Broomfield, Colorado will join many cities in attempting to regulate the burgeoning short-term rental market. Ideas have been that have been proposed include licensure, occupancy restrictions, and primary residence clauses. Short-term rentals can be a great way to earn extra income from properties that one may already own, however these are business ventures and should be treated as such. Businesses are required to obtain permits and licenses. Often, they are required to have at least some level of liability coverage.
There are Alternatives to Prohibition
Many complaints originate from community members concerned about the influx of strangers into their communities and rightly so. However, that does not mean that renters need to lose out on the ability to pursue short term rentals, should that be what they desire to do. Many neighborhoods exist within close proximity to commercial areas, and these commercial areas are covered with commercial policies. Protection for one’s business means protection for its neighbors as well. It is possible to be a good neighbor while operating a short-term rental property. Making sure that the property is correctly insured is a big step in the right direction.
Update: The city of Broomfield has since passed an ordinance regulation of short-term rentals. As per the municipal code, Chapter 5-39, only principal residencies are allowed to be rented given that the owner has the license to do so. In order to mitigate noise and traffic, there are occupation limits determined by the size of the property being rented. Operators of the rentals need to also follow city laws regarding noise and disturbance of the peace. Short-term rental operators must have sales and lodging tax licenses.