Starting in February, any travel booking service provider that profits from booking a guest at an unlicensed short-term rental will face a fine of $1,000 per violation per day, thanks to a new bill passed unanimously by the Denver City Council on Monday.

The new regulations are intended to ensure “the responsibility for compliance is shared more evenly among the industry participants, rather than only being placed on our hosts,” according to the Denver Excise and Licenses Department, which enforces the city’s short-term rental laws.

In Denver and other cities across the country, short-term rental markets have been inundated with illegal listings that fail to comply with city standards. The housing alternatives can serve as income generators for residents but can also pose problems, including being used as “mini hotels” that lead to “commercial encroachment in residential neighborhoods and accelerate gentrification,” according to city documents.

The new law passed Monday night doesn’t mandate which method of compliance a platform uses. To assist with investigations, however, short-term rental licensees will be required to keep certain records for one year and booking service providers, such as Airbnb, Vrbo and Homestay, will need to keep them for five years.

Under the updated rules, any platform that receives a citation will have 10 days to appeal.

In 2019, Denver collected over $10.6 million in lodger’s tax revenue through short-term rentals, accounting for approximately 10% of the city’s total lodger’s tax. That same year, Airbnb reported 547,000 guest arrivals in Denver, with hosts earning $89.4 million, according to the Excise and Licenses Department.

Several other cities, including Baltimore, Boston, Chicago, Seattle and the District of Columbia have also passed platform accountability laws.