Denver Short-Term Rentals Update
Over the past two years, Denver City Council has explored ways to regulate short-term rentals that are often facilitated through companies like Airbnb and VRBO. Short-term rentals, which generate an estimated $85 billion a year worldwide, have proliferated due to the emergence of the sharing economy, and often serve as a supplemental income for homeowners.
Currently, it is illegal to rent a home for less than 30 days in the City & County of Denver. However, Denver City Council changed that on Monday, June 13th when they voted to approve new regulations brought forth by Councilwoman Susman, the Department of Excise and Licensing, and the Department of Community Planning & Development. The regulations are intended to allow Denver to adapt to emerging trends in the hospitality industry, while also addressing concerns held by neighborhoods and homeowners. The proposed ordinance has several key features, including:
- Requiring all short-term rental hosts to obtain a business license which the City will then use to collect Lodger’s Tax.
- The host or licensee must have permission from the landlord or property owner to operate the short-term rental.
- The host or licensee must maintain an operable smoke detector, carbon monoxide detector, and fire extinguisher in the unit at all times.
- The ordinance prohibits the operation of short-term rental in non-primary residences.
While DMAR has monitored the issue on behalf of its members, the Association’s Government Affairs Committee chose not to take a formal position given the membership’s diverse spectrum of opinions. Over the coming year, the City will utilize a short-term rental advisory group to monitor and provide feedback on the successful implementation of the ordinance.
