Over the years, the issue of affordable workforce housing has become increasingly prominent in Summit County, Colorado. However, since the onset of COVID-19, the challenge for the local workforce has intensified. Many local businesses believe that the shortage of affordable housing is a major factor contributing to worker shortages. Additionally, there is growing concern that if employees cannot live in the area, the overall character of Summit County may change.
Since 2018, stakeholders across the county have been actively discussing potential solutions to address the housing shortage for local workers. Various governmental entities have dedicated significant time and effort to implementing measures aimed at alleviating the crisis. As a result of these discussions, many governing bodies in Summit County have either adopted or are considering new regulations related to short-term rental (STR) licenses.
Due to local building height restrictions, Summit County does not have large high-rise hotels to accommodate resort visitors. Many locals appreciate the absence of such structures, as it enhances the charm of the mountain community. However, tourism in the area still depends on a steady supply of lodging, with short-term rentals in unincorporated Summit County playing a key role. Consequently, local governments are currently experimenting with short-term rental regulations to strike a balance between increasing workforce housing availability and supporting the tourism industry. As a result, the regulatory landscape is evolving rapidly.
For those interested in purchasing real estate in Dillon and using their property for short-term rentals, I aim to provide this resource to help navigate the latest Dillon short-term rental regulations.
The towns of Blue River, Breckenridge, Dillon, Frisco, and Silverthorne each have clearly defined boundaries, and their short-term rental (STR) regulations apply only to properties within their respective limits. However, many homes near these towns are actually located in unincorporated Summit County, where STR rules can vary significantly depending on the property's exact location. Because of this, it's crucial to determine which local government oversees a specific property before proceeding with short-term rental plans.
How to Check a Property’s Jurisdiction
If you're unsure whether a property falls within a town’s limits or is part of unincorporated Summit County, you can easily verify it using the Summit County GIS tool:
Visit the Summit County GIS website.
Accept the County disclaimer.
Enter the property address in the search bar.
When the property details appear, look at the bottom-left corner of the page under "Jurisdiction."
This section will confirm whether the property follows the STR rules of Blue River, Breckenridge, Dillon, Frisco, or Silverthorne, or if it is instead governed by unincorporated Summit County regulations.
Understanding the correct jurisdiction ensures compliance with the appropriate STR rules and avoids potential legal issues.
Since Dillon is an incorporated town with its own set of codes and regulations, short-term rental policies are governed by Ordinance 09-18. According to Section 6-11-20, a “short-term rental unit” is defined as an accommodation rented or leased for fewer than thirty (30) consecutive days, provided that the property is assessed as residential for tax purposes.
The Dillon short-term rental regulations primarily apply to property owners who use platforms like Airbnb, VRBO, and similar services to rent their homes to visitors for stays of less than 30 days. If you rent your Dillon property for even a single stay under 30 consecutive days, you are required to obtain a short-term rental license from the town and comply with all applicable Dillon short-term rental rules.
On the other hand, if you only rent your property for periods of 30 consecutive days or more, Dillon’s short-term rental regulations do not apply. In such cases, there is no requirement to obtain a short-term rental license. Rentals exceeding 30 days are generally classified as long-term rentals, which are encouraged as they contribute to housing availability for local workers. In fact, areas such as Summit County and the Town of Breckenridge offer incentives for long-term leases to local employees. As a result, no new regulations or restrictions are currently being considered for rentals longer than 30 days in Dillon.
The Town of Dillon first introduced its short-term rental regulations in late 2018. After an initial reading in November, the Town Council officially approved the Dillon Short-Term Rental Ordinance on December 4, 2018, with the new rules taking effect on January 1, 2019. Under this ordinance, property owners seeking to rent their homes for short stays were required to obtain a Dillon short-term rental license before listing or leasing their properties.
December 2021 Work Session
On December 21, 2021, the Town Council held a work session to review potential updates to the short-term rental (STR) rules. A report from Town staff revealed that Dillon had approximately 1,365 residential units, with 357 holding active STR licenses—representing over 26% of the town’s housing stock. While the council acknowledged the idea of increasing the excise tax on short-term rentals, they decided not to place a new STR tax measure on the April 2022 ballot.
February 2022 and March 2022 Updates
In preparation for a February 1, 2022, session, the Town released a Staff Memo outlining proposed amendments to STR regulations. This included a draft of the 2022 Dillon STR Licensing Guide and modifications to the municipal code. In March 2022, the Town Council officially enacted changes to the Dillon Short-Term Rental Ordinance.
February 2023 Amendments
By early 2023, the Finance Manager recommended further revisions to Dillon’s STR policies. Among the proposed changes were the removal of parking requirements and fees, as well as an increase in the annual STR license fee. By the end of February 2023, the Town Council formally adopted these amendments, aligning with the recommendations outlined in the Finance Manager’s memorandum.
Property owners in Dillon must submit a written application for an STR license at least 30 days before advertising their rental. All licenses expire annually on May 31, with renewal applications due by June 1 and the renewal process to be completed by June 30. The fee for both new applications and renewals is $700 per year, regardless of when the license is obtained.
To obtain an STR license, owners must certify compliance with local laws and safety codes, ensuring that smoke detectors, carbon monoxide detectors, and fire extinguishers are installed and operational. Additionally, applicants must submit plans for parking, trash, and recycling, along with details of their trash and recycling hauler. The Town has also prohibited the use of accessory dwelling units (ADUs) as short-term rentals.
For further details, the Town of Dillon provides a comprehensive summary of STR regulations on its website.
Initially, the Town Council chose not to implement occupancy limits in 2018. However, in March 2022, the ordinance was updated to establish an occupancy limit of two persons per bedroom, plus two additional occupants per unit (Section 6-11-55).
All STR license holders must designate a Responsible Agent—a person authorized to respond to rental-related issues within 60 minutes and available 24/7. The Responsible Agent may be the property owner, a designated representative, or a professional management company.
In May 2022, the Town Council proposed increasing Dillon’s lodging tax and introducing an excise tax on STRs. Both measures appeared on the November 2022 ballot, and voters approved:
An increase in the lodging excise tax from 2% to 6%, effective January 1, 2023.
A new 5% excise tax on short-term rentals, which began on July 1, 2023.
More details on Dillon’s lodging tax policies are available on the Town’s website.
Before 2023, STR owners had to provide one parking space per bedroom plus one additional space or pay an extra parking fee if they failed to meet the requirement. However, Dillon’s 2023 ordinance amendments eliminated these parking rules. Instead, the Town now offers paid overnight parking lots for STR guests.
As of December 15, 2023, the Town confirmed there are no limits or moratoriums on the number of STR licenses issued. Applications continue to be processed on an ongoing basis.
Interestingly, data from February 2023 showed a decline in STR licenses compared to the previous year:
May 2022: 380 active STR licenses
February 2023: 345 active STR licenses
December 2023: 357 active STR licenses
This trend suggests relative stability in STR licensing throughout 2023.
Dillon currently imposes no restrictions on the number of nights a property may be rented out annually, allowing property owners the flexibility to operate year-round.
On September 21, 2021, the Town Council met to discuss workforce housing and initially considered a 7-month emergency moratorium on new STR licenses. However, after extensive debate, the Council decided against it, opting instead for ongoing biweekly discussions on potential policy adjustments. Key topics for future consideration included:
STR license caps
Occupancy limit revisions
STR license fee increases
Additional tax measures
To ensure community involvement, the Council also planned local meetups for discussions with residents and second homeowners.
If you’re exploring the impact of STR rules on buying or selling property in Dillon, feel free to reach out. With extensive knowledge of Dillon’s evolving STR regulations, I’m here to help you navigate the process with confidence!
Whether working with buyers or sellers, Ivete Liliensteins provides outstanding professionalism in making her clients’ real estate dreams a reality. Contact her today to start your home searching journey!