Short-term Rental (STR) Regulations are still changing here in Summit County. The next Domino's to fall will likely be the towns of Silverthorne and Frisco. If you're looking to buy real estate and become a short-term rental host, I would encourage you to act quickly. Existing license holders are likely to have a leg up on holding their licenses while new applicants will face new challenges or be barred completely. 

Short-Term Rental licenses are controlled by the officials in the jurisdiction of the property. Please keep in mind that the towns only control within their own town limits and some properties may appear to be in one town but are actually in Unincorporated Summit County. For example, many properties have a Breckenridge address but are not in the town limits of Breckenridge. If you're ever unsure just reach out and I can look up what jurisdiction a property is in or I can set up a search for only rental eligible properties. 

Please also keep in mind STR licenses are subject to various license fees and sales taxes on rentals. 

Breckenridge

The Town of Breckenridge has capped rental licenses at 2,200 non-exempt licenses. There are currently around 4,000 STR licenses issued, meaning new applicants will need to join a wait list for what will likely be several years before new licenses are issued. 

There are however "exempt" properties which do not contribute to the cap of 2,200 licenses. The town has stated that they recognize these buildings were built for the intent of short-term rentals. Many of these properties function more like a hotel than a condo building and must have an on-site front desk, 24-hour monitored phone system, and a 24-hour on site security. Due to being exempt, these properties have recently experienced a disproportionate price appreciation. The exempt condominium complexes are listed below: 

  • BEAVER RUN RESORT
  • BLUESKY
  • THE CHATEAUX
  • CRYSTAL PEAK LODGE
  • GRAND COLORADO ON PEAK 8
  • GRAND LODGE ON PEAK 7
  • GRAND TIMBER LODGE
  • HOTEL BRECKENRIDGE - MOUNTAIN VALLEY LODGE
  • MAIN STREET STATION
  • MOUNTAIN THUNDER LODGE
  • LIFTSIDE CONDOS
  • ONE SKI HILL PLACE
  • RIVER MOUNTAIN LODGE
  • VALDORO MOUNTAIN LODGE
  • VILLAGE AT BRECKENRIDGE
  • WATER HOUSE

For more information on Breckenridge Short-Term Rentals visit: https://www.townofbreckenridge.com/your-government/finance/short-term-rentals 

Blue River

The Town of Blue River has so-far resisted the pressure to restrict short-term rentals.  However, the town limits of Blue River are a relatively small area. Areas people refer to as Blue River may actually be in Unincorporated Summit County. Permitting is still required.

For more information on Blue River Short-Term Rentals visit:https://townofblueriver.colorado.gov/lodging/short-term-rental 

Frisco

So far Frisco has yet to restrict short-term rentals but that is about to change. The town is expected to pass measures limiting short-term rental licenses to between 22-25% of the total number of housing units. Currently Frisco's housing is about 20% short-term rentals. Meaning if this measure passes there will be a small amount of growth still available but expect it to be absorbed quickly. 

For more information on Frisco Short-Term Rentals visit: https://www.friscogov.com/departments/finance/sales-and-lodging-tax/short-term-rental-license-application-process/ 

Silverthorne

Like Frisco, Silverthorne has so far not enacted a restriction on STR's but are expected to do so soon. Silverthorne is expected to cap STR's at 50% of total housing in the downtown corridor and only 10% in most other neighborhoods. If this plan passes, there will be approximately 400 new STR licenses up for grabs. 

For more information on Silverthorne Short-Term Rentals visit: https://www.silverthorne.org/town-government/finance-administrative-services/short-term-rental-licenses

Dillon

The Town of Dillon has yet to restrict STR licenses and is currently not expected to do so. However, the town did take a hit at occupancy on March 1, 2022. Rentals are now restricted to an occupancy of 2 persons per bedroom + 2 additional people. So a two-bedroom condo is restricted to a maximum of 6 occupants. That alone is as much occupancy as a reasonable host would want in their property anyway. However, to further limit occupancy the town also requires the owner provide 1 parking space per bedroom or reduce occupancy. I will note that most three-bedroom properties only include 2 parking spaces. Owners can rent an additional parking space from the town at a rate of $300. 

Compared to other towns the Town of Dillon has a higher percentage of locals or second home-owners who do not rent which is why the focus was on occupancy. Limiting occupancy reduces the complaints of issues arising from STR's. However, as other towns limit STR licenses Dillon will undoubtedly become a focus for buyers looking to rent. In the coming years I predict more pressure will come on the town to limit licenses. 

For more information on Dillon Short-Term Rentals visit: https://www.dillonco.gov/business/dillon-short-term-rental-str 

Keystone

Although Keystone technically falls under the jurisdiction of Unincorporated Summit County, the county has recognized Keystone as a Resort Overlay Zone. This means they recognize the area was built and intended for visitors. Thus, properties are eligible for short-term rental licenses with no cap and no cap on nights. 

For more information on Keystone Short-Term Rentals visit: https://www.summitcountyco.gov/1221/Short-Term-Rentals

 

Copper Mountain

Copper Mountain falls into the same regulations as Keystone. 

Although Copper Mountain technically falls under the jurisdiction of Unincorporated Summit County, the county has recognized Copper Mountain as a Resort Overlay Zone. This means they recognize the area was built and intended for visitors. Thus, properties are eligible for short-term rental licenses with no cap and no cap on nights. 

For more information on Keystone Short-Term Rentals visit: https://www.summitcountyco.gov/1221/Short-Term-Rentals

Unincorporated Summit County

On December 19th, 2021 Summit County passed new rental regulations which capped the number of nights for most properties. Those rules can be found here. These rules seemed like a very reasonable approach to STR's but unfortunately the county officials  quickly decided not to give them a chance to play out. 

On May 24th, 2022 the county placed a moratorium on new licenses until February 24th, 2023. No new licenses will be issued during this time frame. The moratorium does not apply to properties in a Resort Overlay Zone including Copper Mountain and Keystone. The county is expected to pass new stricter rules prior or subsequent to the expiration of the moratorium. These rules will probably include caps on the number of licenses. 

For more information on Unincorporated Summit County Short-Term Rentals visit: https://www.summitcountyco.gov/1253/STR-Regulations 

 

*Information is subject to change and should not be relied upon. Please consult the appropriate jurisdiction before making any real estate or financial decisions. A directory to each jurisdiction can be found here