Denver couple face felony charge over Airbnb

35 Replies

@Thadeous Larkin - I wish more people would research what they do, and certainly would spend more time suggesting publicly to know what they are talking about, before doing either.
Honest, facts, are always appreciated.

I live in Evergreen which is about a 20-30 minute drive from Denver. I would now be careful investing in Denver for anything especially Airbnb. Denver has just elected 5 new city council members who are left of the previous ones including 1 who says she will bring in communism by any means necessary. Not to be political just stating facts...

@Matt Swearingen

I don't mind the question at all. It's a good one. 

I think some people think regulations are bad. Period. End of story. For me, I weigh the intrusion of government oversight with the intended goal of alleviating a societal problem. I think housing affordability is a serious issue, and a few studies -- here and here, to name a few -- show that an increase in short-term rentals leads to a decrease in long-term rentals. (Economics tell me fewer LTRs equals higher rent prices.)

For some people, the calculus might lead them to say the intrusion is not worth the small exacerbation of the housing affordability problem in Denver. For me, it does. I think unfettered markets result in yawning inequality. I don't want an outright ban, just small measures. A primary residence rule, or even a primary residence + one STR type of rule seem reasonable.

I can see the other side. I just don't fall into that camp.

@Nate Marshall

It's an interesting point. The new Denver city council members definitely tend to lean against short-term rentals. And in watching the Short Term Rental Advisory Committee meetings for some time, I see a tilt there in favor of stricter regulations. They're talking about imposing a 183-day occupancy minimum for STRs. (Meaning not only does it have to be your primary residence but that you have to live there for six months and a day for it to be considered your primary residence.)

Damn, another prominent Denver resident -- this time an immigration lawyer -- is charged with a felony over his use of short-term rentals. Looks like the city of Denver is no screwing around with their Airbnb laws. Again, the issue here is a new rule in effect as of April 1, 2019, that mandates new and renewing STR applications to sign a legal affidavit affirming the property used for STRs is their primary residence. If the DA's office can prove that you in fact live somewhere else and knew that, then they're filing felony charges.

So here's a legal question in terms of loopholes, what prevents someone from using a property as a short term rental and on the booking of the property and a12 month lease is signed with wording of "if the lease is broken early a daily rate will be prorated via X amount per day and can be broken for any reason".... Making the property an actual long term rental where basicly everyone just breaks the lease and gets charged a daily rate?   Anyone?   LOL  

Originally posted by @David Roe :

So here's a legal question in terms of loopholes, what prevents someone from using a property as a short term rental and on the booking of the property and a12 month lease is signed with wording of "if the lease is broken early a daily rate will be prorated via X amount per day and can be broken for any reason".... Making the property an actual long term rental where basicly everyone just breaks the lease and gets charged a daily rate?   Anyone?   LOL  

 Here's my question. Why risk it? They are facing felony charges. They will arrest the offenders and let the courts handle it. Are you going to fight the loophole and risk the felony, plead to a misdemeanor, or find something else to invest in? 


Originally posted by @Matt M. :
Originally posted by @David Roe:

So here's a legal question in terms of loopholes, what prevents someone from using a property as a short term rental and on the booking of the property and a12 month lease is signed with wording of "if the lease is broken early a daily rate will be prorated via X amount per day and can be broken for any reason".... Making the property an actual long term rental where basicly everyone just breaks the lease and gets charged a daily rate?   Anyone?   LOL  

I agree 100%, my comment was more so a joke/stab at the local policies that i feel are nuts, like mentioned before they wont allow Short term leases but allow drugs... LOL  Why not collect the revenue from any form of business coming to their City.  I hate when Government tries to mandate private industry.  

I'm a little late to the discussion, but thought I'd share that if you really want to read about some nightmare rent control laws, take a look at the regulations just signed into law in New York. Wowser! 

And also just my two cents worth (or maybe not even that), but while the pessimist in me would like to believe that the Airbnb regs are "just to cater to the hotel owners," the realist in me thinks about the fact that I wouldn't want the homes in my neighborhood turned into short-term rentals with different folks there every night or even every week. 

Wait, then again, with some of my neighbors, maybe that's NOT an all-bad idea! But I digress...

Thanks for your thoughtful response 

@James Carlson


Not arguing, just a counter point: Housing/rental shortages are almost always caused by zoning laws and restrictive building codes that make it difficult or even impossible for developers to add to the supply of units in a growing demand area.

Often established property owners in the area fight FOR these codes to keep the competition from driving down the rents on their existing buildings.  They're creating a barrier to entry with the help of local politicians, no room for corruption there I'm sure.

Grant Cardone even offers advice on how to buy properties in areas like this.

So the government creates the problem and then rides to the rescue to solve it?

Sydney (a growing metro) got their housing costs down, by making it easier to build more housing. Supply and demand, imagine that.

Sorry for the cynicism. Not directed at the posters here of course, merely the situation. 

Originally posted by @James Carlson:

@Matt Swearingen

I don't mind the question at all. It's a good one. 

I think some people think regulations are bad. Period. End of story. For me, I weigh the intrusion of government oversight with the intended goal of alleviating a societal problem. I think housing affordability is a serious issue, and a few studies -- here and here, to name a few -- show that an increase in short-term rentals leads to a decrease in long-term rentals. (Economics tell me fewer LTRs equals higher rent prices.)

For some people, the calculus might lead them to say the intrusion is not worth the small exacerbation of the housing affordability problem in Denver. For me, it does. I think unfettered markets result in yawning inequality. I don't want an outright ban, just small measures. A primary residence rule, or even a primary residence + one STR type of rule seem reasonable.

I can see the other side. I just don't fall into that camp. 

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