As Home Sharing Increases In Popularity, Denver Cracks Down On Home Owners
Home sharing services have become very popular in Colorado, and local municipalities are paying attention. Between Feb. 20 – 24, more than 1,000 notices were mailed to Denver hosts for being in violation of a city ordinance. The ordinance, passed last June, require hosts to have short-term rental licenses and collect Denver’s 10.75 percent lodging tax.
Once hosts obtain a license, they must post it on their listing in order to avoid any fines. The license fee is $25, and the fines for failing to obtain a license can range from $150 to nearly $1,000.
Recipients of the notices have 14 days to respond.
Home sharing services such as Airbnb and HomeAway allow homeowners to rent out rooms -- or even their entire homes -- to people. Usually, these are short-term rentals taken out for a vacation in lieu of more traditional options such as a hotel or cabin.
According to statistics from Airbnb, Denver is the most active host city in Colorado. Number two on the list is Boulder, which saw a nearly 90 percent increase of users and renters over the previous year and represented more business than the rest of Boulder County combined.
Airbnb has become a significant source of income for many Boulder County residents, with seven communities reporting nearly $14 million in revenue in the past year.