On June 25th of this year, a federal judge dismissed a lawsuit against Summit County, Colorado government’s short-term rental regulations.
This is not unexpected given the results of other lawsuits against governmental entities throughout the country. Short-term rentals (STR) are very prominent in resort communities. And, whether you like it or not, all our communities in Summit County are part of our “resort community”. With year-round activities such as snow sports, water sports, golf, hiking, biking, etc., people come to our mountain towns and need a place to stay.
When we talk about “Summit County”, we are referring to all areas in the County that are unincorporated. Properties that are located within the town limits of Blue River, Breckenridge, Frisco, Silverthorne, Dillon, and now Keystone are not affected by these regulations (some of the towns have their own regulations).
Summit County’s Commissioners have decided that “resorts” are only the ski resort areas - and every other location around unincorporated Summit County is considered a “neighborhood”. They have put rental restrictions in place in the “neighborhood” areas that only allow a certain percentage of properties to have a STR license. For example, the Lower Blue Basin includes the Wildernest, Mesa Cortina areas, Ptarmigan, Hamilton Creek and all areas north of Silverthorne. County regulations allow for 550 of all housing units in this area to have a STR license. That is 15% of all housing units. There are currently more than 550 STR licenses in this basin, so we must let attrition happen to get below that 550 number so that more licenses can be issued. Please keep in mind that a STR license does not transfer with the property, nor can a person take their STR license with them to a new property.
Unfortunately for areas such as Wildernest that was built as a short-term rental community, these new regulations are having a severe impact on the value of properties. While this is the Summit County Commissioner’s goal – to lower property values for local workers – it is having a negative impact on the very people they are claiming to help. Property values in the Wildernest area have dropped 14% since 2022. With rising insurance rates and aging buildings, HOA dues have nearly doubled for many of the complexes. Add to this the increase in taxes and it makes it difficult for locals to purchase properties in these areas. And locals who are trying to sell because they cannot afford these higher HOA dues and taxes are unable to sell or are having to sell at significantly lower prices than what they paid for the home because non-local people in this area rely on STR’s to help pay for these costs.
All of that being said, with the dismissal of this case, it does not appear that we will see a reversal of the Summit County Commissioner’s stance on STR’s anytime in the near future. To read more about this lawsuit, you can read the article on the Summit Daily News at: https://www.summitdaily.com/news/summit-county-colorado-short-term-rental-lawsuit/?utm_source=newsletter&utm_source_platform=pinpoint&utm_medium=email&utm_campaign=LocalNewsFlash&utm_id=TG9jYWxOZXdzRmxhc2gyMDI0LTA3LTE3IDA3OjAwOjAw&utm_term=2024-07-17
If you would like to get a better understanding of STR’s in unincorporated Summit County, you can visit the County’s website here: https://www.summitcountyco.gov/services/community_development/short_term_rentals/str_regulations.php#collapse5440b0
As you search for Summit County real estate and you have a need to rent your property to help defray costs of home ownership, then please reach out to us at Nelson Walley Real Estate so that we can help you navigate these complicated waters. If you enjoyed this feature please check out all of our blog posts.