Short-Term Rentals & Airbnb in Lone Tree, CO: Laws & Profitability

Lone Tree, CO, is a desirable real estate market for short-term rentals (STRs) and Airbnb listings, thanks to its proximity to Denver Tech Center (DTC), Park Meadows, and Sky Ridge Medical Center. If you’re considering investing in an Airbnb or vacation rental, here’s what you need to know about local regulations, market demand, and profitability.

1. Short-Term Rental Demand in Lone Tree

Lone Tree is an attractive location for short-term renters, including: ✔ Business Travelers – Professionals working in DTC, finance, and healthcare.
✔ Medical Staff & Patients – Sky Ridge Medical Center creates demand for temporary housing.
✔ Relocating Families – Renters looking for a place to stay while house hunting.
✔ Event & Conference Attendees – Business travelers visiting Denver and surrounding areas.

🏡 Average Airbnb Occupancy Rate: 70%+
💰 Typical Nightly Rate: $180 - $250+
📅 Peak Season: Spring & Summer months

2. Lone Tree’s Short-Term Rental Laws & Regulations

Before listing a property on Airbnb or VRBO, understanding Lone Tree’s regulations is essential.

✔ Primary Residence Requirement – Some short-term rental permits are only available for owner-occupied homes.
✔ HOA Restrictions – Many Lone Tree communities have HOA rules that prohibit STRs. Always check before purchasing a rental property.
✔ Business License Requirement – Owners must register their rental and obtain a short-term rental license.
✔ Sales & Lodging Taxes – Hosts must collect and remit local sales and lodging taxes.
✔ Noise & Occupancy Limits – Many neighborhoods enforce quiet hours and guest limits to prevent disruptions.

💡 Tip: Before investing, verify HOA policies and Lone Tree’s latest STR regulations to ensure compliance.

3. Where to Invest in Short-Term Rentals in Lone Tree

Certain areas in Lone Tree are more favorable for Airbnb investments than others.

✔ RidgeGate – Walkable, urban-style homes close to light rail, restaurants, and entertainment.
✔ Heritage Hills – Gated luxury homes appeal to executive renters and relocating families.
✔ Lincoln Commons Area – High-end apartment rentals cater to business travelers.
✔ Near Park Meadows & Sky Ridge Medical Center – Strong demand for short-term stays.

4. Costs & Profitability of Short-Term Rentals

Owning an Airbnb comes with operating costs, but well-managed rentals can be highly profitable.

✔ Startup Costs: Furnishings, cleaning supplies, licensing fees.
✔ Property Management Fees: 20-30% if using a professional Airbnb manager.
✔ Maintenance & Utilities: STRs require frequent cleaning, landscaping, and upkeep.
✔ Lone Tree Lodging Tax: Typically 5-10% of the rental rate.
✔ Average Monthly Profit: $3,000 - $5,000 (varies by property type and occupancy).

5. Pros & Cons of Investing in Short-Term Rentals

Pros:

✔ High Rental Demand – Business travelers and medical staff need temporary housing.
✔ Higher Returns vs. Long-Term Rentals – Short-term rentals can earn 20-50% more annually.
✔ Flexible Use – Owners can use the property part-time and rent it out when not in use.
✔ Tax Benefits – Potential tax deductions on mortgage interest, maintenance, and utilities.

Cons:

✖ HOA & City Restrictions – Many Lone Tree neighborhoods do not allow short-term rentals.
✖ Seasonal Demand Fluctuations – Occupancy rates may drop in winter months.
✖ Higher Maintenance Costs – STRs require frequent cleaning and repairs.
✖ Guest Management Responsibilities – Handling check-ins, maintenance, and guest issues can be time-consuming.

6. Alternatives to Short-Term Rentals

If STR regulations or HOA rules make Airbnb investments difficult, consider alternative real estate strategies: ✔ Mid-Term Corporate Rentals – 30+ day rentals for business professionals and relocating families.
✔ Furnished Executive Rentals – Longer leases for medical staff and remote workers.
✔ Traditional Long-Term Rentals – Consistent income without short-term restrictions.

Conclusion: Is a Short-Term Rental in Lone Tree Worth It?

Lone Tree’s business traveler and corporate housing market create strong demand for short-term rentals, but city regulations and HOA restrictions can limit investment opportunities. If you’re considering buying an Airbnb, research zoning laws and rental policies carefully.

Looking for the right investment property? Let Corken + Company help you find a short-term rental that fits your goals.

📞 Call us today at 303-858-8003
🌐 Visit our website at www.corken.co
🏡 Real Estate Solutions Without Limits