HOA rules for Short term rentals in Highlands Ranch Colorado

[Jared Vaughn]

Hi everyone, I purchased a home in Highlands Ranch a year ago that I currently live in. I am looking to finish off the 900 sq/ft walkout basement into short/mid-term rental. Wondering if anyone has had any experience doing this in Highlands Ranch. So far the only limitation I have herd of is a 30 day minimum but can not find this in the HOA rules and regulations. I have seen and followed walkout basements being rented short term here now for over a year and seem to have no issues. Any help would be greatly appreciated.

[John Underwood]

Does your HOA have rules against you running a business? A STR is a business as it requires commercial insurance.

[Ryan Williams]

@Jared Vaughn Hey Jared, the city itself doesn't have any short term rental regulations to my knowledge (at least that is what the city planner told me on the phone), it's just totally dependent on the HOA regulations. Many homes in Highlands Ranch have 2 HOA's, the general one that covers the entire city and then many have an additional one for their specific neighborhood. It has to be allowed under both HOA's. Sometimes it will have language that any lease on the property has to be at least "x" amount of time. If you can't find language in the HOA's that don't allow it, bake your neighbors some cookies, and go for it!

[Jared Vaughn]

Quote from @Ryan Williams:

@Jared Vaughn Hey Jared, the city itself doesn't have any short term rental regulations to my knowledge (at least that is what the city planner told me on the phone), it's just totally dependent on the HOA regulations. Many homes in Highlands Ranch have 2 HOA's, the general one that covers the entire city and then many have an additional one for their specific neighborhood. It has to be allowed under both HOA's. Sometimes it will have language that any lease on the property has to be at least "x" amount of time. If you can't find language in the HOA's that don't allow it, bake your neighbors some cookies, and go for it!

 @Ryan Williams thank you for this! Luckily I have only 1 HOA to deal with and already on great terms with the neighbors.

[Jared Vaughn]

Found some further info in the Residential Improvement Guidelines. Looks like (b) is promising! 

4.2. Residential Use. Each Residential Site in the Annexed Property shall be improved with a
Dwelling Unit and used solely for 

(a) one Common Household Group for residential living purposes
and such purposes as are customarily incident thereto, and shall not be used at any time for
business, commercial or professional activities; provided, however, that 

(b) an Owner of a Adopted June 15, 2021, revised December 7, 2021 11
Residential Site in the Annexed Property may use his Dwelling Unit for professional or other home
occupations so long as there is no external evidence thereof and no unreasonable inconvenience
to the neighbors is created, and 

(c) the Owner of such Site may rent or lease a Dwelling Unit
constructed on the Site for residential living purposes for a term of at least thirty (30) days, pursuant
to a written lease or rental agreement. The terms of any such lease or rental agreement shall be
subject in all respects to the provisions of this Supplemental Declaration, the Community
Declaration, the Articles of Incorporation and the Bylaws of the Community Association, and shall
provide that failure by the lessee of such Dwelling Unit to comply with the terms of any such
documents shall constitute a default under the lease or rental agreement.
Considerations will be based upon, but not limited to the following criteria: trash, sound, odor,
signage, traffic, vehicles, parking, deliveries, employees, and impact to neighboring properties.
Homeowners should also contact Douglas County for zoning restrictions regarding home-based
businesses

[James Carlson]

@Jared Vaughn

Yeah, I'd just do a traveling nurse type/medium-term rental model. There is a big demand for those 30+ day rentals right now. (This is what we do two condos in Denver and a SFH in Colorado Springs.) The revenue is not quite as good as an STR, but it's better than a long-term rental and a lot less work than an Airbnb.

I'd check out Furnished Finders. The site design is terrible, but for the flat $99/yr fee, you get a lot of good leads. We get most of our tenants through FF.

Good luck!

[Ben Einspahr]

@Jared Vaughn, for a few years now I have been juggling between renting a similar space I have up in Arvada out on both Airbnb (30 day min stay) and Furnished Finder (agree @James Carlson, craigslist has a better site than FF). I prefer Airbnb purely b/c more rental income and easier turn over. Every time there is a turnover, I do not have so set up a new lease agreement, background check, security deposit, and a form of rent collection every time I have a turnover. All personal preference.

On the other hand, traveling nurses make excellent tenants (very responsible, keep to themself, and have a reliable source of income)

Best of luck!

[Joshua Messinger]

Hey @Jared Vaughn! 

I would call your local township office/zoning office. They will be able to give you any updates on recent ordinance changes and overall information on the rules and regulations in the area. A quick call is always better than risking getting fined or potentially losing the opportunity to get a license to operate! 

If you have any other questions please don't hesitate to reach out! 

Best of wishes,

Josh

[Rosalie Borja]

Quote from @Ben Einspahr:

@Jared Vaughn, for a few years now I have been juggling between renting a similar space I have up in Arvada out on both Airbnb (30 day min stay) and Furnished Finder (agree @James Carlson, craigslist has a better site than FF). I prefer Airbnb purely b/c more rental income and easier turn over. Every time there is a turnover, I do not have so set up a new lease agreement, background check, security deposit, and a form of rent collection every time I have a turnover. All personal preference.

On the other hand, traveling nurses make excellent tenants (very responsible, keep to themself, and have a reliable source of income)

Best of luck!

 @Ben Einspahr do you post your mid-term rentals on Airbnb as well or do you only do STR on that app? I like the idea of MTR and wondered if Airbnb is a good platform for that.

[James Carlson]

@Rosalie Borja

We use Airbnb for our medium-term rentals in Denver and Colorado Springs as well as Furnished Finder. And Airbnb is definitely pushing the remote-worker/travel nurse rental model.

That said, we're considering getting off of it. I have a lot of small complaints. (1. I hate how overbearing Airbnb messaging hosts like me when there is a new inquiry. I don't need to be reminded every hour to respond. 2. I find the expectations of MTR guests who come through Airbnb is higher than those coming through FF.) But the real reason is that FF seems to give us everything we need, and I hate having to juggle multiple sites, when one will do the trick.

I wonder what others have experienced -- where do most of your Denver or Colorado Springs medium-term renters come from -- Furnished Finders? Airbnb? Somewhere else?