Things to Think About for Sundance Short-Term Rentals
Legal Disclosure and Warning: This information is intended to provide general guidance regarding the Sundance Film Festival and related matters. You must consult your own attorney for specific legal guidance on whether or not subleasing is appropriate for your individual circumstances. Subleasing a property has significant financial and legal consequences that require legal counsel to fully appreciate. The Boulder Area Rental Housing Association (BARHA) is not providing you with legal advice.
Before opting into the program, create a clear operational and legal plan. Protect yourself and your property by confirming that you have appropriate insurance, legal authority, safety procedures, and rental documentation in place before participating in festival-related short-term rentals.
1. Insurance Coverage
- Confirm with your insurance carrier whether your current policy covers short-term rentals.
- Determine whether you need:
- Short-term rental coverage
- Commercial liability coverage
- Rider/endorsement coverage for festival rentals
- Verify coverage limits for:
- Property damage
- Guest injury/liability
- Loss of income
- Personal property/vandalism
- If using a rental platform, review what protection or host insurance the platform provides and what exclusions apply.
2. HOA / Condominium Restrictions
- Confirm that your HOA, condominium association, master lease, or governing documents permit short-term rentals.
- Review:
- Minimum stay requirements
- Registration requirements
- Parking restrictions
- Noise and nuisance rules
- Guest access limitations
- Determine whether HOA approval or notice is required before listing.
3. Local Licensing and Regulatory Compliance
- Confirm compliance with:
- Occupancy limits
- Fire/safety requirements
- Parking regulations
- Tax collection/remittance requirements
4. Occupancy Limits
- Set clear occupancy limits for the property.
- The City of Boulder occupancy limits are governed by the International Property Maintenance Code (IPMC) and are based on the number and size of bedrooms in the dwelling unit. You can find more information about city occupancy requirements here.
- You may impose stricter occupancy limits than those allowed by the city.
- Clearly communicate:
- Maximum overnight guests
- Limits on unrelated occupants
- Restrictions on parties/events
5. Tenant Screening Procedures
- Determine how prospective guests will be screened.
- If using a platform, review the platform’s verification and screening procedures.
- Ensure all screening standards are applied consistently to avoid potential fair housing issues.
6. Lease / Rental Agreement
- Require all short-term guests to sign a written lease or rental agreement.
- Use the BARHA provided lease addendum
7. Security Deposit and Damage Protection
- Determine whether you will:
- Collect a refundable security deposit, or
- Require guests to purchase damage protection insurance
- Clearly document:
- Deposit amount
- Conditions for deductions
- Timeline for return
- Verify compliance with applicable state or local laws regarding handling and return of deposits.
8. Rent Collection and Payment Flow
- Determine:
- Payment methods accepted
- Due dates
- Whether full payment is required upfront
- Clarify:
- Refund timing
- Chargeback procedures
- Platform payment timelines
- If using a third-party platform, understand:
- Host payout timing
- Fees and commissions
- Tax withholding/reporting obligations
9. Cancellation Policy
- Establish a written cancellation policy.
- Address:
- Guest cancellations
- Owner cancellations
- Force majeure/weather issues
- Festival schedule changes
- Determine refund deadlines and non-refundable amounts.
10. Property Access and Security
- Create a plan for distributing and recovering keys, fobs, parking passes, and access credentials.
- Track:
- Number of keys issued
- Access codes provided
- Require prompt return of all access devices.
- Change smart-lock or gate codes between stays.
11. Communication and Emergency Plan
- Create a communication and emergency response plan – see BARHA template.
- Designate a local emergency contact or property manager if you will not be nearby.
12. Property Preparation and Documentation
- Conduct a pre-rental inspection.
- Photograph and document:
- Existing damage
- Furnishings
- Appliances
- Artwork/valuable items
- Remove or secure:
- Personal documents
- Valuables
- Prescription medications
- Confirm:
- Smoke detectors functioning
- Carbon monoxide detectors functioning
- Fire extinguishers accessible
13. Neighbor Relations
- Inform neighbors or building management, if appropriate.
- Provide a contact number for complaints or emergencies.
- Establish quiet hours and guest conduct rules to minimize disruptions.
14. Cut-Off Date for Participation
- Establish a firm deadline for tenant-occupied units to notify management/ownership that they intend to participate in festival rentals.
- After the deadline, no additional festival rental requests will be approved.
15. Tax and Financial Reporting
- Consult with a tax professional regarding:
- Short-term rental income reporting
- Local lodging/accommodations taxes
- Deductible expenses
- Business license obligations
- Maintain records of:
- Rental income
- Deposits
- Fees
- Repairs/damages