Frisco Continues Development of Short-Term Rental Regulations

Recognizing the growth of online short-term rental platforms like AirBnb, the Town of Frisco is currently in the process of developing an ordinance regarding short-term rentals. Chad Most, Revenue Specialist for the Town, has elaborated as follows: “[t]he Town of Frisco is working diligently toward a measured approach that addresses community concerns without saddling the vast majority of responsible [short-term rental] owners with needless regulation. This will be an ongoing process of implementing common sense rules and collecting additional information so that future decisions can be based on a solid foundation of fact, rather than anecdotal evidence.” To obtain feedback on how to regulate short-term rentals, the town of Frisco invited the public to a Community Conversation at the Frisco Adventure Park Day Lodge.

Community Conversation on Proposed Frisco Short-Term Rental Regulations

The Town of Frisco started the Community Conversation with a Short-Term Rental Presentation that it had prepared. From 2015 to 2018, the percentage of Frisco lodging tax generated by short-term rentals has been steadily increasing. In 2015, 32% of lodging tax in Frisco was generated by short-term rentals. And, from the start of 2018 through the end of August, that percentage had already increased to 43%. While it’s clear that short-term rentals are increasing in Frisco, there are many pieces of data about such rentals that the Town does not know for certain. For instance, the Town is unsure how many Frisco short-term rentals are currently out of compliance with the Town’s already-existing rules. And, out of the total complaints that the Town receives every year regarding Frisco neighborhood concerns, the Town doesn’t know how many are specifically related to Frisco short-term renters. During the presentation, the Town enumerated the goals of its Frisco short-term rental regulations as follows:

• Ensure compliance and a level playing field for all Frisco short-term rental owners
  – Develop efficient application and licensing process
• Reduce Frisco residential neighborhood nuisance complaints
  – Track all complaints, not just those related to short-term rentals
• Ensure all Frisco short-term rental owners are sharing information necessary to provide for their guests’ safety and to minimize impacts on neighborhoods
• Use new data and improved communication with Frisco short-term rental owners to adjust regulations as needed and to begin conversations about how to incentivize the provision of attainable, long-term employee housing

In an effort to obtain feedback to potentially include as part of its final draft, the Town noted its proposed Frisco short-term rental regulations were a work in progress, and the Town did not release a draft of that document. However, in order to achieve the above goals, the Town proposed that the following items might be included within its regulations as a means of reducing the negative impacts of short-term rentals in Frisco:

• Occupancy limits for Frisco short-term rentals
• Institute neighborhood nuisance complaint and resolution hotline in Frisco
• Quantify complaints to identify highest priority issues and uses that generate the most complaints
• Require Frisco owners and agents to respond to complaints in a timely manner. The options under consideration are:
  – “Local Agent” – On-Site response within a certain amount of time or to be located within a certain distance of the unit, the Town or the County
  – “Responsible Agent” – Require timely response, but not necessarily on-site (at least initially)

During the remainder of the Community Conversation, the Town noted its proposed regulations would not amount to a cap on the number of potential Frisco short-term rentals, which could be licensed (as some Colorado towns outside Summit County have enacted). Nonetheless, once the Town enacts Frisco short-term rentals regulations, the Town believes it will create a call center, where complaints regarding Frisco short-term rentals can be submitted. The Town is anticipating combining with other towns and with Summit County itself to obtain services from a third party for a software solution as well as a call center. The Town appears to currently be examining a third-party provider located in Utah.

Frisco Responsible Agent

Once the proposed regulations are completed, there are likely to be new requirements for Frisco short-term rental owners. For instance, the Town will possibly require signage within Frisco short-term rental units that include emergency contact and other pertinent information. At present, the Town is also leaning toward mandating that Frisco short-term rental owners designate a Responsible Agent for their properties. As a result, if a requisite for a Frisco Responsible Agent is passed, the currently proposed regulations would be similar to the Breckenridge Responsible Agent.  Along those lines, the Town of Frisco stated at the Community Conversation that it is considering striking the same compromise that Breckenridge recently reached.  More specifically, the Town may require a Frisco Responsible Agent to respond within 60 minutes of having received a hotline complaint at any time of day or night.  To eliminate the problem that was the subject of the hotline complaint, the Frisco Responsible Agent could initially respond by contacting the renter by telephone, other electronic form of communication, or in person.  And, if the Frisco proposed regulations end up being similar to those already passed in Breckenridge, it is possible that a proper response to a complaint may also require the Frisco Responsible Agent to visit the short-term rental, if such action is necessary to attempt in good faith to eliminate the problem that was the subject of the complaint. With the preceding said, the Town of Frisco stressed during the Community Conversation that it is still seeking feedback on Frisco short-term rentals. Accordingly, the final regulations could change as they are further discussed down the road.

Next Steps

Once the final draft of the Frisco short-term rental ordinance is completed, it’s expected to be presented for first reading at the regularly scheduled Frisco Town Council meeting on October 9, 2018. A second reading of the Frisco short-term rental ordinance is expected later in October 2018.

 

If a requirement is eventually passed, Summit Local Agent aims to help you comply in the most cost-effective way possible, by serving as your Frisco Responsible Agent.