To: Board of County Commissioners
Through: Bryan Weimer, Director, Public Works and Development
Prepared By:
prepared
Roy W. Rimer, Zoning Inspector, Zoning Section, Planning Division
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presenter
Presenter: Roy W. Rimer, Zoning Inspector, Zoning Section, Planning Division
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Subject:
title
1:00 PM *Community Feedback on the Potential for Regulating Short-Term Housing Rentals, LDC23-001
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Purpose and Request:
recommended action
The survey results are being presented to the Board of County Commissioners with a request from Staff to determine what form, if any, an amendment to the Land Development Code should take when drafted. If the Board directs Staff to draft regulation, Staff requests direction on what requirements, if any, regulation of STRs will have on the following subjects: Licensure (and conditions for revocation), registration fees and/or annual fees, owner occupancy, on-site parking requirements, requirements tailored to larger lots and agricultural properties, buffering between STRs, and accessory dwelling units.
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Background and Discussion: Public Works and Development performed public outreach in 2023 regarding the public’s disposition toward short-term rentals (STRs) and potential regulation thereof.
Methodology
The survey presented fourteen (14) questions to the respondents about residency, dwelling type, relative location in the county (east/west), their thoughts on STRs, and how Arapahoe County should address the practice, if at all. A first round of survey invitations was sent to 1000 property owners, chosen at random as a control group. The invitations were in the form of a postcard containing a web link to the survey and information to contact Zoning with any questions. Approximately one month was allowed for responses (allowing for mail to reach its destination), after which the random survey was closed, and the results compiled. The same survey was then opened to the general public via social media for approximately one month, after which it was also closed.
Responses Received
In the random survey, 95 responses were received. The survey that was open to the public received 137 responses. Of the randomized group, 5% reported living outside of unincorporated Arapahoe County, compared to 27% of the public survey group. The majority (more than 65%) of respondents to both surveys reported that they live in single-family dwellings on lots of one acre or less. Larger proportions (greater than 75%) reported that they live west of Gun Club Road, which aligns with the densities typically associated with the urban and rural areas of the county. On how Arapahoe County should regulate STRs, results from the random group leaned more toward regulation or prohibition. Provided the option between a ban, allow with the limit of owner occupancy, or allow without owner limits, 47% of respondents in the randomized group answered that they preferred a ban compared to 43% in the open group who stated a preference for no restrictions. In a subsequent question gauging general support or opposition on a five-point scale, more than 50% of both groups expressed an opposition to STRs, with 65% of the randomized group expressing opposition.
Responses in Support
When those who support STRs were asked to select reasons for their support, advocates in both groups cited cost-of-living as a reason, though this was substantially pronounced in the general group. The other response in this question that the groups aligned on was a statement that Arapahoe County should not regulate the use of property as an investment. While it is possible that respondents answered the survey more than once, multiple supporting comments under “other” stated that STRs provide homeowners an additional revenue stream, STRs help the local economy, STRs are better maintained than long-term rentals, and that the County should not regulate the use of private property. It should be noted that 6% of the randomized group respondents and 15% percent of the open group reported that they currently operate short-term rentals.
Responses in Opposition
While there was less opposition expressed from the open survey group, the response numbers show agreement from both groups that disruptiveness, parking concerns, preserving neighborhood character, and permanent housing supply are reasons for opposition. Opposing respondents who penned in answers under “Other” cited crime, safety, property values, maintenance, noise, and neighborhood character/community as their reasons.
Alignment with the Board’s Stated Objectives
While the majority in both groups expressed opposition to STRs, larger proportions of both groups indicated a support for no-limits regulation or requiring an owner to live on-site as opposed to an outright ban. When asked for feedback on what potential regulation might require, similar or greater majorities showed favor or strong favor for registration (79.3%), licensing fees (74.7%), buffering between operating STRs (58.6%), and requiring owner-occupancy (64.7%). Despite the concern over housing shortages, both groups showed a greater tendency on a 5-point scale toward support for or neutrality toward STRs being allowed on owner-occupied properties with an accessory dwelling unit. The “Neutral” responses outnumbered the “Oppose” responses on this question in both sets of responses. The ADU code, as adopted, prohibits using an ADU as a short-term rental.
Fiscal Impact: Colorado Statute empowers counties to regulate short-term rentals, which includes the authority to require licensing and registration fees. Adoption of new regulations will potentially lead to additional enforcement. Adoption of a licensing system will require design and implementation of forms and/or website support, as well as administration. Requiring confirmation of rented spaces’ compliance with International Building Code will require additional inspections by Building Division staff.
Alternatives:
1. No change to current regulation.
2. Modification to Home Occupation code to address STRs.
3. Modification of the Permitted Use Table to allow STRs as a Special Exception Use.
4. Modification to certain definitions in the Land Development Code to merge the STR concept with the Bed and Breakfast definition (and thus an SEU).
5. A ban of short-term rentals.
Alignment with Strategic Plan:
☒Be fiscally sustainable
☐Provide essential and mandated service
☒Be community focused
Staff Recommendation: Based on the results, Staff recommends the adoption of regulations specific to short-term rentals. Such regulation should be tailored to address the differing needs of communities and respective land-use types within the unincorporated areas of Arapahoe County while also protecting safety and promoting community cohesion. Such regulation should entail an enforcement avenue and provide a means of tracking individual STR locations, in the form of required registration/licensing. Licensing and registration should entail fees to cover staff and administration costs and have a revocation condition. Staff recommends against allowing ADU properties to also operate STRs to protect long-term housing stock.
Concurrence: N/A