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Hosts of Short-Term Rentals Slow to Obtain Licenses, Face Hefty Fines

By Cory Rutz on January 18, 2017
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In an effort to encourage licensing, Denver has streamlined its website and placed advertisements on popular social media networks.
In an effort to encourage licensing, Denver has streamlined its website and placed advertisements on popular social media networks.

Enforcement of Denver’s short-term rental regulations, which were passed in the summer of 2016, started January 1, 2017.  However, not all hosts seem to have gotten the message, with only about 18 percent of Denver properties on Airbnb including their license numbers in the listing—a requirement under the new regulations.  Denver’s enforcement efforts for land use violations would typically be triggered by neighborhood complaints, but in this case, a new “short-term rental coordinator” will spend time reviewing listings on Airbnb and other home-sharing sites for compliance with the regulations.  Fines for violations of the new regulations, even for properly licensed hosts that fail to include their license numbers in their listings, could be as high as $999 per incident.

In Boulder, Airbnb has recently agreed to collect the 7.5 percent tax on short-term rentals assessed by the city, and seems to think a similar agreement with Denver, where the tax rate is 10.75 percent, may be on the horizon.  Meanwhile, Fort Collins is considering new short-term rental regulations that would follow the examples of Denver and Boulder by requiring the host to live in the rented property, while Crested Butte is considering a cap on the maximum number of nights per year that a home may be rented.

Our June 2016 client alert provides more detail on Denver’s short-term rental regulations.

Photo of Cory Rutz Cory Rutz

Cory Rutz represents industrial, commercial, residential, and mixed-use real estate owners and developers in various matters relating to land use entitlements. Her practice includes assisting clients with subdivision, zoning, public improvement fees, easements, and common interest community development under the Colorado Common Interest…

Cory Rutz represents industrial, commercial, residential, and mixed-use real estate owners and developers in various matters relating to land use entitlements. Her practice includes assisting clients with subdivision, zoning, public improvement fees, easements, and common interest community development under the Colorado Common Interest Ownership Act (CCIOA).

Read more about Cory RutzEmail
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  • Posted in:
    Real Estate & Construction
  • Blog:
    Rocky Mountain Real Estate Law
  • Organization:
    Otten Johnson Robinson Neff + Ragonetti PC
  • Article: View Original Source

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