The city of Denver revealed how it will fine Airbnb hosts at a committee meeting on Tuesday.
The city will follow the existing administrative citation fine structure when it comes to Airbnb rentals that don't comply with the new law going into effect on Jan. 1. That's according to city officials at a meeting on Tuesday of the Denver Short Term Rental Advisory Committee. The fines will go as follows:
1st violation - warning
2nd violation - $150
3rd violation - $500
4th and following violations - $999
Nathan Batchelder, a staff member with the Denver excise and licenses division noted that technically, they can fine you the first time, but hey, they said they'll start by being nice. "We'll certainly give a warning first," Batchelder said.
The city also said it could send administrative violations through the mail without any kind of person-to-person contact.
As of this week, 202 short-term rental hosts had applied for a license. That's more than double from the number reported at last month's meeting.
(READ: As reported in the Denver post, I believe those who are looking to buy and live in a place have options to stay within Denver's Airbnb law AND maximize your short-term rental profits.)
In June, Denver City Council passed a measure to formally legalize Airbnb-style short-term rentals (or STRs), but only in someone's primary residence. The vote prohibits anyone from renting out a second home or an investment property on Airbhb, VRBO or similar online platforms. The new law goes into effect Jan. 1, 2017.
Anyone looking to buy in Denver for an Airbnb-style rental might be wise to wait and see how enforcement goes. Another option is to buy a primary residence with house-hacking possibilities. Basement, attic or carriage house apartments are all considered legal under the new law. Contact me today to start a search for that type of property.