Is there a good resource to find out if a city is STR-friendly?

Question

Hello all, I am looking for a resource that shows STR-Friendly locations. I know in Denver, CO area that Arvada, Wheat Ridge, and unincorporated Adams County allow STRs. I'd like to know about Greeley, Loveland, Fort Collins, Colorado Springs, Pueblo and Trinidad. Is there a resource that lists this kind of info? Thanks for any help!

John Mausteller · Answer

I would call the cities and towns you are thinking of, and also check out listings on Airbnb and VRBO there.  If there are restrictions, many towns require the permit number be listed on the website where the home is rented through.  Also, if you see lots of rentals available in the area, it will at-least let you know they are allowed in some capacity.  The best bet is to call the towns or cities though and ask - you will most likely get the most accurate answer.

Jordan Malara · Answer

Hi Andre, I have a few STRs down in the Springs and as others have mentioned, the city of CO Springs has tightened regulations over the years, but it is still possible to find properties that can be used as STRs. I'll also add that anything outside of the City of Colorado Springs is still fair game at this point, but that doesn't mean that won't change in the future.

You could definitely call the planning departments for each city which would give you a very accurate answer but a better first step might be to connect on BP with investors in those areas to see if they are good STR markets to begin with. Best of luck to you!

Andre Galaviz · Answer

Thanks for all the suggestions! I have a ton of appreciation for the BP community. I learn a lot from everyone every time I post a question. I'll do the work! Again, I appreciate all the information. @James Carlson I'll check out your podcast, thanks!

Ricardo Hidalgo · Answer

Navarre to Panama City beach is short term rental friendly. Majority of the condos, townhomes and beach houses are being used for STR with no issues!

James Carlson · Answer

@Andre Galaviz

Like @Richard Updegrove said (and thanks for the shout out Richard), we talk a lot about STR policies on our Colorado Real Estate podcast. We also have a database of reports on city laws on our webstie, but truthfully, we haven't updated all of them in a bit.

Fort Collins is okay. They have a two-tier system of zones for primary residence-only Airbnb and zones for non-primary-residence-allowable short-term rentals. Colorado Springs has tight regulations, but does allow them in certain scenarios, and we've helped buyers buy five Airbnb investments in the Springs in the last year. Through my searches, I usually find an STR-eligible property in the Springs every two weeks or so.

But in general, there is no database or easily consolidated list. All STR laws are city or county specific, and in the end if you're looking for an Airbnb investment, there are two big ways to go about (and maybe doing both is smart).

1. Work with an agent who understands how to find these laws. We talk to the planning departments all the time and know the questions to ask. (Are rentals of less than 30 days allowed? Any density restrictions? Any limits on nights that you can STR rent it? Any plans to change the rules? Etc.)

2. Call the planning departments yourself. Ask for a planner of the day and pepper them with questions. Also, whatever they tell you, be sure to ask for the actual ordinance that backs up what they're telling you.

Good luck!

Jennifer Moraski · Answer

My STR is in an unincorporated area in WA and they just recently passed new STR regulations. I’d recommend finding a knowledgeable real estate agent in the area who knows the local zoning laws. You are smart to do your research first before even looking at a potential property. Good luck!

Richard Updegrove · Answer

hey there! I live and invest in Arvada. I have 2 STRs there. It sounds like you have done some good research so far! I believe fort Collins and Colorado Springs are pretty strict. I find it best to just Google the city and see if there is any info on STRs within that city or county. There's also a local podcast for the Colorado springs area which covers a ton of info about STRs, https://www.erinandjamesreales...

Also, be careful of unregulated areas. It's just a matter of time before they put an STR policy in place. I'm under contract on a property in Park County which now allows permitting for STRs. Good luck on your hunt!

Eliott Elias · Answer

Call the planning and zoning departments in those cities.

William Anderson · Answer

Here are some things you can do:

1. Check the zoning ordinances for STR, they are generally online.  If there are none, call and ask if there will be rules.

2. Ask the business license department if one is required.

3. Check with your state about registering to collect sales tax if there is any.  ABB&VRBO collects and pays it but if you collect any from direct bookings, you will have to pay it as required.  If a permit is required in your community they will usually ask for your tax permit.

3. When you know that STR is acceptable in specific zones, look at the map online

4. If you are looking for a property in a specifically permitted zone, visit the planning department and talk to someone.  Short of that visit, call and speak to someone.

4. Speak to an owner who has an STR in your selected zone, and get the "real" story.

Keep this in mind.  Even if an STR is permitted for example in a zone, this does not mean it's ok.  Many communities have or are writing ordinances to specifically regulate SRTs.  They want specific parking requirements, safety e.g. exits marked, ramps, and more.  I know one community that wants your permit (yes you must have a license) to be posted on the inside of the entrance door or close by.  The fire department must come out for an annual inspection.

Sometimes a community does not want STRs.  They may allow them but make it challenging to own and operate.  Consider when you want to sell the property as an STR.  Some communities require the new owner to obtain a new permit which they can reject.  The new owner can not apply for a permit until they own the property.  Imagine if you are trying to sell a property and the potential buyer tells you they can't take the risk that the city will grant a permit.  This is the case with one city in the area where I work.

I recently told a councilman from this city that real estate agents are telling prospective buyers to avoid their city for STR because of the onerous rules.  He was surprised.  I explained that the paper says one thing but under the table rules are different.

Oh, by the way, the code enforcement people in this city look at ABB and VRBO, they find owners who don't have permits and the fine is $500 per day.  Never risk buying a property where you are not sure not only are the rules permitting you but the policy as well.

Chris Pasternak · Answer

Currently Pueblo does not have a short term rental code written so any operating are technically illegal.  If you look on Airbnb for example you’ll find a lot of owners.  That’ll change within a years time as the city is working on adopting code.

Is there a good resource to find out if a city is STR-friendly?

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