Short-Term Rental Regulations
& Licensing Guide

The Evolving Landscape of Short-Term Rentals and Workforce Housing in Summit County.

The issue of affordable workforce housing in Summit County, Colorado, has grown significantly over the years, becoming an increasingly pressing concern. The impact of Covid-19 has only intensified this challenge, further straining the ability of local employees to secure housing near their workplaces. Many businesses attribute ongoing worker shortages to the lack of affordable housing, and there is growing concern that if employees cannot live within the community, the character of Summit County may fundamentally change.

Since 2018, local stakeholders have engaged in ongoing discussions to explore potential solutions for the workforce housing crisis. In response, various governmental authorities have dedicated significant time and resources to implementing measures aimed at mitigating the problem. One such initiative involved the introduction of new Breckenridge short-term rental regulations, intended in part to slow the depletion of available housing for local employees.

While addressing workforce housing remains a priority, tourism is the backbone of Breckenridge's economy, and short-term rentals (STRs) have long played an essential role in accommodating visitors. The same holds true in Silverthorne, where the town’s quaint mountain character is preserved by strict building height restrictions, preventing the development of large hotels. As a result, short-term rentals provide a crucial lodging option for visitors, supporting the local tourism industry.

However, the need to balance housing affordability with tourism revenue has prompted local governments to reassess STR policies. This has led to rapid regulatory changes across Summit County, including the adoption of new Silverthorne short-term rental rules. These evolving policies reflect an ongoing effort to strike a sustainable balance between protecting housing availability for local workers and maintaining a thriving tourism sector.

For those interested in purchasing real estate in Silverthorne or Breckenridge with the intention of operating an STR, staying informed about local regulations is critical. Given the fast-changing nature of short-term rental policies, my goal is to provide up-to-date insights and guidance on the latest STR rules that could impact potential investments in Summit County.

With building height restrictions limiting large-scale hotel developments, Summit County’s tourism industry remains heavily dependent on short-term rentals, especially in unincorporated areas. As officials continue to experiment with new policies, the regulatory landscape is evolving rapidly. If you're considering investing in Breckenridge or Silverthorne real estate, it’s important to stay informed about the latest short-term rental regulations and how they may affect your property investment strategy.

Key Changes & Updates

Breckenridge Short-Term Rental Licensing Requirements

The Town of Breckenridge has been actively refining its short-term rental (STR) regulations over the years to address concerns related to housing availability, tourism, and community impact.

In June 2017, the town introduced an ordinance requiring all Breckenridge STR owners to display their license numbers in advertisements for properties rented for less than 30 days. The primary goal was to ensure tax compliance and create a fair market among rental properties.

Then, in August 2018, the Breckenridge Town Council unanimously passed a more comprehensive STR ordinance, which became effective on January 1, 2019. This ordinance introduced:

• Annual administrative fees for STR licenses

• Minimum health and safety standards for STR properties

• A requirement for owners to designate a Breckenridge Responsible Agent

Breckenridge Responsible Agent Requirement

To enhance oversight of STR operations, the 2018 ordinance created the Responsible Agent role. According to Section 4-1-2 of the ordinance, a Responsible Agent is a management company, rental agent, or individual designated to handle issues related to the STR property.

Key responsibilities include:

• 24/7 availability to respond to complaints within 60 minutes

• Handling public concerns about the STR

• Ensuring compliance with town noise regulations

Additionally, Breckenridge clarified its definition of "unreasonable noise" and made compliance the owner’s direct responsibility rather than something that could be delegated to a third party.

Breckenridge STR Occupancy Limits

In September 2019, Breckenridge implemented occupancy limits for STR properties, which took effect on January 1, 2020.

The town defines occupancy limits as the maximum number of guests permitted to stay overnight in an STR unit. The policy sets:

• Standard STR limit → 2 guests per bedroom + 4 additional guests

• Studio units → Maximum of 4 guests

The number of bedrooms is based on Summit County Assessor’s records.

Breckenridge STR Caps & Licensing Zones

Breckenridge has seen rapid growth in STR licenses over the years:

Due to this increase, the Breckenridge Town Council passed a cap on non-exempt STR licenses on September 28, 2021, effective November 2, 2021.

• Exempt Properties: STRs within hotels or managed resorts

• Non-Exempt Properties: Standalone homes, townhomes, and condos without 24/7 front desk and security

Initially, a blanket cap of 2,200 STR licenses was imposed for non-exempt properties. However, recognizing the need for a more balanced approach, the town revised its STR zoning strategy in August 2022.

Breckenridge Short-Term Rental Licensing Zones

On September 27, 2022, a new zoning-based licensing system replaced the 2021 blanket cap. The four STR zones include:

1. Resort Zone: Areas primarily designed for tourism, including managed resort properties

2. Zone 1 – Tourism Zone: Areas best suited for short-term rentals

3. Zone 2 – Downtown Core: Central Breckenridge with mixed-use properties

4. Zone 3 – Single-Family Residential: Primarily local residential areas

Each zone has a different cap on STR licenses, reflecting where STRs are most appropriate:

The town updates license availability regularly, and a STR waitlist is maintained on the Breckenridge STR web page.

Breckenridge Short-Term Rental Fees & Costs

In December 2021, the Town Council approved new STR fees, which took effect on December 28, 2021.

• Annual Accommodation Fee: $400 per bedroom or studio (expected to increase to $756 per bedroom in 2023)

• Business & Occupational License Tax (BOLT) + Accommodation Unit Regulatory Fee:

Need Help Navigating Breckenridge STR Rules?

With ongoing changes to STR licensing and zoning, it’s crucial for property owners and investors to stay informed.

If you have questions about Breckenridge real estate or how STR regulations may impact your buying or selling decisions, reach out for guidance. With an in-depth understanding of Breckenridge’s STR landscape, I can help you navigate these rules to make the most informed investment decisions.