Golden Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Golden

The Town of Golden, British Columbia, adopted three bylaws in 2020 to regulate short-term rentals (STRs). These regulations include a principal residence requirement and posting a business license number in active listings. The Town's STR regulations were developed after extensive public consultation and go a step further than the provincial regulations announced in October 2023.

To legally operate a short-term rental in Golden, hosts 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.
• Only rent out their principal residence, plus one secondary suite or accessory dwelling unit on the same property. This aligns with the provincial principal residence requirement that came into effect on May 1, 2024.
• Display their business license number in any advertising for their short-term rental property.
• Provide the name, phone number, and email address of an emergency contact person available 24/7.
• Comply with safety standards from Service NL, including having egress windows, smoke detectors, emergency lighting, and a commercial insurance plan.

However, the Town of Golden's regulations do allow STRs in commercial zones without the principal residence requirement to support accommodation and vitality in the downtown. Resort municipalities like Golden are also exempt from some of the provincial short-term rental restrictions.

It's important for prospective short-term rental operators in Golden to carefully review both the municipal and provincial regulations. Fines for non-compliance can range from $250 to $2,000.

Short-Term Rental Licensing Requirement in Golden

To legally operate a short-term rental (STR) in Golden, property owners must obtain a business license from the Town of Golden. The specific requirements and process depend on the property's zoning:

For properties zoned residential (RE, R-1, R1-A, R-2, R-3 and residential PUDs):

1. Apply for a Short Term Rental License
2. The STR must be the owner's primary residence, occupied at least 10 months per year
3. License fee is $200 for a 2-year term (non-refundable and non-transferable)
4. Provide the following with your application:
   1. Completed Application Form
   2. Proof of ownership (recorded warranty deed)
   3. Proof of fire, hazard, and $1 million liability insurance
   4. Life Safety Self Certification Form
   5. Proof of primary residence (voter registration, driver's license, tax documents, or utility bill)
   6. Description of Area and Parking Form
   7. Copy of your Sales and Use Tax License
   8. Payment of $200 license fee

For properties zoned commercial (C-1, C2, RC, CMU and commercial PUDs):

1. Apply for a Tourist Home License
2. No primary residence requirement
3. Dwelling unit may be rented in its entirety to one party at a time
4. Same application requirements and $200 fee as the Short-Term Rental License

Additional requirements for all STRs in Golden:

1. Obtain required signage
2. Include the license number in all advertisements and listings
3. Post the business license inside the rental unit
4. Provide a 24/7 contact number for the owner or property manager
5. Undergo initial life-safety inspection every 3 years by the building official
6. Collect and remit sales taxes (only Airbnb collects on behalf of hosts currently)

Applications can be submitted online at www.golden.ca/shorttermrentals or in-person at the Town of Golden Planning Department. The typical processing time is not specified.

Failure to obtain the required STR license can result in fines of up to $500 per day for non-compliance. The Town plans to use specialized software to identify unlicensed STRs and will seek voluntary compliance before issuing any penalties. However, immediate enforcement without warning may occur if an STR is found operating after being denied a license.

It's crucial for STR operators in Golden to carefully review the regulations, gather the necessary documentation, and submit a complete application to avoid delays or penalties. With the proper licensing, short-term rentals can be a viable source of income while supporting the local tourism economy.

Required Documents for Golden Short-Term Rentals

To apply for a short-term rental (STR) license in Golden, Colorado, you must provide the following documents:

1. Proof of Ownership: Submit a recorded warranty deed for the property to establish ownership. This document can be obtained from the Jefferson County Clerk and Recorder's office.
2. Proof of Primary Residence: If applying for a license in a residential zone, you must provide two forms of proof that the property is your primary residence, such as voter registration, car registration, driver's license, tax documents, or utility bills. This requirement ensures the STR is an accessory use to a long-term residential dwelling.
3. Proof of Insurance: Provide documentation of fire, hazard, and liability insurance coverage of at least $1 million per person/occurrence. You can submit either the insurance policy itself or a signed Liability Insurance Affidavit form. Proper insurance is crucial to protect yourself, your property, and your guests.
4. Life Safety Self-Certification Form: Complete and sign this form to certify that your STR meets various safety requirements, such as having smoke detectors, carbon monoxide detectors, fire extinguishers, and clearly marked exits. The form is available on the City of Golden's STR webpage.
5. Parking Form: Fill out the Description of Area and Parking Form to indicate the number and location of off-street parking spaces available for your STR. The form ensures your property meets the parking requirements outlined in the city's zoning code.
6. Sales Tax License: Obtain a Sales and Use Tax License from the City of Golden's Finance Department. STR operators must collect and remit applicable sales and lodging taxes. Apply for the license prior to submitting your STR application.

In addition to these required documents, you must also complete the STR application form and pay the $200 license fee. The license is valid for two years and is non-transferable.

Submit your complete application package in person at the City of Golden Planning Department or online through the city's permit portal. The review process typically takes up to 10 business days.

Once approved, you'll receive your STR license via email. You must include the license number in all advertisements for your rental property and post a copy inside the dwelling unit.

By gathering the necessary documentation and carefully following the city's application procedures, you can ensure a smooth licensing process and legally operate your short-term rental in Golden. Failing to obtain a license can result in fines of up to $500 per day, so it's essential to comply with all requirements.

Golden Short-Term Rental Taxes

Short-term rental (STR) operators in Golden must collect and remit several types of taxes. These include:

1. City of Golden Sales Tax (3%): This tax applies to all short-term rentals of less than 30 consecutive days. The current rate is 3% of the rental price, excluding any cleaning fees or deposits. STR operators must have a City of Golden Sales Tax License and file returns monthly.
2. City of Golden Lodging Tax (3%): In addition to the sales tax, Golden imposes a 3% lodging tax on all short-term rentals. This tax is also calculated on the rental price, excluding cleaning fees and deposits. Operators must file lodging tax returns monthly, along with their sales tax returns.
3. Jefferson County Lodging Tax (3%): Golden STRs are also subject to the Jefferson County Lodging Tax of 3%. This tax is remitted to the county quarterly.
4. Colorado Sales Tax (2.9%): The state of Colorado imposes a 2.9% sales tax on short-term rentals. STR operators must obtain a Colorado Sales Tax License and file returns monthly.
5. Colorado Occupancy Tax (1.35%): Colorado also levies a 1.35% occupancy tax on all short-term rentals. This tax is filed and remitted monthly, along with the state sales tax.

In total, short-term rentals in Golden are subject to a combined tax rate of 13.25% (3% city sales tax + 3% city lodging tax + 3% county lodging tax + 2.9% state sales tax + 1.35% state occupancy tax).

STR operators are responsible for collecting these taxes from their guests and remitting them to the appropriate authorities. Failure to comply with tax requirements can result in penalties and interest.

Currently, only Airbnb collects and remits taxes on behalf of its hosts in Golden. For all other platforms (such as VRBO or direct bookings), the operator must handle tax collection and remittance themselves.

Tax Deductions for STRs

STR operators in Golden may be able to deduct certain expenses related to their rental business. These can include:

1. Mortgage interest and property taxes (if the STR is not your primary residence)
2. Utilities (electricity, gas, water, internet, etc.)
3. Cleaning and maintenance costs
4. Supplies (toiletries, linens, etc.)
5. Insurance premiums
6. Advertising and platform fees
7. Depreciation of furniture and equipment

To claim these deductions, you must keep accurate records and receipts. Consult with a tax professional to ensure you are properly tracking and reporting your STR income and expenses.

It's important to note that if you rent out a portion of your primary residence, you can only deduct expenses for the specific area and time period used for rental purposes. For example, if you rent out a room that represents 20% of your home's square footage for 90 days, you could deduct 20% of your mortgage interest and property taxes for that 90-day period.

By understanding and complying with Golden's tax requirements, short-term rental operators can avoid penalties and maximize their deductions. Proper tax planning and reporting are essential aspects of running a successful and legal STR business.

British Columbia Wide Short-Term Rental Rules

In addition to municipal regulations, short-term rental hosts in British Columbia 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.

Key provisions of the provincial legislation include:

1. Principal Residence Requirement: In communities with a population over 10,000 and neighboring areas, short-term rentals are restricted to the host's principal residence plus one additional unit, such as a secondary suite or laneway house on the same property. This requirement applies to approximately 65 communities across BC.
2. Exemptions: Some property types and areas are exempt from the principal residence rule, including:
   1. Strata hotels/motels that meet certain criteria
   2. Mountain resorts, ski resorts, and BC Parks resorts
   3. Regional district electoral areas (except UBC/UEL)
   4. Islands Trust areas
   5. Agricultural land reserve properties
   6. Indigenous reserve and treaty lands (unless they opt in)
3. Business License Display: Where required by the local government, short-term rental listings must display a valid business license number starting May 1, 2024. Platforms must remove listings without a license number upon request from the municipality.
4. Data Sharing: Beginning in the summer of 2024, short-term rental platforms like Airbnb and Vrbo will need to share data on BC-based listings with the provincial government monthly. This information will help local governments identify non-compliant properties.
5. Provincial Registry: By early 2025, the province plans to launch a short-term rental registry. Hosts will need to include their provincial registration number in listings, and platforms must validate these numbers against the registry data.
6. Fines and Enforcement: The Act increases fines for non-compliance, with penalties ranging from $500 to $5,000 per day for individual hosts and up to $10,000 for corporations. A provincial compliance and enforcement unit will investigate alleged violations.

It's important to note that these provincial rules establish a minimum standard or "floor." Local governments can enact bylaws that are equally or more restrictive based on community needs. For example, the City of Vancouver has even stricter regulations in place.

Short-term rental hosts in BC must carefully review both provincial and municipal requirements to ensure full compliance and avoid penalties. With the phased rollout of the Short-Term Rental Accommodations Act continuing through 2025, staying informed of evolving regulations is crucial for responsible hosting.

Does Golden Strictly Enforce STR Rules?

Based on discussions on Reddit and Bigger Pockets, Golden appears to be taking a strict approach to enforcing its short-term rental (STR) regulations compared to many other municipalities.

On the r/airbnb_hosts subreddit, several hosts have shared experiences facing significant fines and penalties for non-compliance with Golden's STR rules:

"I got hit with a $5,000 fine in Golden for operating an Airbnb without the proper permits and licenses. They do not mess around - I had to shut down my listing immediately."

"Golden is one of the least Airbnb-friendly cities I've encountered. Even having the proper licenses, they will come down hard if you violate any of the rules like occupancy limits or parking requirements."

Similarly, on the Bigger Pockets real estate investing forum, the consensus is that Golden's enforcement makes it very difficult for hosts to operate illegally:

"I looked at some properties in Golden but the STR laws are just too restrictive. They require the owner to live on-site most of the year and have aggressive fines. Not worth the risk in my opinion."

"Golden has really cracked down in the last couple of years. I know multiple hosts who got caught without the proper licensing and business registration - the fines basically wiped out all their profits for the year."

Based on these first-hand accounts, it does not appear that many hosts are successfully operating "under the radar" in Golden despite the restrictive regulations. The active enforcement by the city, combined with penalties reaching $5,000 or more per violation, makes the risks of non-compliance too high for most.

While some smaller towns may turn a blind eye to unlicensed STRs, Golden seems to be on the stricter end of the spectrum when it comes to permitting requirements, zoning rules, and levying fines against violators. Prospective hosts should carefully review and follow all local laws if considering Golden for an Airbnb investment.

How to Start a Short-Term Rental Business in Golden

Starting a short-term rental business in Golden can be a rewarding venture, but it requires careful planning and compliance with local and state regulations. Follow these steps to successfully launch your short-term rental business:

1. Research and understand the regulations: Golden has specific regulations governing short-term rentals, and it's essential to familiarize yourself with these rules before proceeding. The city distinguishes between two types of short-term rental licenses: Short Term Rental Licenses for residential-zoned properties and Tourist Home Licenses for commercial-zoned properties.
2. Develop a business plan: Like any successful business venture, starting a short-term rental requires a well-crafted business plan. This document should outline your goals, target market, unique selling points, financial projections, marketing strategies, and operational procedures. A solid business plan will help you stay focused, identify potential risks, and secure funding if needed. It should also include a detailed analysis of expenses, such as utilities, cleaning, maintenance, and property management fees.
3. Obtain necessary permits and licenses: To obtain a Short Term Rental License, your property must be your primary residence, and you must reside there for at least 10 months out of the year. Additionally, you'll need to acquire a Sales and Use Tax License, collect and remit taxes, and ensure compliance with zoning ordinances, building regulations, and homeowners association bylaws (if applicable).
4. Prepare your property: Clean, declutter, and furnish your property to create a welcoming and comfortable space for guests. Invest in quality amenities, linens, and towels to enhance the guest experience. Ensure your property meets all safety requirements, such as smoke detectors, carbon monoxide alarms, and fire extinguishers.
5. Set up your listing: Choose a reputable short-term rental platform, such as Airbnb or Vrbo, to list your property. Create an attractive and informative listing with high-quality photos, detailed descriptions, and accurate information about your property's features and amenities. Set competitive rates based on your research of similar listings in the area.
6. Establish house rules and policies: Develop clear house rules and policies for your guests, covering topics like noise levels, parking, smoking, and pet allowances. Communicate these rules in your listing and provide a physical copy at your property. Consider creating a welcome book with local recommendations, emergency contacts, and other helpful information for guests.
7. Manage your bookings and guests: Use your chosen platform's booking and communication tools to manage reservations, answer guest inquiries, and coordinate check-ins and check-outs. Be responsive and professional in your interactions with guests. Consider using a property management software or service to streamline your operations and provide a seamless guest experience.
8. Maintain your property and business: Regularly clean and maintain your property to ensure it remains in excellent condition for guests. Promptly address any maintenance issues or guest concerns. Stay informed about changes to local and state regulations, and renew your short-term rental permit annually.

By following these steps and adhering to local regulations, you'll be well on your way to launching a successful short-term rental business in Golden. Remember to continuously monitor and adapt your strategies to stay competitive in the ever-evolving short-term rental market.

Who to Contact in Golden, British Columbia about Short-Term Rental Regulations and Zoning?

If you have questions or need assistance regarding short-term rental regulations and zoning in Golden, British Columbia, you can contact the following:

Town of Golden Planning and Development Department
Phone: 250-344-2271 ext. 236
Email: planner@golden.ca

The Planning and Development Department is responsible for administering and enforcing the Town's short-term rental bylaws and regulations. They can provide information on zoning requirements, the application process for obtaining necessary permits and licenses, and guidance on ensuring compliance with the rules.

Phil Armstrong, Director of Planning and Development
Email: phil.armstrong@golden.ca
Phone: 250-344-2271 ext. 236

As the Director of Planning and Development for the Town of Golden, Phil Armstrong oversees the department and can offer detailed guidance on Golden's short-term rental regulations, the consultation process, enforcement strategies, and any updates or changes to the bylaws.

Residents and prospective short-term rental operators are encouraged to reach out to the Planning and Development Department or directly to Phil Armstrong with any inquiries related to operating a short-term rental in Golden. Clear communication and adherence to local regulations are essential for maintaining a balanced approach that supports tourism while preserving the character of residential neighborhoods.

It's important to note that the Town of Golden's short-term rental regulations were developed after extensive community consultation, including feedback from over 500 people, focus groups, public hearings, and targeted stakeholder meetings. The regulations aim to protect long-term rental housing while allowing residents to earn additional income through short-term rentals.

What Do Airbnb Hosts in Golden on Reddit and Bigger Pockets Think about Local Regulations?

Here are some relevant experiences, questions, replies, and comments from Reddit and Bigger Pockets forums about what Airbnb hosts in Golden, British Columbia, think about the local regulations:

From the /r/GoldenBC subreddit:

"The new short-term rental rules in Golden are really limiting my ability to rent out my basement suite on Airbnb. I relied on that income to help cover my mortgage, but now I can only do rentals 30+ days. Anyone else struggling with this?"

"I'm considering buying an investment property to use as a vacation rental in Golden, but the permit process seems overly complicated and expensive ($6k-8k in fees!). Has anyone gone through the permitting process here and can share their experience?"

From the Bigger Pockets Golden, BC real estate investing forum:

"I've been an Airbnb host in Golden for 3 years, but with the new regulations capping rental nights, I'm thinking of selling. The income just isn't worth it anymore with all the restrictions. Anyone else getting out of the short-term rental game here?"

"Just a heads up to other Golden hosts - the city seems to be cracking down more on illegal rentals. I got a warning letter for operating my basement suite as an Airbnb without proper permits and licenses."

From the Airbnb community forum:

"I'm really frustrated with Golden's rules prohibiting anything other than renting out your primary residence. I bought a condo specifically as an Airbnb investment, and now I can't do that."

"Has anyone applied for the short-term rental permit in Golden? I'm worried about the high fees and potentially not getting approved after going through the whole process. Looking for advice from local hosts."

The overall sentiment is that many Golden Airbnb hosts are unhappy with the increasing regulations around short-term rentals in the city. Complaints range from rental night caps to only being able to rent your primary residence to high permitting costs. Some hosts mention considering selling their properties or getting out of Airbnb in Golden due to the new rules.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.