Although renting out a vacation home could prove a wise investment, it’s essential to be familiar with the regulations that may affect your ability to do so. Regulations on short-term rentals have been established in many towns to solve the issue of affordable housing for local workers. These rules include zoning limitations and license restrictions.
Breckenridge Short-Term Rental Zones
In Breckenridge, the town is divided into four zones, each with its licensing cap. In Zone 2, only 130 properties out of 257 are allowed to obtain short-term rental licenses. With 142 licenses already issued, property owners may have to wait up to 10 years for a license. In Zone 3, which has the highest number of properties, only 390 licenses are allowed for over 3,800 units. With over 1,200 licenses already issued, a new license in this zone may take up to 30 years. Large, corporate-owned lodging near the resort are exempt from these license restrictions, allowing them unlimited licensure.
Based on recommendations from the Short-Term Rental Task Force, data gathered from town employees, and existing Land Use Districts, Breckenridge developed a zoned approach to short-term rental licensing. The downtown center (Zone 2), single-family residential districts (Zone 3), resort properties (Zone 1), and tourism (Zone 2) are among the defined zones. The number of short-term rental licenses in effect in 2022 is shown in the table below, along with the maximum number of permits that can be obtained in each zone.
The established license caps have no impact on licenses for short-term rentals that are currently in place in any zone. Individuals who currently hold licenses are allowed to continue renting out their properties. Since licenses are not transferable, they can only be canceled through the sale of the property or by the owner’s choice not to renew them.
As properties are sold or homeowners choose not to renew permits, the total amount of licenses in Zones 2 and 3 will likely decrease to reach the planned cap numbers.
You can determine if a property is within an approved rental zone by consulting the Breckenridge zoning map here.
Blue River Short-Term Rentals
In Blue River Colorado, anyone wishing to rent their home for 30 days or less per month is required to obtain a short-term/lodging license from the Town of Blue River, negating the need for a license from Summit County if the property is within the town limits. Taxes must be paid quarterly, and the property’s occupancy is limited to two people per bedroom plus two. There is no cap on the number of short-term rentals, though the town is evaluating this policy. License holders must rent their property for at least ten days per year to maintain their license without a maximum rental day limit.
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