Client Case Study
How Traverse Hospitality Files Lodging Tax in Six Colorado Jurisdictions Without Touching a Spreadsheet
At a Glance
- Portfolio: 167 units across five Colorado markets - Leadville, Crested Butte, Vail, Avon, and Frisco
- Booking channels: Airbnb, VRBO, Expedia, Booking.com, direct, plus SuiteOp ancillary fees
- Lodging tax: six filing jurisdictions, each with their own cadence and rules
- Owner statements: delivered by the 5th business day
About Traverse Hospitality
Traverse Hospitality is a short-term rental property management company operating across multiple markets in Colorado, including Leadville, Crested Butte, Vail, Avon, and Frisco. Their portfolio spans individual vacation homes and hotel-style units, managed across major booking platforms including Airbnb, VRBO, Expedia, Booking.com, and their own direct booking website. As the business has grown, so has the complexity of running it, from multi-channel reconciliation to multi-jurisdiction tax compliance and weekly vendor payments.
The Challenge: Growth That Outpaced Their Accounting Setup
For the first three years, Traverse ran their accounting in-house with the support of a trusted small business accountant. It worked well at the time, but as the portfolio expanded into new markets and the operational complexity grew, the cracks started to show.
"As we grew, she definitely tried to grow with us, but it got to a point where it really became too much," says Sabrina Colella, Chief Operating Officer at Traverse Hospitality. "We realized we had to start seeking out other options."
The challenge wasn't just volume; it was specialization. Short-term rental accounting is a different beast from standard small business bookkeeping. Revenue flows in from multiple OTAs, each with their own payout structures and reporting formats. Ancillary fees come through separate platforms like SuiteOp. Owner accounts need to be reconciled and distributed accurately each month. And across different markets, the tax obligations vary from different jurisdictions, different cadences, and different rules.
Scaling into Crested Butte made this even more apparent. Unlike Leadville, where Traverse manages individual homes, Crested Butte is largely hotel-style rooms spread across multiple buildings each with its own structure for amenity fees, pet charges, and a special HOA tax.
"There are definitely differences that you don't want to have too many different caveats for, because then things become very complicated," Sabrina explains.
And then there was vacation lodging tax. Sabrina had taken over STR tax filings as the portfolio grew, and it was consuming her.
"Taxes alone could almost take me a whole day. I would start in the morning, and the day would just go by, and then I was having to work on them in the evenings because it was the only time when things were quiet, and I could focus. You're pulling different spreadsheets, plugging in so many different numbers, and pulling reports."
She kept detailed notes for every jurisdiction just to remember how to do it each month. It worked, but it wasn't sustainable.
Why Keystone: Specialization Mattered
Traverse found Keystone through a referral. What made it the right fit wasn't just the timing; it was the focus.
"It sounded like a great fit because they specialize in short-term rentals, which is a very specific market," says Sabrina. "When we did come on board, you can tell that Keystone knows what they are doing to make sure that everything is streamlined and sort of out of sight, out of mind for us."
That specialization matters in practice. Every OTA runs differently. Airbnb has a resolution center; other platforms don't. Expedia commissions net out pre-statement in a way that doesn't appear cleanly in Guesty. These aren't things a generalist firm is built to catch automatically, but Keystone is built for exactly that.
What that looks like in practice:
- Expedia commissions net out pre-statement and never surface cleanly in Guesty
- Airbnb resolutions run through its own resolution center; most other OTAs have no equivalent
- SuiteOp ancillary fees land outside the PMS entirely and have to be tied back by hand
- Crested Butte's hotel-style units carry amenity fees, pet charges, and a building-specific HOA tax
What Keystone Handles
- Monthly close across 165+ listings
- Multi-channel revenue reconciliation across all booking platforms and SuiteOp
- Trust accounting and monthly owner statements
- Weekly vendor bill pay through Topkey
- Lodging tax filings across six jurisdictions
- CFO advisory
What Changed: A Well-Oiled Machine
Multi-Channel Reconciliation Handled
With Keystone managing reconciliation across all booking channels, Traverse no longer has to navigate the nuances of each OTA's reporting individually. The complexity is still there; it's just no longer Traverse's problem to solve.
Lodging Tax Compliance Off the Plate
Filing across Vail, Avon, Crested Butte, Leadville, Frisco, and the state of Colorado - six filing jurisdictions, each with its own cadence - used to mean a mountain of spreadsheets and a standing threat of error. Now, Sabrina's involvement is minimal by design.
"Really now all I have to do is go into MuniRevs for the different jurisdictions and just make sure that everything's being kept up with. Other than that, that's really the extent of my involvement."
The peace of mind that comes with that goes beyond convenience - it removes a genuine liability.
"I'm not an accountant. I could pull reports to get the numbers needed, but at the same time, it's sometimes a liability you don't want to take on. Having Keystone take it over is just peace of mind; they understand the process, they know what taxes need to get paid, where, and when."
And when Traverse considers expanding into new markets, tax compliance is no longer a barrier.
"It's a lot easier now that Keystone already knows the workflow with the current markets. If we decide to grow in another market, I feel confident we'll be able to handle the filing without the added stress."
Weekly Bill Pay, Streamlined
Vendor payments used to be a fully manual process. Now, vendors submit invoices, Keystone codes them, Traverse approves them, and payments go out on a weekly cadence through Topkey.
"There can be high volume, especially in the busy months, but it doesn't feel like that because it's so streamlined."
Owner Statements on Time, Every Month
For a property management company, getting accurate owner statements out on time isn't optional - it's a core part of the client relationship. Keystone's monthly close rhythm has made this reliable.
"It's so nice to get owner statements out timely and feel confident that the information being delivered is accurate. It's been a huge weight lifted off our shoulders."
"It's the 4th and I already received the emails to get started on everything we need to submit to Keystone to close the month. I feel like we're in a really good rhythm, it's like a well-oiled machine."
The Relationship: Responsive, Proactive, and Low Friction
Beyond the workflows, Traverse values how Keystone operates as a partner.
"When we have a concern, they respond quickly and resolve issues that may arise. Sometimes last-minute things pop up and Keystone just handles it for us without question."
That responsiveness, and the confidence it creates, have changed how Sabrina thinks about the financial side of the business.
"I just feel confident things are being handled, and it allows myself and the team to focus on other important aspects of the business."
Traverse has since expanded the engagement to include Keystone’s CFO advisory package, adding forecasting and portfolio-level reporting on top of the monthly close.
Advice for Other Property Managers
For Sabrina, the case for outsourcing is clear, but she also knows the onboarding process requires patience.
"It may be an added expense; however, it is worth unloading the headache so you can focus on doing things that help grow the business. Accounting should be handled by accounting professionals."
And for anyone going through onboarding: "Be patient and know that you will eventually get to that place. It just takes time. Onboarding is a process, but once you get to the other side, things get so much better."
Keystone Bookkeepers specializes in bookkeeping and trust accounting for short-term rental property managers. If you manage short-term rentals across more than one tax jurisdiction, book a 20-minute fit call at keystonebookkeepers.com/contact.
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