HomeMy WebLinkAbout02. VEAC STR 220510-V2Town of Vail | Finance | 4/12/2022
Residential –Second Homes:
5,291Condotels:
1,458
VAIL INVENTORY ANALYSIS
Residential –Primary
Homes:
2,068
Total Residential:
7,359
Total Lodging: 2,947
*2019 Census Housing Units Estimate: 7,475 (+/-223)
Total:
8,848
Hotels/
Lodges:
1,489
Registered STRs:
2,454
*2,583 Estimated
*There are 929 Town Owned/Deed Restricted Units (+23 in Edwards)
Town of Vail | Finance | 4/12/2022
SHORT-TERM RENTAL ORDINANCE PROPOSALS
▪$150 Registration Fee Covering TOV Costs of the
Program
▪Significant Per-Bedroom Fee for Housing Initiatives
▪Increased Violation Penalties
▪Late Renewal Fees
▪Fire Department Inspections
▪Proof of Insurance Covering STR Activity 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
▪Staff to propose three options to
Town Council:
▪30% mitigation = $1,800
▪20% mitigation = $1,200
▪10% mitigation = $ 600
▪Approx. 30% mitigation rate is
lower than peer communities
▪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
Town of Vail | Finance | 4/12/2022
HEALTH AND LIFE SAFETY STANDARDS
▪Fire Department Inspections
–Require an in-person safety inspection every three years
–Exempt units with 24/7 onsite management and those in buildings
already inspected by the fire department for commercial purposes
–Most safety standards are already required by code
▪Proof of Adequate Insurance
–Require proof of insurance beyond a standard home-owners policy
▪Update Current Local Representative Requirements
–Exempt fractional units and 24/7 onsite managed units from the
requirement to increase compliance