Short-T erm Rental Regulations December 3, 2019 Agenda Summit - PowerPoint PPT Presentation

Short-T erm Rental Regulations December 3, 2019

Agenda • Summit County In Context • What Prompted STR Regulations • How we Developed the Regulations • Permitting Process Challenges • Lessons Learned

Summit County In Context

Summit County In Context T ourist-based Economy Over 500% Population Increase on a Peak Day

What Prompted STR Regulations STR Helper Hotline 2 Primary Influences:  Proliferation of Self-managed STRs, VRBO, and Airbnb  Impact on Residential Neighborhoods 970.368.2044

What Prompted STR Regulations Self-Managed STRs STR Owner STR Property

Influx of STRs 2018 County Income Denver $74.6 million Reported Summit $57 million Revenues El Paso $17.6 million for Boulder $22.9 million Colorado’s Larimer $13.6 million Airbnb Jefferson $12.3 million Grand $11.6 million Hosts Eagle $19 million Routt $10 million Adams $5.7 million

Impacts: Noise “This is a 1-acre lot…You can be fairly loud” STR Complaint Hotline: “Loud outdoor rave party went on past 2 am last night with loud music and shouting.”

Impacts: Parking Parking on the Rec Path

Impacts: Trash

Impacts: Snow Removal Shared Duplex Driveway

Impacts: Septic Systems & Water Quality Failing Septic Systems … Sewage Running Down Driveway

Development of STR Regulations

Permitting Process Challenges Airbnb: 10 Bedrooms Assessor: 7 Bedrooms

Sales Tax 1 in 3 did not have a valid sales tax license

Lessons Learned Illegal Land Use & Development Bunk Beds in a Closet

Lessons Learned: Occupancy 1 person per 200 square feet -OR- 2 people per bedroom, plus 4

Commercial vs. Residential Alpine Villa Tuscan Retreat 15,348 sq. ft. single-family short-term rental Property Taxes = 7.2%

Commercial vs. Residential Frisco Lodge 8,040 sq. ft. Hotel Property Taxes = 29%

Lessons Learned: Housing Impact 1/3 1/3 1/3 Vacant STRs Permanent Resident Housing

Lessons Learned: Housing Impact Short-T erm Rentals Lower Snake Upper T en Blue River Blue Mile Active Rentals 950 2,667 4,708 1,478 Average Number of 2.6 2.1 2.7 2.3 Bedrooms Percent Rent Entire Unit 94% 98% 97% 98% Occupancy Rate 50% 39% 45% 40% Average Daily Rate $223 $263 $356 $286 Average Monthly $2,701 $2,630 $3,882 $2,858 Revenue

Lessons Learned: Housing Impact STRs Less than 10% are locally owned Summit County Resident Owners Other Colorado Owners Out-of-State Owners

Potential Changes to Regs • Occupancy Calculations & Max Occupancy • Parking Ratio and/or Min Parking Standard • Lodge vs. House

Issues for Future Consideration  Stronger regulation and enforcement alternatives  Licensing Options  The ability to tax income producing residential properties as commercial

Q & A www.summitcountyco.gov/str