Understanding Golden, CO Airbnb Regulations for Luxury STR Investors

Golden, Colorado, nestled at the foot of the Rocky Mountains, offers a picturesque backdrop for both residents and tourists. Its proximity to Denver, outdoor activities, and charming downtown attract visitors year-round, making it a potentially lucrative market for short-term rental (STR) investors. 

However, before diving into the Golden Airbnb market, it's crucial to understand the city's specific regulations, which have evolved to balance the benefits of STRs with the need to preserve housing affordability and neighborhood character. This blog post aims to provide a comprehensive guide to Golden's STR regulations, helping potential investors make informed decisions.

Navigating the Regulatory Landscape

Golden's STR regulations, primarily outlined in Chapter 18.22 of the Golden Municipal Code, were enacted in 2018 following extensive community consultations. The regulations are enforced proactively, with tools to identify non-compliant and unlicensed STRs. The city distinguishes between two types of STR licenses based on zoning:

• Short Term Rental License: Applies to properties zoned residential (RE, R-1, R1-A, R-2, R-3, and residential PUDs).

• Tourist Home License: Applies to properties zoned commercial (C-1, C2, RC, CMU, and commercial PUDs).

These distinctions are critical for investors to understand because they determine where and how STR operations are allowed. For example, residential zones have stricter requirements designed to protect neighborhood integrity, while commercial zones offer more flexibility for STR operations.

Primary Residence Requirement (Residential Zones Only)

One of the most significant aspects of Golden's STR regulations is the primary residence requirement for properties in residential zones. This means that the property owner must reside at the property for at least 10 months out of the year. This rule aims to prevent the conversion of long-term rental units into full-time STRs, preserving housing availability for residents.

This requirement has been met with mixed reactions from current and prospective hosts. Some appreciate the reduced competition from full-time investor-owned STRs, while others find it restrictive, especially those who purchased properties specifically as Airbnb investments. This regulation underscores the city's commitment to maintaining a balance between STR opportunities and residential housing needs.

Licensing and Permits

All STR operators in Golden, regardless of zoning, must obtain a business license from the Town of Golden. The license fee for Tier 1 hosts (offering 1-4 rooms) is $100 per property.

For properties in residential zones, the Short Term Rental License costs $200 for a two-year term. The application process involves submitting various documents, including:

• Completed application form

• Proof of ownership (recorded warranty deed)

• Proof of primary residence (voter registration, driver's license, etc.)

• Proof of fire, hazard, and $1 million liability insurance

• Life Safety Self Certification Form

• Description of Area and Parking Form

• Copy of Sales and Use Tax License

For properties in commercial zones, the Tourist Home License also costs $200 for a two-year term and has similar application requirements. However, there is no primary residence requirement for commercial zones, making them more attractive for investors seeking fewer operational constraints.

Occupancy Limits

Occupancy in Golden STRs is limited to four unrelated persons, regardless of the dwelling unit's capacity. This rule is intended to prevent overcrowding and maintain neighborhood peace. Hosts are required to include this statement in their listings on platforms like Airbnb and VRBO.

This restriction plays a significant role in ensuring that STRs do not negatively impact the quality of life for nearby residents. Additionally, it emphasizes the importance of responsible hosting practices to minimize disturbances in residential areas.

Parking Requirements

Golden's STR regulations require adequate parking, adhering to Chapter 18.36 of the Municipal Code. Hosts must ensure that their properties meet the designated parking requirements for their zoning district. The city has explored various parking requirements for STRs, considering factors like the number of bedrooms rented and existing residential parking regulations.

Parking compliance is essential not only to meet regulatory standards but also to ensure a seamless experience for guests. Adequate parking can significantly enhance a property’s appeal to potential renters while maintaining harmony with the surrounding community.

License Display and Contact Information

All STR listings on host websites must display the City of Golden-provided STR license number. This ensures transparency and allows potential guests to verify the legality of the rental. Hosts must also provide the name, phone number, and email address of an emergency contact person available 24/7.

This measure ensures that any issues arising during a guest’s stay can be addressed promptly, promoting safety and accountability in the STR industry.

Safety Standards

Golden prioritizes the safety of STR guests and requires compliance with safety standards from Service NL. This includes having egress windows, smoke detectors, emergency lighting, and a commercial insurance plan.

These safety measures not only protect guests but also shield hosts from potential liabilities, emphasizing the importance of operating an STR responsibly and ethically.

Tax Collection and Remittance

STR operators in Golden are responsible for collecting and remitting various taxes, including sales tax, lodging tax, and occupancy tax. The combined tax rate can reach 13.25%, depending on the specific taxes applicable in Golden. While Airbnb collects and remits taxes on behalf of its hosts in Golden, operators using other platforms or direct bookings must handle tax collection and remittance independently.

Proper tax compliance not only avoids legal issues but also demonstrates a host’s commitment to contributing to the local economy. Familiarizing oneself with tax obligations is a crucial aspect of STR management.

British Columbia Wide Short-Term Rental Rules

Since Golden is located in British Columbia, STR hosts must also comply with new province-wide rules that came into effect on May 1, 2024. These rules, established under the Short-Term Rental Accommodations Act, aim to return more short-term rental units to the long-term housing market and give local governments stronger enforcement tools. Some key provisions of the provincial legislation include:

Principal Residence Requirement: STRs are restricted to the host's principal residence plus one additional unit.

Business License Display: Listings must display a valid business license number.

Data Sharing: Platforms must share data on BC-based listings with the provincial government.

Provincial Registry: Hosts will need to register their STRs with the province.

Increased Fines: Penalties range from $500 to $5,000 per day for individual hosts and up to $10,000 for corporations.

These additional regulations underscore the importance of staying informed about both local and provincial requirements to avoid potential conflicts and penalties.

Enforcement and Penalties

Golden is known for its strict enforcement of STR regulations. Hosts operating without proper licenses or violating any regulations face significant fines and penalties, which can reach up to $5,000 or more per violation. The city utilizes specialized software to identify unlicensed STRs and seeks voluntary compliance before issuing penalties.

Enforcement measures highlight the city’s commitment to maintaining order in the STR market while ensuring fair competition among compliant operators.

Investing in Golden's STR Market

Despite the stringent regulations, Golden remains an attractive market for STR investors due to its proximity to Denver, outdoor recreation opportunities, and strong tourism demand. However, success in this market requires careful planning, compliance with all regulations, and an understanding of the nuances of the local market.

Here are some tips for navigating Golden's STR market:

Thorough Research: Thoroughly research all local and provincial STR regulations, zoning restrictions, and licensing requirements. Familiarity with the rules ensures a smooth operational setup.

Compliance is Key: Ensure full compliance with all regulations to avoid fines and penalties. Obtain all necessary licenses, permits, and insurance coverage. Compliance not only protects you legally but also enhances your reputation as a responsible host.

Target Market: Identify your target market and tailor your property and amenities to their needs. Consider factors like proximity to attractions, outdoor activities, and desired property features. Customizing your property to align with guest preferences can significantly boost occupancy rates.

Professional Assistance: Consider working with a local real estate agent or property manager familiar with STR regulations and the Golden market. They can provide valuable insights and help you navigate the complexities of the local market. Their expertise can save time and help maximize returns on your investment.

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The Future of STRs in Golden

The regulatory landscape for STRs in Golden is likely to continue evolving as the city balances the economic benefits of tourism with the needs of its residents. It's crucial for investors to stay informed about any changes to regulations and adapt their strategies accordingly. By understanding and complying with Golden's STR regulations, investors can contribute to the local economy while providing safe and enjoyable experiences for visitors.

Looking ahead, collaboration between the city, hosts, and community members will play a pivotal role in shaping the future of STRs. Sustainable practices, transparency, and adherence to regulations will ensure that Golden remains a desirable destination for tourists while maintaining its charm and livability for residents.

For more Information Contact FootHills Fine Homes Today!