Owner Forum Agenda I. Town of Vail STR Ordinance I. History of RBO regulations II. Review requirements and documents III. TOV video II. Association s Governing Documents I. History of Exclusive Agent and Rentals II. Review Declarations, Bylaws, Resolution and Rules III. Review potential Conflict in complying with both the Town s ordinance and the Bylaws IV. Owner feedback 1
What is the history of the Town of Vail s Rental by Owner Regulations? 2015 Town Council passes new ordinance requiring RBOs to obtain a business license, pay taxes and list their tax ID number on of their advertising/listings 2016 Town becomes concerned with employee housing shortage due to many long term rental units converting to short term rentals 2
2016/17 Town Council commissions RBO study Quantify the number of RBO units How many were compliant with the ordinance What other mountain communities are doing to regulate RBOs 2017 Analysis reveals Most units RBO units listed on sites like VRBO, Airbnb, etc. were not compliant with the ordinance and did not have a business license or pay taxes Of those licensed, tax collections exceeded $600,000 in 2016 Vail has the most passive RBO regulations 3
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Summer 2017 Town holds community meetings to discuss RBO impacts and receive input on next steps Town Council asks staff to draft a new ordinance with additional regulations Ensuing public input at Council meetings December 2017 Town Council passes new STR Ordinance with additional RBO regulations 7
What Does the Town of Vail s STR Ordinance say? 8
Town of Vail STR Ordinance Rental by Owner Requirements Obtain for a Short Term Rental (STR) license Complete and notarize a STR Self-Compliance Affidavit acknowledging government regulations regarding: Life Safety (make sure all requirements are in place) Trash Parking Noise Designate a local agent and complete the STR Local Agent and Owner Authorization Form The agent must be available 24/7 and have access and authority to assume management of the unit and take remedial measures Owners who live within a 60 minute radius of the property may serve as their own local agent 9
Read and sign the Good Neighbor Guidelines Post the STR license number on all advertising (print, online, etc.) Verify that HOA covenants allow the unit to be rented as RBO Collect and remit taxes Town of Vail 4% State of Colorado 2.9% Eagle County 1.5% Vail Local Marketing 1.4% Complete information on Town s website at www.vailgov.com 10
Town of Vail STR Ordinance Rental by Owner Requirements 11
What is the history of the Association s Exclusive Rental, Lodging and Overnight Occupancy Agent? 1973 Original Bylaws 1984 Board Resolution 1995 Bylaw Amendment 2001 Restated and Amended Bylaws 12
What do the Association s Governing Documents Say? 13
Declarations: Eighth Supplement, Section 16; Nothing herein shall be so interpreted as to prevent the owner of a condominium unit from acting as his owner rental management agent. 14
Bylaws: Section 7.11: Association as Exclusive Rental and Lodging Agent/Rules on Leasing, Lodging or Overnight Occupancy of a Unit. Unit Owners have the right to lease or allow lodging or occupancy of their unit, subject to the following: The Association is designated as the exclusive rental, lodging and overnight occupancy agent for all rentals, lodging or overnight occupancies by all Owners. No owner shall list any unit for rent, lodging or overnight occupancy with, or enter into any rental, lodging or overnight occupancy agreement through any agent, other than the Association. Owners may rent on their own, without the services or assistance of the Association, provided reasonable notice is given to the Association. 15
Rules and Regulations: 12. The Association is the Exclusive Rental and Lodging Agent The Association s governing documents declare the Association as the Exclusive Rental and Lodging Agent for all properties at the Vail Racquet Club. In order to manage the Lodging Operation, the Lodging Rule was created and exists to explain the Association s Lodging Program, to more clearly address the rights and responsibilities of the Association and the participating owners, and to explain the process and procedures of the Lodging Program. If a unit owner wishes to rent their unit they should contact the Association s administrative offices in order to receive a complete copy of the Lodging Rules and Regulations and to make arrangements to enter the Lodging Program. 16
Unit Lodging Rules and Regulations: Association as Exclusive Lodging, Leasing and Overnight Occupancy Agent. To manage lodging, leasing and overnight occupancies, the Association has had and continues to operate a Lodging Program for the benefit of all owners. The Association is the exclusive rental, lodging and overnight occupancy agent for all rentals, lodging or overnight occupancies allowed by Owners to paying guests, tenants and occupants. This requirement and rule (limiting the use of any third party lodging or rental agents in the Community) is based on historic practices, past and current rules and provisions of the Bylaws Rule Limiting Lodging, Leasing or Occupancies to others for Compensation. Owners shall not provide their Unit to others for lodging fees, rent, rental, rentals or occupancy for compensation, except as provided for by these Rules and Regulations or under the Bylaws Any paying guest of an Owner that is not in the Owner s Unit under the Association s Lodging Program shall not be entitled to any services of the Association. 17
Rental by Owner Guidelines and Rules: Owners May Rent on Their Own without the use of Association Services: All Homeowners who rent their units on their own may do so without using the services and assistance of the Association. Must Self Manage All Aspects of Rentals: All owners who rent on their own must administer all aspects of the unit rental themselves and may not use any Association services. Since the Association is the Exclusive Rental Agent for the property, outside agents, realtors, friends and others to whom owners are paying a fee are not allowed to assist with owner self-rentals. 18
Potential Conflicts with the Association s Governing Documents Exclusive Rental, Lodging and Overnight Occupancy Agent - Town s Local Agent 19
Potential Conflicts with the Association s Governing Documents Questions: Does the Association s Exclusive Agent Bylaw apply to the Town s requirement that RBO owners must have a local agent? Are the Exclusive Rental, Lodging and Overnight Occupancy Agent and Local Agent dissimilar or are they one and the same? Do RBO owners have to use the Association as their local agent? How can owners be compliant with both the Town s ordinance and the Association s Bylaws? 20
TOV Ordinance: Town Ordinance requires a local agent: Each owner must designate a local agent within a 60 minute radius of the unit Local agent shall have access and authority to assume management of the unit and take remedial measures Agent shall be available 24/7 to respond to tenant and neighborhood questions or concerns Owner must verify that their Association s covenants do not prohibit them from renting the unit Owners living within one hour may act as their own local agents, otherwise they must designate an agent 21
Declarations Eighth Supplement, Section 16 Owners may rent on their own and act as their own rental management agent For most RBO owners (non-local) this may be in conflict with the Town s ordinance which requires a local agent 22
Exclusive Rental, Lodging and Overnight Occupancy Agent Bylaw The Association is designated as the exclusive rental, lodging and overnight occupancy agent for all rentals, lodging or overnight occupancies by all Owners No owner shall list any unit for rent, lodging or make any unit available for overnight occupancy with, or enter into any rental, lodging or overnight occupancy agreement through any agent, other than the Association 23
Rental by Owner Guidelines and Rules: Owners May Rent on Their Own without the use of Association Services Must Self Manage All Aspects of Rentals: All owners who rent on their own must administer all aspects of the unit rental themselves. 24
The Board is conducting an impartial, fact based inquiry, including legal opinion letters, to determine if the Exclusive Rental, Lodging and Overnight Occupancy Agent applies to the required Local Agent. 25
Owner Feedback 26
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