One of only three Denver-area cities to allow Airbnb investment properties appears ready to reverse course.

The city of Littleton, as part of rewriting their land-use code right now, is likely to severely limit non-owner occupied short-term rentals. This could be good or bad for investors interested in vacation rentals or STR investments in Denver. I'll talk about why later.

For background, you can read this post about the 2020 law  about the 2020 law that allowed STRs in non-owner occupied homes. 

But it appears they're going to now only allow non-primary residence Airbnb as a "conditional use," which essentially means you have to have a public hearing and get approval. More directly, that means it's not a sure thing at all. For those nerds who like the details, you can watch video of council and city staff discussing the proposals or read the presentation here.

Is there a silver lining? Yes, for those who get in before the law is implemented you would have a legal STR, and future competition will be limited. In the video, council and staff are clear that they intend to grandfather in any existing short-term rental licenses. And in talking to my contact in the planning department, you likely have until Jan. 1, 2022 to close on a home and submit an application to be get an Airbnb license under the existing rules. (The new land-use code will be voted on Oct. 19, 2021 but likely won't be effective until Jan. 1, 2022.)

I'll be watching this closely as I have clients with existing short-term rentals in Littleton and a few actively looking there. Anyone else out there have an STR in Littleton?

http://littletongov.legistar.c...