Breckenridge’s Short-Term Rental Zones
In 2021, the town of Breckenridge imposed zoning regulations designed to balance tourism and the need for local workforce housing. Breckenridge was divided into four distinct zones, placing caps on the number of short-term rental (STR) licenses available in each zone. While the new STR license caps did not revoke any existing STR licenses, they impacted the number of licenses available as properties are sold within those zones.
What are the Different Short-Term Rental Zones in Breckenridge?
Resort Zone: The Resort Zone consists of mostly condo complexes and resort accommodations. The majority of the properties within the Resort Zone were intended to be used for tourism. There is unlimited licensing within the Resort Zone; however, second homeowners who wish to short-term rent their properties still need to obtain a license from the town.
Zone 1: There are currently 1,817 housing units in Zone 1. Of those homes, 92% are allowed to hold an STR license. As of September 2024, of the 1,680 allowed Zone 1 licenses, only 1,283 are in circulation, meaning there are still almost 400 STR licenses available to properties within this zone.
Zone 2: There are currently 257 housing units in Zone 2. Of those homes, 51% are allowed to hold an STR license. As of September 2024, there are 142 STR licenses issued, which is 12 more than the 130 allotted Zone 2 licenses. Since there is a surplus of existing licenses in Zone 2, anyone interested in obtaining an STR license will need to register for a waitlist. Based on the current attrition rate, wait times for a Zone 2 STR license may range from 5 to 10 years.
Zone 3: There are currently 3,825 housing units in Zone 3. Of those homes, 10% are allowed to hold an STR license. As of September 2024, 390 STR licenses are allotted for Zone 3, while 1,223 existing licenses are still active. Based on the current attribution rate, wait times for a Zone 3 STR license may be as long as 20 years.
Frequently Asked Questions About Breckenridge's STR Zones and Licenses
Are there any exceptions or grandfathered properties in certain zones?
Any property that had a license when the regulations were introduced was allowed to keep it, which is why there are surpluses in Zone 2 and Zone 3.
Can existing STR licenses be transferred if a property is sold?
Unfortunately, the STR license held by a property is vacated when that property is sold.
How much does an STR license cost?
To obtain an accommodation unit license, you must pay both the Business and Occupational License Tax (BOLT) and the regulatory fee. The regulatory fee is set at $756 per studio or bedroom annually.
How do property values differ across zones?
If you are selling or purchasing a property in Breckenridge, the zone it is in may impact sales metrics like the number of days on the market, the sale-to-list price, and the ease of the sale. Working with a local Broker who has expertise in the Breckenridge market and an advanced understanding of the short-term rental regulations is crucial for the success of your real estate transaction.
Navigating the Short-Term Rental Market
Breckenridge’s short-term rental zoning regulations have introduced new complexities to real estate in Breckenridge. As these regulations continue to shape the local housing market, working with a knowledgeable real estate Broker is essential for understanding the nuances of each zone and making informed decisions. Whether you’re buying or selling, expertise in Breckenridge’s STR framework is key to maximizing your investment’s potential.
STR License Resources
For an interactive map of property parcels and zoning, click here.
To apply for an STR license, click here.
To register for an STR license waitlist, click here.
To apply for a business license, click here.
For information on the sales and accommodation tax for STRs, click here.
For information on the Town of Breckenridge’s code on advertising your STR, click here.
To contact the Town of Breckenridge for more information on STR licensing, email str@townofbreckenridge.com or call 970-547-3101.
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