Short-term rental property management

 

Before moving forward with any short-term rental, you need to understand what regulations govern. City regulations and HOAs are going to be the biggest obstacles. Be sure to check with your city or consult a lawyer before beginning.

 

(For specific information about Denver's regulations, read "Denver's New Airbnb Rules: What You Need To Know" or "Compliance with Denver's Airbnb Law Still a Question.")

 

City regulations

 

In most cities, short-term rentals — defined as less than 30 days — have always been against the law, but cities largely looked the other way because the numbers were so small. Now that Airbnb has exploded, cities are forced to react.

 

If the city has not specifically addressed short-term rentals, you’re likely still in violation of existing regulations prohibiting rentals less than 30 days.

 

Cities that have taken action usually fall into two categories. Strict and laissez faire. Strict policies — like most in major metropolitan areas — usually prohibit renting out any second property. This primary residence rule is intended to curb companies from buying up properties, but its biggest effect is on those who own a second home and would like to rent it out. Most cities that have passed policies also require you sign up for a license through the city, that you collect lodging, or hotel, tax, and that you meet certain safety standards. (Normally, this means having a fire extinguisher and fire alarm present.)

 

One of the biggest questions still remaining is whether anyone will comply. Cities like Portland and San Francisco had less than 10 percent compliance one year after enacting such proposals.

 

HOA regulations

 

The city regulators will probably present less of a problem than your HOA. Almost all homeowners associations have a 30-day minimum rental period written into their declarations. Many are now extending that to 60 or 90 days.

 

 

Check your declarations and bylaws before beginning.