Lakewood Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Lakewood, Colorado?

Short term rental regulations in Lakewood can be found in the city's municipal code and ordinances.

As of September 2023, all short term rentals in Lakewood require a license to operate legally. Fines for unlicensed rentals can be up to $5,0001.To get licensed, hosts must submit documents like proof of residency, floor plans, parking details and emergency contacts.

Listings also undergo inspection before approval4. Licensed units must collect and remit all applicable state, county and city taxes on rentals5.

Overall, Lakewood is known to strictly enforce short term rental rules with active monitoring and significant penalties. Opinions on Reddit and BiggerPockets vary from finding the licensing process easy to excessively restrictive. But most agree that compliance, while demanding, allows hosts to operate successfully.

Starting a Short Term Rental Business in Lakewood

If you're looking to start a short-term rental business in Lakewood, Colorado, you'll need to obtain a license from the City of Lakewood. The licensing process requires you to meet minimum standards of safety and habitability, obtain insurance coverage, and collect and remit state and local sales taxes.

To apply for a short-term rental license, you can submit an application online or in person. The necessary documents for online submittal include a completed application form, proof of insurance, a floor plan, and a property inspection report. Incomplete applications will not be accepted, so make sure to fill in all required fields and upload all required documents. Once your application is submitted, you'll be taken to the dashboard screen of your current activities, where you can track the status of your application and respond to any comments or requirements from City staff.It's important to note that Lakewood strictly enforces its short-term rental rules, and violators are subject to fines.

While some Reddit and Bigger Pockets posts suggest that some hosts still operate in Lakewood despite the rules, it's not recommended to do so. Instead, it's best to follow the necessary steps to obtain a short-term rental license and comply with all applicable regulations.

Short Term Rental Licensing Requirement in Lakewood

Starting a short-term rental business in Lakewood requires obtaining a short-term rental license1. The City of Lakewood has enacted an ordinance that requires potential hosts to acquire a short-term rental (STR) license3. To do so, hosts must:

• Download the supporting documents or full application packet, which includes proof of primary residence for each owner, proof of ownership, proof of insurance, a floor plan, private rules or covenants as enforced by your HOA (if applicable), and proof that you have an account on Airbnb and that they are collecting sales and lodging tax on your behalf3.
• Submit all of your documents online, in person, or by mail3.
• Complete the STR application process3.
• All complete STR applications will be processed in the order in which they are received3. If STR registration is approved, hosts will be notified via email and the STR license will be attached for printing3.

The City of Lakewood has determined that licensing is necessary to ensure that short-term rentals are safe spaces to inhabit and to control the amount of short-term rentals that are popping up in a given area4.

The city clerk's office provides a checklist that must be filled out and signed by an ASHI-certified inspector to assess the premises and make sure it meets the minimum standards of safety and habitability4.

Required Documents for Lakewood Short Term Rentals

To obtain a short-term rental license in Lakewood, Colorado, you will need to submit several necessary documents. These include a completed application form, proof of insurance, a floor plan, private rules or covenants as enforced by your HOA (if applicable), and proof of primary residence for each owner.

Additionally, you will need to provide proof of ownership and evidence that you have an account on the platform through which you are offering the rental, such as Airbnb, and that you are collecting sales and lodging tax on your rentals. All supporting documentation must be attached with the submittal, and incomplete applications will not be accepted12.

The City Ordinance outlines the specific requirements for each document necessary for the short-term rental license. It is essential to review the ordinance to understand all the prerequisites for the application process. The application can be submitted online, and all complete applications will be processed in the order in which they are received.

If the registration is approved, hosts will be notified via email, and the license will be attached for printing12. It is also advisable to visit the Lakewood short-term rental FAQ page, email the provided address, or consult a local lawyer or tax professional if you have further inquiries2.

Lakewood Short Term Rental Taxes

Lakewood has specific tax requirements for short-term rentals. These taxes are in addition to the state and local sales taxes that hosts are required to collect and remit1.

Transient Occupancy Tax

The City of Lakewood imposes a 3% Transient Occupancy Tax on the purchase price paid for the use or possession (or the right to use or possess) of a short-term rental5. This tax is in addition to the state and local sales taxes that hosts are required to collect and remit1.

Accommodations Tax

In addition to the Transient Occupancy Tax, Lakewood also imposes a 3% Accommodations Tax on the purchase price paid for the use or possession of a short-term rental5. This tax is also in addition to the state and local sales taxes that hosts are required to collect and remit1.

Sales Tax

Hosts are required to collect and remit state and local sales taxes on short-term rental transactions1.

How to Comply with Lakewood Short Term Rental Taxes

To comply with Lakewood's short-term rental tax requirements, hosts must:

• Obtain a sales tax license from the State of Colorado1.
• Collect and remit state and local sales taxes on short-term rental transactions1.
• Pay the 3% Transient Occupancy Tax and 3% Accommodations Tax to the City of Lakewood5.
• Colorado wide Short Term Rental Rules

The State of Colorado and the City of Lakewood have specific rules and regulations for short-term rentals (STRs). In Lakewood, the City Council has approved ordinances that require all short-term rentals to be licensed and to pay a transient occupancy tax12. The ordinance bans short-term whole home rentals for less than thirty days, allowing only long-term whole home rentals for thirty days or more. However, it permits short-term home-share rentals of individual rooms for less than thirty days within existing owner-occupied dwelling units, subject to certain conditions1.

The city strictly enforces these rules, and unlicensed short-term rentals are subject to fines34.To comply with the regulations, potential hosts in Lakewood must acquire a short-term rental (STR) license by submitting the necessary documents, including proof of primary residence, ownership, insurance, and a floor plan3. The city also requires hosts to collect and remit state and local sales taxes1. Once the application is complete, it will be processed in the order it was received, and if approved, the host will be notified via email, and the license will be attached for printing3.For those looking to start a short-term rental business in Lakewood, it is essential to ensure compliance with the local regulations.

This includes obtaining a license, meeting property inspection criteria, and fulfilling tax obligations. The City Clerk's Office can provide further information and assistance regarding short-term rental regulations and zoning in Lakewood5.

In summary, the regulations for short-term rentals in Lakewood, Colorado, are stringent, and the city strictly enforces them. Hosts must obtain a license, adhere to property inspection requirements, and fulfill their tax obligations. It is important for potential hosts to familiarize themselves with the specific rules and seek guidance from the appropriate authorities to ensure compliance.

Does Lakewood strictly enforce STR rules?

Lakewood strictly enforces its short-term rental (STR) rules, as evidenced by the recent ordinance requiring potential hosts to acquire an STR license1. The city council's decision to allow licensed short-term rentals for primary residents of a home also indicates a clear regulatory framework for such rentals3.

The new law, set to go into effect on September 1, 2023, mandates that all STRs must be licensed and assessed by a qualified inspector to ensure compliance with safety and habitability standards2. The city's proactive approach to implementing and monitoring these regulations demonstrates a commitment to upholding the rules for short-term rentals.Despite the strict enforcement, some hosts still operate in Lakewood despite the rules, as indicated by various sources1.

However, it's important to note that violating the city's short-term rental rules can result in fines3. Therefore, it's crucial for hosts to comply with the regulations to avoid potential penalties and ensure the sustainability of their STR business in Lakewood.

How to Start a Short Term Rental Business in Lakewood?

Starting a short-term rental business in Lakewood requires obtaining a license from the City of Lakewood2. To obtain a license, property owners must meet the minimum standards of safety and habitability4. The necessary documents for a short-term rental license application in Lakewood include a completed application form, proof of insurance, a floor plan, and a property inspection report5.

To apply for a short-term rental license in Lakewood, property owners can submit their application online or in person2. All supporting documentation must be attached to the application, and incomplete applications will not be accepted2. Once the application is submitted, it will be processed in the order in which it was received3. If the application is approved, hosts will be notified via email, and the short-term rental license will be attached for printing3.To ensure that the short-term rental business is compliant with Lakewood's regulations, hosts must collect and remit state and local sales taxes1.

There are no specific short-term rental taxes in Lakewood, but hosts are required to pay state and local sales taxes1.It is important to note that Lakewood strictly enforces its short-term rental rules4. The city has received complaints about unlicensed short-term rentals, and violators are subject to fines3. According to some Reddit and Bigger Pockets posts, some hosts still operate in Lakewood despite the rules1. However, violating the city's short-term rental rules can result in fines3.

To start a short-term rental business in Lakewood, follow these steps:

• Obtain a short-term rental license from the City of Lakewood2.
• Collect and remit state and local sales taxes1.
• Ensure that the property meets the minimum standards of safety and habitability4.
• Obtain insurance coverage5.

Who to contact in Lakewood about Short Term Rental Regulations and Zoning?

For questions on short term rental rules and licensing in Lakewood, contact:

Short Term Rental Licensing: 562-866-9771 ext 2606 or email BusLic@lakewoodcity.org

Zoning and Land Use: 562-866-9771 ext 2140 or email Service1@lakewoodcity.org

What do Airbnb hosts in Lakewood on Reddit and Bigger Pockets think about local regulations?

Lakewood's short-term rental regulations have been a topic of discussion among Airbnb hosts on Reddit and Bigger Pockets. Some hosts have expressed their opinions on the city's rules and enforcement:

Neighborhood-friendly regulations: One host on Reddit requested that the STR ordinance be rejected or amended to be more neighborhood-friendly1. They suggested that STRs should be owner-occupied to minimize disruptions in residential neighborhoods.

Enforcement concerns: Another host on Reddit expressed concerns about the city's enforcement of short-term rental rules1. They mentioned that some hosts still operate in Lakewood despite the rules, and violators are subject to fines3.

Balancing interests: A Lakewood City Council member acknowledged that the new rentals rules aim to balance the interests of hosts and the community4. They emphasized the importance of ensuring that short-term rentals do not cause disruptions in residential neighborhoods.

Ongoing review: The council decided to conduct a required look back in 2024 to see what's working and make necessary adjustments to the rules4. This indicates that the city is open to feedback and willing to make changes based on the experiences of hosts and residents.

In summary, Lakewood's short-term rental regulations have sparked discussions among Airbnb hosts on Reddit and Bigger Pockets. While some hosts have concerns about enforcement and neighborhood disruptions, others appreciate the city's efforts to balance the interests of hosts and the community. The ongoing review of the rules in 2024 suggests that Lakewood is open to feedback and willing to make adjustments as needed.