STRs in Pitkin Trending Down, County Proposes Licensing Changes
Short-term rental licensing fees and other program parameters may relax in unincorporated Pitkin County as a result of downward trending prevalence.
Proposed changes to the county’s STR licensing program include reducing fees and a closer look at code compliance.
The number of STR licenses issued by the county declined from 93 in 2022 to 73 in 2023 and 74 in 2024.
The program has three tiers of licenses. The seasonal STR license allows 61-120 rented nights, the limited license is for 21-60 nights, and otherwise limited is for 20 nights or less.
Currently, the fee associated with the license is calculated by multiplying the 2022 total actual value of the property by 0.07%, 0.06% and 0.05% for the seasonal, limited and otherwise limited licenses, respectively.
Staff proposed reducing that fee multiplier by 0.01% and using a combination of actual property and improvement value, which includes the monetary value of all structures and additions built on a piece of land, like buildings, fences or landscaping.
Alex Sanchez, a community development analyst with the county, said they decided to consider both to be as fair as possible across the county.
“We tried to make it as equitable as we could for those different actual values,” Sanchez said. “We felt that this was kind of the sweet spot at the moment.”
Staff also proposed a 50% reduction for applicants who live in their unit and rent out some of the rooms, saying that it minimizes impact with fewer services to the property and is just a fairer fee structure for a partial property rental.
Commissioner Greg Poschman pushed back on that, expressing concern for loopholes in the system.
“I just want to point out that a lot of people, even in the lower end, probably have housekeepers that come in and service the places,” Poschman said. “I don't know if just being resident occupied really is going to make a difference in the number of service people that are taking care of the unit.”
Only a couple of properties in the system are owner-occupied, but if the 50% fee reduction prompts more applications, the county could revisit the fee structure.
The county uses a compliance monitoring service, Rentalscape, to compare licenses versus property listings.
Commissioner Francie Jacober directed staff at previous meetings to explore easing fees for owners of agricultural property, who may rent out a small portion of their much larger property.
Sanchez said after talking with the assessor’s office, they decided the reductions associated with ag properties sufficed for their purposes.
“We feel that that's already baked in, because they have a lower total actual value, and so that lower value would then have a multiplier and result in a lower fee,” Sanchez said.
Another proposed change is strengthening the enforcement options, like double licensing fees for second or further code violations and defining the circumstance of a suspended or revoked STR license.
The 2025 budget cut a full-time equivalent position and a vehicle from the STR program. Since 2022, the fees have been designed to support the program’s cost, but that could change. Other governmental bodies use the revenue or taxes associated with STRs to support affordable housing efforts.
“That's something we can look at after we do the study,” said Short-Term Rental License Administrator Jeanette Muzio.
Staff is working on a request for proposals for an STR program impact study to look at things like service demand created by the licensing program.
Another proposed code change is allowing licenses for applicants in good standing to last two years instead of just one.
The Board of County Commissioners directed staff to move forward with their proposals for a future formal consideration. Jacober was absent from the meeting, but she has voiced support for easing STR regulations in the past.
The STR Rental Code falls under Title 6 in the county’s land use code. Amendments to it go through caucus boards before formal consideration by the BOCC.
By: Josie TarisI Aspen Daily News I January 22, 2025