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HomeMy WebLinkAboutVEAC STR PP 04.12.22Town of Vail | Finance | 4/12/2022 SHORT-TERM RENTAL ORDINANCE UPDATE $150 Registration Fee Significant Per-Bedroom Fee for Housing Initiatives Increased Violation Penalties Late Renewal Fees Fire Department Inspections Proof of Commercial Insurance or Equivalent Coverage Town of Vail | Finance | 4/12/2022 PER-BEDROOM FEE Revenue from this fee would be dedicated to housing fund initiatives. Staff is requesting clarification on the fee rate Council would like to impose Description Fee Per Bedroom Est. Annual Revenue Maximum Annual Fee $5,912 5,700 bedrooms with 460 at reduced rate Mitigation Rate 15%$900 $4,852,000 20%$1,200 $6,454,000 25%$1,500 $8,056,000 30%$1,800 $9,658,000 35%$2,100 $11,260,000 40%$2,400 $12,862,000 45%$2,700 $14,464,000 50%$3,000 $16,066,000 A $2,000 per-bedroom fee would cost the average STR in business license zone 2 $5,550 per year. Staff recommends a lower rate of $100 per bedroom for owner- occupied, primary residences and fractional units. Town of Vail | Finance | 4/12/2022 PER BEDROOM FEE Average Nightly Rate Average # of Bedrooms per STR Est. Revenue @ 30 Nights Per Year Est. Revenue @ 100 nights per year Est. Revenue @ 200 nights per year Est. Monthly Avg. Rental Rate Per Bedroom Est. Annual Avg. Revenue for Long-Term Rental Zone 1 $1,096 2.3 $32,894 $109,645 $219,290 Zone 2 $499 2.7 $14,981 $49,938 $99,876 $1,350 $43,740 The below table based on actual STR advertised nightly rates in Vail provides context on how these fees could impact STR owners