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