New rules regarding short-term housing rentals in the city and county of Denver are expected to be enacted in February, according to the Department of Excise and Licenses.

Those who rent out their homes on sites like Airbnb and VRBO will now be required to alert their insurance companies in addition to the city and county and their homeowners association, Eric Escudero with the Denver Excise & License told 9NEWS on Monday. 

Short-term rental apps typically provide insurance for operators, but under the new rules, the homeowner would have to alert their personal insurance company "before any Short-Term Rental Transaction is processed."

READ | New rules governing the short-term rentals in the City and County of Denver.

Another rule would allow Denver more discretion in what is a short-term rental. Now, the city and county has the right to revoke or deny a rental property if it "adversely affects the public health, safety, or welfare of the immediate neighborhood in which the property is located."

However, the third new rule would give some input back to the would-be license holder: "The licensee does have the opportunity to dispute a license revoking in a hearing & review process," the new rule read. 

These rules are meant to help Denver to address complaints better, Escudero said. The biggest complaint his office gets is house parties. 

The short-term rental property must be the owner's primary residence, Escudero said. It's forbidden in Denver to purchase a home with the sole intention to rent it out, unlike some mountain towns. 

Denver has required short-term rental licenses since 2017 with a compliance rate of about 60 percent, Escudero said. Currently, there are more than 2,400 licenses right now, which is the record for the highest active number of short-term rental licenses since the city has tracked it starting in December 2016.

An exact date for these rules to be enacted has not yet been set, but Escudero said it would be sometime in February.

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