Colorado Springs Short Term Rental Regulation Update

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I wanted to give an update on what happened at the Colorado Springs Planning Commission meeting today. The new regulations were presented and then multiple people spoke both for and against it - those against basically wanted to see it tweaked but weren't against the overall regulation. Several people spoke against STR's in general and some really are pushing for STR's to be ONLY allowed in a person's primary residence similar to Denver. Others want the number of permits to be limited like Manitou Springs. When it came to the vote, three of the six commissioners felt so strongly that STR's would change the face of neighborhoods that they said they too want it to be limited to only an owner's primary residence. The other three commissioners liked the ordinance as it was presented so the six commissioner's vote resulted in a tie.

The ordinance now moves on to the City Council with a neutral recommendation from the planning commission (due to the tied vote). I'm not sure if it'll be on the September or October City Council Agenda but will update as soon as we know. I believe we are in real danger of being overly regulated like Denver which will shut many investors and STR owners down so I'm asking any stake holder to keep an eye out and plan to attend the council meeting when it's announced and speak in favor of STR's. The planning commission seemed to give a LOT of weight to those who spoke so it's important that we have a large turnout when it comes to the city council. Many of us have significant investments so please speak up if this affects you!

@Robin Searle Thanks for the update! I'll be sharing this with my family in Colorado. Every city in the nation is scratching their head at how to regulate this stuff. At the same time, it's very hard to get financing on the STR properties because lenders can't securitize the loans to sell on Wall Street in most cases.

I hope you come out on top of the ruling!

You should be carful and hope that the meeting is not swamped by STR investors. That could definatly sway the vote to the negative. It could reinforce the feeling that STRs will change the face of neighbourhoods, which in reality is very true.

Thanks very much for keeping us updated!  I've been following from a distance since I have no short term rentals as yet in the Springs, but I and a friend have been considering it.

Originally posted by @Thomas S. :

You should be carful and hope that the meeting is not swamped by STR investors. That could definatly sway the vote to the negative. It could reinforce the feeling that STRs will change the face of neighbourhoods, which in reality is very true.

I agree.  The more support from investors, the less likely this will be seen as a nonissue, unfortunately.  I suppose one play is how much money the city could make from STRs. That would be a strong factor in influencing their decision in our favor.  Otherwise the city may decide to support the Long Term residential paradigm of the neighborhoods since the residents are the ones doing the squawking.

@Tobin Bereznak At the planning commission it was split pretty much 50/50 on residents who want no STR's and those who are fine with them. I think the point is that the council tasked their employee to work with the citizens and she listened to both sides and spent several months putting together a very fair piece of regulation. I do think it's important for STR owners to show up and voice their support of her work. Otherwise the council will only hear from opponents.

@Robin Searle @James Carlson, have you seen the news on the new proposed bill in Colorado to reclassify STR's to commercial property? I've got family that texted me they saw the local nightly news tonight was reporting something about a huge tax increase on STR's. Did a quick search and turned up a few hits on the new proposed bill.

@Buckner Toney Yes the Gallagher amendment came up at the meeting of the CS Short Term Rental Alliance this week. From what I’ve read they will have a tough time reclassifying since a lot of people live in their STRs either part or full time (if they rent out a room for example). Definitely something to keep an eye on though.

LATEST UPDATE: I attended the Colorado Springs City Council Work Session on 9/24/18. No public input was allowed but we got to hear different council members opinions on the fate of STR's in the city. The outcome was a bit confusing. Several council members are in favor of putting a cap on the number of allowed STR's (similar to Manitou Springs) but it was put forward by Meghan Herrington and Jill Gaebler that we don't know how many there are until everyone gets registered and then the data will be there. The council asked Meghan to do some more work on the proposed regulation and her boss suggested it be brought back to the council October 23rd at 1 pm for a vote. At this point, we have no idea what changes will be made but Meghan did say she wanted to make sure everyone on both sides of the issue (STR owners and public who are against STR's) get to see the revised regulation prior to the meeting. I'm moving forward finishing construction on my 2/2 in Old Colorado City with the back up plan of doing corporate or travelling nurse rentals if STR's are shut down. I've already invested in a lot of furniture so had to come up with an alternative plan!

Aloha

This sounds a lot like Honolulu Hawaii where there is a bill to limit the number of STR to 1% and allow unlimited B&B or hosted vacation rental. There would be a $800 permit fee and they would raise the property tax 2.5 times for B&B and raise the tax 4 times for stand alone units.

Thank you for the updates. I have been interested in starting a STR in CS. please keep us updated.

https://www.krdo.com/news/top-stories/airbnb-ordinance-passes-2nd-vote-by-colorado-springs-city-council/862178044?fbclid=IwAR3WWfFpJlSrl8paP7eAM5yroBQOI4XwFYpQO_qZkZvjjWCCdNEdjjU9GtA