Jefferson County, Colorado Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Jefferson County, Colorado?

Jefferson County, Colorado allows short-term rentals like Airbnb and VRBO in single-family residential units, but there are specific regulations and a permit process that owners must follow. A short-term rental is defined as a single-family detached dwelling with 5 bedrooms or less that is rented out for less than 30 consecutive days.

To legally operate a short-term rental in unincorporated Jefferson County, property owners must go through a two-step process:

• Obtain a Special Exception approval from the Board of Adjustment
• Apply for a Short-Term Rental Permit from the Planning & Zoning Division

The property must meet certain criteria to be eligible for a short-term rental permit, including:

1. Minimum lot size of 1 acre
2. Adequate parking
3. Compliance with Wildfire Hazard Overlay District requirements
4. Valid water and sanitation
5. No zoning violations
6. No substantial negative impact on the surrounding area

Getting the Special Exception approval takes about 2 months. The STR permit must be renewed with the Board of Adjustment after 6 months, and then annually after that. Failing to obtain the proper approvals and permit can result in fines.

However, Jefferson County is currently facing issues with hundreds of unpermitted short-term rentals operating illegally. In May 2023, officials estimated there were 700-800 unlicensed STRs, compared to only 28 that had gone through the proper process.

Residents have complained about problems caused by STRs, such as noise, parties, trespassing, and fire risks. In response, Jefferson County enacted a one-year moratorium on new STR permits in April 2024 to allow time to re-evaluate and potentially change the existing regulations.

The county is holding public meetings to gather community input on short-term rental rules. Updated regulations are expected to be drafted and adopted sometime in 2024 or 2025. In the meantime, the county considers enforcement against unpermitted STRs a low priority unless there are life-safety issues or other code violations.

Starting a Short-Term Rental Business in Jefferson County

Property owners interested in using their home as a short-term rental in Jefferson County need to carefully follow the county's permit process:

1. Ensure the property meets all eligibility criteria, including minimum lot size, parking, wildfire mitigation, utilities, and compliance with zoning.
2. Apply for a Special Exception with the Board of Adjustment. This takes about 2 months for review and a decision.
3. If the Special Exception is approved, apply for the Short-Term Rental permit with Planning & Zoning.
4. Renew the STR permit 6 months after initial approval, and then annually.
5. Obtain a Sales & Use Tax License from the county since short-term rentals are considered a business.

Short-term rentals can be a lucrative investment in Jefferson County. One property in Morrison was listed for sale for $975,000, advertised as grossing nearly $12,000/month as an Airbnb.

However, with the current moratorium and impending regulation changes, new STR permits are on hold until at least April 2025. Prospective short-term rental operators should monitor Jefferson County's STR regulation updates and be prepared to comply with any new rules that are adopted.

Short-Term Rental Licensing Requirement in Jefferson County

Jefferson County requires all short-term rental properties to obtain a license through a two-step process:

1. Obtain a Special Exception approval from the Board of Adjustment
2. Apply for a Short-Term Rental Permit from the Planning & Zoning Division

To be eligible for a short-term rental permit, properties must meet the following criteria according to the Jefferson County website:

1. Minimum lot size of 1 acre
2. Compliance with building standards (setbacks, height, etc.) of the underlying zone district
3. Adequate parking provided
4. Compliance with Wildfire Hazard Overlay District defensible space requirements
5. Valid water and wastewater service
6. Dwelling has no more than 5 bedrooms
7. Property has legal access
8. Property is free of zoning violations
9. Use will not cause substantial negative impact on surrounding area

The first step is to apply for a Special Exception with the Board of Adjustment. This process takes approximately 2 months from application submittal to the Board's decision. The application requires a $800 fee.

If the Special Exception is approved, the second step is applying for the Short-Term Rental Permit with the Planning & Zoning Division. This application has a $750 permit fee, plus $200 hearing fee and $200 review fee, for a total first-year cost of nearly $3,000 when including the Special Exception fee.

STR permits must be renewed with the Board of Adjustment 6 months after initial approval, and then annually after that. The annual renewal fee is $1,150.

Failure to obtain the proper Special Exception approval and Short-Term Rental permit can result in fines and penalties. Jefferson County can impose a $100 fine on non-compliant STRs, but must take offenders to court in order to collect the fine, which has proven difficult to enforce.

Back in of May 2023, Jefferson County estimates there are 700-800 short-term rentals operating illegally without permits. In contrast, only 28 STRs have gone through the full permit process. The county is currently re-evaluating its STR regulations and considering changes to improve compliance and enforcement.

Required Documents for Jefferson County Short-Term Rentals

According to the Jefferson County website, the following documents are required when applying for a short-term rental permit:

1. Completed Application Form - The Short-Term Rental Application form must be filled out completely. It collects property details, owner information, rental description, and an affidavit of compliance with standards.
2. Proof of Ownership - Documents showing proof of ownership of the property, such as a deed.
3. Site Plan - A site plan of the property showing buildings, parking areas, and access points. This is to verify compliance with parking and access requirements.
4. Floor Plan - A floor plan of the dwelling showing bedrooms, egress windows/doors, smoke and CO detectors, and fire extinguishers. This is to confirm the rental meets building safety standards.
5. Proof of Property Taxes Paid - Documentation from the Assessor's Office showing property taxes are up to date.
6. Proof of Insurance - Certificate of insurance showing valid property and liability coverage for use as a short-term rental.
7. Wildfire Mitigation Plan - For properties in the Wildfire Hazard Overlay District, a plan demonstrating compliance with defensible space requirements.
8. Water & Sanitation - Documentation of adequate water supply and sewage disposal, either by public utilities or approved well/septic permits.
9. Good Neighbor Policy - A "good neighbor" policy that will be provided to renters with rules and emergency contact info.
10. Application Fee - Payment of the $750 permit application fee.

These documents must be submitted along with the Short-Term Rental Application to Jefferson County Planning & Zoning at pzpermits@jeffco.us. The application will not be processed if any required documents are missing.

Jefferson County Short-Term Rental Taxes

Short-term rental operators in Jefferson County, Colorado are required to collect and remit several types of taxes:

1. Colorado Sales Tax - The state sales tax rate is 2.9% and applies to all short-term rentals. This tax is collected from guests and remitted to the Colorado Department of Revenue.
2. Jefferson County Sales Tax - The county sales tax rate is 0.5% and applies to short-term rentals in unincorporated areas of Jefferson County. This tax is in addition to the state sales tax and is also collected from guests and remitted to the county.
3. Local Sales Tax - Some cities and towns within Jefferson County have their own additional sales tax that applies to short-term rentals. For example, Golden has a 3% city sales tax. Check with your local municipality for the rates.
4. Jefferson County Lodging Tax - Jefferson County charges a 3% lodging tax on the rental of rooms and accommodations, including short-term rentals. This tax is collected from guests in addition to the sales taxes.

So for example, if your short-term rental is located in unincorporated Jefferson County, the total tax rate would be 6.4% (2.9% state + 0.5% county + 3% lodging). If it's within a city like Golden, the total would be 9.4% (2.9% state + 0.5% county + 3% lodging + 3% city).

Short-term rental income is also subject to income taxes. Operators should report their rental income and expenses on Schedule E of their federal tax return.

Some possible tax deductions for short-term rentals include:

1. Mortgage interest
2. Property taxes
3. Rental insurance
4. Utilities
5. Cleaning and maintenance costs
6. Supplies for guests
7. Advertising and booking fees
8. Depreciation of furniture and equipment

It's best to consult with a tax professional to ensure you are properly collecting and remitting all required taxes and taking all allowable deductions for your short-term rental business. Failure to comply with tax laws can result in penalties and interest.

Colorado Wide Short-Term Rental Rules

While there are no comprehensive statewide laws specifically regulating short-term rentals in Colorado, the state legislature has taken steps to give counties more authority over STRs. In 2020, the Colorado General Assembly passed HB 20-1093, which authorizes county governments to license and regulate properties rented or advertised for short-term stays of less than 30 days.

This law, which took effect in September 2020, allows county commissioners to adopt ordinances requiring STR owners or their agents to obtain licenses. Counties can set fees, terms, and conditions for issuing and maintaining those licenses. However, the law excludes "vacation rental services" like Airbnb from being considered an owner's agent.

In 2023, the state legislature passed an update to this law with HB 23-1287. It clarifies that counties can require STR owners to include their rental license or permit number in any online listing. It also allows counties to compel vacation rental services to remove listings if the owner's license has been suspended, revoked, or they have been issued a violation notice for operating without a valid permit.

At the state level, short-term rental income is subject to sales and lodging taxes. STR owners must obtain a sales tax license from the Colorado Department of Revenue, which is valid for two years, in order to collect and remit the required taxes:

1. Colorado state sales tax: 2.9%
2. County lodging tax: Varies by county, typically 0.9% to 2%
3. Local marketing district tax: Ranges from 1.4% to 4%
4. Local sales taxes: Vary by city or county, usually 1% to 5%

Some vacation rental booking platforms like Airbnb collect and remit certain taxes on behalf of hosts, but owners are ultimately responsible for ensuring full compliance with all state and local tax obligations.

So while Colorado does not have a universal statewide STR law, the 2020 and 2023 bills have given counties more tools to regulate short-term rentals as they see fit. Jefferson County and other local governments can set their own specific rules within this state framework, so it's crucial for hosts to understand and follow the particular requirements in their area.

Does Jefferson County Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like BiggerPockets and Reddit, Jefferson County, Colorado does not appear to be strictly enforcing its short-term rental regulations compared to some other cities and counties. Many hosts seem to be operating STRs in Jefferson County despite not being fully compliant with the permit and licensing requirements.

According to Jefferson County's Planning & Zoning Director Chris O'Keefe, the county estimates there are 700-800 short-term rentals operating illegally without permits as of May 2023. In contrast, only 28 STRs have gone through the full permit process to operate legally.

The county has limited resources to proactively enforce the STR rules. Its Planning & Zoning department only has 6 staff to handle all code enforcement for a county of over 500,000 residents. They rely on a complaint-based system, but even then struggle to impose fines on violators.

On the BiggerPockets forums, several hosts reported operating STRs in Jefferson County for years without obtaining permits. Some said they were unaware of the county's two-step approval process requiring a Special Exception from the Board of Adjustment and a separate STR permit. Others chose not to pursue permits due to the time and cost involved, feeling the risk of enforcement was low.

The county considers unlicensed STRs a low priority for enforcement unless there are life-safety issues or neighbor complaints. On Reddit, one host claimed to have operated STRs in Jeffco for 3 years with no issues despite not being permitted. Another said the county's enforcement seems very lax compared to Denver's strict STR regulations.

So while Jefferson County has an STR permit process on the books, in practice the rules do not appear to be deterring many hosts from operating short-term rentals. The county is not as "Airbnb friendly" as some areas with no STR regulations, but it's also not as strict as cities like Denver in enforcing the rules.

However, this may change in the near future. Jefferson County is currently re-evaluating its STR regulations and considering updates to improve compliance and enforcement. A one-year moratorium on new STR permits was enacted in April 2024 to allow time to gather community input and draft revised rules. Hosts operating illegally now may face greater scrutiny once new regulations are adopted, likely in 2024 or 2025.

How to Start a Short-Term Rental Business in Jefferson County

Starting a short-term rental business in Jefferson County, Colorado involves several key steps to ensure compliance with local regulations and set yourself up for success. Here's a numbered list of the process:

• Research Jefferson County's STR Regulations - Thoroughly review the county's short-term rental rules, including zoning requirements, permit process, taxes, and more. Understand the current regulations and be aware that changes may be coming in 2024-2025.
• Evaluate Your Property's Eligibility - Assess whether your property meets the county's criteria for short-term rentals, such as minimum lot size of 1 acre, adequate parking, compliance with wildfire mitigation requirements, and more. Consider the costs of any necessary upgrades.
• Prepare Required Documents - Gather all the documents needed for the STR permit application, including property deed, site plan, floor plan, proof of insurance, good neighbor policy, and more. Ensure everything is complete and accurate.
• Obtain a Special Exception - Apply for a Special Exception with the Jefferson County Board of Adjustment. This process takes about 2 months and requires an $800 fee. Be prepared to demonstrate how your STR will meet the county's standards.
• Apply for the STR Permit - Once the Special Exception is approved, submit your Short-Term Rental permit application to the Planning & Zoning Division. Include all required documents and pay the $1,150 in permit fees.
• Register for Tax Collection - Obtain a sales tax license from the Colorado Department of Revenue and register with the county to collect and remit lodging taxes. Set up processes to properly charge, document, and pay the various required taxes.
• Prepare Your Property for Guests - Outfit your rental with furniture, linens, supplies, and amenities to create an inviting space. Consider hiring a professional photographer to take high-quality listing photos. Ensure the property is thoroughly cleaned between each stay.
• Create Your Rental Listing - Choose an online platform like Airbnb or VRBO to list your property. Craft a compelling description, set competitive rates, and establish house rules. Be responsive to inquiries and booking requests.
• Manage Your Bookings and Guests - Use a system to efficiently handle reservations, check-ins, turnovers, cleaning, and maintenance. Provide excellent customer service to earn positive reviews and repeat business. Consider hiring a property manager if you can't be hands-on.
• Renew Your STR Permit Annually - Short-term rental permits in Jefferson County must be renewed with the Board of Adjustment every year. Mark your calendar and budget for the $1,150 renewal fee. Stay up to date on any changes to the county's STR regulations.

Some tips for success:

• Consult with the Jefferson County Planning & Zoning Division early in the process to ensure you understand the requirements and have everything needed for your permit application.
• Be a good neighbor and take steps to prevent issues like noise, parking, or trash from negatively impacting the surrounding community.
• Provide exceptional cleanliness and top-notch amenities to wow your guests and earn 5-star reviews. Go above and beyond with your service and communication.
• Optimize your pricing based on seasonality, local events, and comparable listings to maximize revenue. Consider using dynamic pricing tools.
• Automate as much of the booking, check-in, and turnover process as possible to efficiently manage your business and provide a seamless experience for guests.

Starting a short-term rental in Jefferson County requires navigating some red tape, but with diligent planning and execution, it can be a rewarding business venture. The key is compliance, professionalism, and a commitment to providing outstanding hospitality.

Who to Contact in Jefferson County about Short-Term Rental Regulations and Zoning?

For questions about short-term rental regulations and zoning in unincorporated Jefferson County, Colorado, the best resource is the county's Planning & Zoning Division. They handle all aspects of the STR permit process and can provide guidance on specific property requirements.

The Jefferson County Planning & Zoning Division can be contacted in several ways:

• Online Form (recommended for fastest service): https://jeffco.us/FormCenter/Planning-Zoning-25/Ask-a-Planner-General-Questions-and-Fee-218
• Email: pzweb@jeffco.us
• Phone: 303-271-8700
• Office Address: 100 Jefferson County Parkway, Suite 3550, Golden, CO 80419

It's best to have your property address, legal description, and/or parcel number handy when contacting Planning & Zoning so they can provide site-specific information. You can look up your property details using the county's Assessor Records Search: https://propertysearch.jeffco.us/propertyrecordssearch/

For broader questions about Jefferson County's short-term rental program, you can email the STR program manager directly at pzstr@jeffco.us.

Some other helpful resources for Jefferson County STR hosts:

• Jefferson County Short-Term Rental Regulations: https://www.jeffco.us/DocumentCenter/View/28619/Short-Term-Rental-Regulations-PDF
• Short-Term Rental Permit Application: https://www.jeffco.us/DocumentCenter/View/28621/Short-Term-Rental-Application-PDF
• Jefferson County STR FAQs: https://www.jeffco.us/Faq.aspx?TID=40

There are also online communities where Jefferson County STR hosts connect to share experiences and advice:

• Denver Short-Term Rental Alliance (DSTRA) - A non-profit that advocates for fair STR regulations across the Denver metro area, including Jefferson County. https://dstra.org/
• Bigger Pockets Denver Forum - https://www.biggerpockets.com/forums/763-denver-real-estate-forum
• Airbnb Hosting Forum for Denver - https://airhostsforum.com/c/us-states/colorado/denver/34
• VRBO/Homeaway Community for Denver - https://community.homeaway.com/s/group/0F90Z00000GmfSCSAZ/denver-co

These groups can be great places to network with other local hosts, ask questions, and stay up to date on any changes to Jefferson County's evolving STR landscape. The county is currently re-evaluating its short-term rental regulations, so it's important to engage with officials and other stakeholders to have a voice in shaping the future rules.

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

Discussions on real estate investing forums like BiggerPockets and Reddit provide insight into how short-term rental hosts in Jefferson County feel about the local regulations:

On BiggerPockets, one experienced investor expressed doubts about the future viability of short-term rentals in Colorado, including Jefferson County. They noted that Jefferson County has been "fickle with permits" and even revoked one of their client's STR permits for "arbitrary reasons." The investor sees a mix of tightening regulations and potentially higher taxes making STRs less appealing as pure investments in the area.

In another BiggerPockets thread, an investor asked if short-term rentals are permitted in unincorporated Jefferson County. While the county does allow them with a permit, the process is not straightforward. One reply indicated STRs are allowed "with permission and approval from a group" but details were limited. The uncertainty and difficulty in getting clear answers from the county has made some investors hesitant.

On the Denver subreddit, one host commented that Jefferson County's regulations are not as clearly defined as Denver's, making compliance tricky. They said the county seems to have a "ban first, ask questions later" approach to STRs. However, the host still successfully operates a permitted short-term rental in Jeffco.

Another Redditor mentioned that their HOA in Jefferson County recently voted to ban all short-term rentals and anything less than 30-day stays. The decision was motivated by a desire to free up more affordable housing for long-term residents and reduce nuisances from STR guests. Some locals see short-term rentals as eroding community character.

Overall, hosts in Jefferson County seem frustrated by the unclear, inconsistent, and increasingly restrictive regulations on short-term rentals. The county's current permit process is seen as onerous and opaque. With the county now considering further limits or even a full ban on STRs in some areas, hosts are anxious about the future of their businesses. However, some still see opportunity in areas of Jeffco that have less red tape, for those willing to jump through the hoops.

Disclaimer: While we here at BNBCalc strive to keep all of our 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 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.