Short-term rentals (STRs) have become increasingly popular in scenic areas like Durango, as they provide travelers with unique, home-like accommodations. However, before property owners decide to dive into the STR market, it’s important to understand the rules and regulations that govern STRs in these regions.
Whether you're a local homeowner looking to generate income or a potential STR guest, this blog post will provide a detailed overview of the essential requirements for short-term rentals in both Durango and La Plata County.
Understanding Short-Term Rentals in Durango and La Plata County
Short-term rentals typically refer to residential properties that are rented for periods of less than 30 consecutive days. They can be entire homes, rooms within a house, or accessory dwelling units (ADUs). STRs are regulated by both city and county ordinances to balance the needs of local residents, property owners, and tourists.
Why Regulations Exist: The rise of STRs has led to concerns about housing availability, neighborhood dynamics, and overall quality of life for permanent residents. To address these concerns, both Durango and La Plata County have implemented rules to manage their growth and ensure that STRs contribute positively to the community.
Short-Term Rental Requirements in Durango, CO
Durango is a vibrant mountain town with a mix of outdoor adventures, historic sites, and cultural attractions, making it a prime spot for short-term rentals. However, the city has strict guidelines to ensure that STRs do not adversely affect the local housing market or residential neighborhoods.
Here’s what property owners need to know:
1. Licensing Requirements
In Durango, property owners must obtain a short-term rental license to operate legally. The application process includes:
Zoning Compliance: Not all properties are eligible for STRs. Durango's city zoning code restricts where STRs can operate, with certain neighborhoods and zones having a cap on the number of permitted STRs.
Application: The owner must submit an application that includes property details, floor plans, parking information, and proof that the property complies with building codes.
Annual Renewal: STR licenses must be renewed annually, with a fee required for both the initial application and the renewal.
Primary Residence Requirement: In many zones, the STR must be the owner’s primary residence, meaning you cannot purchase a home solely for the purpose of renting it out as an STR in certain areas.
2. Occupancy Limits
Durango restricts the number of occupants in an STR based on the size of the unit and the number of available parking spaces. Typically, the city allows two guests per bedroom, and it must be clearly advertised on the listing.
3. Parking Requirements
Each short-term rental must have off-street parking available for guests. The specific parking requirements depend on the location and size of the property, and they are a crucial part of the licensing process.
4. Safety and Building Codes
The property must meet all building, health, and safety codes. This may include the installation of smoke detectors, carbon monoxide detectors, fire extinguishers, and clearly posted emergency exit plans. An inspection may be required as part of the licensing process.
5. Taxes and Fees
Short-term rental owners in Durango must collect lodging taxes from guests, which include the city’s lodgers’ tax and state and county sales taxes. These taxes must be reported and remitted regularly.
6. Neighborhood Notification
In some cases, neighbors within a certain radius must be notified that the property will be used as a short-term rental. This is intended to address concerns from neighbors and maintain a peaceful community dynamic.
Short-Term Rental Requirements in La Plata County, CO
La Plata County, which encompasses Durango and surrounding areas, has its own regulations regarding short-term rentals. These regulations vary slightly based on whether the property is within the unincorporated areas of the county.
1. Zoning and Land Use
Similar to Durango, STRs in unincorporated La Plata County must comply with specific zoning requirements. The county classifies areas as rural, residential, or agricultural, and each zone may have different limitations on STR operations.
2. Licensing and Application
Property owners in La Plata County must apply for a short-term rental permit, similar to Durango's licensing process. The application requires:
Proof of Ownership: Documentation showing the property’s ownership and details about the intended use.
Compliance with Building Codes: The property must pass inspections for safety, including fire alarms, emergency exits, and structural soundness.
Annual Review: STR licenses in La Plata County are reviewed annually, and owners must renew them to continue operation.
3. Occupancy and Parking
La Plata County may also limit the number of guests based on the size of the property and the available parking. Off-street parking must be provided for guests, and overcrowding is not permitted.
4. Taxes and Fees
Like in Durango, short-term rentals in La Plata County are subject to local lodging taxes, state sales taxes, and county-specific fees. Owners must ensure they collect and remit these taxes on time.
5. Good Neighbor Practices
La Plata County encourages short-term rental operators to adopt "Good Neighbor Practices" to minimize disruptions to local residents. These include clear communication with neighbors, maintaining the property in good condition, and ensuring that noise levels do not disturb nearby homes.
The Enforcement and Penalties for Non-Compliance
Both Durango and La Plata County take STR regulations seriously. Failure to comply with the licensing, zoning, and tax requirements can result in fines, penalties, or the suspension of the rental license. Repeat offenders or unlicensed operators can face legal action, including court appearances and higher penalties.
Final Thoughts
Operating a short-term rental in Durango or La Plata County can be a profitable venture, but it’s important for property owners to adhere to local regulations. Ensuring compliance not only helps maintain the character of local communities but also ensures that STR operators avoid legal complications and financial penalties.
If you're considering renting your property as an STR in these areas, make sure to check with the local government offices or a real estate attorney to get the most accurate and updated information. As regulations can change over time, staying informed is key to a successful STR business in Durango and La Plata County.
If you need personalized guidance or additional resources, the Durango city website and La Plata County’s Planning Department are great places to start your research!
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