Pitkin County considers overhaul of short-term rental regulations

Pitkin County commissioners are considering significant changes to short-term rental (STR) regulations following a year-long impact study conducted by the consulting firm Economic & Planning System (EPS).

A primary recommendation is to eliminate the current requirement that properties must prove they were used as short-term rentals between 2017 and 2022 to be eligible for a license. While this rule has successfully limited growth, the study suggests it prevents new property owners and residents from accessing the market to monetize their homes.

Proposed alternatives include implementing geographic caps by zone rather than a blanket history requirement. This would include a new Type 1 license to limit rentals in rural areas and a Type 2 license designed to lower application barriers for qualified owners. Commissioners have expressed interest in exploring how a potential lottery system and these new geographic caps would function before finalizing any code amendments.