Client Alert: New Boulder Short-Term Rental Regulations Are Now in Effect

Client Alert: New Boulder Short-Term Rental Regulations Are Now in Effect

New regulations regarding short-term rentals in Boulder– i.e. rentals of 30 days or less–went into effect Monday, January 4, 2016. Under the new regulations, property owners must acquire a license from the city before they can rent their homes to visitors via Airbnb or other travel sites. In addition, the new regulations also impose a 7.5% tax on rentals, not unlike the tax currently imposed on hotel accommodations.  According to the city, the tax is will help to pay for enforcement officers so that they may pursue short-term rental violations.

In order to qualify for a license, applicants must:

(1)   Own the property they wish to rent;

(2)   The property must be the applicants’ principal residence (as demonstrated, for instance, by their auto or voter registration);

(3)   The applicants’ name on the license must match the name on the property deed;

(4)   The property must be held in the name of a person–not a company;

(5)   The property must have working smoke and carbon monoxide detectors;

(6)   The applicant must follow the city’s occupancy limits;

(7)   The applicant must certify to a safety checklist; and

(8)   The applicant must pay a $130.00 fee.

If granted a license by the city, the license is good for four years. Those who currently rent, or who do not currently live in the home they own, do not qualify for a license under the regulations. Thus, many of the short-termrentals currently posted on Airbnb, including vacation rentals and postings by college students advertising a room for rent in their Boulder apartments, may now be in violation of the regulation.

 

For more information regarding the new regulation, see https://bouldercolorado.gov/plan-develop/short-term-rentals

 

Authors: Rudy Verner, Jessica Pingleton 

*BHGR Client Alerts are for general information purposes only and do not constitute legal advice.