Denver Short Term Rental Advisory Committee - December 8, 2020 Excise and Licenses - City and County of Denver

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Denver Short Term Rental Advisory Committee - December 8, 2020 Excise and Licenses - City and County of Denver
Denver Short Term Rental Advisory Committee

             December 8, 2020

               Excise and Licenses

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Denver Short Term Rental Advisory Committee - December 8, 2020 Excise and Licenses - City and County of Denver
Public Comment
There will be time allotted at the end of the meeting for public comment.

 Please use the “raise hand” feature on Zoom at any time during the
meeting to indicate that you’d like to make a public comment at the end.

  If you are calling in and cannot use the “raise hand” feature, you may
                  sign up for public comment by emailing
                         Erica.Rogers@denvergov.org

                                                                            2
Denver Short Term Rental Advisory Committee - December 8, 2020 Excise and Licenses - City and County of Denver
Licensing &
Enforcement
Updates
Denver Short Term Rental Advisory Committee - December 8, 2020 Excise and Licenses - City and County of Denver
2,681
                                 6/11/2019

                                                                    6/3/2019
                                  7/1/2019

                                 7/25/2019

                                 8/14/2019

                                 8/29/2019

                                 9/12/2019

                                 10/1/2019

                                10/16/2019

                                10/30/2019

                                11/13/2019

                                 12/5/2019
                                                                     2,732

# Active STR Licenses
                                                                   12/5/2019

                                12/12/2019

                                  1/2/2020

                                 1/17/2020
 2,732
                        Dec19

                                  2/3/2020

                                 3/11/2020

                                  4/1/2020
 1,994
                        Nov20

                                 4/23/2020

                                  5/5/2020

                                 5/14/2020
 1,947
                        Dec20

                                 5/28/2020

                                 6/11/2020

                                 6/25/2020
 -2%
                        MoM

                                 7/10/2020

                                 7/23/2020

                                  8/6/2020
                        YoY

 -29%

                                 8/21/2020
                                                                               STR Compliance/Trends

                                  9/3/2020

                                 9/18/2020

                                 9/30/2020

                                 10/9/2020
                                               1,994
                                             11/2/2020

                                10/29/2020

                                11/12/2020

                                 12/1/2020
                                                         1,947
                                                       12/1/2020
Denver Short Term Rental Advisory Committee - December 8, 2020 Excise and Licenses - City and County of Denver
311 Data and Trends
      2020 Salesforce Short-Term Rental Analysis
Call Type  Salesforce   Jan   Short-
                              Feb Mar Apr term
                                           May Jun rental
                                                   Jul Aug Sep      Oct Nov Totals

           analysis
Administrative Citation     2018-Current
                                  6   2            7   17 4         24   3    63

Application           37    16   30   38   47   45   41   39   44   116 89    542

Notice of Violation   43    7    30   31   12   2    11   10   22   36   17   221

Property Complaint    39    23   25   21   18   26   32   40   19   21   15   279

General Inquiry       110   70   56   25   37   36   25   29   44   57   32   521

Total Calls           229   116 147 117 114     109 116 135 133 254 156 1626
311 Data and Trends
                                                                                                                                           116
 110

                                                                                                                                                              89

             70
                                56                                                                                                             57
     4339                                                  47                45                                                 4444
37                                           38              37                                  41              39    40
                                                                               36                        32                                      36            32
                               30 30             31                                                                29
                      23            25         25 21                                    26        25                               2219   24
                                                                    18                                         17                                    21            1715
            16                                                    12
                  7                                                                          7      11               10
                           6             2                                          2                                       4                             3

 Jan         Feb                Mar           Apr           May                Jun                Jul              Aug           Sep           Oct             Nov
                                                                              2020
                  Administrative Citation           Application          General Inquiry              Notice of Violation   Property Complaint
311 Data and Trends
                   Administrative
    Property
                  Citation or Notice
 Complaints 17%
                  of Violation 17%

 Inquiries &      Applications 33%
Questions 32%
STR Application Data
                         • As of December 4, we had 176 total pending applications
                           • 67 pending applications are awaiting applicant action
Pending Applications       • 80 pending applications are under review by EXL
                           • 29 pending applications are under review by another city agency

                         • We received 177 total applications during the month of August:
                           - 66 applications for new STRs
                           - 111 STR license renewal applications
                         • We received 168 total applications during the month of September:
                           - 58 applications for new STRs
                           - 110 STR license renewal applications
   New Applications      • We received 213 total applications during the month of October:
                           - 72 applications for new STRs
                           - 141 STR license renewal applications
                         - We received 147 total applications during the month of November
                           - 53 applications for new STRs
                           - 94 STR license renewal applications
Applications and Disciplinary Action
                        Withdrawals            Closed Administratively                             Denials
                                                                              63 (15 within the past year)
New & Renewal               265                           207                 - 4 pending hearing
applications      (72 within the past year)    (127 within the past year)     - 9 had hearing with denial upheld
                                                                              - 47 not appealed

                            Sent                                                   Returned
                             672                                                       300
Affidavits
                  (274 within the past year)                                (141 within the past year)

Licenses          18 since April 2018
‘Show Caused’     - 15 resulted in revocation or surrender
                  - 1 pending hearing
Lodger’s Tax Update
                                             As of December 1, 2020

      Lodger’s Tax Accounts          STR Business Licenses                              Difference
                                           (active)                         (Tax v. Active Business Licenses)

             3,312                           2,732                                          580

                                       2017 Total            2018 Total          2019 Total              2020 YTD
Lodger’s Tax collected                  $ 3.5M                $ 8.36M             $ 10.6 M                $ 5.2 M
% of Lodger’s Tax collected                                    7.5%                 10.1%                  11.7%

  ▪   This amount does not include OPT or license fees.
  ▪   July collections are up about 140% when reviewed against the slow periods of either May or June in the STR
      lodger’s tax collections.
Current Events
What’s happening in the world of short-term rentals?
Platform Accountability, Airbnb’s IPO, Hotel STRs, and STRs in a post-COVID world

 Platform Accountability in Denver: Denver City Council approved an ordinance adopting fines for
 booking service providers that process unlicensed transactions. Read more here.

 Airbnb going public: Airbnb seeks valuation of up to $35 billion in its Initial Public Offering. Read
 more here.

 Hotel chains in the short-term rental game: Marriott discusses the success of its Homes & Villa
 program. Read more here.

 The future of short-term rentals: What will the world of short-term rentals look like after
 vaccinations are widely available?. Read one take here.
Policy Updates
Platform Accountability Ordinance
                        This ordinance will:

                        1. Define and regulate platforms that act as booking service
• Passed at City           providers for short-term rentals
  Council on Monday,
  November 23, 2020
                        2. Create penalties for booking service providers who process
                           illegal transactions
• Will go into effect
  February 1, 2021
                        3. Require licensees and booking service providers to keep
                           certain records
                        4. Clarify existing practices for all licenses in Chapter 32
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STRAC Vacancy
Goal Setting
STRAC 2020 Accomplishments
                              Platform               Supporting
    Primary Residence                                                       Education Efforts
                            Accountability         Compliant Hosts
• Updated the            • Adopted a new         • Updated the            • Added new data
  Primary Residence        ordinance               complaint process        points to the
  requirements in          provision making it     to notify hosts          regular agendas to
  ordinance to             unlawful for            when a complaint         provide context for
  provide more             platforms to            has been made            identifying
  transparency             process unlicensed      against their short-     problems and
• Continued                transactions            term rental              crafting solutions
  enforcement                                                             • Educated members
  efforts against non-                                                      on ADU’s and their
  compliant hosts                                                           usage as short-term
                                                                            rentals

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Denver Values

 Protect the fabric   Protect and support    Ensure that Denver
  and character of         our largely      is keeping pace with
        Denver           compliant host     the evolution of the
neighborhoods and       community who       industry and finding
 the residents who    open their homes to    the right regulatory
      live there           our visitors            balance
2021 STRAC Meetings
                      •Meetings are scheduled on the 2nd Tuesday
                       of every other month
• February 9          •All meetings will be held via Zoom
                      •Additional meetings can be added as
• April 13             needed

• June 8
• August 10
• October 12
•December 14
Public Comment
Please use the “raise hand” feature on Zoom to indicate that you’d like
  to make a public comment. If you are calling in and cannot use the
“raise hand” feature, you may sign up for public comment by emailing
                     Erica.Rogers@denvergov.org

                 Speakers are allotted two minutes.

     Alternatively, you may email written comments at any time to
 licenses@denvergov.org and they will be shared with the committee
                             electronically.

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