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Industry News for Vacation Rental Managers

Denver Having Issues Managing and Enforcing Short-Term Rental Regulations

Denver Having Issues Managing and Enforcing Short-Term Rental Regulations
mm
Heather Weiermann
December 22, 2017
The City of Denver is struggling with its processes for tracking and enforcing its new short-term vacation rental regulations. City auditors issued a report on Thursday, revealing inconsistencies that could put the city at risk for a lawsuit.

After more than two years of meetings and community input on the issue, Denver City Council passed regulations for short-term rentals in 2016 to create a fair operating environment, assess the impact and ensure safety requirements. The regulations allow the rental of a primary residence for 30 days or less and require the collection of a 10.75% lodger’s tax from guests. While nearly $2 million in tax has been collected so far, some applicants who should not have been issued permits have them and many more who should, have not yet registered.

Between Jan 1. and Aug. 21, the Department of Excise and Licenses issued almost 2,000 short-term rental business licenses — but that is only 68% of the number of homes advertised online during that same time period. While this is a better adoption rate than other cities such as Portland and San Francisco, there is clearly still a ways to go.

The auditor’s report said the “city cannot fully assess the effectiveness of its short-term rental processes and procedures for licensing and enforcement.”

The audit found that a majority of lodger’s tax license and identification numbers on licenses were invalid. People were found sharing the same number, multiple licenses were issued to one person, or in some cases more than one address was registered to the same license.

A more systemic approach to collecting and analyzing data could give the city a better idea of how the “sharing economy” lodging affects neighborhoods and housing affordability, according to Denver auditor Timothy O’Brien.

“If the Department of Excise and Licenses does not track and analyze the data, officials should work with City Council to determine who is responsible,” Auditor O’Brien said. “A central goal in the ordinance is to determine the impact on neighborhoods and affordable housing, and some agency needs to be working on it throughout the process.”

“These discrepancies between the law and enforcement could lead to public confusion on how to stay in compliance, as well as the risk of perceived inequity,” Auditor O’Brien said. “This could put Denver at risk of legal action.”

The Department of Excise and Licenses responded that it “appreciates the auditor recognizing that we are in the early stages of implementing a new program and that we have made several steps forward.” It said it was in the processing of evaluating its strategies and will continue to review and adjust its practices.

For more information about Denver’s Short-Term Rental Certification process, www.denvergov.org/str, explains it step-by-step.

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Industry News for Vacation Rental Managers
December 22, 2017
mm
Heather Weiermann @travlinsunshine

After growing up on the beaches of San Diego, Heather graduated from the University of California, Santa Cruz with a Community Studies degree. Heather began marketing and managing vacation homes in 1999 as a favor to a friend who owned a beautiful home in La Jolla, California. Over the course of 14 years, Heather’s business, Southern California Vacation Rentals, grew to become one of San Diego’s leading vacation rental companies. In 2013 Heather sold her company, and after helping with the transition of ownership, Heather knew immediately she wanted to help other vacation rental managers realize the same results she found after implementing The NAVIS Way at her own business. Throughout her tenure, Heather has supported the vacation rental industry and other vacation rental managers by volunteering on local, state and national tourism and vacation rental committees and advisory councils. Heather served on the Board of Directors and as an Executive Committee Member of the Vacation Rental Managers Association from 2010 - 2014. Heather also founded the California Vacation Rental Managers Alliance and the San Diego Vacation Rental Managers Alliance. Both organizations were created to bring a much needed voice and public awareness to the region's vacation rental industry.

Related ItemsbanColoradocommunitydatadenverenforcementindustryLodging Taxordinanceregulationsrentalrestrictionssharing economyshort termshort-term rentalshort-term rentalsvacation homevacation rentalVacation rentals

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