US: Denver property owners renting their homes through vacation rental sites like Airbnb will face stricter rules following the implementation of further guidelines in the city.
The city will now have the power to revoke, sanction or deny a short-term rental licence or application if a rental property negatively impacts on the public health, safety or welfare of its local neighbourhood.
Ashley Kilroy, executive director of Excise and Licenses, highlighted one example of the issues the city is facing when a short-term rental licence was revoked after a number of neighbours complained about loud noise emanating from one property’s house party.
Kilroy told Colorado Public Radio: “We’ve been hearing complaints from neighbours about noise and frequent disturbances in neighbourhoods with short-term rentals. These new rules give us the ability to revoke or sanction those short term rental licences for disturbances.”
The property owner’s licence was eventually revoked because they were not using the home as their primary residence, one of the requirements from the city to rent a home on a short-term basis.
Property owners will also be required to carry a minimum of $1 million worth of liability insurance, notify their insurer that they are using their property as a short-term rental and inform the local authorities that they’re using their home as a short-term rental.
Denver currently has 2,574 active short-term rental licences compared to 2,037 last April.
Kilroy said more short-term renters are learning the rules and coming into compliance.
She said: “What we’re doing is bringing more and more of those people who are already advertising into the regulatory framework. Through our education, through our outreach, through issuing warnings, we’re getting more and more people to become licensed.”
The city is near an all-time high compliance rate of 72 per cent of online listings, compared to 52 per cent just one year ago.
Kilroy said: “Just as, you know, this market is continuing to innovate and change, our regulations are innovating and changing to keep up with the things that they’re doing.”