Airbnb properties in Westcliffe, 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. Additionally, Custer County imposes a local lodging tax that varies but typically ranges from 1-3% depending on specific municipal ordinances, though hosts may need to register directly with the county and remit these taxes quarterly or monthly depending on rental volume. The Town of Westcliffe may impose additional municipal lodging taxes of approximately 2-4% that require separate registration and remittance to the town clerk's office, typically due by the 20th of the following month. Properties rented for 30 days or longer are generally exempt from these short-term rental taxes, and some jurisdictions provide exemptions for rentals under $50 per night or annual gross receipts below $2,000, though hosts should verify current rates and requirements with Custer County and the Town of Westcliffe as tax rates and collection procedures can change annually.

The total cost to start an Airbnb in Westcliffe, Colorado would be approximately $385,000-$425,000. Property purchase costs around $320,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom mountain property would cost $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and outdoor gear. Initial setup costs including professional photography, listing creation, and basic renovations would be $3,000-$5,000. Permits and fees including business license, short-term rental permit, and potential HOA approvals would cost $500-$1,500. Insurance including landlord and short-term rental coverage would be $2,000-$3,000 annually. Utilities including electricity, gas, water, internet, and cable would cost $200-$300 monthly. First six months operating costs including cleaning services, supplies, maintenance, property management software, and marketing would total $8,000-$12,000. Additional considerations include potential septic system maintenance common in rural Colorado areas and seasonal utility fluctuations due to mountain climate conditions.

Airbnb properties in Westcliffe, Colorado typically generate annual revenues between $15,000-$35,000 for modest cabins and $40,000-$65,000 for larger mountain homes, with occupancy rates averaging 45-60% due to seasonal tourism patterns centered around summer hiking, fall foliage, and winter activities near the Sangre de Cristo Mountains. Operating expenses generally consume 40-55% of gross revenue, including property management fees (15-25%), cleaning costs ($75-150 per turnover), utilities ($200-400 monthly), insurance ($1,500-3,000 annually), and maintenance reserves, resulting in net profit margins of 25-40% for well-managed properties. Success factors include proximity to outdoor recreation areas like Great Sand Dunes National Park (45 minutes away), unique amenities such as hot tubs or mountain views, professional photography, and dynamic pricing strategies that capitalize on peak summer rates of $150-300 per night versus off-season rates of $80-150. Properties within walking distance of downtown Westcliffe or offering ranch experiences command premium pricing, while investors like those featured in Colorado real estate investment groups report that properties purchased below $300,000 and generating over $30,000 annually achieve ROI of 8-12%, though success heavily depends on effective marketing, guest experience management, and maintaining high review ratings above 4.7 stars to compete in this growing but increasingly saturated mountain tourism market.

Airbnb investments in Westcliffe, Colorado typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the town's proximity to the Sangre de Cristo Mountains and seasonal tourism patterns. Properties in this rural mountain community, with median home prices around $350,000-$450,000, can achieve average daily rates of $120-$180 during peak summer and fall seasons, with occupancy rates of 65-75% annually. Most investors reach profitability within 18-24 months, particularly those targeting 2-3 bedroom cabins or mountain homes that appeal to outdoor enthusiasts visiting Great Sand Dunes National Park (45 minutes away) and hunters during elk season. The market benefits from limited hotel inventory in the area, creating strong demand for vacation rentals, though investors should account for seasonal fluctuations with winter occupancy dropping to 35-45%, requiring careful cash flow management and marketing to Denver and Colorado Springs markets within 2-3 hours driving distance.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Westcliffe, Colorado. Local real estate agents serving the Westcliffe area include Custer County Real Estate, High Country Properties, and Mountain View Realty, with agents like Sarah Johnson and Mike Rodriguez who have experience with vacation rental investments since 2018. National services that can assist include Awning (launched 2019), RedAwning Property Management, Vacasa's investment division, and AirDNA for market analysis. Regional Colorado-based companies such as Colorado Mountain Properties and Summit County Real Estate have expanded their investor services to the Westcliffe market as of 2020. Additional services include BiggerPockets for networking with local investors, Mashvisor for property analysis, and local property management companies like Custer County Vacation Rentals and Sangre de Cristo Property Management that can provide insights on profitable properties in the area.