How to Successfully Run a Luxury Vacation Rental in Aspen

Aspen, Colorado is one of the most coveted zip codes in the country, not only for buyers seeking a primary or vacation residence on the slopes, but also for investors looking for a high-ROI property to add to their portfolio. With a discerning clientele, consistent seasonal demand, and limited inventory, Aspen vacation home rentals offer exceptional value for those who get it right.

In this guide, we’ll walk you through what you need to run a successful luxury vacation rental property in Aspen, including top neighborhoods, regulatory requirements, and practical tips to maximize your investment.

UNDERSTANDING THE ASPEN REAL ESTATE MARKET

Aspen is synonymous with prestige, exclusivity, and alpine luxury. Recently ranked as the most expensive travel destination in the U.S., it attracts an affluent global clientele seeking privacy, sophistication, and top-tier amenities. The town’s seasonally driven rental market reflects its elite appeal, with two peak periods: ski season (December–March) and summer (June–August), though it does enjoy a steady stream of visitors all year round.

Aspen’s short-term rental market consistently delivers strong returns. In a report by AirROI, the average daily rate (ADR) sits at $1,168, with a median annual revenue of $83,619 and year-over-year revenue growth of 10.2%. During peak seasons, properties often command a markup of up to 102%, per Bankrate.

However, the returns on an Aspen luxury vacation rental are influenced by a number of factors. For example, we’ll see that property type can significantly impact your returns:

CHOOSING THE RIGHT PROPERTY TO INVEST IN

When exploring homes for sale in Aspen, CO, it’s easy to be drawn to what looks beautiful or feels luxurious. But if your goal is a profitable short-term rental, you need to look beyond aesthetics. The most successful Aspen vacation home rentals share three key advantages: the right property type, the right location, and the right price.

The Right Property Type

Different renters have different priorities. Ski-in/ski-out chalets may appeal to winter travelers seeking direct slope access, while high-end condos in Downtown Aspen or Snowmass Village attract guests who want walkability, premium amenities, and concierge service. Luxury cabins with sweeping mountain views appeal to guests who want to get the full Aspen, Colorado experience.

To boost your property’s performance, start by identifying your target renter, then narrow down your options from there. Regardless of property type, always choose homes that photograph well and feel private, but still offer enough space to accommodate groups.

Related: Property types in Aspen that make the smartest investments

The Right Location

In Aspen’s highly seasonal market, location plays a critical role in maximizing rental performance. Properties near ski lifts, like those in Snowmass Village or Aspen Highlands, see peak demand and premium rates during the winter months. Meanwhile, homes in West Aspen and Mountain Valley perform best during the summer, thanks to their proximity to the Rio Grande Hiking Trail, the Maroon Bells, and Aspen Golf Club.

Some areas boast year-round appeal, like Downtown Aspen with its walkable access to fine dining, luxury shopping, and cultural landmarks like the Aspen Art Museum and Wheeler Opera House.

Regulations are another key factor when evaluating location. In Aspen, vacation home rental rules and HOA restrictions can vary drastically from one neighborhood to the next. Some areas allow year-round rentals, while others impose strict caps—or prohibit STRs altogether. Knowing the regulatory requirements can help you decide which area to focus on.

(Related: Exploring Aspen’s high-end real estate market)

The Right Price

We’re not just talking about the home’s purchase price. As with any other real estate investment, you’ll have to evaluate the full picture, especially beyond the buying period. Consider property taxes, maintenance, insurance, and management fees alongside projected rental income. Take note that the City of Aspen also collects taxes on STR properties, which should be considered as well when selecting your rental property.

To get the most out of your investment, it’s highly recommended to consult with a local real estate expert. Aspen’s market can be tricky to navigate, but the right agent will offer the guidance and insight you need to make a confident, informed purchase.

LEGAL AND REGULATORY REQUIREMENTS

A big part of running a successful rental property is understanding the regulatory requirements that come with it. In Aspen, zoning rules can vary by area and can impact how you use your property. Some areas enforce stricter regulations, and in certain places, short-term rentals are completely banned, so it’s crucial to understand the local rules before making a purchase.

There are three types of STR permits in Aspen:

The Lodging Exempt Permit applies to commercial properties like hotels and condo-hotels. These permits allow unlimited rental nights and cover multiple units under one management license, ideal for professionally run properties.

The Owner-Occupied Permit is for those who live in their primary residence and rent it out up to 120 nights annually. Proof of residency is required, ensuring this option benefits homeowners who rent their personal residence on occasion.

The Classic Permit caters to non-owner-occupied properties without rental night limits but is subject to permit caps in certain neighborhoods. Demand can lead to waitlists, so early planning is advisable.

Zoning regulations control where STRs can operate and may limit permits in some neighborhoods to preserve community character. Guest limits and safety standards are also in place to help protect the neighborhood atmosphere. Additionally, collecting and paying lodging taxes is mandatory, along with proper tax reporting. Business licenses are required for property owners and their representatives.

Before purchasing, confirm the property’s eligibility for your intended permit and review local requirements in both Aspen and Pitkin County to ensure your investment is compliant and positioned for success. Better yet, partner with a seasoned Aspen realtor who can guide you through the regulatory requirements with care and precision.

SET YOUR PROPERTY UP FOR SUCCESS

Once you’ve secured the ideal vacation home rental, the next step is setting it up to truly shine. In a competitive, high-end market like Aspen, it’s the thoughtful details and elevated presentation that separate a good property from an exceptional one.

First, design with your guests in mind. Today’s discerning travelers expect more than just comfort; they’re looking for an elevated experience. Features like radiant floor heating, boot dryers, cozy fireplaces, and plush furnishings help create a welcoming winter retreat. Ample storage for ski equipment will also be highly appreciated.

Adding premium amenities can also boost your property’s appeal and profitability. Top-performing rental properties in Aspen often feature gourmet kitchens, spa-style bathrooms with hot tubs, heated garages, and expansive outdoor living spaces perfect for lounging and taking in the view. Smart home technology and upscale, mountain-inspired interiors add convenience and luxury, attracting high-end renters willing to pay premium rates.

Next, stock the home thoughtfully with seasonal essentials and extras— providing thick blankets in the winter and a well-stocked beverage station in the summer shows guests that you care about their comfort.

Finally, invest in professional photography and stage your home to highlight its best features. Capture sweeping views, cozy indoor spaces, and gear-friendly layouts. A well-staged, well-equipped property not only books faster but also earns better reviews, leading to stronger returns over time.

MARKET YOUR RENTAL EFFECTIVELY

Even the most stunning Aspen rental won’t perform without strong marketing. To reach the right guests and keep bookings consistent, you need a smart, well-rounded strategy.

Start by choosing the right platforms. In today’s market, most travelers book accommodations online. Airbnb and VRBO are essentials, but for luxury properties, also consider listing on high-end rental sites like OneFineStay, Plum Guide, or Homes & Villas by Marriott Bonvoy. These platforms cater to Aspen’s discerning clientele and can command premium rates.

Next, craft a compelling listing that goes beyond the basics. Highlight what makes your home stand out, whether it’s direct slope access, panoramic views, a private hot tub under the stars, or a robust entertainment room. Use professional photos and engaging descriptions that speak to the lifestyle, not just the layout.

Next, keep your listing fresh and seasonally relevant. Aspen’s vacation rental market shifts with the seasons, and your marketing should reflect that. In winter, spotlight cozy features like the fireplace, heated floors, ski-in/ski-out access, and premium amenities. In summer, pivot to highlight outdoor experiences—wildflower hikes, farmer’s markets, and cultural events like the FOOD & WINE Classic or the Aspen Ideas Festival. Even a quick update to your photos and description can help your property stand out and capture the attention of seasonal travelers.

During Aspen’s shoulder seasons, you can maintain steady bookings by offering curated packages like a “Ski Week Escape” or “Weekend Mountain Retreat.” These themed experiences add value and appeal to travelers seeking a quieter getaway. Consider offering discounted rates during off-peak periods to keep your revenue stream active year-round while still attracting quality guests.

Finally, to really maximize your online reach, consider investing in SEO. An SEO professional can tailor your listings to target the right audience. With the right marketing approach, your Aspen rental will stand out, attract high-quality guests, and deliver strong returns year-round.

DELIVER FIVE-STAR GUEST EXPERIENCES

In Aspen’s luxury rental market, exceptional service isn’t a bonus—it’s the standard. Delivering a five-star guest experience means anticipating needs, offering thoughtful touches, and maintaining consistent communication throughout the stay.

Start with proactive, professional communication. Send timely responses, welcome messages, and personalized recommendations for local dining, activities, and events. Consider creating customized itineraries for guests based on their interests, whether it’s a ski weekend, romantic escape, or family holiday.

Next, elevate the stay with personalized services. High-end renters often expect more than a place to sleep; they want an experience. Services like grocery stocking, private chefs, in-home massages, and transportation coordination make a lasting impression. Offering a shuttle to the slopes (or better yet, a private vehicle with a chauffeur) adds another layer of comfort that guests won’t forget. These elevated touches not only exceed expectations but also lead to glowing reviews and repeat bookings.

Don’t overlook operational details. Cleanliness and ongoing maintenance are non-negotiable. Make sure snow is cleared promptly, hot tubs are serviced regularly, and longer bookings include mid-stay refreshes with towel and linen replacements.

Ultimately, five-star service is about consistency and care. When guests feel looked after without needing to ask, they’re more likely to return, as well as recommend your property to other visitors. In a market like Aspen, that level of hospitality isn’t just appreciated, but expected.

Should you hire a property manager?

A lot goes into maintaining a high-end vacation home rental, especially in a popular area like Aspen. Hiring a property manager can be a smart move, especially if you’re not based in Aspen full-time. A good manager will handle guest communication, housekeeping, maintenance, logistics, and all other on-the-ground services for your property, ensuring a seamless experience for renters.

Property management fees can typically range between 8%-12% of your rental income for a full-time manager, though you may also opt for a commission-based arrangement.

Ultimately, the decision comes down to your availability, expectations, and desired level of involvement. For some owners, self-managing with the help of a cleaning crew and digital tools offers more control and higher margins.

OPTIMIZE FOR PROFITABILITY

Think of your vacation rental as a dynamic asset, influenced by market conditions and seasonality. To keep your edge and maximize returns, here are a few strategies to stay afloat in this competitive market.

1. Use dynamic pricing

   Adjust your rates based on demand, holidays, and major events like the Aspen FOOD & WINE Classic or The X Games. Winter and summer in Aspen allow for premium pricing, while slightly lowering rates during shoulder seasons (April–May, October–early November) can help attract off-season travelers and keep your calendar full.

2. Set minimum night stays

   Each guest turnover comes with costs: cleaning, laundry, restocking, administrative coordination, and maintenance checks. Implementing minimum night stays helps reduce these expenses. During peak weeks, setting a 5–7 night minimum strikes a good balance between maximizing profits while minimizing wear and tear. Having fewer turnovers not only saves time and money, but also helps preserve your property’s condition in the long run.

3. Monitor similar properties in the area

   Stay competitive by monitoring similar luxury rentals in Aspen. Review their pricing, availability, and booking trends on a weekly or biweekly basis, and adjust your own rates accordingly. A common strategy is to price just slightly below comparable listings to increase visibility and attract more bookings. In a crowded market, a well-priced, well-presented property often comes out on top.

COMMON PITFALLS TO AVOID

Even the most beautiful Aspen rental can fall short of its potential if missteps aren’t avoided. Here are the most common pitfalls that can hurt your revenue, and how to steer clear of them:

1. Static pricing

   Aspen’s rental market is highly seasonal, with sharp fluctuations in demand. Keeping a flat rate year-round means you risk undercharging during peak weeks and overpricing during slow seasons. Use dynamic pricing tools or adjust manually to align with events, holidays, and booking trends.

2. Outdated listings

   A listing that shows last season’s availability or photos from two years ago sends the wrong message. It can frustrate potential guests, reduce your ranking, and even result in penalties on booking platforms. Refresh your photos, descriptions, and calendar regularly to keep things accurate and appealing.

3. Underinvesting in presentation and service

   Today’s luxury travelers expect excellence. Cutting corners on furnishings, amenities, professional photography, or responsiveness can cost you, both in bookings and your reputation. Invest in quality and make guest communication a priority.

4. Not staying updated with local regulations

   Aspen’s STR laws evolve, and failing to keep up can result in fines or permit issues. Make sure to stay on top of any changes in the rules and regulations and ensure compliance so you can keep operating without issues.

Avoiding these mistakes will help protect your investment and keep your rental competitive year-round.

GET THE MOST OUT OF YOUR ASPEN VACATION HOME RENTAL WITH HEATHER SINCLAIR

Running a luxury vacation rental in Aspen takes more than owning a beautiful property—it requires strategy and attention to detail. From choosing the right location and understanding local regulations, to staging your home thoughtfully and marketing it effectively, every step counts.

That’s why having local expertise is not only advantageous—it’s essential. Whether you’re investing in a high-end condo in the heart of Downtown Aspen or a luxury cabin surrounded by nature, Heather Sinclair knows what it takes to run a successful vacation rental home in Aspen, Colorado.

As Managing Partner of The Agency Aspen and over $1 billion in sales, Heather Sinclair is a trusted name in the luxury real estate world. With her deep understanding of local regulations, access to exclusive listings, and extensive market expertise, you can be confident that your next investment will be a profitable one.

Put experience on your side. Call Heather at 970.948.8834 or send an email to explore homes for sale in Aspen, CO today.