The day Democratic National Committee Chairman Howard Dean announced Denver would host the 2008 Democratic National Convention, David Bennahum started looking for a place to stay.
That was back in January, and he’s still looking.
“I have one lead, and I can’t tell you about it,” said Bennahum, president and chief executive of Washington, D.C-based Center for Independent Media, publisher of . “If I told you, people would come and poach my lead. I haven’t secured it yet.”
The Democratic National Convention is still nearly a year away, but the pressure is on for those looking for housing. The DNC has blocked out 17,000 hotel rooms for the week, but it isn’t allowing any of the 35,000 people expected to attend the convention to reserve them until January.
A $1 million donation will land a company on the DNC’s priority housing list. A $250,000 donation will secure at least one room.
That has some companies already looking for alternatives to hotels, and many Denver residents are looking to cash in.
A Washington, D.C., law firm already has agreed to pay $2,000 a night for Rick Mirsky’s 2,400-square-foot loft above the Wynkoop Brewing Co. in Lower Downtown. The convention itself is slated for Aug. 25-28. The firm will lease the loft starting on Aug. 24.
“It’s an opportunity that rarely happens, to be able to make $5,000 to $10,000 in a matter of four days,” said Mirksy, who plans to take a vacation with his fiancée during the convention.
By comparison, actor Eddie Murphy’s budget for a condo while he’s shooting a film in Denver is about $10,000 for the month. Typically business executives pay between $2,000 and $3,000 a month, with the average corporate housing client needing a place for 93 days a year.
Mirsky arranged the deal through AvenueWest Corporate Housing, which will take up to a 40 percent cut. The law firm is still looking for another 41 rooms.
AvenueWest is getting five to 10 calls a week from people looking for housing during the convention. It’s also got a steady stream of homeowners interested in leasing their condos to conventioneers.
“There are a lot of people who want to secure lodging now,” said Kimberly Smith, who with her husband, Eric, founded the firm in 1994.
AvenueWest is accepting properties only in the 80202 ZIP code. Its sister company, Corporate Housing By Owner, will allow homeowners in any ZIP code to post their properties on its website.
Tenants who lease condos through AvenueWest must pay in full in advance. The money will be held in escrow until their arrival in Denver.
During the convention, owners leasing homes in the 80202 ZIP code can expect to get up to $350 a night for a basic 750-square-foot condo. High-end properties may be able to command up to $14,000 for the week.
Hotels have not yet announced their rates for the week.
Renting your condo not so simple
Developer Mark Falcone, chief executive of Continuum Partners, said he’s getting inquiries for units he has available at Art House downtown and Belmar in Lakewood. Many of the leases Continuum has negotiated in recent months will end in July so the company will have units available for the convention.
It’s asking a minimum of three months’ rent to lease a place for the month of August.
“For Art House, that’s $12,000 to $13,000,” Falcone said. “There are people who really do need things for a whole month. Three hotel rooms would have the same cost and value for the same duration.”
While demand for accommodations in the 80202 ZIP code may be high, renting out a condo isn’t as simple as it sounds. Owners will be responsible for paying the city’s lodging tax, providing maid service, phone, cable and high-speed Internet access.
All closets and dressers must be cleaned out and the kitchen fully equipped, right down to an ice-cream scoop. Sheets and towels must match.
“You’re essentially turning your home into a business,” Smith said. “If you’ve never rented out property, you probably don’t have the right expectations.”
Many, it seems, don’t have the right expectations. Dozens of people have listed their homes on the online classified website Craigslist in hopes of making a quick buck – or thousands, with some owners asking for $20,000 to $40,000 for the month.
“That is just way out of range,” Eric Smith said. “That’s Craigslist for you. It’s so bizarre. If they were paying for the ad, I would say it would probably be more realistic.”
Homeowners’ associations also could be a problem, said Dee Chirafisi of Kentwood City Properties.
“There’s usually a minimum of a six-month or three-month rental,” she said. “There are going to be residents in the buildings who rat on each other.”
Margaret Jackson: 303-954-1473 or mjackson@denverpost.com.
