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Rent Control Laws Impact Short-Term Rental Properties

Corporate Housing Solutions | Jan. 15, 2019

Denver lawmakers concerned with the high cost of renting have proposed all sorts of solutions and regulations to remedy the situation. Now a Colorado State Senator, Julie Gonzales is proposing a radical idea called “Rent Control” as a means to tackle this trending issue. The only problem is, it has been universally rejected as overt tampering with markets and socialized law making.

“There’s no question that rent is a growing concern for Coloradans.

An analysis by Apartment List, a rental listing site, found that half of tenants in Denver spend more than 30 percent of their paycheck on housing. Rates are similar in Grand Junction and Pueblo. It’s even worse north of the metro. Numbers rise to 60 percent in Boulder and 61 percent in Fort Collins.

State law bans cities from regulating the rental market. The restriction has forced Colorado communities to find creative ways to add affordable rental units, all while staying on the right side of the law.

Now, State Sen. Julie Gonzales, part of a new class of Democratic lawmakers at the Capitol, hopes to scrap the ban entirely. While the exact language is still in the works, the plan is to introduce a bill to let cities regulate their rental markets.

“I think that municipalities should have a full set of policy options to decide what makes the most sense for them,” she said.

Most states have similar rent control bans. Gonzales’ bill would bring a national debate over those policies to Colorado. A California ballot measure to end limitations failed last November. In Illinois, parts of Chicago have voted to lift the state ban on rent control, as part of a nonbinding effort to pressure state lawmakers.” (


Short-Term Rental Properties Will Be Most Affected by Rent Control Laws

While government tampering with free markets is an obvious problem on a number of levels, what is most concerning is the impact these laws may have on Airbnb rentals and short-term rentals.

Landlords and property management companies that offer these properties have a laundry list of charges that are applied to the monthly rental costs in order to maintain these properties.

This includes and is not limited to:

                Wear and tear on furnishings

                Snow removal and landscaping costs

                Fluctuating utility costs

                Management and employee fees

                Frequent carpet and house cleaning costs

                Taxes and Fees



These things all are taken into consideration by a property management company when setting their rental fees for short-term rental properties. If government were to step in and start regulating and capping the price on rental fees it will undoubtedly cause a situation where landlords could no longer afford to maintain and offer such listings.

This should be a major concern for anyone operating short-term rental properties in the Denver Metro Area.

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