Affordable workforce housing has become an increasingly pressing issue in Summit County, Colorado, especially since the onset of COVID-19. Many local businesses attribute ongoing worker shortages to a lack of available housing, raising concerns that if employees cannot live nearby, the "character of Summit County" may shift. Since 2018, community stakeholders and local governments have been actively exploring solutions to address the workforce housing shortage, leading to the adoption of new regulations impacting short-term rental (STR) licenses.
Unlike major resort destinations with high-rise hotels, Summit County maintains its unique mountain charm through building height restrictions, limiting large-scale lodging options. However, tourism remains essential to the local economy, and short-term rentals—particularly in Keystone—play a significant role in accommodating visitors. In an effort to strike a balance between expanding workforce housing and preserving tourism, Summit County’s governmental bodies are actively adjusting STR regulations.
As policies continue to evolve, I aim to provide up-to-date information for those considering purchasing Keystone real estate for short-term rentals. Staying informed on the latest STR rules will help property owners navigate this rapidly changing landscape.
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.
Any Keystone Property Rental Less Than 30 Days
As of February 8, 2024, Keystone became a newly incorporated municipality, no longer under Summit County's jurisdiction. Therefore, the Town of Keystone's regulations apply. On June 25, 2024, the Keystone Town Council passed Ordinance 2024-O-07, which outlines the town’s Short-Term Rental (STR) regulations.
Section C(e) of the ordinance defines a short-term rental in Keystone as the rental of any dwelling, accessory dwelling unit, or part of a dwelling for less than 30 days. The ordinance emphasizes that short-term rentals are considered an accessory use to the primary function of the property. This applies to property owners who use platforms like Airbnb or VRBO to rent their homes to visitors for periods shorter than 30 days. If you rent your Keystone property for any period under 30 consecutive days, you are required to obtain a short-term rental license from the Town of Keystone. The Town has 30 days to decide on your application, per Section D(5). Once approved, all relevant short-term rental rules must be followed.
However, if you only plan to rent your property for 30 days or more, this ordinance does not apply. Long-term rentals, generally defined as those lasting 30 days or more, are not subject to short-term rental licensing. In fact, long-term rentals are encouraged to help address local housing needs, with incentives offered by Summit County and Breckenridge for leasing to local workers. No new regulations are currently planned for rentals over 30 days.
As of February 8, 2024, Keystone officially became an incorporated municipality, and the Keystone Town Council now oversees all short-term rental (STR) regulations. On June 25, 2024, the Town adopted Ordinance 2024-O-07, which now governs STR operations.
To ensure a smooth transition, Keystone’s new STR regulations closely resemble the previous Summit County rules, providing continuity for license renewals in 2024. The Town will assume full administration of Keystone STR licenses at the end of the current renewal period on September 30, 2024.
According to a June 2024 Summit Daily News report, Keystone had approximately 2,000 short-term rental properties at the time.
Responsible Agent | Occupancy Limits | No Cap
Any rental of a Keystone property for fewer than 30 consecutive days requires an STR license from the Town of Keystone. Per Section D(5) of Ordinance 2024-O-07, the Town must issue a decision on license applications within 30 days of submission. Once issued, owners must comply with all STR regulations.
Keystone requires STR owners to designate a Responsible Agent, defined as an individual or company authorized to manage the unit and take necessary action when issues arise.
The Responsible Agent must be available 24/7 to address complaints related to trash, parking, noise, and other concerns.
The Town operates a Keystone STR Hotline, which forwards complaints to the Responsible Agent.
The Responsible Agent must respond within one hour of notification. Failure to do so violates STR regulations.
STR occupancy limits are based on unit type:
1. Single-Family Homes, Duplexes & Townhomes
Whichever is greater:
(a) 2 persons per bedroom + 4 additional occupants
(b) 1 person per 200 sq. ft. of living space
2. Condominiums
Whichever is greater:
(a) 2 persons per bedroom + 4 additional occupants
If the building lacks a sprinkler system & has interior egress <44 inches wide, limit drops to 2 persons per bedroom + 2 additional occupants
(b) 1 person per 200 sq. ft. of living space
Lock-off rooms (as defined in Chapter 15 of the Town Land Use Code) are allowed 4 occupants.
3. Properties with Onsite Wastewater Treatment Systems (OWTS)
Maximum occupancy is based on the OWTS permit, generally 2 persons per bedroom.
â›” Recreational vehicle (RV) occupancy is strictly prohibited on STR-licensed properties.
No Cap on Keystone Short-Term Rental Licenses
The Town has not imposed a cap on the number of STR licenses. Since adopting Ordinance 2024-O-07, Keystone continues to issue STR licenses without restriction.
No Limit on Rental Nights
Keystone STR owners may rent their properties for an unlimited number of nights per year.
2% Lodging Tax Eliminated for Keystone STRs
Summit County previously imposed a 2% lodging tax on STRs (effective January 1, 2023).
Following Keystone’s incorporation in 2024, the Town chose not to reinstate the tax.
As a result, the 2% lodging tax will be eliminated for all Keystone STRs beginning in July 2024.
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!