Big changes are afoot this December in the city above the clouds.
The unofficial results of the special election are in and per the city website (where someone is just loving the exclamation marks!), ballot question #1 passed by 1347 (yes) to 943 (no). Ballot question #2 failed 693 to 1592.
If you’re looking for the wording of the ballot questions to figure out when this goes into effect and what to do next if you have an STR that’s no longer allowed, click here and scroll down to “the ballot questions.”
But slow down and breathe. It would seem that existing STRs may be able to operate for the next year based on my reading of the following section:
Section 5. Current Business Licenses Operating Short-Term Rental Businesses. No new Business
Licenses or Renewal Licenses to operate a short-term rental unit will be issued or renewed that does not
conform to the Zoning District Table of Permitted Uses in 18.09.090 for short-term rental units after
December 31, 2024. The clear intent of this paragraph is to not allow Non-Primary Residence Short-Term
Rental Units in Single Family Residential Neighborhoods within the City, Zoning Districts SR, UR, and
PUD and Multi-Family Residential Neighborhoods, MFS and MFU Zoning Districts after December 31, 2024.
WORTH NOTING: A federal judge ruled similar restrictions a violation of a homeowners’ constitutional rights. It strikes me that changing the rules without grandfathering in existing properties creates the issue, noting the term from the ruling: “unconstitutionally retroactive.” It seems like there’s a precedent for this to be overturned legally, for those who would take up that fight.
From the chatter I have heard lots of soon-to-be former Woodland Park STR hosts are looking at a pivot to Medium Term Rentals. As someone who has done medium term rentals for a while I’d like to offer some advice.
DO NOT just raise your minimum stay length on Airbnb.
You need:
- a background and eviction check
- to verify income and employment
- to have a solid lease
- to collect a deposit with certified funds
Why? Because your guest, once they have stayed 30 nights, now has the legal rights of a tenant. You do not want a tenant you know nothing about, with no deposit or lease terms. It creates a huge liability for you.
If you are managing an STR on behalf of someone else and you are not a licensed broker DO NOT just start managing 30+ night stays. That will potentially run you afoul of the real estate commission. In Colorado, managing a property whose occupants stay for more than a short-term basis (30+ nights) is considered property management, and that requires a real estate license.
I’ll update this post as I learn more and hear what questions people are having.
If you need help from a company that has operated Medium Term rentals since before they were cool, and is able to pivot between STR, Mid-term, and Long Term Rentals when things change, please feel free to reach out.