Lindsey Toomer/Summit Daily News
With the town of Breckenridge passing its new short-term rental regulatory fee, properties previously exempt from the administrative fee will now have to pay $400 per bedroom to the town come Jan. 1, 2022.
The only short-term lodging properties exempt from the fee are ones registered as a lodge with the town, which applies to traditional hotels owned entirely by one person or corporation.
“Per our town code, a lodge is a property with multiple rental units that is owned by one entity,” accommodations compliance administrator Bela Del Valle said. “… Breckenridge does not have very many of those.”
Del Valle said lodges will still have a different type of business license, and they don’t need short-term rental licenses. Properties that currently hold a lodge license in Breckenridge are the DoubleTree by Hilton, the Breck Inn, Skiway Lodge, the Residence Inn by Marriott, the Fireside Inn, the Bivvi Hostel, Gravity Haus and Welk Resorts.
Previously, properties with short-term rental licenses that had 24-hour front desk, security and phone service were exempt from the administrative fee. Examples of exempt properties include Beaver Run Resort, Crystal Peak Lodge, Grand Colorado on Peak 8, Main Street Station, Mountain Thunder Lodge and One Ski Hill Place. These properties are still exempt from the new license cap of 2,200, but are not exempt from the regulatory fee.
Distinguishing which properties fall under which definition can be confusing since some that hold the names of hotel corporations aren’t actually lodges. For example, Marriott has both the Residence Inn, which is a lodge, as well as the Mountain Valley Lodge, which includes individually deeded units. Mountain Valley Lodge units therefore need a short-term rental license and are subject to the new fee.
“If there is a unit that has an individual owner and it’s a unit that is being used for short-term rental — any rental for 30 days or less — that type of unit and property requires a short-term rental license with the town of Breckenridge in order to be able to rent,” Del Valle said.
The same applies to timeshares. When someone decides to not use a timeshare during their allotted time, the company or the owner will typically advertise the unit to be publicly rented.
“If anyone other than a deeded owner of the timeshare uses the unit for any consideration, then an accommodation license is required,” Del Valle wrote in an email. “Historically, all of our timeshares have gotten a license because their operational model allows the unit to be rented on a short-term basis.”
Del Valle also said a new license application is expected whenever an exempt short-term rental unit changes ownership. While the fee is charged per bedroom, only one license needs to be issued per unit.
If an individual owner of a condo wants to rent it out themselves, they’ll need a license.
“Not everybody in the Highlands has to have a short-term rental license to live there, but if there’s one person on the block … that wants to short-term rent, they have to have a license,” Del Valle said.
Beaver Run General Manager Bob Barto said Beaver Run shares a percentage of the profits with the owner whose condo was used when a condo is short-term rented. He said Beaver Run manages a majority of its units, but some have outside management, too.
Barto, who also serves on the town’s Tourism Overlay Task Force, has already expressed his concerns over the new fee to council, particularly due to Beaver Run spending around $2.3 million since 2015 to house its own workforce. The fee is intended to create more workforce housing opportunities through a variety of town programs currently in place, but Barto said he would like to see other industries contributing to workforce housing as well.
Barto said Beaver Run has 413 short-term rental units. He estimated if Beaver Run had 600 bedrooms in short-term rental units, the resort will have to pay just under a quarter of a million dollars to the town at the start of 2022. He also noted that non-exempt short-term rentals were already paying a fee that might increase, yet previously exempt properties have an entirely new expense to budget for.
“Hopefully we’ll work through this,” Barto said. “They already compromised from $756 to $400 for the first year. We need to work with the town to get the best we can out of this. … Short-term rental is very complicated, and to get this right is going to take time.”
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