Eagle County examining short-term rental regulations

Eagle County has hired a pair of consulting firms to study what, if any, action is needed to regulate short-term rentals.

The county has hired RRC Associates and Economic & Planning Systems, both based on the Front Range. Both firms have done similar work for local governments around the High Country, including the town of Vail.

David Becher of RRC told the commissioners that the number of short-term rentals in unincorporated Eagle County has stayed relatively stable since 2017, at about 14% of the county’s housing stock. That percentage is lower than most of the rest of the resort region that includes Summit, Eagle, Routt, Grand, Pitkin and Gunnison counties. Summit County’s short-term inventory is about 28% of all homes in that area. In the region, the lowest percentage of short-term rentals — 11% — is in Gunnison County, which includes the Crested Butte ski area.

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Most of Eagle County’s units are located between West Vail and Edwards, with the bulk being in Beaver Creek. Only about 5% of the available short-term rentals are rooms in homes. The remainder are full units.

While the number of units has remained stable, the average daily rates are rising, as is the revenue per available room. As you’d expect, rates are higher in the winter.

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Looking at booking patterns, most short-term rentals are owned by second-home owners who block out at least some days for their own use.

Commissioner Kathy Chandler-Henry asked if the homes would be vacant if not occupied by short-term renters.

Becher replied that most short-term units would stay out of the long-term rental pool if they weren’t rented on a night-by-night basis.

Andrew Knudtsen of Economic & Planning Systems said understanding how short-term units are owned and used can provide insights into possible policy action.

Of the six counties in the studied region, Summit, Grand and Pitkin counties require short-term rental permits. At the moment, Grand and Pitkin counties charge fees for short-term rental occupants.

Knudtsen said several communities are looking at short-term rental controls as a way to manage guest numbers.

“One of the most direct ways to get at the (guest management) issue is to set up a licensing program for short-term rental, then to set and enforce a cap,” Knudtsen said.

Chandler-Henry said it “could be helpful” to consider the use, and possible overuse, of resources from police and fire protection to trail use.

But County Attorney Matt Peterson said the county’s powers are limited to either a regulatory ordinance or management in the county’s land use regulations.

Commissioner Jeanne McQueeney said she’d like to consult with other communities in the county. But there are a number of communities, from towns to metro districts to homeowner associations.

Commissioner Matt Scherr said the best way to get input from those communities is fairly simple.

“You say ‘we’re looking at licensing’ and they’ll show up,” Scherr said.

Public hearings are unlikely until 2023. The commissioners expect to hold another work session on the topic in either January or February.