County staff proposes licensing, spacing and safety rules for short‑term rentals; recommends third‑party compliance service

Arapahoe County staff presented draft short‑term rental (STR) regulations at the Jan. 28 study session, proposing a licensing system, safety and neighbor rules, distance buffers to limit clustering, and a vendor‑based compliance and complaint service to handle discovery and enforcement.

Brian Wagner and Roy (legislative/land‑use staff) led the STR briefing, outlining a two‑part regulatory approach: an ordinance that creates licensing, inspection and enforcement tools; and a land‑development code amendment that limits where STRs may occur and defines use standards.

Key components in the draft ordinance

- License requirement: only an owner may be the licensee (staff discussed whether to allow corporate/LLC licensees and will return with options). Existing STRs would need to apply within the period following ordinance adoption; staff acknowledged the implementation timeline requires attention and recommended proactive automated notice to potential operators.

- Local responsible agent and good‑neighbor materials: licensees must designate a local contact reachable 24/7 and must mail a “good neighbor” notice to nearby properties and provide an in‑dwelling packet with contact and safety instructions.

- Safety and inspection: initial licensing would require certification by a third‑party certified home inspector (staff proposed that renewals could be self‑certified unless a lapse or ownership change occurs); inspections would verify functioning smoke/CO detectors, labeled electrical panels, working plumbing, and general structural safety.

- Occupancy and parking: drafts propose occupancy limits tied to bedroom count (two persons per bedroom plus two) and a requirement for off‑street parking for the STR; commissioners asked staff to consider mixed on/off‑street approaches and to evaluate neighborhood variations.

- Buffer and anti‑clustering: whole‑house STR licenses would be required to be at least 500 feet apart measured parcel‑to‑parcel; staff said the restriction aims to prevent investor accumulation and commercializing of residential blocks. Mobile‑home parks in the RM district were proposed to be excluded from STR licensing, with staff offering to revisit whether manufactured homes on larger rural parcels should be treated differently.

Enforcement and compliance service recommendation

Staff proposed contracting with a vendor (presented as Host Compliance or a similar service) that automates online discovery of STR ads, generates notice letters, and offers 24/7 complaint intake and after‑hours outreach to listed hosts or agents. Staff estimated about 288 STR listings currently operate in the county and projected the program would become self‑funding through licensing and renewal fees after startup costs. Staff proposed a $200 initial application fee and a $300 licensing/renewal fee in the model shown; staff said vendor setup and Accela (permitting system) configuration would require one‑time startup costs and annual subscription and staffing costs.

Board input and next steps

Commissioners asked about several policy choices: whether licensees should be county residents (and thus limit nonresident corporate ownership), whether deed‑restricted affordable homes should be ineligible, how to coordinate with HOAs and municipal neighbors, and the practical timing for existing operators to come into compliance. Commissioners asked staff to return with (1) comparative data from neighboring jurisdictions and (2) revised language on ownership caps and mobile‑home treatment. Staff also agreed to refine timelines and suggested an automated notice campaign before an effective date and a triage approach to enforcement that prioritizes safety risks and repeat offenders.

No formal vote was taken. Staff said it will refine the draft and return with a revised proposal and comparative fee schedules for further direction.