A Divided Town
Operating a vacation rental like Airbnb or VRBO can be a highly lucrative business. While some locals frown upon the idea of short-term renters in their neighborhoods, others realize the opportunity for financial profit and widespread prosperity for homeowners and local businesses alike. According to The Times-Call’s article on Longmont short-term rental regulations, 64% of the 330 residents who responded to a city-led survey on second-home ownership and property investors reported that they support the idea of allowing these types of vacation rentals in their community.
On the other hand, big issues for current residents who oppose short-term vacation rentals include; housing shortages for locals, increased hotel competition, busier road traffic, and tighter parking competition based on a report regarding The Longmont City Council’s recent hearing. However, “Banning second-home owners and investors from the short-term rental market would leave Longmont resident[s]… in limbo”.
It is important to consider both sides of the legislation, and Longmont is just one of many cities who are feeling the growing pains of short term vacation rental regulations in their neighborhoods.
Update: Longmont requires hosts like yourself to secure an annual short-term rental permit ($100) and a sales and use tax license ($25). Short-term rental properties must also undergo an annual inspection to maintain the operating permit. According to the Longmont government website, you may operate your primary residence or investment property as a short-term rental. Investment properties are subject to the following guidelines:
If you are a Longmont resident, you can have a maximum of one investment dwelling operating as a short-term rental; however, the entire dwelling can only be rented to one group at a time. Individual rooms can only be rented if the owner, agent, or property manager resides and is present while the rooms are rented. Non-Longmont residents are not allowed to operate short-term rentals within the City.
Comprehensive short-term rental insurance
Across the US, properties are being converted to full-time short-term rental properties, often homes that serve as a host’s primary residence. As short-term rentals come with immense property and liability exposures, it’s important that you make sure you have the best insurance coverage to protect your business. Traditional homeowners policies exclude coverage for “business activity” (i.e. short-term rental), meaning, the policy you currently have may not be enough.
With a policy from Proper Insurance, you will have comprehensive short-term rental insurance to cover your primary residence or investment property. Proper provides coverage for building, contents, income, and liability ($1,000,000 commercial general liability and an additional $1,000,000 if the property is also your primary residence).