Do you have an extra room in your house? Or maybe you are looking at investing in a rental property? Here is some insight to La Plata County and Durango’s short-term rental (STR) regulations.
What is a Short Term Rental?
A short-term rental is defined as a unit or room being rented for less than 30 days at a daily or weekly rate. The State of Colorado requires a STR license. This permit can last from one to three years depending on the type of property you are renting with the ability to renew. The City of Durango has a very specific permitting process for “tourist homes”, so if the property is within the city limits, you’ll need to work closely with their Planning Department to confirm eligibility as well as ensuring STR’s are allowed by your HOA (if applicable). If outside of city limits, you’ll have to follow any HOA rules and covenants and abide by La Plata County rules. Depending on location, you’ll have to collect and remit state, city, and county lodging taxes. Other requirements entail having a property manager living within 30 minutes distance that’s available 24/7 and a rental policy detailing maximum occupancy, directions, parking, fire safety, pets, and garbage duties.
How to Book a Short Term Rental
Companies such as Airbnb, VRBO, Booking.com, and HomeAway allow the owner to advertise their space for vacationers. These worldwide online tools relieve a lot of the advertising and booking burden while taking a cut of the profits in return. Having a property manager can also take more of the daily work off of your shoulders by hiring an individual or local company to handle the day to day activity on your rental(s). Their services will cost a monthly percentage of your bookings but include advertising, booking, and dealing with many issues that may arise. Property managers also work closely with booking companies in order to get your property the best exposure and therefore more guests.
Durango Area Short Term Rentals
Durango is a prime market for a STR because of the vast amount of tourism the town sees. North County / Purgatory area and downtown Durango have a large amount of vacation rentals because of proximity to tourist activities. Opening up your home generates an opportunity for tourists to live the Durango lifestyle and see what it’s like to be part of our wonderful mountain town!
Having one can open a property management position for a local and can also add a little cash into your pocket. However, it’s been noted that these short-term rentals can also take away from commercial lodging (such as hotels and inns) and can negatively impact the housing supply and cost for locals or newcomers wanting a long-term rental. If you are considering a vacation rental property, remember to communicate with your neighbors and give them your and the property manager’s phone numbers in case of concerns.
If you decide that you want to rent your property or invest in a property for this purpose, please contact our team of experts.