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City Council gives initial OK to tightening short-term rental rules

Council voted 5-2 during its Tuesday meeting to block rental investment property, usually a second home, from being used as a short-term rental.
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Photo by Alex Block on Unsplash

Longmont’s short-term rental law is being reviewed by city officials after complaints that as is, it is allowing party houses in otherwise quiet neighborhoods and corporations to edge out families looking for homes.

Some council members said short term rentals — which usually span up to 30 days — are being used for investment income without regard to the impacts they have on neighbors.

“Right now we have hedge fund managers and commercial real estate buying up properties … and largely displacing properties people could buy to live in year-round and build up equity throughout their lives,” City Councilmember Polly Christensen said.

Council voted 5-2 during its Tuesday meeting to block rental investment property, usually a second home, from being used as a short-term rental. Council requested that homes be required to have a listed owner-occupant before they can be offered on a short-term basis. 

Staff will update the ordinance approved on first reading Tuesday and  bring it back to council for approval.

Mayor Brian Bagley and Councilmember Marcia Martin dissented in the 5-2 vote. Bagley said council was unfairly targeting those who wanted to use their property as a means to provide for their futures. 

“For a lot of people who are not rich they chose this way to pay for retirement,” Bagley said. “Just because you own property that doesn’t mean you are rich or are a developer. We are micromanaging property owners and that is bad public policy.”

Council also directed city staffers to come up with improvements to short-term rental rules, including enforcement capabilities with repercussions for those who don’t follow the rules.

“We need to put some teeth into this,” said Councilmember Tim Waters.

Allowing short-term rentals was part of a 2018 update to the city’s Land Development Code. Short-term rentals are typically less than 30 days in length and may involve rental of an entire detached residence or individual rooms.

Prior to 2018, the city did not allow short-term rentals and there was no enforcement surrounding existing short-term rentals, according to city staff members.

Don Burchett, Longmont  planning manager, said the city began reviewing and issuing permits to operators in January 2019 and there are currently 80 active permits.

SInce then, the city has logged nine complaints for short-term rental violations — six for operating without a permit and three because the owner was not living within the city limits as required, Burchett said.

There also have been 54 police calls for service to 30 short-term rentals during the past 18 months, Burchett said. The rentals have drawn complaints about becoming “party houses” with lots of marijuana use and loud noises, he said.

“Basically, they are not being good neighbors,” he said.

City staff told council that enforcement of rules is hampered by a short-staffed Code Enforcement Office and questions on exactly when a fine can be levied. 

“Folks tell us they are meeting STR rules, but it takes an enormous amount of energy to find out if they are meeting the rules,” said Joni Marsh, assistant city manager. “For … us to enforce the law we have to have some teeth and right now we are missing some pieces.”