This is part of the Long Term Rentals in Denver→ [Long Term Rentals in Denver] a hub of Denver Investing Guide → [Denver Investing Guide]

Written by: Chad Cabalka

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You see a Denver Airbnb making $10,000 during Cherry Creek Arts Festival weekend and think, “That’s my ticket to easy money!” Then the real work begins. Cleaning crews, restocking shampoo and coffee, and Airbnb’s hidden fees eat up 60-75% of every dollar you earn. What looks like a cash machine on paper quickly becomes a monthly struggle to break even.

Here’s the reality of running short-term rentals (STRs) in Denver that most investors miss.

Cleaning: Your Biggest Expense (40-50% of Revenue)

Every single guest means one deep clean. A typical 3-bedroom house isn’t just swept—it’s scrubbed top to bottom. Bathrooms need disinfecting, sheets and towels get washed (20+ sets per stay), the fridge gets wiped out, and mystery stains get attacked.

Cleaners charge $35-$45/hour for 4-6 hours per turnover. That’s $140-$270 per stay before supplies and travel time.

Peak summer bookings (May-October) require daily cleaning to maintain 90% occupancy. Miss one day and your 5-star rating drops, killing your search rankings.

Winter reality (November-March) hurts worse. Bookings crash to 35-45%, but cleaners still demand weekly minimums ($400-$600) even when you’re lucky to get 10 stays.

Real budget: $150 minimum per stay. Budget cleaners leave grease behind and get you trashed reviews.

Restocking: Guests Treat It Like a Hotel

Nobody brings their own shampoo to an Airbnb. They expect everything:

textCoffee/tea/snacks: $15
Shampoo + conditioner + soap: $12
Bottled water/sparkling: $10
Toilet paper + paper towels: $8
Laundry detergent pods: $10
Trash bags + disposal: $5
Dishwasher pods + misc: $10
TOTAL PER GUEST: $70 average

25 monthly stays = $1,750. Kids empty your cereal. Party guests raid spices. Guests who leave 5-star reviews about your “fully stocked kitchen” create pressure to keep buying more.

Bulk Costco runs save 10-15%, but food spoils and overbuying eats most of the discount.

Platform Fees: They Take More Than You Think (18-25%)

You don’t see all these fees on your payout statement:

Airbnb: 3% host fee ($24 on $800 booking) + 14% guest fee ($112 total hidden)
Vrbo: 5% on bookings under $500, 15% over $1,000
Extras: PriceLabs ($50/month), professional photos ($500), Boost ads ($200 peak month)

$8,000 gross month = $1,400-$2,000 in fees. Your advertised $350/night becomes $290 net after platform cuts.

Your Real Monthly Numbers (Highlands Ranch Example)

4-bedroom house ($725k purchase, $275k down payment):

textJULY: 25 nights × $350/night = $8,750 gross revenue

Cleaning (25 stays):           -$3,750  (43%)
Restocking (25 guests):        -$2,125  (24%)
Platform fees (20%):           -$1,750  (20%)
Laundry + utilities:           -$600    (7%)
Supplies/marketing:            -$400    (5%)
--------------------------------------
OPERATING TOTAL:               -$8,625

You're losing $125 before your mortgage payment.

Add $3,200 PITI (principal/interest/taxes/insurance) = -$3,325 monthly loss.

One property. $40,000 annual loss. Despite “headline success.”

Winter Reality Crushes Summer Dreams

Summer festival bookings make you think STRs work year-round. They don’t.

Denver winters (Nov-Mar): 35-45% occupancy at $150-$225/night when it’s 8°F outside with 60 inches of snow.

Winter costs go up:

• Cleaning: $175/stay (snowmelt tracking, salt damage)
• Heat: $500-$700/month
• Restocking: Extra hot cocoa, board games (+20%)

Each winter guest loses you $25-$75 after direct costs.

textWINTER MONTH: 15 nights × $225 = $3,375 gross
Expenses: $4,125 (122% of gross)
Loss: -$750 × 4 winter months = -$3,000

Why Smart Investors Get Fooled

1. Friends post summer payouts ($10k months look normal)
2. Agents show festival comps (90% occupancy, $400/night)
3. Your spreadsheet ignores winter (6 months under 50%)
4. “Management company handles it” = 25% fees + cleaning markup

What Actually Makes Money

Single houses lose money consistently. You need 6+ properties to spread fixed costs like cleaners and software.

Smarter alternatives:

textLong-term rental: $2,600/month steady income, zero daily work
Mid-term corporate: $3,500-$4,500 furnished monthly (legal everywhere)

Both beat bleeding $3,000/month on one STR.

Warning Signs Your Numbers Don’t Work

Your STR fails when:

• Cleaning eats >40% of revenue
• Each stay profits <$100 after direct costs
• Winter months lose money
• You’re working weekends chasing cleaners
• Management fees + cleaning >30%

How to Test Before You Buy

Run this per-stay math:

textSUMMER STAY (2 nights):
Revenue: $350 × 2 = $700
Costs: $150 clean + $85 restock + $140 fees = $375
Profit: $325 (46%) ← OK

WINTER STAY (2 nights):  
Revenue: $225 × 2 = $450
Costs: $175 clean + $95 restock + $90 fees = $360
Profit: $90 (20%) ← Barely breaking even

You need 22+ profitable stays monthly. Winter kills single properties.

Different Neighborhoods, Different Problems

textLoDo: High cleaning ($175), OK winter ($225) = 8-10% yield
Highlands Ranch: Low cleaning ($135), winter death ($150) = 3-5%
Aurora Airport: Balanced ($145 cleaning), steady business = 6-8%
Parker: Everything cheap, nobody comes = 1-3%

2026 Makes It Even Harder

New rules coming:

• Denver licensing: $500 per door
• Noise complaints: $999/day fines
• Winter utility mandates: 40% cost jumps
• Commercial cleaning rules: Sprinklers cost $15k+

The Brutal Truth

Daily guest turnover destroys STR profits. One cleaner no-show kills your rating. One bad restock review tanks bookings. One platform algorithm change ends your summer streak.

Single properties lose $2,000-$4,000 monthly. Only 6+ door portfolios survive.

Your Escape Plan

If you own one STR: Switch to mid-term corporate housing ($3,500-$4,500 furnished monthly). Legal everywhere, better than long-term, no daily cleaning wars.

Before buying: Run winter per-stay math at 45% occupancy. If cleaning + restock >60% of revenue, walk away.

Don’t Make This Mistake

Thousands of investors bought “Airbnb cash cows” based on summer numbers. Most lost $30,000-$50,000 year one when winter hit. Some sold at a loss. Others limped along as long-term rentals making break-even money.

Smart investors test every cost per guest first. If the math doesn’t work at 45% winter occupancy with full cleaning/restocking, they choose steady long-term ($2,600/month) or mid-term corporate ($4,000/month) instead.

The Denver market rewards realistic operators who understand daily friction—not dreamers chasing festival weekend headlines. Build your model around winter per-stay contribution margins, not July occupancy rates. That simple shift saves you $30,000+ in year-one losses and positions you for actual profitability.

Need a Denver STR calculator, submarket comparison, or mid-term pivot plan? Reach out for honest numbers that work year-round, not just during festival season.

Get the full Denver Market Insights → [Market Insights]