Breckenridge recently updated its rental regulations adding requirements for owners of short term rental properties. Since then, every town and the county are following suit, discussing and initiating their own regulations. All across Summit County, short term rentals are changing. Rentals are an important part of ownership in Summit County. These changes may have a significant impact for all homeowners.
New Breckenridge Regulations
At the end of August, Breckenridge enacted new short term rental regulations. The new regulations add an administrative fee and managing agent requirements. The new administrative fee is an annual fee of up to $150 depending on the size of the rental unit. That fee is waived if the condo has a twenty four hour front desk, phone system or security company. Basically, if someone else is there to handle issues, the town won’t need to and, therefore, no administrative fee is necessary.
A managing agent is also required. A managing agent is someone that is chosen by the owner to respond if there are any issues with their renters. That person must be available 24 hours a day, 7 days a week and handle issues that arrive within 60 minutes of notification.
There are several other rules that must be followed. If they aren’t, the owner is subject to a misdemeanor charge and can have their license revoked. Without a license, short term rental activities would not be allowed. Read all the new Breckenridge regulations.
Silverthorne’s Pending Regulations
Silverthorne just unanimously passed even stricter rules. The rules could become official at the next council meeting on October 24th. Silverthorne’s rules are similar except they require a 30 minute response time during the overnight hours, and 60 minutes during the day. They are also limiting occupancy of those rentals. Two people per bedroom plus two additional are allowed to stay in any property. The bedroom count used to calculate occupancy comes from tax records. That means lofts, offices or dens, or larger rooms used as bunk rooms may no longer count as bedrooms when determining allowed occupancy. Read the Summit Daily article about Silverthorne’s rental changes.
More Changes Coming
Dillon, Summit County and Frisco are discussing this issue too. Short term rentals are changing. If you want to get involved, now is the time. More regulations are coming, and coming soon.
This seems like a win for full time residents that are unhappy with a neighboring rental property. This means they can make a call when there’s an issue and get results within an hour or less. It may mean more trouble for second home owners that rent out their home. There will be more hoops to jump through and more accountability for renters you have limited control over. Two families with a total of 5 kids between them may not be able to rent a three bedroom Silverthorne home. Those renters will have to move up to a four bedroom or to a nearby town. Changes like these could impact rental revenue. An impact on rental revenue can have an effect on demand and, as a result, property values. If that happens, it will be felt by all property owners, not just owners of short term rentals.
It’s impossible to know exactly what impacts these changes will have. I anticipate there will be ripples in the pond. Hopefully they will be minimal.