It’s a great way to earn a little extra money. But using your home as an Airbnb isn’t as simple as giving overnight guests a key. It comes with rules that, if ignored, could cost you your rental license.
Denver recently passed new regulations regarding what is officially called “short-term rentals.” The rules aim to clarify “what the city views as grounds for revocations of a short-term rental license, bolster the insurance requirements for a short-term rental like those found on Airbnb, and lay out how the city should be notified of any changes in ownership of a short-term rental property,” notes Westword.
“We are striking the right balance with sensible regulations that maximize the benefits of home sharing and welcome tourists to our city while minimizing the negative impacts on neighborhoods,” Ashley Kilroy, executive director of Denver Excise and Licenses, said in statement, as reported by Westword.
If you are planning to rent your home, pay attention to the following:
Public health and safety: Your short-term license can be revoked if your property is found to negatively affect public health, safety, or welfare to your neighborhood.
Insurance: You will be required to have at least $1 million in liability insurance, whether through an additional home policy or a hosting platform (like Airbnb) that offers such insurance. You must also notify your home insurer and any HOAs of your plans to start renting out your home.
Primary residence: You must live most of the year at the home you are renting out. According to Westword, “A primary residence is defined as ‘the usual place of return for housing as documented by at least two of the following; motor vehicle regulation, driver’s license, Colorado state identification care, voter registration, tax documents of a utility bill.’”