A Saturday afternoon search for two guests planning to stay in Aspen from August 20-22 found 13 pages of results on Airbnb – 236 accommodations.
The first two pages looked like what the average traveler would expect: two bedroom condos that, considering the sofa bed, can sleep up to six. After the service fee, the total cost for such locations would be anywhere from about $ 700 to $ 900 for the weekend. Considering that a room at the Jerome Hotel would cost someone $ 2,174 a night – or a total of $ 4,939 for the trip – Airbnb doesn't seem like a bad alternative.
But the guests of the Jerome Hotel or one of his contemporaries are looking for a luxury experience. Other commercial lodges in Aspen charge more than $ 600 a night, according to a quick Google search, with the grand total ranging from $ 1,500 to $ 1,700 for the weekend.
So it's hard to blame the people who use Airbnb – both those who stay as guests and those who host. In fact, underneath the travel dates and number of guests fields in Airbnb Aspen search, there is a tempting message: "Earn up to $ 2,197 / month hosting your Denver property" with a linked invitation to "Host." ". . "
And that's only in Denver.
Go to page 13 of the search results for Aspen and you will get an idea of how the other half lives. At the top end, there's a six-bedroom, 5.5-bathroom property that costs $ 40,409 a night – a total of $ 92,228 for the weekend in question, after the $ 11,410 service charge. At the bottom is a three-bedroom, three-bathroom residence in the St. Regis Aspen for $ 4,000 a night – $ 9,129 for the weekend.
To be clear, there is nothing wrong with either listing. "You can list (a St. Regis residence that you partially own) however you want, you just have to make sure that you fill out the correct form in the member services", informed a concierge on Saturday afternoon by phone.
And compared to the $ 5,563 it would cost to stay in a one-king bed (sleeps four) arrangement on the St. Regis hotel side for the same period, Airbnb looks pretty reasonable.
But one look at Airbnb deals only scratches the surface of an iceberg that extends much deeper into Aspen. One that, if you drill far enough, will send ripple effects through the entire Roaring Fork Valley economy.
Michael Miracle has an unabashed passion for the subject. And he's not the only one – in reporting this story, several people expressed nervousness, if not fear, of leaving their comments on how they believe the short-term rental market is negatively affecting the entire region give . But in the case of Miracle, he claims that Aspen Skiing Co. hired him to learn about the community's worst problems. After all, his title is Director of Community Engagement.
“My job at the company is to understand what's going on in the community, and I tell people that Aspen has a vision of what it wants to be, and then there's the reality of what it is – and then there is the way it is about what it becomes, ”he said. "And understanding these three things, balancing them, and realizing how different and contradicting they can be than people think is a big part of my job."
And so he began to look under the hood, so to speak.
“For the past five years, I've sat on several workgroups: Transportation and Transportation (RFTA, the Aspen Institute's Upper Valley Mobility Task Force, EOTC meetings and retreats, and a lot of individual research); Mental health; Childcare; Housing (including Pitkin County's Housing Stability Task Force, which focuses on homelessness); Airport; Zoning and master planning (I was part of Pitkin County's eight week look at housing in the context of growth management goals), ”he noted via email.
In addition, Miracle also worked with students at the University of Colorado-Boulder on a short-term rental project specifically focused on Aspen.
"And because I'm in the sustainability department at Aspen Skiing Co., I'm always involved in conversations about climate change," said Miracle.
Unfortunately, although it is imperative that everyone is involved, no community is going to solve climate change, he noted. That subject aside, the other underlying issue that Miracle has concluded has pervaded almost every other on-site conversation – or rather not, at least not as robust as it would like – is about short-term rents.
“I actually started thinking about it when I was dealing with traffic and transportation, trying to understand who was going into town in the cars? And I realized that skier visits have been largely flat over the past 20 years. Castle Creek bridge crossings are fairly flat. But if you look at the RFTA driver numbers, it has increased dramatically (with the exception of COVID-19 restrictions), ”he said. "So a lot more people come to town, but what are they for?"
The answer, he said, is that they work in the shadow – that is, in what he calls the "shadow economy". They are the commuters who drive downhill to work in housing and services.
"There's a whole new sector of employment that is growing more and more every year, this housing services sector," said Miracle. “If you want to rent a residential property as a lodge, it has to be cleaned every time someone leaves it. There is a service component in this industry that is significantly more than an empty second home could be. "
The real estate market seems to know no boundaries, and the rental market is no exception, especially since COVID-19, when real estate values soared (and continue to do so) and people from across the country flocked to the so-called urban escape in the cities outdoors and promised open spaces in Aspen.
Suddenly, even those in Aspen with one of the most enviable fortunes – traditionally not interested in renting out their second or third home to strangers – were seeing a change of heart, or at least a market valuation.
“High-priced houses have rarely been rented out in the past because the owners didn't need or want anyone else in their home. The high rental prices have certainly changed that, at least for some high-end buyers, ”said Randy Gold, owner of the Aspen Appraisal Group.
This is an opinion echoed by Skippy Mesirov, whose perspective is somewhat unique: Mesirov positions himself as a champion for affordable housing in both his role as a councilor and chairman of the Aspen-Pitkin County Housing Authority. He also earns his main income as a location manager for SkyRun Vacation Rentals.
“What is often not said is that the more expensive a property gets, the less likely it is to become a (short term rental),” he said. “But COVID complicated that on a large scale. Lots of places that weren't rented before – this isn't the one bedroom apartment, it's the houses that have been vacant – many of them are being built as a specification for STR. "
A “special” house is described as a type of speculation – that is, there is no definitive buyer, but the developer hopes one will show up after a project is completed. People working in and studying the short-term rental market often use the term to describe a home that was built with the intent of generating full rental income, even though several local builders disagreed with the term on when asked the short-term rental market.
Here a common theme emerges that seems to underlie every point of conversation in the dialogue: namely, complicated.
But one thing is clear: from a zoning and public hearing point of view, building a residential building is far less cumbersome than building a new commercial property. As proof, Miracle says you don't have to go any further than the long-defunct Boomerang Lodge, which developer Mark Hunt bought for about $ 10 million in 2018. Such a concept had been proposed for the property, but a group of neighbors rejected the property for affordable housing in 2011. Now the property is vacant, as Miracle pointed out, as any future use that Hunt or anyone else plans for it must be approved by the Aspen City Council.
In the meantime, a few houses are being built in the same neighborhood in the literal shadow of the Schattenberg. Miracle claims they will become part of the larger black economy as the intent for the properties is for them to be rented out in the short term.
Mesirov confirmed this at least for the property at 501 W. Hopkins Ave., a home that realtor.com says will cost $ 175,000 a month and that was outside the city on which the property was owned during a planned land swap willing to give Aspen City more than 19 acres in exchange for 4,000 square feet of public right of way over its property. The same developer wanted to pay in cash to reduce affordable housing.
"This is a perfect illustration of what our community 'voted' for," lamented Miracle. “Money goes into residential buildings because there are very few barriers there; Living turns into accommodation whenever it wants. But something that is zoned as a lodge has completely different obstacles that it has to overcome in order to come back to life as a lodge. "
If this house is rented, a whole staff is required to keep it going. Landscapers, cooks, housekeepers, whatever. This conversation circles back to Miracle's first observations of the surge in traffic and the number of RFTA passengers traveling in and out of town every day, though other more obvious industries seem to have plateaued.
Tricia McIntyre, owner of Aspen Luxury Rentals, takes a different approach than Airbnb and VRBO, but also a different approach to those in the real estate market whose brokers have become “rental experts”, although she was a little skeptical of the term. Your company employs 10 full time people just to keep up the property management component of the company. Instead of worrying about her clients' fortunes, she cares more about the ages of her children, she said.
"I want to know how old your children are so they can have rental bikes and if they have any snacks when they arrive," she said.
But there is a barrier to entry into this market, she continued – even though McIntyre has been in this market for more than 15 years. It has become difficult to get real estate listed under their roof of real estate management when there is such a saturation of real estate agents. And that usually doesn't serve the guests, she claims. Or the bigger reputation of Aspen.
"Brokers shouldn't have anything to do with rentals," she said. “You don't have a hospitality background; They have no idea how to do a hospital corner on a bed, which is a daily housekeeping check … but they do it and make a fortune, ”she said. “But they do it at the guest's expense. I'm just waiting for a shoe to fall – you don't believe what's going on in this city. "
For example, let's say someone books a $ 15,000 short term rental and leaves a security deposit. However, since this is a short term rental, the lease is not treated like a long term rental: before and after photos of the property may never be taken, but a security deposit will be required. yet. And if an owner claims damage was done during a stay, a customer may have little opportunity to disprove it.
"Nobody slaps their wrists and says, 'Stop it, you can't hollow out people like that," "McIntyre said.
Andrew Ernemann, owner of his eponymous consulting firm Ernemann Real Estate Advisors, did not argue against it – but he emphasized that he would not describe all or even the majority of the industry as bad actors.
"It absolutely happens – I personally don't care about rentals because I see rentals as the wild, wild west, especially in Aspen," he said. “Part of the reason I have people on my team who deal with rentals is because the whole gamut of brokers, who may or may not be licensed, who don't care about the care, or are not trained, or not about have the expertise to deal with it (this clientele). And then there are many who are amazing at it and take full before and after photos … and nice rental agreements. "
A big reason for the discrepancy, everyone seems to agree? Regulation or lack thereof.
“In my opinion, there is definitely less oversight and scrutiny from government regulators and local real estate companies on rental agents and on every single lease – because the volume is so large I think it has just gotten to where it is "It's hard to keep up with all of this and people think of it as:" It's not a $ 1 million transaction, it's just a lease, "" said Ernemann. "But there are people in Aspen who are really good at it."
In fact, Frias Properties has more than 150 condos and homes in downtown Aspen for rental options, according to the property page on its Aspen Vacation Blog. It offers a concierge service that "can deliver groceries, wine and liquor and even meals from local restaurants to your rental property," the site says.
She also points to a further incentive: "We have reduced our prices by 15-25% this summer and from a rental period of 30 days you are exempt from the accommodation tax of 11.3%!"
That's another fact that Mesirow and McIntyre both complained about – without enforcing the current law that has required a business license and vacation rental permit from any property owner who leases property on short notice since last October, there is no precise way to gauge how many dollars the city may have lost to unrecovered taxes.
But the subject is complicated for both of them, albeit for different reasons. In Mesirov's case, the issue is very close to his heart, but admits that given his current professional role, it may mean pulling out of future votes that he would otherwise have fought for to get on the agenda at all.
“It is possible that I have to, I don't know. I'm here so I can live – I ran a non-profit that was trying to support entrepreneurs in the valley, ”he said of his professional chapter before finding himself in the short-term rental industry. “That opportunity literally came into my door. It's hard to work … for $ 17,000, "he said of his role as a councilor. "So it is almost impossible to find another job that has enough income to pay the rent and have the flexibility in terms of time."
It's tough for McIntyre too. On the one hand, short-term holiday letting – as a dedicated, professional property manager who offers everything from organizing childcare to transport to Christmas decorations as part of the holiday experience in the Aspen region – has been her professional passion for about 18 years and world years. On the other hand, she is exhausted. And she has the feeling that she cannot speak responsibly about what has become of the industry. Like Miracle, she has said that she has attended many meetings and served on advisory boards, but she has yet to see the meaningful dialogue she was hoping for.
"It's in a terrible mess right now," she said. “I'm in these BOCC meetings and I've talked to the Treasury Department (City of Aspen) about it, and talked to them about ways to collect and monitor sales tax. I feel like a pain in the ass. "
Mesirow described the city's previous approval requirement as "clearly successful". However, that term only describes his impression of the remarkable increase in the number of property owners who have since received licenses and permits. The next step, he stressed, is enforcement for those who did not comply.
Again, it is complicated to label short term rentals as good or bad and consider the role they could play in the future.
“I think the part that is the hardest part to talk or balance about is that today's tourists are tomorrow's city,” he said, adding, “95% of us weren't born here. If we want to see Aspen with a crystal ball in 30 years, all we have to do today is look at our tourist base. Because many of our land use options … the traditional lodging market has become completely inaccessible. I think we just have to be careful when we say all STRs are bad. A STR that ousts a local worker is bad. "
Back to Miracle and his CU students with whom he worked, they too sensed the impact of the short-term rental market on the wider landscape and recommended five alternative policy approaches, ranging from registering the number of short-term rentals (as the current guideline) to limiting the number of such Properties that are allowed in certain zones.
Far from being unknown, Miracle, McIntyre, and Mesirow all emphasize: From cities like Palisade to Park City in Utah to Chattanooga in Tennessee to Key West in Florida, many other destination communities have found ways to counter the perceived negative effects of the market.
Gold directly admitted that the effects of short-term rentals are being felt across the larger real estate market.
“In my opinion, the thriving market for short-term rentals is a bonus for buyers and just another factor motivating them to buy. In other words, while some purchases in Aspen and across the Valley are affected by the rental outlook, I doubt that many purchases and the prices paid will be driven by this metric.
“For most of the Aspen area buyers, it would be my opinion that the ability to rent their property for an exorbitant short-term amount is unlikely to result in higher prices in and of itself, but rather is a factor in paying a higher price Price is taken into account. "He went on." In other words, I would be surprised if a buyer willing to pay $ 10 million for a house would pay $ 10.5 million for the same house because it is rentable Instead, they may have to pay $ 10.5 million on this home to close the deal, and the option to rent it out could make it more acceptable.
What goes up has to come down in the Roaring Fork Valley, since it's about living anyway. The increased value of residential properties – for whatever reason – can also be felt in the valley, a fact that Gold recognized.
"My guess is that where the prices are more moderate, active short-term rentals could have a greater impact on the price," he said with the foreword that his direct experience lies in the Aspen market.
Ernemann also said that the interdependencies in the entire market in all sectors, including real estate, cannot be denied. That has been especially true in the last 15 months since the pandemic.
“Some buyers are drawn to the ability to buy a property and then rent it out when they're not in use or rent it out all day, and that's not new. I think the biggest change in the last 15 months is simply the pressures in the market – just the number and intensity of people wanting to be in Aspen. You can't just say that short term rent is now pushing people out of long term rent – that's not fair, ”he said.
“What can be said is that there is incredible pressure on occupancy all year round now … Owners see this and say, 'I can make more money with short term rentals than with long term rentals.' But it is also becoming owners on the sidelines encourage, say, 'I'm going to rent my property', which can help the long-term renter.
And if the current players weren't on the field, it would be someone else, he points out.
"There are a lot of people who love to refer to brokers and say, 'It's ridiculous that you charge a 20% commission or a 10% commission for a short term rental,'" he said. “I don't think it's fair for people to point it out and say that brokers shouldn't benefit from it. It's business, it's capitalism, it's our country. "
In short, it's a long conversation. And it's complicated.