The primary point of contention is the city's definition of a "primary residence." Under Denver rules, a host can only operate STRs out of their "primary residence" or an adjunct to that residence known as an accessory dwelling unit (ADU). According to the city, that policy is designed to prevent investors from purchasing housing stock to use solely as STR properties, removing units from the market that might otherwise serve as long-term rentals — which could relieve the housing crunch and reduce rent rates.
But longtime host Steve Ramsey says that the city's vague rules of what constitutes a primary residence has led to unfair denials for many STR license applications, including his own.
"The rules for determining primary residence are very clear and can be found on the city website," counters Eric Escudero, spokesperson for the city's Department of Excise & Licenses.
Escudero adds that denials for STR license applications are "a rare occurrence," noting that the city has issued 2,640 STR licenses in the past year — approving 82 percent of all applications, while 4 percent were denied. The remainder are either still pending, were withdrawn by the applicant or were administratively closed due to a lack of response from an applicant when the city requested additional information.
Ramsey had his STR license "administratively closed" after he didn't send requested information, Escudero says. He had been renting out an ADU behind his house, and occasionally rented out his primary residence when he went out of town — which Ramsey says he did not realize was against city policy.
He was so "ticked off" at losing his license that he joined the Mile High Hosts Facebook group. "I wound up communicating with enough people who had had their licenses denied in much more egregious ways than mine," Ramsey says. "Some of them paid attorneys to represent them and still got screwed around."
Some of the people peeved with what they call the city's "onerous rules" are developers; others are homeowners who'd like to use their Denver property as a short-term rental.
Back in 2019, for example, a lawyer who was using what he said was his primary residence for a short-term rental was charged with a felony: one count of attempting to influence a public servant, because the city alleged he'd lied on his application. But as trial approached, prosecutors asked that the charges be dropped: The man had indeed been using the home as his primary residence during some marital issues. "This has been an enormous distraction for me, from my family and from my work, and I feel like an enormous weight has been lifted," the host said at the time. "As an attorney, all we have is our credibility and our reputation, and if you have a reputation for being a liar, forget getting anything done on behalf of your clients. It was the absolute number-one most important thing to resolve in my life for the last five months. And it took five months, almost to the day."
Ramsey became so concerned over what he learned that he reached out to Mike Johnston and got a fifteen-minute Zoom meeting with the then-mayor-elect on June 27. "I briefly explained what I thought were the most egregious aspects of Excise & Licenses," he recalls, "and within two hours, he appointed me to one of his transition committees for Excise & Licenses."
Whit Allen was on that Zoom; his STR license renewal application was denied on April 3, after the city determined he has a "nomadic lifestyle" based on his work-related travel and therefore cannot have a primary residence. "I was really pleased and encouraged to see the willingness of the new administration to hear all sides," Allen says. "We're not nameless, big investment groups; we're just everyday Denver citizens, many of us entrepreneurs, trying to make a living the best way we know how in today's environment."
Ramsey isn't just pushing for change through the mayor's Excise & Licenses transition committee, which turned in its report on July 14; although that team had to look at a variety of issues, including marijuana licenses, Ramsey says that about 20 percent of the summary was devoted to STRs.
And last week, he sent a personal letter to every Denver City Council member that pointed out problems with Excise & Licenses policies and current performance. "The amount of time and taxpayer dollars they waste pursuing cases like this is pretty unbelievable. There are much more reasonable and effective ways to enforce regulations," he says.
"EXL’s stated position is it wants to prevent investors from purchasing housing stock and turning them into STRs," his letter notes. "STR operators agree with that premise. If you operate an STR in Denver, you can only do so out of your primary residence."
It continues: "But under director Molly Duplechian, EXL has pursued STR operators and denied licenses without regards to the above premise by demanding unrealistic and unnecessary conditions to define Primary Residence. EXL uses vague language in the Municipal Code to punish homeowners who follow the spirit and intent of that code. Denying licenses in this manner hurts homeowners. And it hurts Denver by eliminating income from visitor spending and lodging tax (10.5 percent of all lodging fees). It decreases Short Term Rental availability, and it does NOT increase housing stock availability.This is a Lose-Lose-Lose situation that serves no one, and it is not good government."
According to Ramsey, "EXL should only deny an STR license when it can be proven that the individual has multiple residences or that they have no intent of ever living at the property."
But Escudero says that such changes could impact the city adversely. "This may be a case where a very small minority of individuals who were denied a license are pushing for changes that could dramatically disrupt Denver’s success regulating the industry, protecting neighborhoods and people looking for affordable housing from being negatively impacted by this business type," he says.
"The primary residence rule is not just to protect from investors," he adds. "While that is an important element, we have also found that hosts renting out their primary residence are more attentive to the property and protecting their neighbors from issues we have seen in the past such as loud parties, trash, parking problems and even, in the worst-case scenarios, shootings."And last week, he sent a personal letter to every Denver City Council member that pointed out problems with Excise & Licenses policies and current performance. "The amount of time and taxpayer dollars they waste pursuing cases like this is pretty unbelievable. There are much more reasonable and effective ways to enforce regulations," he says.
"EXL’s stated position is it wants to prevent investors from purchasing housing stock and turning them into STRs," his letter notes. "STR operators agree with that premise. If you operate an STR in Denver, you can only do so out of your primary residence."
It continues: "But under director Molly Duplechian, EXL has pursued STR operators and denied licenses without regards to the above premise by demanding unrealistic and unnecessary conditions to define Primary Residence. EXL uses vague language in the Municipal Code to punish homeowners who follow the spirit and intent of that code. Denying licenses in this manner hurts homeowners. And it hurts Denver by eliminating income from visitor spending and lodging tax (10.5 percent of all lodging fees). It decreases Short Term Rental availability, and it does NOT increase housing stock availability.This is a Lose-Lose-Lose situation that serves no one, and it is not good government."
According to Ramsey, "EXL should only deny an STR license when it can be proven that the individual has multiple residences or that they have no intent of ever living at the property."
But Escudero says that such changes could impact the city adversely. "This may be a case where a very small minority of individuals who were denied a license are pushing for changes that could dramatically disrupt Denver’s success regulating the industry, protecting neighborhoods and people looking for affordable housing from being negatively impacted by this business type," he says.
So far, that hasn't been the case in Ramsey's Platt Park neighborhood, where he's now back in the STR business. "I applied for a completely new STR license in early April," Ramsey says. "That process was very smooth overall and was fairly efficient. Because I have two rental properties, Denver came out and inspected both — that went well and took about twenty minutes. In early June, I got my new license."
But the fight continues.
"A big issue continues to be a certain group of people at EXL determined to harass homeowners who are renewing a license by telling them that they rent their (only) home out too many nights per year for it to qualify as a primary residence — even though that number, or any specific definition of such a regulation, cannot be found in municipal code," he says. "This is still happening."
