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Modern types of short-term rentals now regulated under new city ordinance

Bed-and-breakfasts have been regulated as a kind of "short-term rental" (STR) for many years. The new city law puts such requirements (and taxes) on modern types of STRs. Pictured above from 2004 is the former Our Hearts Inn, a West Colorado Avenue bed-and-breakfast that started in 1992 and operated for close to 20 years.
Westside Pioneer file photo
Jan. 3, 2019
       In keeping with a 2018 City Council vote, owners of short-term rentals (STRs), starting in 2019, are required to obtain a permit annually through the City of Colorado Springs.
       The new law applies to all properties (including rooms and guest houses) rented for less than 30 consecutive days.
       According to Kim Melchor of City Communications, this change is especially significant on the Westside because “our highest concentration of short-term rentals is on the Westside and downtown areas.”
       The city's overall estimate in mid-2018 of STRs in Colorado Springs was 205, with a map showing 34 of them on the older Westside.
       Melchor added in a press release that the total includes competing businesses such as bed-and-breakfasts and vacation rentals by owner (VRBOs). Other types involve people “renting out single-family or multi-unit dwellings for short-term rentals,” she said.
       Under the new law, STR owners are required to collect and pay taxes and to comply with permit regulations. The permit cost is $119, plus prorated fees to obtain a city sales tax license.
       Before the new law, STRs had been operating in the city “for a number of years without any specific standards or regulations,” Melchor summarized. “In response to increased interest in short-term rentals and neighbor concerns, Colorado Springs City Council adopted an ordinance in October allowing property owners to offer short-term rentals while establishing regulations to limit unwanted effects on Colorado Springs' residential neighborhoods.
       “The ordinance seeks to ensure rental properties meet zoning, insurance, sales tax requirements and provides for a responsible party who can immediately address any issues or concerns.”
       For more information, go to: ColoradoSprings.gov/STR.

Westside Pioneer/press release
(Community: Neighborhoods)

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