Short-Term HOA Home Rentals in Colorado: What HOAs Need To Know
With its picturesque landscapes, beautiful mountains, and a wide variety of outdoor activities, Colorado has become a popular vacation destination for travelers from all over the world. With the rise of easy-to-use platforms like Airbnb and VRBO, short-term rental properties have seen a huge surge in popularity, offering tourists a more unique and comfortable housing experience compared to traditional hotels.
While this may be good news for Aurora, CO, homeowners looking for extra income, it can also bring challenges for local homeowners associations. If your HOA board is feeling lost or overwhelmed when it comes to navigating this evolving landscape, keep reading to learn everything you need to know about short-term HOA home rentals in Colorado.
The Popularity of Short-Term Rentals
In just the past five years, there has been a significant shift in the way we travel and the options available to us. Whereas hotels and motels were previously the only lodging options available to travelers, the rise of platforms like Airbnb enabled private citizens to open up their homes for short-term stays. While this has become a great source of income for some property owners, it has also caused tangible problems for the HOAs they live in.
As tourists flock to popular destinations like Colorado, the rise in short-term rentals presents a unique challenge for HOA board members and community management. Community associations were not designed to handle the complexities of governing hotel-like transactions within private residential communities, and the use of vacation rentals is raising concerns over security and privacy, as well as potential violations of governing documents.
While some property owners are excited about the income potential, others are wary of strangers coming and going from their neighborhood largely untracked. As such, HOA boards must act quickly to determine if their current governing documents are sufficient to regulate the growing use of short-term rentals. While some HOAs may have specific rules or prohibitions against short-term rentals already in place, all community associations need, now more than ever, to stay informed and potentially seek professional advice as to how your board can best address this issue.
What Existing HOA Policies May Apply
HOAs in Colorado may already have existing policies that address short-term rentals. These can include rental restrictions, guest policies, and rules surrounding nuisances and disturbances.
Most HOAs have restrictions already in place regarding the number of guests in a unit or the maximum occupancy permitted. Many HOAs also have detailed policies about rentals and what constitutes the leasing of a property. This can sometimes be as broad as the exchange of money for lodging, which would make short-term rentals a violation of your HOA rental policy. If your community doesn’t have these restrictions in place, it may have rules regarding noise levels or other disturbances. These clauses tend to be fairly generic, so it may be an effective way to police short-term rentals that are disrupting the neighborhood.
Whether or not you have relevant policies already in place, it’s important for HOAs to review their governing documents and make sure they are up-to-date and in line with current laws and regulations. Community associations should also review their insurance policies to ensure they provide adequate coverage for short-term rental activities and add coverage or amendments if needed.
What Options Do You and Your HOA Have?
HOAs have several options when it comes to addressing concerns around short-term rentals. One option is to update your governing documents to completely ban short-term rentals within the HOA. While this may appease some homeowners who are concerned about the privacy or safety of the community, it may also negatively affect homeowners who rely on short-term rentals for income.
Another approach is to allow short-term rentals with certain restrictions and guidelines in place. This can include requiring homeowners to disclose and register their rental properties with the HOA, as well as requiring ID to be collected from each renter before they take occupancy. This helps the HOA board monitor guests and help trace the responsible part if damage, excessive noise, or any other issues arise during their stay.
Community associations can also try to prevent future listings by gathering relevant information from buyers at the time of purchase. You can add a section to purchase applications that asks whether the buyer has listed property on a short-term rental site within the last 24 months. Many people purchase properties with the sole intention of renting them out this way, so these additions can help weed out these types of buyers during the purchasing process.
Short-term rentals in Colorado present opportunities for homeowners, but they also present challenges for HOAs. As the vacation rental market continues to evolve, it’s important for community associations to stay informed and be proactive in addressing any potential issues that may arise. If your HOA board needs assistance in navigating the world of short-term rentals and the local laws and regulations surrounding these, a professional HOA management firm can help.
At The Management Trust, we can help you stay up-to-date on local laws, advise on bylaws as necessary, and enforce rule breaches and fine collections. We provide day-to-day community management services on your behalf, so you have more time to focus on the bigger picture and make important decisions for your community’s health and happiness. To learn more about how The Management Trust can help your community thrive, give us a call at 303-750-0994 or fill out our online contact form today.
