After the town council meeting September 28th, the town of Breckenridge is moving forward capping short term rentals within town limits. Some exceptions do apply but those exceptions must meet rigid standards. These standards are only currently being met by 13 complexes within the town of Breckenridge. Short term rentals in those 13 complexes make up about around one-third of all the short term rental licenses in Breckenridge. The remaining short term rental licenses will be capped at 2,200 beginning November 2, 2021.
Short term rental licenses in Breckenridge
According to the town of Breckenridge, just under 4,000 short term rental licenses have been issued to property owners within town limits. The town believes this is too many short term rentals. They believe it is having a negative impact on the character of the town as well as taking housing away from local workers. In order to change the trajectory, the town has decided to put a cap on the number of short term rental licenses they issue, therefore, capping the number of legal short term rentals within the town.
Breckenridge has made 13 complexes exempt from the short term rental license cap. This means that homeowners within these complexes will be able to get short term rental licenses regardless of the number of licenses already issued. Here are the 13 complexes. Many of these properties are time share ownerships.
- Beaver Run
- Blue Sky Breckenridge
- Crystal Peaks Lodge
- Grand Colorado on Peak 8
- Grand Lodge on Peak 7
- Grand Timber Lodge
- Main Street Station
- The Marriott
- Mountain Thunder Lodge
- One Ski Hill Place
- River Mountain Lodge
- Valdoro Mountain Lodge
- Water House on Main Street
Restrictions begin November 2, 2021
The Breckenridge Town Council approved the 2nd reading of the ordinance that caps short term rental licenses at 2,200. It goes into effect November 2nd. Until that time, owners of properties in Breckenridge can still submit applications for short term rental licenses. If your rental license is approved you should be able to continue to renew your license every year. They are not taking away any licenses to meet that short term rental cap. On or after November 2nd, unless your property is in one of the 13 exempted locations, applicants will be placed on a waiting list until the number of active licenses falls below the 2200 cap. It could take several years for roughly 300 excess licenses to be voluntarily terminated to get the license numbers that low.
Exceptions to the short term rental cap
There are several reasons you may be able to get a new short term rental license even if you don’t have a property in the 13 exempted neighborhoods, even if there are more than 2200 active licenses. If a property is transferred to a family member, transferred due to death or divorce, or transferred in a 1031 Exchange, it may be exempt from the short term rental cap and a new license obtained. A temporary license can be issued for buyers to honor rentals booked previously by the seller.
Review the Breckenridge Town Councils’ regular meeting agenda packet here. This packet includes meeting minutes from the prior town council meeting and the revised ordinance to go into effect in November.