Short Term Rental (STR)

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With the proliferation of vacation ownership and nightly rentals, City Council is interested in understanding the topic more in depth and how this matter is or is not impacting the community as it pertains to long-term rental housing, neighborhood character, sales & lodging tax collection, safety and enforcement.

What is a Short-Term Rental?

  • Lodging and Accommodations uses occurring within dwelling units.

Lodging Accommodations uses include:

  • Sleeping or housing establishments intended to be occupied on a short-term, transient basis.
  • Payment for occupancy is typically on a daily or weekly basis, and an average length of stay is 30 days or less.
  • Includes the uses of hotels, hostels, vacation home rentals, vacation rentals, and bed & breakfasts.
  • Defined by the Community Development Code (CDC) as commercial land uses

The CDC defines several Short-Term Rental uses:

  • Vacation Home Rental (VHR) = Single-Family home or duplex unit; the entire unit is rented
  • Vacation Rental = multiple-family unit; entire unit
  • Bed & Breakfast = SF home; owner/operator occupied; 2+ guestrooms*
    • *does not include Rental of 1 bedroom in resident-occupied dwelling unit
  • Temporary Short-Term Rental = SF home or duplex unit; entire unit; limited term and occurrence, Limited use, limited districts, no permit required

Short Term Rentals = all of the above

With the proliferation of vacation ownership and nightly rentals, City Council is interested in understanding the topic more in depth and how this matter is or is not impacting the community as it pertains to long-term rental housing, neighborhood character, sales & lodging tax collection, safety and enforcement.

What is a Short-Term Rental?

  • Lodging and Accommodations uses occurring within dwelling units.

Lodging Accommodations uses include:

  • Sleeping or housing establishments intended to be occupied on a short-term, transient basis.
  • Payment for occupancy is typically on a daily or weekly basis, and an average length of stay is 30 days or less.
  • Includes the uses of hotels, hostels, vacation home rentals, vacation rentals, and bed & breakfasts.
  • Defined by the Community Development Code (CDC) as commercial land uses

The CDC defines several Short-Term Rental uses:

  • Vacation Home Rental (VHR) = Single-Family home or duplex unit; the entire unit is rented
  • Vacation Rental = multiple-family unit; entire unit
  • Bed & Breakfast = SF home; owner/operator occupied; 2+ guestrooms*
    • *does not include Rental of 1 bedroom in resident-occupied dwelling unit
  • Temporary Short-Term Rental = SF home or duplex unit; entire unit; limited term and occurrence, Limited use, limited districts, no permit required

Short Term Rentals = all of the above

Comments

Please provide comments, concerns or ideas for the Community and City Council to consider.

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I absolutely support the restrictions on nightly rentals in Steamboat. They have and will continue to disrupt and break down local neighborhoods until there are no neighborhoods at all. When a house or houses in a neighborhood are ran as a hotel it has more negative affects on the quality of life of the neighbors than positive. Trust me, we have multiple in our once peaceful little cul-de-sac.
Some suggestions for changes:
1) classify short term rentals as commercial property. They're businesses and should be treated as such
2) Tax them at a high 20%+ local nightly rate
3) We don't let people do whatever they want out of their homes - why do we let them turn them into hotels?
4) Charge an annual license of at least $5k - that would almost pay for the entire city budget

Tomt 6 months ago

After skiing over 30 years in Steamboat with our family, we purchased a home on the mountain within walking distance to a lift as a second home. From our first year in Steamboat, we obtained a short term rental for our use. In time, as our family increased in size, we rented larger homes on the mountain for a week in your town. As I read the comments in this section, the suggestions of fees of over $10,000. per year, commercial zoning, etc., is concerning. If STRs are negatively impacting established residential neighborhoods, there are several ways to correct that through restrictions of permits in areas that are primarily occupied by full time residents. New developments could have deed restrictions that prohibit such activities. In our location, there are very few primary residents as it is mostly vacation rental properties, similar to those we rented for all those years. We do have a VHR permit in good standing, so the moratorium will not affect our property. It does, however, send a disturbing message. We came to Steamboat after skiing other resorts in the west, and stayed because we felt the people were friendly and appreciated our contribution to the resort and its economy. Everyone seemed very helpful and courteous. It is a destination resort and the need for Short term rentals will not disappear unless the mountain ceases to exist. Second homeowners will not be a part of the long term rental market as that would eliminate the ability for them to enjoy the properties. Exhorbitant fees will be passed along to families trying to visit Steamboat, already an expensive skiing destination. It seems many feel eliminating as many tourists as possible is a good step. Discouraging tourists by pricing Steamboat out of the market, will simply add that lost revenue to the full time residents and making it even more unaffordable to live here. Affordable housing in a resort area is a problem everywhere, not just in the mountain resorts of Colorado. Most of us commute 30 minutes or more for our employment. A partial solution may be realized in developing areas outside of the city and deed restrictions prohibiting short term rentals and tax credit given to full time residents. Demonizing those who do rent their properties to visitors to your town is not going to solve the problem. The character of Steamboat that attracted us was your friendly, welcoming spirit. We hope that can be preserved as well.

ck345 6 months ago

We rent our full-time home in Old Town out as a short-term rental in the summer and winter months to help supplement our income so that we can live here. We rent mostly to families and allow 0 parties. Every single renter we have had is extremely respectful of our town and the quiet hours. Without this income, I would not be able to stay and live in Steamboat full time.
There is an argument saying that there is not enough housing for employees in this town. Yes, that is very true but please don't think that would change if I/we rented our homes out full time (they would not be able to afford it).
If things need to change I would suggest looking at what Denver and other ski towns have done which is in town to only allow full-time residents to short-term rent their homes. Don't allow people to buy investment properties and rent them out on a short-term basis. It would require them to provide identification to show this is their primary residence. Just an idea. This could help add some long-term rentals to the mix.

yvespatty 6 months ago

We purchased a 2nd home in Steamboat in 2011. We purchased the home for our families enjoyment in both the summer and the winter. We are currently renting it for short term rental. I’m sure those of you who live there know it is very expensive to maintain a mountain home, with taxes, utilities, HOA dues. Renting out our home for a few weeks each year helps to offset those expenses. Currently there is 11.4% tax added on to each one of our rentals with 5.5% going to the city and 5.9% going to the state. Raising the taxes even higher might send renters elsewhere. The 6 month moratorium on short term rentals will really look bad for the city. We are competing with other ski resorts for the tourist dollar. I’m not sure what the city is trying to accomplish. Are you trying to generate more tax revenue? Are they trying to reduce the number of short term rentals in the community?

mgunderson1 6 months ago

Most short term rentals are booked many months in advance. If the proposed moratorium would prevent homeowners from honoring these bookings it will be a huge blow to both the owner and renter (tourist bringing in tourist dollars) and would be a black eye for the community. Also, many owners rely on rental income to pay the high mortgage required to buy a home in Steamboat. If the rules change mid-stream, there would be a huge fallout. People who bought a place with the expectation that they would have a source of supplemental income may have to sell if they can't get enough rent to pay their high mortgages and a glut of new real estate listings would not be good for property values.

mrobertson6 6 months ago

I have owned a 2nd home in Steamboat Springs since 2010. A couple of years after we bought our place we decided to start renting it out short term to offset the high cost of property ownership. In those days, collecting sales taxes was on our shoulders (for both vrbo and airbnb) and while not everyone complied, I did so faithfully with the knowledge that those taxes were critical to the city to maintain and improve services for the community. We hope to relocate to Steamboat full time in the near future and we want the best for the city. Now that sales taxes are collected by both services, there should be greater compliance and overall benefit to the city of these short term rentals. I know that the huge increase in these rentals has changed the dynamic of affordability of homeownership and rentals in the last few years. Many companies are involved and they own/manage a large number of rentals (I still own and rent only our one condo). I don't know how you can fairly differentiate the individual who rents out his place that would otherwise sit empty (adding taxes to the city coffers) from the larger business interests that have truly changed the dynamic in town, but overall, I still believe that short term rentals provide a good benefit and I hope that any new regulations aren't so onerous as to eliminate or significantly reduce them. If offering a limited number of permits is necessary, I think it is only fair to offer them first to those who have been renting for longer, but I do hope it doesn't come to that.

mrobertson6 6 months ago

You absolutely need moratorium on new short term nightly rentals now for as long as it takes the City to clearly identify the extent of the problem and develop comprehensive regulations to correct this enormous problem that contributes significantly to over-tourism and lack of affordable housing and degrades quality of life. I suggest City stop funding the Chamber and reallocate that money for Community Service Officers, Animal Control officers and staff for Code Compliance and Noise Complaints issues (instead of Police Officers responding to noise complaints regarding nightly rentals). Please remember we are a Community, NOT a commodity. Cindy Turner

Michael Turner 6 months ago

We don’t let people do “whatever they want” out of their homes: you can’t run a business out of your home.


So why do we let companies turn residences into what are effectively hotels?


Zoning laws created in the 70s were made to separate business areas and residential areas for a reason. New tech with AirBnB allows people to circumvent the spirit of these ordinances.


A compromise would be to only allow short term rentals longer than 30 days in the immediate mountain base area.


A $10-15k a year fee for rentals over 30 days is a great idea - that would pay for the entire city budget! When these places are renting out at over 1,000 a night it’s perfectly reasonable.

HamD 6 months ago

I fully support restricting, regulating and taxing short term rentals.
As a small business owner our biggest struggle is attracting and keeping employees due to lack of housing options. We pay our employees WAY ABOVE MARKET rate and yet they still struggle to find basic housing. It is impossible for a local to compete in the housing market when they are up against investment groups who are turning our entire town into a hotel.
1) residences should be for residing
2) commercial property should be for commerce
It baffles me to no end that the city would never allow a mechanic to open a repair shop in the garage of a house in a residential neighborhood, nor would they allow a massage parlor to operate out of a residence, however we stand by and let people operate hotels out of their houses?!?! this makes no sense what so ever.
1) Any property that short term rents for more than 28 days(4 weeks) in a calendar year should be deemed a commercial property and should be taxed that the commercial property rate - including all furniture etc. just as regular businesses like mine are taxed on property.
2) The yearly registration fee should be $5000 - $10000 for a greater than 28 days/yr. permit and $500 for a less than 28 days/yr. rental permit . This would allow local residents to still rent their property when they leave town on vacation, while also creating a high barrier to entry for the "neighborhood hotel" market. Taxes are both a revenue source and a tool government can use to dictate desired outcomes (ie; the "sin tax" on tobacco, alcohol and weed).
3) there should be an across the board 20% lodging tax paid by all nightly/short term rentals.
4) short term rentals should be limited to the traditional "mountain area".
We cannot solve our housing crisis if we continue to let commercial hotel operators illegally operate their commercial businesses in our neighborhoods and drive out local residents.

SeanH 6 months ago

We currently own a duplex and rent out 1/2 of it as a vacation rental when friends and family aren’t staying in it. We have a license from the city to do so, and pay city taxes on all the income we generate. Using it as a full time rental is not feasible as we have no other place for family and guests to stay. Passing a moratorium on short term rentals for Steamboat residents would put us in severe financial difficulty.

therochons 6 months ago

Hello, I own a one bedroom condo at the Pines, 500 Ore House Plz, in Steamboat. I purchased the unit both for personal use and for Short-Term Rentals. I would, however, generate more revenue if I entered into longer term (e.g., 1 yr; 6 mos) leases, but I do not wish to do so. The S-T rental revenue helps to cover the substantial cost of owning such a property while allowing me to utilize it as well. I DO NOT believe that any restrictions preventing current or future rental property owners should be imposed, limiting their ability to lease THEIR properties as the see fit, and, as I indicated, believe that S-T rentals have a negligible impact on the L-T rental market. Thanks, Mark Halter

mhalter001 6 months ago

Please approve the proposed moratorium on license applications for short term rentals. The council needs to time to assess options, solicit public feedback, and determine the best path forward. You will be pressured to not approve the moratorium by business interests, such as realtors and VRBO, but they are viewing this as monetary situation. As a concerned citizen who wants to see a common sense approach on how to handle the STR situation and feel like my daily quality of life is impacted (as I write this there is a softball team staying in the STR next door making so much noise in the driveway I have to close my windows to work), I urge you to impose the moratorium. Thank you.

Marilyn Koponen 6 months ago

I wholeheartedly support the pause on str/vhr licenses. I live in a neighborhood on the mountain with growing numbers of rental properties that have changed the feel of our neighborhood, created noise and garbage/bear issues, and consistently have renters speeding down our street past my children. Something needs to be done! Leave the renters to the condos next to the mountain and let us have our residential areas back!

Jennahunt 6 months ago

The licensing program that will be rolled out later this year that includes a compliance company with website and phone number to call to deal with issues is a step in the right direction, but it is a reactive mechanism not a proactive one that prevents the issues that arise from VHRs/STRs. We need policies such as limiting the number of VHRs on a given street in a residential neighborhood. Having too many VHRs on a given street in a residential neighborhood destroys the character, peace and quiet, and safety of a neighborhood. Given the amount of money VHR/STR business owners pull in, a $500 permit and $75 per year is peanuts. The city is justified increasing these fees significantly to both offset administration and compliance expenses and use them as an incremental source of revenue.

mkoponen 6 months ago

City codes need to be cleaned up concerning STRs/VHRs etc.
In three places STRs are classified as "commercial" - hence they cannot exist in those areas that are classified as "residential." In one instance, the code states VHRs can operate in neighborhoods that are zoned/deemed "residential." This makes it quite difficult, if not impossible, for HOAs to effectively manage in individual neighborhoods. Bear Creek HOA is one such instance. Please review and rectify ASAP.

Deborah Routt 6 months ago

Maybe I have missed this in my reading, but I am concerned about how this could be enforced. People already rent out their places without paying the taxes, so what would make them get a permit?

Eeneranit 6 months ago

Maybe I have missed this in my reading, but I am concerned about how this could be enforced. People already rent out their places without paying the taxes, so what would make them get a permit?

Eeneranit 6 months ago

The problem with workforce housing in Steamboat is not primarily related to short term rentals. It's an issue of housing supply shortages with continued population growth. Supply is constrained by restrictive zoning, building costs and a difficult approval process. If I want to rent my house for a few weeks in the winter to defray our living costs then I don't think we're eliminating housing options. If the city wants to solve the problem of competing demand for housing then do it in a positive way by supporting housing supply to accommodate the diverse people that want to share the joys of visiting our wonderful town.

Lastly, survey results suggest our residents want more year round nightlife and entertainment options on the mountain. That is driven primarily by tourist spending. You can't state that you want more activity while simultaneously trying to restrict tourism.

mmclarney 6 months ago

Short term rentals are businesses. They should be treated as such. Current policy favors short term rentals at the expense of other businesses in this town that play by all the rules.
We don’t let people do whatever they want out of their homes - why do we let them turn their homes into hotels?
Our lack of property tax leaves us especially vulnerable to outside businesses buying up properties for purpose of short term rentals.
A couple of suggested solutions:
1) Short term rentals should be classified as commercial property. We need to work with county and state officials to do this. We need to be aggressive and lead on this.
2) Why not charge every short term rental an annual fee of 5,000-10,000 for its license depending on the number of rooms. This would raise anywhere from 20-30 million annually. This would pass with flying colors - and we all know the property tax isn’t.
3) We should tax rentals at a nightly rate of 20%. This is on or with other cities like New York City
4) We should consider also limiting the number of nights a home can be used as a hotel in a year. 30 days would be reasonable.

We need to stop looking around at what other towns are doing and start coming up with our own solutions. We need you to lead on this. You are elected to serve the *residents* of this town, not outside businesses that are turning our neighborhoods into hotels

Neighborhoods are for neighbors, not hotels.

Thank you for taking action on this - our town has really been changed for the worse because of this and effects all areas of this town including the other businesses here.

HamD 6 months ago
Page last updated: 11 November 2021, 09:12