Colorado Politics

Letter: Short-term rentals a boon for Colorado economy

Editor:

Colorado is a destination for business travelers, family vacations, family gatherings, and adventure seekers. Year after year, the state sets another record-breaking year in terms of tourism visitors and expenditures. To keep the travel and tourism industry vibrant with a diverse set of offerings, community leaders must embrace the evolutions that take place. The current discussion about short-term rentals, or STRs, in the Denver City Council is exactly the type of leadership that must happen to ensure that Denver and Colorado stay ahead of the curve in the changing travel landscape.

As the owner and operator of a short-term rental property, I admire the Denver City Council’s efforts to legalize STRs in the city. I support many of the rules it has proposed, as most of the requirements are reasonable and easy to understand. However, the proposed ‘primary residence’ requirement would ban secondary homes as STRs and will subvert the goals the Council is trying to achieve. I join others in urging the City Council to approve an amendment that would allow one secondary home STR per property owner. This proposed amendment to keep both primary and secondary rentals legal will ensure all properties within the STR market are in proper compliance and regulated. This increases the tax revenue that city collects and provides a standard for travelers.

Already, the property owners and managers of vacation rentals work tirelessly to ensure their properties are kept in their best shape to attract the tourists upon which our state relies. The Colorado Office of Tourism’s Longwoods International Report attributes $2.625 billion in expenditures in this state to legal short-term vacation rentals. Overzealous regulations, such as the secondary home restrictions that this amendment rolls back, would have directly impacted more than 155,000 tourism jobs in the state.

Across the country, communities develop STR regulations because of fears based on a host of erroneous assumptions. Many of these communities come to realize that primary residency requirements may alleviate fears, but do not solve problems that arise. Cities also come to find that their own rules are harder to enforce than they first realized. The uniform enforcement of existing noise and safety ordinances is what actually protects residents.

It is understandable that policymakers are concerned with allegations of “party houses” or affordable housing issues related to STRs. However, the U.S. Census Bureau’s most recent statistics labeled a total of 2,200 properties as secondary homes in Denver. This is less than 1 percent of total household units in the city. These homes are used by individuals for many reasons, such as private vacation homes or future homes in which to retire. Owners of secondary homes, including those who operate STRs, pay property taxes and contribute to the Denver economy.

If not for short-term renting, many of these properties would sit vacant for long portions of the year. Allowing for secondary home rentals protects neighborhood character. Many of the guests who rent secondary homes on a short-term basis are parents and grandparents visiting other family members who live in the neighborhood. Managers and property owners work diligently to protect their assets by scrutinizing potential renters and keeping up on the maintenance of the home. Vacation rentals are often better maintained than long-term rental properties because of regular cleaning and upkeep between guests.

I applaud the Denver City Council for taking on this issue and for including the amendment that rolls back the ban on secondary rentals. Denver is set to gain millions of dollars in tax revenue from allowing STRs and second homeowners want to help contribute.

Craig Ellsworth

Denver

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