Voter turn-out was amazingly high with 86% of property owners (851/989 owners) voting in the November 2, 2021 election regarding short-term rentals, RV parking in private driveways and the ability to have. . . chickens. Today, we are going to focus on the rental modifications and I’ll leave it to you to learn more about the allowance of chickens in residential yards.
The new covenants in regards to short-term rentals in Crested Butte South, now caps the total number of days that a property can be short-term rented to a total of 90-days per year. This covenant change passed with 560 voting in favor of the new restriction and 290 voting against the restriction. A couple of things to note here, the first is the definition of a short-term rental. This is a rental that is less than 30-days and those are the type of rentals that would have a cap of 90 days total per year. However, anything over 30 days would not be considered a short-term rental and would not count against that 90-days/year allowance. If you look statistically at the number of days a property is rented on average, per year, this number may not be as restrictive as some may think. As well, if you combo in 30/60/90-days rentals (etc) in combination with the shorter-term rentals, you may find that you are not as affected by this covenant change as you may think. (For real numbers on a property and how it may perform would require a one-on-one call so I could take a look at your specific scenario. If you’re ready to purchase, you can book a call with me by utilizing the link below this blog.)
In the re-stated covenants on page 12 and sections 4.2.8.a and 4.2.8.b, the language is pretty simple:
4.2.8.a Properties may be used as Short-Term Rentals (STRs) for a maximum of 90 days per calendar year. The Family Residence and the Accessory Dwelling Unit may not be used simultaneously for short-term rental.
4.2.8.b Owners renting their properties as STRs shall be required to post on the exterior of the Dwelling Unit contact information for a property manager or person appointed by the Owner who can respond to any rental issues within 60 minutes of contact.
As far as what other changes this may cause, the rest seems fairly standard. Meaning that you will need to complete a rental application and the affidavit, as well as retain a business license for Crested Butte South. The fee is currently $200/year and any rentals that are 30-days or less, you will need to collect and remit the appropriate sales tax. As of the date of this blog the sales tax total is 8.5% and is paid 4.0% via the Local Marketing District Tax Return (Form DR 1490) and 4.5% via the Retail Sales Tax Return. (Form DR 0100) If you utilize a rental company such as Airbnb and VRBO, they should collect and remit those on your behalf, however, it is best to verify the taxes and remitted on your behalf to be sure you are protected. If all rentals are through yourself or a local manager, you will want to be sure to collect and remit the appropriate fees by utilizing the two forms mentioned above.
It’s also important to know what needs to be taxed. I have included a link below to the State of Colorado and they review what needs to be taxed (for example, do you tax clean fees or other services added into the rental?) Take a look at any of the resources below as we have hyperlinked to all relevant documents.
What Updated Covenants Mean for CB South: Click HERE
Original 1970 Covenants and Restrictions: Click HERE.
Amended and Restated Covenants and Restrictions: Click HERE
State of Colorado – Department of Revenue -Sales and Use Tax Document is HERE.
The previous CB South Short-Term Rental Permit Policy is HERE.
Short-term Rental Application and Affidavit is HERE