Craig Baute has figured out how to turn a big profit on a small City Park studio.

The 29-year-old owner of Creative Density Coworking purchased the 425-square-foot space in October with his father to rent through Airbnb. The apartment brings in $1,900 each month, and Baute said he pockets about $900 after paying mortgage and utilities.

“After the down payment, we spent about $5,000 to furnish the place and give it a fresh paint job, which is below what we were expecting to pay,” he said.

Baute is one of more than 1,000 Denver residents who earn extra cash by listing their apartments, homes and condos on Airbnb, a 7-year-old home-sharing site that enables travelers to skip the hotel and stay in the heart of some of the city’s most sought-after neighborhoods.

It’s an unregulated practice that has left property management companies and city officials scrambling to address issues associated with short-term rentals. Cat-and-mouse games between landlord and tenant play out as the Denver City Council tries to draft regulations that appease both sides – a balance several other cities have failed to achieve.

“As we’ve seen with San Francisco and Portland, regulations can be well-intentioned but hard to enforce and onerous to the hosts,” said Luke Palmisano, an aide to Councilwoman Mary Beth Susman who researches the short-term housing market. “We want to sit down with as many stakeholders as we can to get their perspectives.”

Those who open their doors to Airbnb’s 40 million users often do so in secret; it’s illegal for homeowners to rent out a residence for fewer than 30 days in most areas of Denver, and many landlords prohibit subleasing, citing security.

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