Sorry I’m so late chiming in on this but I thought you might all like to know how Boulder solved the STR issue – STR can ONLY be done with an owner’s prime residence; renters are not allowed to do STR, even for an extra bedroom, even if they have the landlord’s permission. If you have two dwellings on your property (such as a carriage house), only one can be the STR and you can not switch back and forth from one dwelling to the other; choose one and that’s the STR. No restrictions on days per year. By making your place a primary residence, it cannot be deeded to an LLC or other business (it must be deeded to the actual homeowner), your child’s school mail address needs to be the primary residence, as does your voter and car registration.
As far as whether this is a commercial enterprise and how the law sees it as opposed to HOAs – (1) A Case in Colorado, Houston V. Wilson Mesa Ranch HOA, where a court affirmed that short term rentals are not a commercial use of property but a residential use. (Source: http://globalhosting.freeforums.net/thread/1456/court-cases-short-term-rentals)
I own my townhome and, until recently, my HOA was fine about it, but recently they told me that I’m not compliant with the new regulations. I told them that I have a STR license. They said, well you don’t really live there. I thought about it for a bit and then told them that, indeed, my wild teenage daughter, my rescue dog with issues, and I will now be living there between guests and, unfortunately, it won’t solve the problem of people coming and going that they don’t know because my daughter has a lot of friends (who smoke a lot of pot, byw). And, if the teenagers are too loud or a police vehicle shows up, please don’t hesitate to call me. I have a couple of open nights next week; we will move in for the first time (my daughter and I have only spent one night there up till now), which will give me a chance to do paint touch-up and other maintenance. Funny, though, once I told them that my daughter and I will be there between guests, I never did receive the letter from the HOA they told me was coming.
The issue in Boulder is that there is not enough low-cost housing. There are also not enough hotel rooms. My place would never be affordable as a LTR as it is completely remodeled and in an awesome location. Plus, I will actually move there in a couple of years, after my daughter goes off to college. I will continue to stand my ground with the HOA as I am a “money grubbing” person (actually, a single mom who is doing her best to support myself and my daughter). The HOA rules had no minimum rental period when I bought my place. They do, now, for new owners but I am grandfathered in.
In conclusion, I am abiding by the law, paying 7.5% tax to the City of Boulder, and, after next week, I will not only be compliant with the laws on paper, I will also be compliant in person. I have the sneaky suspicion that I am only a handful of Boulder STR hosts who are compliant. I would rather pay the 7.5% tax and be compliant than be shut down. The upside (for me, being money grubbing and all that) is there seem to be fewer listings in Boulder on Airbnb (supply and demand!).
Hope this info was helpful to anyone in an area where the government is looking to restrict STRs. Good luck in LA!
