Boulder County, Colorado streamlines STR regulation

Boulder County, Colorado streamlines STR regulation

James CarlsonPro Member
Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes

For anyone who cares about STRs in Colorado, I just learned that Boulder County earlier this month passed new short-term rental regulations. 

I guess it's surprising to me that the law allows for true non-owner occupied vacation rentals. Seems like the tide of STR regulation in Colorado is in the direction of restriction not permission. But Boulder County's rules still allow for STRs. It's not actually a huge change from existing rules. Rather it's more a streamlining.

A few changes:

-- They will have caps on the number of STRs. They're splitting the county into a few different zones. The eastern plains area will ban STRs. The western mountainous area is split roughly north and south. The northern part will have roughly 150 licenses. The souther area will have less (as the county tries to maintain a healthy housing stock for workers who might commute from just outside of Boulder proper into the city.)

-- They also did away with one of the "types" of licenses. Under the old regulations, they had three different licenses. They now have two -- essentially, less-rented properties and those that are more full-time vacation rentals.

-- They also did away with the discretionary process. Under the old system, even if you met the criteria for a full-time STR, you had to apply and the county conducted a special-use review. (Kind of like how Jefferson County still does it.) Now, under the new rules, if you meet the criteria, you get a license.

Some things didn't change, such as the requirement that the property be on unplatted land, so that definitely restricts the number of eligible properties. 

I do wonder how quickly those 150-ish permits in the north will get snapped up. 

2Reply
66 views

Most Popular Reply

John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
2y

Didn't I just see a proposal that would change STR classification so that they will have to pay 4x in property tax?

See this reply in the discussion

12 Replies

Jump to latestLatest
  • Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    2y
    Quote from @James Carlson:

    For anyone who cares about STRs in Colorado, I just learned that Boulder County earlier this month passed new short-term rental regulations. 

    I guess it's surprising to me that the law allows for true non-owner occupied vacation rentals. Seems like the tide of STR regulation in Colorado is in the direction of restriction not permission. But Boulder County's rules still allow for STRs. It's not actually a huge change from existing rules. Rather it's more a streamlining.

    A few changes:

    -- They will have caps on the number of STRs. They're splitting the county into a few different zones. The eastern plains area will ban STRs. The western mountainous area is split roughly north and south. The northern part will have roughly 150 licenses. The souther area will have less (as the county tries to maintain a healthy housing stock for workers who might commute from just outside of Boulder proper into the city.)

    -- They also did away with one of the "types" of licenses. Under the old regulations, they had three different licenses. They now have two -- essentially, less-rented properties and those that are more full-time vacation rentals.

    -- They also did away with the discretionary process. Under the old system, even if you met the criteria for a full-time STR, you had to apply and the county conducted a special-use review. (Kind of like how Jefferson County still does it.) Now, under the new rules, if you meet the criteria, you get a license.

    Some things didn't change, such as the requirement that the property be on unplatted land, so that definitely restricts the number of eligible properties. 

    I do wonder how quickly those 150-ish permits in the north will get snapped up. 


    Yes we have one in BoCo that's less than 2 miles from Pearl Street. Very little vacancy there over the past 4 years since we've been running it as a combo MTR/STR (because of the cap on the number of nights it can be rented). I was worried for a minute when the county mailed a survey to me asking how I felt about STR's, but now that the review of their system is over, I feel confident that they won't make any more major changes here for a while. I don't think those permits will get snapped up that quickly: we have very little inventory and the barrier to entry is a little high as the entry-level price point is $1.3ish Million for any properties that would work well as an STR. I looked at one yesterday that would be awesome if anybody is interested!

  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    2y

    Colorado is one state I cross off my list of places to look.

    Too much upheaval and dislike of STRs in general. 

  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    2y

    Didn't I just see a proposal that would change STR classification so that they will have to pay 4x in property tax?

  • James CarlsonPro Member
    OP
    Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
    2y
    Quote from @John Underwood:

    Didn't I just see a proposal that would change STR classification so that they will have to pay 4x in property tax?

    Yep, wrote about it a little over here. It seems like it might pass but will also get amended heavily before passage. 

    I think a lot of people just want a second home in Colorado and as long as it breaks even, they're fine. Obviously it's a pure investment STR, that proposed law could change things. (Our property taxes are some of the lowest in the country, but still.)
  • James CarlsonPro Member
    OP
    Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
    2y

    @Steve K.

    Yeah, If anyone is interested in an STR near Boulder, this seems a good time. Even if they're were to change their law again in 5 years or something, I haven't seen a Colorado city or county not grandfather in existing short term rentals once they're actively allowed them.

    You're probably right about the price point slowing people from coming in. But what about the existing vacation rental permit holders? Do they count toward the permit cap? Like if there are 65 already existing, will they apply for this new permit and gobble up a lot of them? I need to find out. 

  • Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    2y
    Quote from @Michael Baum:

    Colorado is one state I cross off my list of places to look.

    Too much upheaval and dislike of STRs in general. 

    I haven’t had any issues here, and I find the courts here to actually be extremely landlord-friendly (even in Boulder which may surprise some people, but I’ve always been treated very well in that court). We’re usually listed in the top 5 or sometimes top 3 landlord-friendly states. Evictions are quick and easy (just a few weeks, faster than most states), judges have always been 100% on my side, sheriffs conduct the move-out quickly with no fuss, there’s no notice required for owners to inspect or enter the property if they want to (I usually still try to give some notice out of courtesy, but it’s nice that I’m not required to), rent control was prohibited entirely across the state in 1981 (recent efforts to overturn that have failed), HOAs don’t have much power here (max fine is $500 for non health and safety violations, they have to give ample notice before any fines, can’t foreclose over late fees or fines, etc.). There have been some changes over recent years like LTR and STR licenses being required now, but it’s still much better here than most places all in all. I actually prefer regulations over not knowing what’s going to happen and risking being shut down entirely. We had zero regulation over STRs here for a few years when Airbnb first started back in the day, and truthfully it was bad: whole blocks of downtown were basically hotels for a little while there and it started to feel more like a commercial district than residential. It’s better with limits STRs for the people who live here and just in general IMO. Without limits, STRs tend to eventually get banned altogether as they erode the character of the community. So I’m okay with a bit of balance, and it probably makes for better property value appreciation. Our biggest issue is lack of affordable housing and lack of inventory in general, which of course creates strong demand/ low vacancy and high rent and price appreciation. 
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    2y

    I hear ya @Steve K., but most of what you are focusing on is LTR. With STRs, I am more concerned about restrictions and outright bans. 

  • Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    2y
    Quote from @Michael Baum:

    I hear ya @Steve K., but most of what you are focusing on is LTR. With STRs, I am more concerned about restrictions and outright bans. 


    Yeah, my only STR's are/have been former primary residences that are in my portfolio because I didn't want to sell them, and because I've had so much demand on them they end up being MTR's (one STR guest stayed for 2 years lol, paying STR rates). I do however know a few people that have scaled up STR businesses here, like one friend/client who has 12 and there are some bigger players for sure. The regulations definitely discourage that type of business model (like Westminster and Longmont that only allow you to have one dedicated STR, and towns with caps on them etc.). Mostly what we see here is a mix of personal use/2nd homes being rented out when owners aren't using them (or primary residences with part of the home being rented out which is allowed almost everywhere still). I'm fine with that personally, it's less of a commercial use of residentially zoned neighborhoods/ has less negative impact on the community while also infringing less on personal property rights. I actually think it's a pretty good balance.

  • Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    2y

    @James Carlson I talked to the county today. The new ordinance should be up on their website in the next few weeks. The big change is that what they're calling vacation rentals (full time dedicated STR's) will be separated from owner occupied, renting a part of the home (ADU's/in law suite stye STR's). The idea is to move away from licenses being issued at the discretion of the commissioner, to streamline the process and have any properties that complete the application and meet the criteria get a license. Existing STR's of both types will be grandfathered in and will count towards the new cap. The county is being divided into 3 sections for this purpose: E, NW, and SW. No vacation rentals will be allowed in the E part of the county, while the NW will cap out at 200 licenses, and the SW will cap at 100. The border between N and S is basically the canyon. So total 300, only on the W side of town, and there are currently only 12 in the wild that will count against the cap. The gentleman I spoke with didn't think they'd have another 288 applications in hand anytime soon, and suggested that these regulations would be good for the next 5 years. But of course they can change the cap at any time. Similar to Longmont and Westminster, owner's will be limited to the number of STR's they can have, in this case the limit is one "vacation rental" STR and one "owner-occ with in-law suite/ADU" type STR.

    I looked at a couple properties this week that would work great as STR's...

  • Member since 2024 · 2 posts · 1 vote
    2y

    Hi - just getting up to speed on STR in Boulder in relation to a property I'm considering with great potential for converting an inaccessible former garage to an ADU.

    I'm confused because the currently posted rules for Boulder seem to disallow use of an ADU for STR?  See screenshot below from https://bouldercolorado.gov/services/accessory-dwelling-units. 

    Is this what the new ordinance that you describe @Steve K. will replace?  

  • Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    2y
    Quote from @Nathan W.:

    Hi - just getting up to speed on STR in Boulder in relation to a property I'm considering with great potential for converting an inaccessible former garage to an ADU.

    I'm confused because the currently posted rules for Boulder seem to disallow use of an ADU for STR?  See screenshot below from https://bouldercolorado.gov/services/accessory-dwelling-units. 

    Is this what the new ordinance that you describe @Steve K. will replace?  

    We were talking about county, sounds like you’re in the city? Send me the address. 
  • Member since 2024 · 2 posts · 1 vote
    2y

    Ah - got it!  This is in the county.  all set. thanks!

Join the conversationCreate a free account to reply, vote on answers and follow this thread.