Arapahoe County advances short-term rental rules: legacy licenses, occupancy caps, 24/7 host-compliance and proposed septic inspections

County planning staff presented a consolidated set of amendments to a proposed short-term rental (STR) ordinance intended to balance neighborhood stability, safety and administrative practicality, and commissioners took several direction-setting votes during the study session.

Caitlin Mars, the county zoning manager, told the board that properties operating as STRs in the six months before an ordinance's effective date may apply during a 60-day legacy window for a "legacy designation." That designation would exempt those operators from the primary-residence requirement and from the 500-foot separation buffer that will apply to most new STR licenses. "Short term rentals operating within the 6 months prior to the effective date of the ordinance may apply for a legacy designation on their license," Mars said.

Staff said they estimate roughly 258 legacy properties in unincorporated areas and that mapping and a host-compliance vendor already identify about 60–70% of county STRs. The draft license fees presented were a $200 application fee, a $350 initial license fee and a $350 annual renewal fee; staff said the fees are set to cover the start-up and ongoing costs of a licensing program.

On safety and operational rules, staff proposed an occupancy formula (two persons per bedroom plus two), a restriction allowing only one renter group at a time (to avoid lodging-house fire-code triggers), and an insurance requirement that applicants show either platform-provided coverage or private insurance. Mars described planned automated checks for insurance expirations so the system can prompt licensees to renew documentation.

Enforcement and neighbor-response mechanisms were a central theme. Staff proposed that a local responsible agent (LRA) be designated for each licensed property; the LRA must be reachable by phone within 15 minutes and, if necessary, able to physically respond within 60 minutes during a rental period. Commissioners raised practical concerns about life events and travel; several suggested allowing designated backups and clarifying that host-compliance vendor workflows (the 24/7 hotline) will also be able to contact LRAs and document responses.

Public-health staff requested the board's direction on requiring septic-system inspections before licensing in rural areas where STR use could overload on-site wastewater systems. Public-health personnel said an inspection and potential pumping would cost approximately $750 in worst cases and that the permit fee is about $85; commissioners indicated support for including the septic-inspection requirement in the ordinance so property owners would see the expectation in the STR rules rather than in a separate regulation.

Skyline Fire Protection District asked to make the fire marshal an authorized public inspector for STRs. County attorneys and some commissioners said they preferred to leave fire-district inspections to the districts themselves rather than codifying district inspection authority into the STR ordinance; the board decided not to require fire-district inspections within the ordinance text.

What happens next: staff will present the revised ordinance at a public hearing in a few weeks. The board asked staff to prepare FAQs and implementation guidance clarifying cure periods for clerical errors, backup LRAs and the host-compliance process.

Key quotes from the session include Caitlin Mars: "We did elect to require a 60 day window after the effective date where we will open up only applications for legacies. We will not enforce on anybody in the meantime." Public-health staff summarized the septic cost expectations: "So approximately, I think, roughly around $750 or so... And then the permit fee is $85."