As short-term rentals continue to shape housing markets across Colorado, the City of Craig is restarting a process to understand how the issue may affect local neighborhoods, tourism and long-term planning by hosting an open house on Thursday, Dec. 11.

The event’s goal, according to Craig Public Works Director Danny Paul, is to gather public feedback as the city revisits a discussion that began earlier this year but paused during the busy spring and summer season.

The open house will be held in two sessions, from noon to 1 p.m. and from 5 to 6 p.m. in the City Council Chambers. The informal format will allow attendees to stop in, ask questions and provide feedback through surveys and conversation.

Paul, who also oversees the Community Development Department, said the event is meant to restart community engagement on a topic that has grown increasingly important over the course of the last several years.

“Short-term rentals have been a popular topic in the state, and the City of Craig currently does not have any short-term rental regulations,” Paul said. “This is our attempt to re-engage and invite the public to come down and give input.”

Craig City Council first discussed the idea of creating short-term rental regulations during a January work session. At the time, council members expressed interest in exploring rules related to zoning, fees and enforcement. While no action was taken, and the conversation went dormant, the city has now decided to revitalize the dialogue. 

Over the last year, the city has heard increasing calls from the public to expand dialogue surrounding decisions related to city management.

The January work session, Paul said, will serve as the starting point for the city’s renewed outreach and dialogue. While he was not in his present position at that time, he has reviewed past meetings to form a deeper understanding of how to make the current process as effective as possible.

“From the notes I’ve reviewed, there was support to adopt some regulations and put a policy in place,” he said. “One of the big outcomes from that meeting was that we need to do some robust outreach to the community, to these short-term rental owners and to the people who live near them.”

The Dec. 11 open house marks the beginning of that process as the city plans to share FAQs, gather survey responses and gauge the level of community interest. After the holidays, the city expects to form a focus group representing short-term rental owners, residents who live near them and people with general interest in lodging or housing.

Feedback from that group will help shape any potential rules that may eventually go before the Planning and Zoning Commission and City Council. 

Craig does not currently face the scale of short-term rental challenges seen in Steamboat Springs, where high tourist demand, rising home values and limited inventory have made STRs a major issue as property owners have pushed back against increased enforcement by the city.

Paul previously worked for the city of Steamboat and saw the intensity of that debate firsthand.

“We’re trying to prevent us from becoming that,” Paul said. “We’re in a time of quite a bit of uncertainty with the ongoing decommissioning of the coal plant and what’s going to become of Craig. If these become more and more popular, we want to have some kind of governing rules before it gets away from us.”

Paul noted that Craig currently has a small number of short-term rentals based on what he has seen on Airbnb, VRBO and similar platforms. While not a pressing issue today, city staff view this as the right moment for proactive discussions rather than reactive policymaking later.

Other nearby communities have already moved in that direction, as Hayden has adopted short-term rental regulations that Craig expects to reference as a model. Steamboat, on the other hand, has implemented zone-based caps and licensing requirements based on a larger tourism economy and housing pressures.

Short-term rental rules vary significantly from one community to another. In general, they set expectations for where STRs may operate, how they are licensed, how parking and noise issues are addressed and how cities respond to complaints.

Paul emphasized that Craig has not drafted any regulations, and that it is too early in the process to know what the final approach may look like.

“It gives us a way to monitor and police them if there are issues,” he said. “Some of the concerns that are frequently brought up are frequent turnover of guests, noise complaints or parking issues.”

Some communities also use STR rules to address housing availability and affordability, especially where investment properties reduce opportunities for long-term residents. Paul said Craig is not facing those conditions to a large degree today, but it is worth examining and understanding how they have affected other towns.

“As the number of short-term rentals rises, it can contribute to higher rents and lower availability of long-term housing for locals,” he said. “The purpose of exploring these regulations is to decide if the community feels we are ready for it.”

If Craig residents indicate interest in developing a formal policy, the focus group and city staff will work through key questions, including whether there should be caps on the number of STRs, whether certain neighborhoods are better suited for them and what licensing or enforcement would entail.

Determining where STRs may be allowed is often one of the most challenging steps in other municipalities, Paul said, and public input will be essential.

“We need input from the community to help us form a policy and regulations that make sense,” he said. “We need to understand the unique needs of our city.”

Any final proposal would be reviewed by the Planning and Zoning Commission before going to City Council for a possible ordinance. Paul said he does not expect a voter-approved measure to be necessary.

More than anything, Paul wants residents to view the open house as the beginning of an ongoing dialogue.

“We’re really just trying to drive home that this is the start of public engagement,” he said. “Anyone is welcome to attend, and we expect ongoing communication with the community as we dive deeper into it.”