Breckenridge to Cap Nightly Rentals

Breckenridge town council has decided to cap the number of short-term rental permits at 2,200. The current number of permits already issued is 2,476, so no new permits will be issued until after 276 homes/condominiums turn over or decide to no longer rent. It is my understanding that the permits are tied to the current owner, not the home, so if a house sells it will lose the rental permit. It’s also important to note that this only applies to homes within Breckenridge town limits. 
However, there is an exemption for properties that have a front desk. Luckily, buildings  such as Mountain Thunder and Blue Sky Breckenridge have a front desk so I believe they will be exempt. 
It’s hard to predict what this will do to the market but my guess is that properties without the exemption will see a decrease in price while exempt properties will likely go up in price. I would also predict that with a constrained supply of rentals, rent revenues will go up. 
The Summit Association of Realtors are using our legal defense resources to fight this action by the town. It is our belief that this will not make a meaningful difference in the affordability of locals housing and will cause more harm than good. Many of the homes in question are designed with short-term use in mind. Even if some homes were converted to long-term rentals, many would justify a rental price higher than Summit County workers could afford. Finally, we predict that a large portion of Breckenridge second homeowners do not rely on short-term rentals and will simply choose to keep their property vacant. Even though Summit Realtors are committed to fighting this action, I doubt we will be successful so I would plan on this being the new normal. 

Update from Summit Association of Realtors-Executive Director Sarah Thorsteinson

As expected, last night, after listening to an additional 3 hours of public comment, the Breckenridge Town Council passed a cap on new short-term rental licenses for non-exempt units at a maximum of 2200 licenses. There are roughly 3,0000 non-exempt licenses right now. Permits will be reduced through attrition, meaning as properties are sold, or licenses are turned in, the permit level will be reduced.  Once the 2200 level is achieved in several years, the Town will issue licenses based on a waiting list.  Attached is the ordinance and staff memo. The ordinance goes into effect November 2nd, 2021. Current property owners may apply for licenses up until November 2nd. Properties under contract must have been under contract at 11:59 pm September 27th to obtain a permit.

 

Here are the details directly from the staff memo:


1. Sets a cap of 2,200 non-exempt STR licenses at any time 
2. Provide for a 6-month temporary STR license to the purchaser of an STR licensed property 
3. Requires that exempt properties have an on-site 24 hour staffed front desk 
4. The person responsible for staffing the front desk cannot be a member of the security 
personnel 
5. Provides for the administration of a waitlist of applicants for STR licenses when the non-
exempt license population exists above the 2,200 limit 
6. Added provisions for exchanges of property that allow the purchaser/grantee of a licensed property to obtain an STR license (‘exempt’ transfer categories) 
3. The amount of time a wait list member has to apply for a license after being notified that they are eligible has been reduced from 20 to 5 days 
4. Units for which a building permit was issued and in effect on September 14, 2021 may apply for a license within 20 days of receiving a certificate of occupancy (CO). 
5. Transfers pursuant to a valid real estate contract that was fully signed prior to September 28, 2021 provided the sale is completed within six (6) months of the signing of the contract.