Engage with Your Colorado Legislators to Safeguard Short-Term Rentals!
Engage with Your Colorado Legislators to Safeguard Short-Term Rentals!
In the vibrant landscape of Colorado, short-term rentals play a crucial role in supporting local economies and providing unique experiences for residents and visitors alike. As advocates for this thriving industry, it is essential that we actively engage with our legislators to ensure they understand the importance of protecting short-term rentals in our beautiful state.
Finding Your Colorado Legislator is Easy:
To facilitate direct communication with your district representatives and their staff, we've provided a convenient link for you to identify and contact your Colorado legislator, here.
Why Your Voice Matters:
Elected officials make decisions that impact our community, and they need to hear from you—the individuals directly affected by these policies. Sharing your perspective on the significance of short-term rentals will help them make informed decisions that balance the needs of the community while fostering a thriving tourism industry.
Click here to get a list of talking points!
To assist you in preparing for the legislator outreach, here are some talking points tailored for property owners, property managers and stakeholders:
For Property Owners:
Long-term Connection: As a property owner in the short-term rental (STR) market, I have a deep connection to my home and have cherished it for the past {insert number} years.
Personal Use: I primarily use my property for family vacations, spending approximately {insert number} days per year there, contributing to the local economy.
Income and Offset Costs: My family relies on renting out our vacation home to help offset the increasing costs of homeownership and everyday expenses.
Thin Margins: It's crucial to recognize that STRs operate on thin margins. After accounting for registration fees, taxes, maintenance costs, and more, my net earnings were just {insert amount} last year.
Not a Commercial Investor: I am not a commercial investor but an individual homeowner occasionally renting my property. The threshold for commercial-rate operation should be set at two or more properties or for those not using their property for personal purposes.
Impact of Limited Renting: If restricted to renting for fewer than 90 days per year, I would barely break even or might even incur losses.
Economic Reliance: Many homeowners depend on their rental income to support their families, fund their retirement, or supplement their income, particularly in today's challenging economy.
Existing Local Regulations: My short-term rental property is already subject to {insert existing limitations, such as $X per night per bedroom fees, additional tax rates of X%, etc.} in my City/County.
Potential Economic Impact: If this bill becomes law, I could be forced to {sell my home/leave it vacant beyond my family's use}, resulting in financial losses for my family and a significant economic impact on our community.
For Property Managers:
Local Ties: Our property management company is based in the local community and has served it for {insert number} years.
Local Job Support: We are deeply invested in the community, supporting {insert number} local jobs on both a seasonal and year-round basis.
Property Management Role: Contrary to misconceptions, we manage properties for homeowners, and most of your clients own just one property, contracting with us to take care of their homes while they are away.
Owner Income: On average, property owners generate income through short-term renting and use their properties for personal purposes {insert percentage of time} of the year.
Local Regulations' Impact: Our short-term rentals are already subject to {insert existing limitations, such as $X per night per bedroom fees, additional tax rates of X%, etc.} in our City/County.
Owner Perspective: A significant percentage of our homeowners have expressed that they will consider discontinuing short-term rentals if this bill passes, which would have negative consequences for our community.
Owner Model: Most vacation rentals are not large commercial enterprises but single-family homes rented part-time to support homeowners and maintain their properties. Taxing them at commercial level rates is inappropriate for the typical vacation rental operating model.
Leveling the Playing Field: If short-term rentals are to be subject to commercial-level lodging taxes, consideration should be given to the fact that long-term rentals are not held to the same standards. Both are residential uses; the only difference is the duration of stay.
Additional talking Points:
Diverse Nature of STRs: STRs encompass a wide range of properties, from single-family homes to apartments and condominiums. They are primarily residential, making it unfair to tax them at nearly the same rate as commercial property tax.
Property Use: Unlike hotels, many STRs are not exclusively used for lodging. They often serve as second homes for owners or are used for personal purposes when not rented out, further distinguishing them from hotels that are solely commercial properties.
Local Ownership: Many STRs are owned by local residents, not large corporate entities. Taxing them at a commercial-like rate can place an undue financial burden on individual property owners who rely on STR income to make ends meet.
Sustaining Tourism: Short-term rentals play a crucial role in the tourism industry, offering diverse accommodations to cater to different traveler preferences. Imposing higher taxes may deter owners from renting their properties, disrupting the variety of choices that many destinations depend on.
Preserving Rental Supply: Short-term rentals address the demand for accommodations during peak tourist seasons and special events. Reducing the supply of short-term rentals due to excessive taxation could lead to capacity issues, resulting in unmet traveler demand.
Contribution to Local Tax Revenue: Short-term rentals, despite being heavily regulated and taxed, often make a substantial contribution to local tax revenue. It's essential to strike a balance to ensure they continue to contribute to their local jurisdictions.
Local Tax Impact: This can have a major impact on budgets across the state. Towns and counties have raised lodging taxes and imposed substantial registration fees on vacation rentals, often to fund affordable housing initiatives. The revenues from vacation rentals are already significant and funding local initiatives. This change threatens to cut those collections off at the knees.
Possible Housing Impact: Rather than curbing the housing boom, this bill might exacerbate it. Many properties might cap rentals at 90 days, creating a supply shortage and encouraging the construction of more second homes. Other measures can be explored to prevent institutional investors without penalizing most homeowners.
Reduced Lodging Options: SB33 could force potential changes in owner behavior, leading to a reduction in available visitor lodging. Limited options during the tourist season could prompt visitors to explore other destinations, impacting the appeal of Colorado communities as recreational destinations.
The bill is not just about property taxes; it fundamentally changes Colorado's tourism industry, affecting hundreds of thousands of Coloradans who rely on tourism for income and employment.
Impact on Small Businesses: Let's not overlook SB33’s impact on local businesses. Reduced visitor spending due to changes in lodging options will result in a direct hit on small businesses. The connection between vacation rentals and local businesses is significant, and any decline in tourism could impact our community’s overall economic health.
Data & Statistics: According to an economic impact study commissioned by CLARA, if SB33 passes, it could jeopardize approximately $1.36 billion in visitor spending per year and 8,148 jobs related to tourism in Colorado. Additionally, data from the CLARA Survey indicates that 52% of STR owners plan to reduce the number of nights rented if the bill passes.
STR Host Representation: Senator Hansen aims to address corporate-owned units with this bill, but here's the reality – over 75% of STRs are owned by Coloradans, and 89% of Colorado STR owners own only one property. This doesn't accurately represent the majority of STR owners in Colorado that SB33 aims to address.
CLARA's Perspective: As a founding board member of Colorado’s statewide vacation rental alliance, CLARA, we represent thousands of STR property owners. Many homeowners depend on their rental income to support their families, fund their retirement, or for supplemental income. SB33 poses a threat to homeowners' dreams and is an attack on tourism at the expense of homeowners.
SB33 poses a threat to homeowners' right to rent and would have unintended consequences that jeopardize Colorado's tourism economy."
General statement to address potential amendments: While there are talks of amendments to SB33, the uncertainty surrounding the specifics leaves many homeowners in limbo. What remains clear is that any proposal to increase property taxes on residential properties is impractical, especially at a time when homeowners are already grappling with property tax hikes. This would place an additional burden on individuals who are already facing economic challenges. We urge lawmakers to consider the broader implications on residents and the real economic struggles they are currently navigating before making decisions that could further strain household finances.
Find Your Colorado Legislator here and make your voice heard today!
