Short Term Rentals (STRs) and the rules and regulations surrounding them are a hot topic in many areas throughout the country and especially so amongst popular resort and vacation destinations and we are no exception. The topic of short term rental rules and regulations is a complex one not only due to the fact that it varies from one area to the next, but also because there are diverse opinions surrounding the matter.
In Summit County alone there are far too many variations of short term rental rules and regulations across our multiple jurisdictions to wrap into one blog post. To make things even more confusing these rules and regs are also regularly evolving. Whether or not short term renting is something you may or may not consider for your Summit area property it is important that you have a knowledgeable, connected, and dedicated Realtor® on your side so you are informed about how each differing regulation impacts each corner of the market. A dedicated agent can help you navigate the windy and oftentimes confusing road to buying, selling, and investing in area real estate.
STR rules and regs might differ, but there is a lot to learn about STRs before digging into the nitty gritty of each local authority! I have done my best to answer the below FAQs by stating the facts and not by simply sharing my opinion. I would be more than happy to answer your questions, discuss your concerns, or share my opinion on this matter or anything else in person or over the phone, so please do not hesitate to reach out. I am here to help!
What is a short term rental (STR)?
Short Term Rentals are commonly referred to as many things; AirBnBs, VRBOs, Vacation Rentals, Short Stays, Overnight Accommodation, and the list goes on. But what sets short term rentals apart from other forms of rentals or nightly accommodations like hotel stays?
The definition of a short term rental (STR) can vary from one area to the next, but across all areas and levels of government Summit County, Colorado officials have agreed on this one thing defining STRs as; Residential Property that is fully or partially rented for periods of less than 30 consecutive days.
Why does Summit County have so many short term rentals?
First a little about Summit County, Colorado - Located only 65 miles west of Colorado's Front Range our mountain county, with a population of just under 31,000, and sits adjacent the west side of the Continental Divide. Home to five world-class ski areas (Breckenridge Resort, Keystone Resort, Copper Mountain Resort, Arapahoe Basin, Loveland Ski Area) there is no question why winter drives heavy tourist numbers, but what drives so many visitors outside of the winter ski and snowboard season? Our location in the heart of the Rockies combined with our mild summer climate creates an outdoor enthusiast’s dream. Our weather, mountain lifestyle activities, festivals, concerts, events, and the desire to quickly escape city life drive large numbers of visitors to Summit County 12 months of the year.
There are very few commercial short term stay options such as large hotels, motels, hostels, lodges, etc in our area. Simply put, without short term rentals, there is an extreme shortage of lodging options to accommodate the high tourist volumes that our county was built around. Summit’s proximity to the heavily populated Front Range combined with the shortage of large short term stay options opened the door for residential property owners to short term rent their area homes.
Who short term rents their Summit County property?
Many different factors and considerations come into play when each homeowner considers short term renting their property. Each situation is unique, but some more common situations we see in our area are as follows:
Area Resident (local) Homeowner
STRs out a room or two in their full-time residence to help supplement the high cost of living here in Summit County.
STRs their entire home during certain seasons or time frames when not needing to live locally. Ie: local teacher supplements income by renting their property over school breaks, typically during the high volume winter holiday season and/or summer months OR homeowner (possibly retired) spends 6+ month of the year here and the remainder of the year traveling or staying in their second home located somewhere outside of Summit County and STRs their Summit area home when they are away.
Second Home / Vacation Homeowner
Front Rangers and others who visit or vacation in our area regularly purchase homes here and choose to STR their Summit County property when they are not planning to use it themselves. This helps supplement the cost associated with having a second home while still giving them a convenient and comfortable mountain get away.
Property Investor
Someone who purchased a property solely as an investment likely weighed the benefits between renting their investment property out short or long term and determining it’s more lucrative to STR their property. It’s important to keep in mind that 1031 Exchanges allow for owners to personally use their investment property up to 14 days a year without risking losing possible future 1031 Exchange tax benefits. If an investment owner plans to exercise this option, renting long term could be difficult or impossible.
Who regulates STRs?
In Summit County, Colorado multiple authorities control the rules and regulations surrounding short term rentals.
State - Colorado
Colorado, like the vast majority of states in our great nation, does not regulate short term rentals. At the state level, Colorado did however see the need for short term rental control. In March 2020 the Colorado General Assembly signed an act which allows a board of county commissioners to license and regulate owners who rent or advertise lodging units for short-term stays giving counties the right to assign fees, terms, and issue rules for how hosts get and maintain licenses.
The State of Colorado does not oversee STR regulation, however they do currently tax short term residential stays at a rate of 2.9% for all fees collected including rental fees, cleaning fees, pet fees, etc. A sales tax license is required as well as monthly sales tax reporting and payment.
City / Town
Cities and towns within Summit County can impose rules and regulations on short term rentals through creating or amending ordinances. Ordinances at the city and town level superseded those at the county level.
It’s important to note that NOT all properties with an address of “Breckenridge”, “Silverthorne”, “Frisco”, etc lie within the boundaries of said towns. Many residences are outside the town limits, therefore located in Unincorporated Summit County and county STR rules and regulations apply.
County
Summit County began regulating short term rentals over 5 years ago imposing rules and regulations that affect all unincorporated areas (anything outside of town limits) Summit County. Over the past few years Summit County commissioners have issued a small handful of moratoriums on any new STR applications, therefore no new licenses were issued during these times. The county also adopted tighter STR restrictions including: “overlay zones” and “caps” on the number of rentals allowed per STR license cycle which runs from October 1 through September 30th annually.
Home Owner’s Association
It’s good to keep in mind that Home Owner’s Associations (HOAs) could already have or impose new STR rules and regs that are more regulatory than those of the city or unincorporated area they are located in. Per Colorado law, HOAs can only restrict STRs if their Declarations specifically allow for STR restrictions. Restricting or prohibiting STRs at the HOA level is legal if not only allowed by the Declarations of the HOA, but a policy to uniformly enforce such restriction is also adopted.
Why are Summit County’s STR rules evolving?
Each of our area’s local authorities regularly identify, assess, and problem solve concerns within our small, yet oftentimes bustling mountain community. In 2020 when the COVID crisis allowed more people to work remotely desirable areas such as Summit County, Colorado began seeing an even larger shortage of available workforce housing than years previous. It was at this time several local jurisdictions began diving deep into research while seeking sustainable solutions. A couple of key issues exasperated from the large number of STRs have been identified and seem to be on the forefront of discussions between many, if not all branches of our local authorities (towns and counties).
Neighborhood Impact & Safety
Area authorities have heard and personally experienced a handful of concerns surrounding the loss of character in our small mountain towns and neighborhoods due to overcrowding in part to the fact that STRs allow for more people to visit our communities. Most common complaints related to STRs are as follows: parking issues, noise (especially late night), increased trash production, and increased traffic in our neighborhoods as well as throughout the county that has hindered emergency personnel’s ability to respond to emergencies in a timely manner. Some residents seem more focused on how extreme numbers of tourists have negatively impacted community charm and vibe where others feel the impact on their accessibility to necessities such as public transportation or parking to get to and from work, food, and emergency care.
Workforce Housing
Yes, there has been a shortage of economically attainable long term rental stock for working locals for over 30 years, but the nationwide housing shortage combined with the influx of remote workers exacerbated the issue at a rate that was deemed no longer sustainable for local businesses nor the continued success and sustainability of our community as a whole. There is no doubt that the purchase of properties with the buyers intent to short term rent impacts not only the availability of housing, but also the stock of long term rentals.
A 2023 Workforce Housing Study (Report linked at bottom of page) found that Summit County has 31,182 housing units. Of these units only 11,329, or 35%, are occupied by people that claim Summit County as their permanent place of residence, commonly referred to as "locals". Of the 11,329 total local occupied units 7,756 are owner occupied and 3,573 are renter occupied. This equates to 19,853 or 65% of Summit's housing stock either sitting vacant the vast majority of the year or being utilized as a vacations property and or short term rental.
I am a current STR license/permit holder in Summit County. How will changes in STR rules & regs affect me?
Many local homeowners who held STR licenses or permits believed that STR rule and regulation changes would not affect them, since they already held their license. This has proven to not be the case. So far, anyone holding a STR license has been given the right to continue to renew their license so long as they don’t let their license lapse and properly renew within their jurisdiction’s renewal timeframe. Some local governments have instated much higher license fees, which have impacted all those holding STR licenses as well as new licensees. Some have opted to increase taxes on STR bookings.
Most local authorities have introduced caps on the number of STR licenses allowed per jurisdiction. The Town of Silverthorne, Town of Breckenridge, and Unincorporated Summit County have taken this a step further by creating additional layers of zoning and setting license caps for each zone. So far, across all local authorities any zone that has more permits than the established cap has allowed current licensees to continue to renew, and governments plan to get to or below set cap through attrition. Attrition can be attained one of two ways.
1. STR licensee fails to renew within required timeline 2. A STR licensee sells their property.
Another ordinance change at the Unincorporated Summit County level limits any and all “Neighborhood Zoned” STR License holders to 35 bookings per license year. This took effect starting October 1, 2023. For example, if a STR license holder rented their place for; three 1 night stays, ten 2 nights stays + five 3 night stays + twelve 4 night stays + five one week stays OR 35 one night stays they would have rented 35 times and would not legally be allowed to book their place for another stay shorter than 30 consecutive days (which is not considered a short term rental per the county’s definition) until the new permit cycle begins on October 1st. This new rule applies to all Unincorporated Summit County STR License holders located in “Neighborhood Zones”, no matter when the homeowner originally acquired their STR license.
I have a STR license/permit and want to sell. How is my property affected?
This is another case where you need an educated local Realtor® on your side. There are far too many authorities, zones, and rule differences throughout our small county to be able to assess every individual situation in a blog.
I have dedicated a great deal of time standing up for your property rights and staying on top of the constant STR discussions and the evolution of STR rules and regs instated by the authorities throughout Summit County.
I am more than happy to answer any of your questions, discuss the details of your property, and the various STR rules and regs affecting your particular property. I promise to also provide you with the time and service you deserve!
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