Summit County | Overview of New Short-Term Rental Regulations
Summit County, Colorado is a popular tourist destination known for its ski resorts, mountain scenery, and outdoor recreation opportunities. With the rise of online platforms such as Airbnb and VRBO, short-term rentals have become a popular option for visitors looking for a more personalized and affordable alternative to hotels.
However, like many other tourist destinations, Summit County has experienced challenges related to the rapid growth of the short-term rental industry. Concerns about the impacts of short-term rentals on housing availability, affordability, and neighborhood character have led the county to implement new regulations for these types of properties with the goals stated in the above graphic.
The new rules, which went into effect on Feb. 15, 2023, only apply to neighborhood overlay zones within the county. Resort zones are unaffected by the new regulations. The regulations impose a cap on the number of short-term rental licenses for properties in each of the drainage basins of the county. These caps will be achieved through attrition, meaning that licenses will only become available when existing licenses are not renewed, are revoked, or a property sells. Licenses are non-transferrable except in very specific cases. Currently, all basins are over their caps and so no new licenses are available for neighborhood overlay zones at the time of writing.
To help visualize the impact of the new regulations, the county has provided the above graphic that show the number of licenses currently operating in each basin, the total number allowed under the new caps, and the projected year when new licenses will become available. This information is important for property owners who are considering entering the short-term rental market or who are currently operating a rental property in the county. The county intends to open waitlists for licenses but has not yet started that process.
In addition to the cap on the number of licenses, the new regulations impose a cap of 35 total bookings per short-term rental per year for all short-term rental properties located within the Summit County neighborhood overlay zones. The length of each booking is not limited. This means that property owners will need to carefully manage their rental schedules to ensure they do not exceed the booking limit in an annual period.
It is important to note that all current license holders will be able to continue to operate their short-term rental properties - no licenses are being taken away. However, current license holders will have to comply with the 35 bookings per year cap after the next renewal period in September.
The new regulations are an important step forward in addressing the challenges posed by the short-term rental industry in Summit County. By carefully managing the number of licenses and bookings allowed in neighborhood overlay zones, the county can help ensure that these properties do not negatively impact housing availability or neighborhood character. While the regulations may pose challenges for some property owners, they ultimately are aimed at the greater good of the community and the long-term sustainability of the county's tourism industry.
The short-term rental regulations in Summit County are complex, include some exceptions, and will require expertise to navigate. You can read the ordinance in its entirety here or contact realtor and STR Expert Brady Stout to discuss.
