Aspen continues leading the way in Colorado on nightly rental regulations. Historically what happens in…
I always watch what happens on the coasts to see what is next for Colorado. Whether it is minimum wage, required sick leave, etc… these all originated from the coasts and migrated to Colorado. NY’s laws on nightly rentals will soon find their way to Colorado. The NY law implements some monumental changes that will radically alter the nightly rental landscape and property owners throughout Colorado.
What is in NY new nightly rental law?
The goal of the law is to tackle illegal listings, but it goes much further than that.
- Local Law 18 launches January 9th and requires hosts to identify themselves to the city. Hosts will get a registration number to display in listings.
- Sites like Airbnb, VRBO, and Booking.com can’t process transactions without verifying registration status
- Owners, co-op and condo boards can join list of buildings that prohibit short-term rentals
- Hosts could be fined as much as $5,000 for noncompliance, and Airbnb could be on the hook for $1,500 per violation.
- Owners must submit a detailed diagram of the listing, designating which parts will be used for the rental and highlighting fire exits, among other requirements.
- Tenants who are leasing must also provide a lease, and applicants need to submit a government ID along with documents that show proof of occupancy.
The interesting part of this new law is the fine structure is steep for both owners and companies like VRBO.
Will these laws be implemented in Colorado?
I could see these same restrictions being put in place in Denver and then ultimately migrating to the mountain towns. There will no doubt be litigation and based on prior history NY is standing on strong legal footing. Putting the onus on the listing platforms to help police unauthorized rentals will be interesting to see how it pans out.
The one question I have is if NYC cracks down on nightly rental companies will rentals move to the gray market with sites like Craigslist or Facebook ads?
How will Colorado real estate be impacted from the NY law?
Over 10,000 Airbnb listings for NYC short-term rentals “are likely to disappear” when the new rules go into effect, the Daily News reports, citing an estimate of nearly 40,000 total Airbnb listings in the city from Inside Airbnb, an independent watchdog group.
I would guess that in cities like Denver and throughout the mountain towns, there are also a considerable number of nightly rentals operating below the radar. If NYC’s law is implemented in Colorado I suspect there would be a sizable number of nightly rentals facing enforcement action and a decrease in the number of nightly rentals.
New York’s law is monumental in that it provides an avenue to track nightly rentals with a registration number and require the nightly rental companies to list that number. Furthermore, the enforcement part of large fines on both property owners and nightly rental companies will give the new laws some bite. Once the litigation is over in NY (it hasn’t started yet, but it will), similar laws will be implemented throughout Colorado to better control nightly rentals. This will ultimately reduce the number of nightly rentals substantially and ensure better tax compliance.
We are a Colorado Private/ Hard Money Lender funding in cash!
If you were forwarded this message, please subscribe to our newsletter
I need your help! Do not worry, I’m not asking you to wire money to your long-lost cousin that is going to give you a million dollars if you just send them your bank account! I do need your help though, please like and share our articles on linked in, twitter, facebook, and other social media and forward to your friends/associates 😊 I would greatly appreciate it.
Written by Glen Weinberg, Owner Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in Bloomberg, Businessweek ,the Colorado Real Estate Journal, National Association of Realtors Magazine, The Real Deal real estate news, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
Fairview is the recognized leader in Colorado Hard Money and Colorado private lending focusing on residential investment properties and commercial properties both in Denver and throughout the state. We are the Colorado experts having closed thousands of loans throughout the Front range, Western slope, resort communities, and everywhere in between.
When you call you will speak directly to the decision makers and get an honest answer quickly. They are recognized in the industry as the leader in hard money lending with no upfront fees or any other games. Learn more about Hard Money Lending through our free Hard Money Guide. To get started on a loan all we need is our simple one page application (no upfront fees or other games)
Tags: Hard Money Lender, Private lender, Denver hard money, Denver Colorado hard money lender, Colorado hard money, Colorado private lender, Denver private lender, Colorado ski lender, Colorado real estate trends, Colorado real estate prices, Private real estate loans, Hard money loans, Private real estate mortgage, Hard money mortgage lender