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Short-Term Rentals: Overview of Draft Ordinance

The following is an OVERVIEW and a SUMMARY of the short-term rental ordinance.

Short-term rental is defined as a rental of a dwelling unit, or portion of a dwelling unit, for a period of time less than thirty (30) days.

The short-term rental requires a person to obtain a license before renting out a dwelling unit for a period of time less than thirty (30) days.  A person may obtain a license if the property is the person’s primary residence. Primary residence is defined as a person’s fixed, permanent, and principal domicile for more than six months out of the year.  With a license, a person may short-term rent a primary residence an unlimited number of days if that person is present on the property. This is defined in the ordinance as a host present. Section 6-94(a)(1). With a license, a person may also whole-house rent the property for a specific number of days each year.  Section 6-94(a)(2). This specific number of days is identified in the draft ordinance as “N” number of days. Staff seeks direction from the BOT on the specific number of days for that limit.

The draft ordinance allows for the issuance of a Class A license for persons who are currently short-term renting a detached accessory dwelling unit. To obtain a Class A license, the person must demonstrate that the unit has been short-term rented in the past. If a Class A license is issued for the detached ADU, then the person may not obtain another type of license for the primary structure.

The draft ordinance provides for a third type of license. A Class B license may be issued to a person who does not qualify as a primary resident of Nederland. Section 6-97.  To obtain a Class B license, the person must show with documentation that the property has been rented a short-term rental.

The ordinance allows for short-term rentals in all zone districts provided that the applicant can meet the license requirements.

To operate a short-term rental, the applicant must apply for a short-term rental license with the Town Clerk.  The ordinance identifies specific requirements for the short-term rental license applications.

Each license is valid for one year. The license is not transferrable. A person is limited to one short-term rental license of any type. For all license types, the licensee is required to pay sales tax on all short-term rentals.

The enforcement section of the draft ordinance has been expanded to explain a more detailed process for addressing complaints related to short-term rental violations.  Section 6-99. The process is a three-strikes rule. After three-violations, the short-term rental license is revoked.  Short-term rental of property without a short-term rental license is a civil infraction and the minimum penalty for a violation is $500.00.