1. Vacation Rental Policy Considerations
Richard Cimino
Commissioner, Grand County, District 1

2. Definitions
Short Term rentals VS Vacation Rentals (VR Best, except w/Gallagher)
Time: 30 days or less, 45, 60, 90?
Minimum stay requirements (might reduce competition with hotel, but not really, cleaning fee and other per visit fees already reduce competion with hotel
Owner occupied vs absentee owner
Local POC requirement? Time to respond? Fine Structure?

3. Assumptions: VR Problems
Municipality allows a person to operate a STR business in a residentially zoned neighborhood
Citizens of municipality have to deal with a business operation near their home (traffic, parking, noise, garbage, sewer and water, bandwidth reduction, giving directions to new weekly tenants, etc.)
Governments have to patrol and respond to business issues (violations of parking, garbage, noise, sewer, water, increased wear and tear on roads and infrastructure, EMS, Fire, etc.)
Economic conditions of entire communities are skewed
Regular Hotels faced increased competition
Tourism Board (TB) provides marketing services that benefit STR business owners even though the STR business owners are not contributing to the TB
Supply of Long Term Rentals is greatly reduced
Quantity of workers is greatly increased (STR occupants increase Tourism businesses)

4. Assumptions: VR Benefits
Increases the number of tourists (extremely large numbers, great econ benefit)
Vacation Rental Allowed = increased real estate values
Allows our citizens to make extra money and attain housing
Example 1: Homeowners struggle to make ends meet in high cost County, if they STR some of their beds, they can afford to stay rather than leave
Example 2: Homeowners who take vacations could make money from their empty house and bring in more tourists while they are away
Example 3: The tourism industry worker that can only afford to buy housing 1 hour away from work could buy housing closer to work if they STR beds (Long term rent is also an option)
Potential area for beneficial government loan assistance – must be careful
Hotels can’t meet the need (STRs in tourism peaks, STRs not used in swing seasons)
Any new or revised STR Policy should not negatively impact these positives aspects of the STR Market to a large degree

5. What About taxes? Vacation rentals are taxed at residential tax rate
This is well defended, Colorado supreme court case, maybe 2
Hotels and Bread and breakfasts are taxed at commercial rates
Is use most important, or is original intent most important?
Original use vs original construction??
Interim committee on Gallagher solutions is very interested in possibly reclassifying Vacation rentals as commercial, as well as second homes with a unique new category, maybe 21%

6. To Fee or Not to fee?
Maybe Zero Fee, Zero permit requirements, Wild West!
Are sales taxes and lodging taxes being collected?
Maybe flat fee? $20, $150, $600, other amounts seen
Maybe variable fee?
Pillow count (based on listed occupancy)
Maybe Both?
For example, $300 flat fee, $100 per occupant fee, annual
Maybe $300 is only in first year
Should the fees go towards a specific purpose?
Affordable housing
Law enforcement
Ems

7. Operations/complaints
Local Poc, time requirement to respond, 1 hour, 3 hours?
Upload photos/videos (actually protects STR operators)
Permit on a calendar year vs 365 day term?
To fine or not to fine? How much? Per day/Week/Month

8. Policy based on Geography
Limited STr PER CITY BLOCK?
Zones with no STR
Help HOA decide/enforce
Unincorporated County territory vs only in towns?
Limits based on zoning classification (forestry and open, residential, commercial, etc)

9. Policy based on time Limit # days per year house can be rented
Require min amount of days for stay
Serious vacation communities: weekly rentals only, Saturday switch out, no joke

10. Unions? Should Vacation rental industry self organize?
Could help with resident vs STR company fighting
Should help local government put in place rules that are good, smart, not knee jerk reaction to multitude of residents who are opposed
Would help complexes increase allowed STR spaces

11. Interim committee to fix gallagher
Ain’t gonna happen, requires constitutional change
Make STR commercial?? Legislative fix, don’t have to go to the voter
Problem: initial esitmates will be based on “best case” of 100% of unoccupied housing units are operating as STRs. This assumption is probably over 90 in error!!