Short-term Rentals in Denver

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1 Short-term Rentals in Denver Proposed Denver Zoning Code Text Amendment 02/08/2016 Public Review Draft Summary

2 Table of Contents This document contains: Summary of the process for the text amendment Purpose of this amendment Summary of the proposed changes This proposed text amendment is sponsored by Councilwoman Mary Beth Susman.

3 Text Amendment Process (all dates tentative) Summary Review with INC ZAP: Jan. 23 Public Review Redline Draft posted to CPD website and informational notice sent to RNOs: Feb. 8 Community Town Hall Meetings: Feb. 3, 10, 17, 25 Planning Board Public Hearing: March 16 Notification to RNOs and City Council 15 days prior to public hearing Planning Board Draft of text amendment and staff report Public hearing and Planning Board recommendation

4 Text Amendment Process (all dates tentative) City Council Neighborhoods and Planning Committee meeting April 13 Notification to RNOs 15 days prior to meeting City Council First Reading City Council Public Hearing Spring, 2016 Notification to RNOs 21 days prior to public hearing Public Hearing and decision by City Council

5 Purpose of Text Amendment Acknowledge the growing popularity of shortterm rentals while protecting neighborhoods from potential impacts Implement zoning revisions that support implementation of a business licensing system for short-term rentals (separate process) Promote improved tracking and enforcement related to short-term rentals Better align requirements and taxation of shortterm rentals with those for lodging accommodations (hotels/b&bs)

6 Short-term Rentals Background What is a short-term rental? Rental of a dwelling unit, or portions of a dwelling unit for less than 30 days Note that the Denver Zoning Code does not currently define short-term rental Are short-term rentals currently allowed in Denver? Short-term rentals are not currently allowed in residential districts Neighborhood Inspection Services enforces by complaint 6

7 Short-term Rentals Background How many short-term rentals are there in Denver? Over 2,000 rentals are listed online Many rentals are not available at all times Most rentals are conducted by the primary resident of the unit Discussion on Short-term rentals to date Sharing Economy Task Force Neighborhoods & Planning Committee 4 meetings to discuss STRs in special session on STRs in 2016 Inter-neighborhood Cooperation 2 presentations and Q&A sessions in 2015 Steering Committee 7

8 Summary of the Text Amendment Amend Denver Zoning Code to specifically allow short-term rentals as accessory to a primary residential use with limitations Allowed in all zone districts where residential uses are permitted Shall be operated by the a person who maintains the dwelling unit as their primary residence (not by absentee landlords/persons who do not live in the dwelling unit) 8

9 Summary of the Text Amendment Shall not be externally visible A 10 inch square non-illuminated sign allowed, consistent with existing allowance for home-based businesses Shall not be operated in mobile homes, RVs or trailers Shall not include rental to more than one party at the same time (as would be allowed in a hotel or B&B) 9

10 Summary of the Text Amendment The proposed text amendment to the Denver Zoning Code includes revisions to: Articles 3-9 to permit short-term rental as accessory to a primary residential use with limitations Article 11 to define short-term rentals and provide limitations Definitions related to existing Lodging Accommodations uses are also amended to help clarify how they differ from shortterm rentals Article 13 to revise/remove conflicting provisions 10

11 Relationship to Licensing This proposed text amendment is intended to support implementation of a parallel business licensing system for short-term rentals For more info on the licensing process: Most requirements and enforcement related to short-term rentals will be part of the licensing process conducted by the Department of Excise and Licenses 11

12 Relationship to Licensing Zoning Allow short-term rentals as accessory to a primary residential use Provide basic requirements regarding where short-term rentals may be conducted (in either primary or accessory structure, but not RV, etc.) Provide basic limitations similar to a Home Occupation Do not require a zoning permit Rely primarily on licensing for specific requirements and ongoing enforcement Licensing Require a business license to conduct shortterm rentals Verify primary residency Provide detailed safety requirements (smoke detector, CO detector, liability insurance, etc.) Require annual license renewal and posting of license number in online listings Enforce license requirements and levy fines 12

13 For More Information Contact Councilwoman Mary Beth Susman: Contact Abe Barge, AICP, Senior City Planner: Visit our website at

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