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Denver cracks down on Airbnb violations

Denver send Airbnb violation notices to hosts

Well, it looks like the city of Denver will crack down on Airbnb afterall. Months of skepticism -- at least on my part -- over whether the city had the manpower to enforce its new short-term rental law was put to rest this week.

By the end of this week, the city excise and licenses department will have sent 1,057 notices to Airbnb and VRBO hosts who do not have a license number posted in their online ad, the Denver Post reports. These are just warnings. Hosts have 14 days to become licensed.

So what are the fines for violating Denver's Airbnb rules? After the warning, fines start at $150 for the first violation, $500 for the second, and $999 for any subsequent violations.

Denver City Council in June 2016 passed a law legalizing Airbnb-style short-term rentals. The new ordinance required hosts pay the 10.75% lodgers tax, apply for a $25 license, maintain basic safety measures and -- maybe most importantly for investors -- host guests ONLY in their primary residence. This means you can't host guests at investment properties.

However, for anyone looking to buy a primary home soon, you might consider looking for one with a basement or attic apartment or with a carriage house out back. Those units are allowed under Denver's Airbnb regulations and can help pay some or all of your mortgage. I specialize in finding such units. Contact me today to learn more.

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