The Beaver Run Resort & Conference Center is pictured on Sunday July 11th. With the city of Breckenridge’s new statutory short-term rent, Beaver Run will have to pay just under a quarter of a million dollars to the city in early 2022.
Lindsey Toomer / Summit Day News
Past the town of Breckenridge its new regulatory fee for short term rentals, properties previously exempt from the management fee will be required to pay $ 400 per bedroom to the city as of January 1, 2022.
Only short-term accommodations that are registered with the city as lodges are exempt from the fee. This applies to traditional hotels that are wholly owned by one person or entity.
“Under our city code, a lodge is a multi-unit property owned by one unit,” said Bela Del Valle, accommodation compliance administrator. “… Breckenridge doesn’t have very many of them.”
Del Valle said lodges still have a different type of business license and don’t require short-term rental licenses. Properties that currently hold a Lodge license in Breckenridge are the DoubleTree by Hilton, Breck Inn, Skiway Lodge, Residence Inn by Marriott, Fireside Inn, Bivvi Hostel, Gravity Haus and Welk Resorts.
Until now, properties with short-term rental licenses that had a 24-hour reception, security and telephone service were exempt from the administration fee. Examples of exempt accommodations are 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 from the new license cap of 2,200, however, are not exempt from the regulation fee.
Differentiating which properties fall under which definition can be confusing as some of the hotel company names are not lodges. For example, Marriott has both the Residence Inn, which is a lodge, and the Mountain Valley Lodge, which includes individually notarized units. The Mountain Valley Lodge units therefore require a short-term rental license and are subject to the new fee.
“If there is a single owner 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 City of Breckenridge in order to rent,” said Del Valle.
The same goes for timeshare. Typically, if someone decides not to timeshare during their allotted time, the company or owner will promote the unit to be rented out to the public.
“If anyone other than a deed owner of the timeshare is using the unit for consideration, a lodging license is required,” Del Valle wrote in an email. “In the past, all of our timeshare licenses have been licensed because their operating model allows the unit to be rented at short notice.”
Del Valle also said a new license application is expected if an exempt short-term rental unit changes hands. While the fee is charged per bedroom, only one license needs to be issued per unit.
If a single owner of a condominium wants to rent it out himself, he needs a license.
“Not everyone in the Highlands needs to have a short-term rental license to live there, but if someone on the block … wants to rent short-term, they must have a license,” Del Valle said.
Bob Barto, general manager of Beaver Run, said Beaver Run shares a percentage of the profit with the owner whose condo has been used when a condominium is rented out on a short-term basis. He said Beaver Run manages the majority of its units, but some have outside management as well.
Barto, who also serves on the city’s Tourism Overlay Task Force, has has already voiced its concerns about the new fee to the community, especially because Beaver Run has spent roughly $ 2.3 million since 2015 to house its own workforce. The fee is set to create more housing options for workers through a variety of recent city programs, but Barto said he would like to see other industries contribute to housing for workers as well.
Barto said Beaver Run has 413 short term rentals. He estimated the resort would have to pay just under a quarter of a million dollars to the city in early 2022 if Beaver Run 600 rooms in short-term units already had to pay a fee that could potentially rise, but previously exempt properties have a whole new hassle to budget for.
“Hopefully we can do it,” said Barto. “You compromised from $ 756 to $ 400 in the first year. We have to work with the city to make the most of it. … Short term rental is very complicated and getting it right will take time. “
