Update on Short-Term Rental (STR) Regulations in Summit County

 

The real estate market is constantly changing, and staying current on the latest regulations and news can be challenging. This article will summarize the latest rules regarding vacation rentals in Breckenridge and Summit County. The new regulations state that short-term rentals (STRs) are only allowed in exempt condominium complexes and locations. Therefore, owners who wish to rent their properties for less than 30 days must comply with these new regulations.

 

The market is gradually shifting from one Seller's market to one that is more balanced, as evidenced by the average sales price to the original asking price ratio dropping to 98% in August. Our current stock is 134% larger than last year, which is excellent news for potential buyers. 

 

Additionally, the Town of Breckenridge has adopted a new law regulating short-term rentals, which has increased the demand for properties in Zone 1. Check out the Town of Breckenridge's website for more information. 

 

The various zones are shown on this map. 

 

Breckenridge Short-Term Rental (STR) Updates

The revised Breckenridge short-term rental code, which includes the new overlay areas, was passed by the town council unanimously. This new law sets limits on the number of short-term rental licenses that the town can issue in each of three areas: Zone 1 (tourism/resort properties / “exempt" properties), Zone 2 (downtown core), and Zone 3 (single-family homes). 

 

Breckenridge STR Limits by Tourism Zone

Resort properties (also known as “exempt”): 100% of the homes are permitted to be rented out to short-term guests.

There is currently availability in Resort properties for new permits.

 

Zone 1: 92% of housing stock allowed to be short-term rentals.

There is currently availability in Zone 1 for new permits.

 

Downtown core (Zone 2): 51% of the homes are allowed to be used as short-term rentals. 

Zone 2 has 55% of homes currently permitted as STR, and the town is reducing that to 51%.

 

Single-family (Zone 3): only 10% of the homes are allowed to be used as short-term rentals. 

Zone 3 currently has 32% active permits, and they are reducing that to 10%. They hope that attrition will eventually lower the total permits in these areas that are above saturation. These new regulations may vary depending on the type of property involved. 

 

The Tourism Overlay Zones are also available as a searchable GIS tool.

 

The date of September 27, 2022, has been set as the start date for the new ordinance. 

 

Please view the updated ordinance in full

 

Summit County STR Updates

Summit County has implemented a moratorium on new short-term license permits until late February 2023. They are in the process of writing new rules during this period. Keystone and Copper Mountain Resort areas are currently exempt from this moratorium. Expectations are that these areas will continue to allow unlimited STR licenses in the future.

 

Frisco STR Updates

On the first reading on September 27, 2022, the town of Frisco decided to adopt a 25% limit on short-term rental permits within the Town. The present level is somewhat less than 22%, giving some possibility for new licenses.  View Frisco regulations here

 

The municipality is allowing new licenses to properties under contract before October 11th. The municipality enables units under construction to get STR licenses as long as they have a building permit and are being reviewed by October 11th.

 

Silverthorne, Blue River, Dillon & Park County STR Updates

Silverthorne, Blue River, Dillon, and Park County have not yet changed their rules. However, Silverthorne is discussing possible limits to STRs.

 

Property Management Options for Longer Rentals

Property management companies are already servicing the new "longer" short-term rental breed. A resource is Peak Property Management, servicing all of Summit, Eagle, Park Counties, Pitkin (Aspen area), Grand, and Lake Counties.

 

For more information about short-term rental regulations, visit our STR resource page, with helpful links to community pages. 

 

Please let our management partner know that Perfect Mountain Home sent you and receive a $100 credit towards management services 😊 .

 

 

As a reminder, Perfect Mountain Home blog is educational in nature and is meant to provide a general update of current events in our real estate market. Because rules and regulations are subject to change, it is the buyer and/or seller’s responsibility to verify and perform due diligence regarding all zoning, rules and regulations for a property of interest.