An Overview of Ordinance 9 for Aspen Homeowners

In December 2021, Aspen City Council issued a moratorium on all new short-term rental permits while they evaluated the impacts of STRs on the health, safety, and quality of life in Aspen.

Over several months, the City of Aspen staff polled community members and business owners, met with a Technical Advisory Committee, and compiled recommended STR regulations for City Council consideration. On June 28, 2022, Aspen City Council passed Ordinance 9 which imposes new regulations on STRs within Aspen city limits.

Under Frias Properties' comprehensive short-term rental management services, our teams are prepared to handle all the regulatory changes for our clients. As the marketplace begins to shift, our managed homeowners will be well positioned to capitalize on diminished STR inventory and more government oversight. Read on to learn more about STR regulation changes and the timeline for implementation. Please note that Pitkin County STR regulations do not apply to properties within Aspen city limits.

Changes to Aspen's Short-Term Rental Regulations

The moratorium on new STR permits will be lifted on Oct. 1, 2022, and Ordinance 9 has imposed a few major changes to STR regulations:

Beginning Jan. 1, 2023, STR permits may only be issued to a "natural person" who owns at least a 10 percent share of the property.
STR permits will fall under three categories, which are outlined below.
Valid 2022 permits may be renewed annually but will be subject to some new and existing requirements, which include tax remittance, guest-information dissemination, and a requirement to rent at least once within the calendar year.
Over time through attrition, the number of STR permits will be reduced by 25%. STRs are limited by number in specific zone districts. (See additional details below.)

NEW STR TAX. In addition to Oridinance 9, Aspen voters passed ballot measure 2A on the November 2022 ballot. The new tax will go into effect May 1, 2023 and add the follow tax rates to STR reservations.

STR Classic -- 10% tax
STR Owner Occupied and STR Lodging Exempt -- 5% tax

New Permit Classifications for Aspen STRs

Aspen STRs will now fall under three categories based on their usage. The majority of Frias Properties condominiums and homes will be designated in the Short-Term Rental Classic (STR-C) category, but we have included all three for your reference.

Short-Term Rental Classic (STR-C) – This permit category is assigned to residential units located in eligible zones that are not part of a lodge or condo-tel.

STR-C permits can be renewed annually and are assessed an annual permit fee of $394 plus the cost of a business license.
STR-C permits are subject to the life-safety standards and the operational standards described in the STR Program Guidelines.
There is no annual limit on the number of nights an STR-C may be rented short-term. Bedrooms, lock-offs, or portions of the residential unit, in addition to the whole residential unit, may be rented.
Occupancy is limited to two occupants per bedroom plus two; studios are limited to a total occupancy of three.
If the November 2022 ballot question is passed, STR-C bookings would incur an additional 10% tax.

Lodging Exempt Short-Term Rental (STR-LE) – Lodges and condo-hotels which meet the definition of "Lodge" are eligible for STR-LE permits. (Independence Square may qualify under this category.) These rentals only require one permit for all units under management, but they must be represented under a unified brand and marketing model where individual ownership is secondary to the central brand of the property.

The STR-LE permits must be renewed annually and are assessed an annual permit fee of $148 plus the cost of a business license. To ensure ongoing eligibility for the STR-LE permit, permittees are subject to the Lodging Occupancy Auditing regulations.

If the November 2022 ballot question is passed, STR-LE bookings would incur an additional 5% tax.

Owner-Occupied Short-Term Rental (STR-OO) – This permit is issued only to owner-occupied residential units, where the property is the owner's primary residence. The annual permit fee is $394 plus the cost of a business license, and STR-OO permit applicants must submit valid proof of residence. These STRs can only be rented for 120 days per year. If the November 2022 ballot question is passed, STR-OO bookings would incur an additional 5% tax.

Zoning Restrictions for Aspen STRs

STR-C permits are limited by number in specific zone districts as the City of Aspen attempts to phase down STRs in residential zones. Use this tool to see how your Aspen property is zoned.

RR: 2 permits
R-3: 1 permit
R-6: 81 permits
R-15: 47 permits
R-15A: 8 permits

R-15B: 12 permits
R-30: 1 permit
R/MF: 190 permits
R/MFA: 12 permits
AH: 9 permits

MU: 39 permits
NC: 1 permit
SCI: 2 permits
SKI: 2 permits

There is no limit to the number of STR-C permits in the following zone districts: Commercial (C-1), Commercial Core (CC), Lodge (L), Commercial Lodge (CL), Lodge Overlay (LP), Lodge Preservation Overlay (LO).

Required Information to Display in Aspen STRs

One of the more time-intensive changes will be to organize the required information that must now be displayed in each STR property. The City of Aspen posits that in-unit messaging is essential to compel visitors to support their "Good Neighbor" policies and ease the impact of tourism within residential neighborhoods. The list of required information is long, and it includes the following.

These materials are not yet requried by the City of Aspen. Frias Properties staff is working on producing these materials and distributing them to each rental.

A copy of the STR-C permit showing the STR license and business license number
Contact info for the owner's representative
The location of required parking spaces
The wildlife protection policy
The location of the fire extinguisher
Information about trash, recycling, and composting programs
City of Aspen emergency services information
The City of Aspen's Good Neighbor Guide

When do Aspen's New STR Regulations Take Effect?

Ordinance 9 code amendments are scheduled to go into effect this summer, and Frias Properties’ rental management team has earmarked the following dates as part of our compliance timeline.

The adopted short-term rental code amendments in Ordinance 9 went into effect on July 29, 2022.
The moratorium on new STR permits is lifted on Oct. 1, 2022.
The STR tax question will be on the City of Aspen ballot, and voters will decide the result on Nov. 8, 2022.
Valid STR permits, which all Frias Properties rental management clients currently possess, are extended through Dec. 31, 2022 but must be renewed starting Nov. 1, 2022.

Thank you for entrusting us with your Aspen property

Please let us know if you have additional questions about Aspen's new short-term rental regulations. You can rest assured that we are aware of the latest developments and are taking care of your rental's compliance with the City of Aspen.

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Aspen Short Term Rental Regulations

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