A Summit County housing crisis declared, temporary moratoriums put in place, new short-term rental regulation ordinances and code amendments- If all of this sounds familiar and has left you scratching your head a bit, you’re not alone. Chances are, if you’re reading this, you’re like many of our real estate clients… excited to find the perfect mountain investment property but unsure if you’ll be able to benefit from potential rental income.
The shift in short-term rentals that has taken place over the last six months in Summit County has many locals, second homeowners, investors and future buyers doing their best to try and keep up. Our office, at Keller Williams Top of the Rockies, has been filled with inquiries about what to expect as a result of all of the changes.
We are hopeful that our team’s research can help answer all of your questions. While many areas including Silverthorne, Frisco, Blue River, Fairplay, Alma and Leadville are not currently implementing changes, others like Breckenridge, unincorporated Summit County, Cooper and Keystone now have new guidelines to follow.
Here are the most important take-aways from each area:
Town of Breckenridge:
- Town council passed a cap on new short-term rental licenses for non-exempt units.
- The new cap is set at a maximum of 2,200 licenses.
- Currently there are roughly 3,000 non-exempt licenses.
- The new ordinance went into effect November 2, 2021.
- The Town of Breckenridge has approved this new plan to reduce permits through attrition. As properties are sold, or licenses are turned in, the permit level will be reduced.
- Once the 2,200 level is achieved in several years, the town will issue licenses based on a waiting list.
- A 6 month temporary short-term rental license can be issued to the purchaser of a short-term rental licensed property to help fulfill current bookings.
- Waitlist members will have 5 days to apply for a license after being notified that they are eligible. (reduced from 20 days)
- Units for which a building permit is issued in effect on Sept. 14, 2021 may apply for a license within 20 days of receiving a certificate of occupancy.
- Transfers pursuant to a valid real estate contract that was fully signed prior to Sept. 28, 2021 provided the sale in complete within six months of signing the contract.
- On November 23rd, 2021 the Town Council passed a new ordinance No. 35 amending Chapter 1, Title 4 of the Breckenridge Town Code concerning the annual accommodation unit regulatory fee. Please find the entire ordinance text here.
- The regulatory fee will be $400 per studio/bedroom per year for 2022 in addition to the current business and occupational license tax. The regulatory fee is required to be kept separate from the Town’s general fund. All dollars generated by this regulatory fee will be used to support the Town’s workforce housing policies and programs, including buy downs, lease to locals, acquisition of deed restricted units, and/or construction of new units.
- The current short-term rental occupancy limits in Breckenridge allows two people per bedroom plus four additional people.
- The billing for 2022 will be loaded in our new software https://breckenridge.munirevs.com on December 28, 2021, and due by January 27, 2022. We will notify the license holders via email from firstname.lastname@example.org
- The 2021 expired licenses will be under a grace period until January 27, 2022, awaiting confirmation of the renewal by submitting a payment.
- FAILURE TO REMIT A PAYMENT ON TIME WILL RESULT IN A TERMINATION OF THE LICENSE.
- RENEWAL REQUESTS AFTER JANUARY 27, 2022 WILL HAVE BE CONSIDERED NEW APPLICATIONS AND WILL HAVE TO GO THROUGH THE WAITING LIST PROCESS
- 2022 license billing will not be loaded in xpressbillpay.com. The renewal billing will be available through breckenridge.munirevs.com only.
- Per Breckenridge Town Code 4-1-8-3 Special Conditions of License; Advertisement of an Accommodation Unit, it is the responsibility of the accommodation unit owner to provide current property information to the Town of Breckenridge, including listing numbers and platforms utilized.
- If you received a notification and your property is not in the Town Limits of Breckenridge, please contact Airbnb directly to update your taxing jurisdiction. To locate your taxing jurisdiction, please visit http://gis.summitcountyco.gov/Map/ and search for your property. In the lower left hand box you will see “Jurisdiction”.
- Airbnb is collecting Town of Breckenridge Sales and Accommodation Taxes on bookings made on or after October 1, 2019*
- VRBO is collecting Town of Breckenridge Sales and Accommodations Taxes on bookings made on or after January 1, 2020* For all bookings prior to January 1, 2020, owners are responsible for collecting and remitting Town Sales Tax (2.5%) and Accommodations Tax (3.4%), a total of 5.9%.
- Starting Tuesday November 2, 2021 all requests for short term license applications will be accepted at: www.townofbreckenridge.com/strwaitlist
- This will allow the proper time and date stamp for each request. Exemptions will be reviewed and processed accordingly
- Waitlist applications will be stored and published at the Town of Breckenridge website once a month following the ordinance effective date of 11/02/2021.
- Please do not submit any paper requests or direct property registrations through MuniRevs since that will not properly time stamp your request and it may affect your spot on the waitlist.
- Please contact us at 970-547-3101 or email@example.com with questions.
Unincorporated Summit County (any properties not in town boundaries) Keystone & Cooper:
- Summit County Commissioners approved an ordinance creating a new short-term rental license structure on December 16th, 2021.
- Summit County has adopted STR Overlay Zones to acknowledge the distinction between neighborhoods and resort communities. If your property is located in the STR Resort Overlay Zone (which includes, Keystone, Copper Mountain, Tiger Run Resort, and unincorporated areas at the base of Peak 8 in Breckenridge), you will apply for a Resort License. Resort Licenses have greater occupancy, allowances, and no restrictions on the number of nights rented.
- Any property rented for more than 30 consecutive nights is considered a long-term rental and not subject to the following rules.
- Residential zoning includes all other unincorporated areas of the County.
- If your property is not located in the Resort Overlay Zone then it is in the STR Neighborhood Overlay Zone. If your property is located in the STR Neighborhood Overlay Zone, you will need to apply for either a Type I, Type II, or Type III License. The vast majority of Neighborhood Zone Licenses will be Type II.
- Occupancy in the Neighborhood Overlay Zone is limited to a maximum of 2 people per bedroom plus 2.
- There are three types of permits for properties in these areas a property owner can apply for. There are no caps on the amount of short-term rental licenses. Property owners can choose which permit makes the most sense for them.
- Type One is for primary homeowners who is present and short-term rents either a room in their home or their entire property for up to 60 nights a year. When the property owner is present and offering a bedroom for rent, there will be no limit on the number of nights that the bedroom may be rented annually. When the property owner is out of town and wishes to rent the entire home, a maximum of 60 nights per year will be permitted.
- Type Two is for second homeowners who want to use their property and rent it. This license type will allow owners to rent their property for no more than 135 nights a year while using it for themselves for the rest of the year. The remainder of the year, the property owner may use the residence in any manner which is compliant with all other codes and regulations. For information on long term renting, please visit the Summit Combined Housing Authority and Lease to Locals websites.
- Type Three is for owners who want to rent for more than 135 nights and also includes investment properties that want to rent year-round. An application for a Type III license will only be accepted once a property owner has received approval for a Conditional Use Permit (CUP) from the Planning Department. Conditional Use Permits are discussed in Section 3821.05 of the STR Regulations and Section 12300 of the Land Use and Development Code.
- A CUP and Type III license would allow property owners to rent more than 135 nights per year. In addition, lots in excess of 40,000 sq. ft. may request greater occupancy which will be reviewed in the CUP process.
- The minimum standards to request a CUP review are differentiated by building type as described below:
Single Family- Must meet one of the two requirements: 100 ft. separation between all indoor and outdoor occupied spaces on the STR property and all neighboring properties, including but not limited to: residences, attached garages, patios, hot tubs, fire pits, and decks OR
- An approved accessory dwelling unit (ADU) on the property that is occupied by a local resident employed in Summit County for a minimum of 30 hours per week
Multi-Family- Must meet all 3 of the following requirements:
- Direct shuttle to ski area or transit stop within 100 ft. of property.
- Recreational shared amenities, at least 3 of the following: pool, hot tub, sauna, tennis/pickle ball court, game room, or other substantial amenity as approved by the Review Authority
- A minimum of 100 units in the HOA
- A pre-submittal meeting is required for all CUP applications. Once you have all required documents, please call the Planning Department at 970-668-4200 to set up an appointment.
- If you have an existing active STR license as of 12/16/2021 in the Resort Overlay Zone, during renewal in September 2022 your current license will be converted to a Resort Type License. The regulations in the Resort Zone will remain unchanged.
- If you are in the Neighborhood Overlay Zone and you have an active STR license or applied for a license before the new regulations were adopted on December 16, 2021 you will have until September 2025 to convert your current license to one of the new license types. However, you may elect to convert during any renewal period prior to 2025.
For occupancy limits and regulations please click on the ordinance and regulations link below and reference section 6.1 F
- Summit County Short Term Hotline 668-4186
- Submittal requirements for short term rental conditional use permits in the neighborhood overlay zone LINK
- STR Resort Overlay Zone Maps LINK
- Summit County Short Term Rental Ordinance and Regulations LINK
- View the STR Community Survey Results LINK
Town of Frisco:
- Town of Frisco is researching options but no changes or decisions are being made at this time
There is a maximum occupancy of 2 individuals per bedroom plus 4 additional occupants.
- Town of Frisco Short Term Rental Information LINK
Town of Silverthorne:
- The town of Silverthorne is watching and listening. No action is planned as of now.
The maximum occupancy for a property is two people per bedroom plus two people. All reservations and advertising needs to comply with the maximum occupancy for the property. The number of bedrooms for a property is determined by the Summit County Assessor’s Office.
- Town of Silverthorne Short Term Rental Information
Town of Leadville:
- The town of Leadville has a cap set at 12% of the available housing stock.
- They are not currently accepting any new licenses as they are at or near the cap.
- The 12% only applies within city limits. Outside of city limits, applicants would apply with Lake County for their short-term rental permit.
The short-term rental occupancy limits in the Town of Leadville are 2 persons per bedroom and 2 additional persons.
- Town of Leadville short-term rental information LINK
Town of Blue River:
- 20% of homes in Blue River are licensed as short-term rentals.
- In Blue River you are required to obtain a short-term rental license and to collect and remit taxes.
- The Town of Blue River Board of Trustees discussed Short-term Rentals at their meeting on Tuesday, November 30th at 5:00 pm. At this time, there is no proposal for restrictions.
Occupancy limits in Blue River during the period of any short-term rental may not exceed two persons for each bedroom plus a total of two additional persons.
- Town of Blue River Short-term rental information LINK
Towns of Fairplay & Alma:
- No changes to short term rentals at this time. The county is accepting applications as normal.
- One effective change made in early 2021: No short term rental property license shall be issued for any accommodation unit for which an on-site wastewater treatment system was not permitted and approved.
Short-term rental occupancy shall not exceed the design capacity of the on-site wastewater treatment system. The permitted occupancy shall be stated on the short-term rental license.
- Park County Short-term rental information LINK
Towns of Vail, Beaver Creek & Avon:
- Vail short term rentals make up 14% of Vail’s non-resort housing stock. A short term rental moratorium was voted down in July, 2021.
Occupancy limits in Vail for a short-term rental is 2 people per bedroom, plus 2.
- Beaver Creek requires a Beaver Creek Business License if a home or condo is rented more than four days in a month.
- Avon (outside of Beaver Creek) does not allow short term rentals at an HOA level town wide.
- Town of Vail short-term rental information LINK
- Town of Beaver Creek short-term rental information LINK
- Town of Avon short-term rental information LINK