Several property managers in Steamboat are advertising for unlicensed short-term rentals

City intends to adjust its enforcement of STR regulations by targeting property managers who are assisting in illegal nightly rentals.

The Steamboat Gondola passes over properties near the Steamboat Resort base area in March. (Dylan Anderson/The Yampa Valley Bugle)

Several property managers in Steamboat Springs are advertising for short term rentals that do not have a license, a violation of the city’s STR regulations that City Attorney Dan Foote said Tuesday they intend to start enforcing.

The city has filed 26 cases of a short-term rental property operating without a license so far this year, citing the property owners for the violation. Foote said that is roughly equal to all the similar cases filed in 2024. The increase is likely due to a new enforcement officer in the City’s Planning Department that Foote said has been “very motivated.”

But that flood of cases has forced the city’s municipal court system to extend its hours, as these cases are quite a bit more complex and attorneys are often involved. The fine for advertising or operating a STR without a license can be up to $2,650 for each day and comes with a two-year ban on operating an STR both for the property and the property owners.

In an effort to more efficiently stop this illegal activity, Foote said Tuesday that the city intends to adjust its approach to these cases and start targeting property managers who are aiding illegal STRs.

“It has become clear to us that there are more than one of our local property managers that are assisting in this illegal activity by advertising short-term rentals that are not licensed,” Foote said, no mentioning which property managers the city has been looking at. “Thus far, we have not cited any property managers for doing this, but we think that needs to change.”

Foote said he was not looking for direction from City Council, but instead was making them aware of the change in enforcement focus as they may hear from property managers. Foote said the city would send letters to the property managers they believed were advertising unlicensed STRs in the hopes that that brings them into compliance.

“This is more of an exercise of prosecutorial discretion, this is more informational and we’re not really seeking direction and we don’t need to amend the code to do this,” Foote said.

In addition to the 26 cases already brought, city staff are investigating another 10 properties for operating without a license. The city estimates there are 60 to 70 properties that have allowed their STR license to expire that may still be operating as well.

“We think it will be sort of a more efficient way to try to get properties into compliance if we don’t have to do it one by one,” Foote said. “If a property manager has three or four unlicensed rentals, we think that is the way to go.”

In all, there roughly 2,230 active licensed short-term rentals in the city of Steamboat Springs, according to a list of them published by the city in December. Steamboat STR regulations do not have a cap on the total number of nightly rentals allowed in the city, but does restrict how many can be in certain parts of the city.

In green zones, primarily around the base of the resort and down town, STR are allowed without restriction, as long as you have a license. The city also has several yellow zones, each with its own cap on the number of nightly rentals. STRs are not allowed in red zones, though some in these areas have been grandfathered in.

Foote said there are cases where the illegal STR is in a green zone and could get a license but hasn’t or has let it expire, as well as cases of an STR operating in a yellow or red zone, where they aren’t able to get a license.

"The result in many cases is that these are properties that should not be operating as a short-term rental," Foote said.

Council didn’t have a discussion about the enforcement change, but Council member Michael Buccino chimed in to say he was supportive.

“This is a great idea in my opinion,” said Council Member Michael Buccino. “I have seen an onslaught of, I don’t want to call them mom and pop operations, but smaller property management companies that have come into town… and I could see that those smaller operations are snagging up these unlicensed properties.”

“This is one way that would really help the people that own the properties to get into compliance because they are not going to have a property manager that is going to take their property,” Buccino continued.