THAT
THAT LOUD
THAT LOUD AIRBNB ON YOUR STREET, IT MAY BE A BIG
BUSINESS.
BUSINESS.
BUSINESS. >> IT'S A NEW GIG ECONOMY.
>> HOUSING IN DENVER CAN SEEM
UPSIDE DOWN.
UPSIDE DOWN. >> IT'S GROWING EVERYWHERE.
AND I THINK WE NEED TO EMBRACE
IT.
IT.
IT. >>
IT. >> Reporter: HERE'S SOMETHING
ELSE TURNING THE MARKET TOPSY
TURVY.
TURVY.
TURVY. >>
TURVY. >> IT'S BEEN GREAT.
IT'S ALLOWED US TO RENOVATE OUR
HOMES.
HOMES.
HOMES. TO
HOMES. TO EXPERIENCE A NEIGHBORHOOD
WHERE THEY CAN'T FIND A HOTEL
OR CAN'T AFFORD A HOTEL.
>> Reporter: THE COLE
NEIGHBORHOOD COULD BE
CONSIDERED GROUND ZERO.
>> IT'S RAPIDLY CHANGING DUE TO
GENTRIFICATION.
GENTRIFICATION. BUT IT'S STILL A NEIGHBORHOOD I
LOVE.
LOVE.
LOVE. >>
LOVE. >> Reporter: IF THIS OLD HOME
ON MARION STREET COULD TALK, IT
MAY BE SAY, HELP!
I'VE BEEN INFECTED WITH AIRB NB
GONE BAD.
GONE BAD.
GONE BAD. >> IT'S SHOWING A DISRESPECT
FOR THE NEIGHBORHOOD.
>> Reporter: CALDERON HAS BEEN
FEELING THE SYMPTOMS OF THE
MARION HOUSE.
MARION HOUSE. >> WE NOTICED LARGE GROUPS OF
PEOPLE BEING DROPPED OFF.
WE NOTICED SCOOTERS, LOTS OF
SCOOTERS BEING LEFT ON THE
SIDEWALK.
SIDEWALK.
SIDEWALK. AND THE NOISE FROM THE PARTIES
GOING LATE INTO THE NIGHT AND
TRASH.
TRASH.
TRASH. >>
TRASH. >> Reporter: NUISANCE
NEIGHBORS, A CONSTANT PARADE
COMING AND GOING.
>> WE WERE NEVER TOLD THAT IT
WAS GOING TO BE AN AIRBNB
HOTEL.
HOTEL.
HOTEL. >>
HOTEL. >> Reporter: FOR TWO YEARS NOW,
THE CITY HAS BEEN TRYING TO
CURE THIS SHORT-TERM RENTAL
NUISANCE WITH A DOSE OF
REGULATION.
REGULATION. IT'S CALLED "THE PRIMARY
RESIDENCE RULE."
RESIDENCE RULE." WHAT DOES PRIMARY RESIDENCE
MEAN HERE?
MEAN HERE? >> I THINK IT'S VERY EASY.
IT'S WHERE YOU LIVE.
IT'S YOUR HOME.
IF YOU'RE THERE AND THIS PERSON
IS RENTING A BEDROOM, THEY'RE
NOT GOING TO BE THROWING WILD
PARTIES.
PARTIES.
PARTIES. >> Reporter: CITY LAW SAYS YOU
MUST LIVE WHERE YOU OPERATE A
SHORT-TERM RENTAL.
SHORT-TERM RENTAL. SO LET'S GO MEET THE PRIMARY
RESIDENT OF THE MARION HOUSE.
>> HEY, I'M LOOKING FOR THE
OWNER OF THE PROPERTY.
>> IT'S NOT US.
THIS IS AN AIRBNB.
>> Reporter: WELL, THAT DIDN'T
WORK.
WORK.
WORK. WE
WORK. WE OBTAINED A DATABASE OF SHORT-
TERM RENTAL PERMITS.
THOMPSON JUST HAPPENS TO BE A
REAL ESTATE AGENT.
BUT WE FOUND ANOTHER ADDRESS
FOR BART A FEW MILES AWAY WHERE
HE GETS FOOD DELIVERED.
HUH.
HUH.
HUH. [
HUH. [ KNOCKING ]
>> Reporter: NO ANSWER HERE.
MAYBE THE MARION HOUSE PROPERTY
RECORDS WILL HELP.
MARION HOUSE, LLC, IS THE
OWNER.
OWNER.
OWNER. A
OWNER. A BUSINESS.
A BUSINESS. THAT'S WEIRD.
THAT'S WEIRD. >> Reporter: WHO'S THE OWNER OF
THE PROPERTY?
THE PROPERTY? THE FCC WON'T LET US PLAY THE
AUDIO ON AIR.
SO YOU BOUGHT THE PROPERTY
THEN.
THEN.
THEN. BART DID ADMIT HE'S PART OWNER
BUT WOULDN'T SAY WHO ELSE IS
PROFITING OFF THE THE MARI, IN,
HOUSE.
HOUSE.
HOUSE. MARION HOUSE, LLC, ISN'T THE
ONLY MYSTERY OWNER.
THEY FOUND 50 ENTITIES THAT
LOOKED LIKE LLC'S AND OTHER
BIDSES, NOT PEOPLE.
>> Reporter: YOUR AGENCIES ARE
APPROVING THE LICENSE WHERES
THE PRIMARY RESIDENT IS AN LLC?
>>
>> THAT
>> THAT SHOULD NOT BE HAPPENING AND IF IT IS, WE WILL GET ON
THAT RIGHT AWAY.
YEAH, THAT SHOULD NOT HAPPEN.
>> Reporter: DESPITE FLAWS, THE
CITY SAYS ITS REGULATIONS WORK,
CLAIMING 75% OF THE TIME, THE
PERSON BEHIND A SHORT-TERM
RENTAL ADD IS LICENSED AND
LEGIT.
LEGIT.
LEGIT. >>
LEGIT. >> WE THINK BASED ON EVERYTHING
WE'VE SEEN, THAT'S THE HIGHEST
COMPLIANCE RATE OF THE COUNTRY.
>> Reporter: OR MAYBE IT'S
BECAUSE PEOPLE LIKE BART ARE
TERRIFIED OF THE CITY.
>> Reporter: NO ON CAMERA
INTERVIEW?
INTERVIEW? >> Reporter: BART WAS SMART AT
LEAST WHEN HE WAS CAUGHT.
HE ADMITTED THE MARION HOUSE IS
NOT HIS PRIMARY RESIDENCE AND
GAVE UP HIS PERMIT.
BART'S NOT THE ONLY ONE.
266 OTHERS CANCELED THEIR
PERMITS TO AVOID PROSECUTION.
A WISE CHOICE CONSIDERING TWO
REAL ESTATE AGENTS, A
DEVELOPER, AND AN ATTORNEY FACE
FELONY CHARGES IN CONNECTION
WITH THEIR SHORT-TERM RENTALS.
FELONY CHARGES HERE.
I MEAN, THAT'S A BIG DEAL.
>> THAT WAS A DECISION BY THE
D.A.'S OFFICE.
D.A.'S OFFICE. >> Reporter: BUT THOSE CASES
CAME OUT OF YOUR OFFICE.
>> YES.
>> YES.
>> YES. >> Reporter: WHAT DO YOU SAY TO
PEOPLE WHO SAY THAT'S AN
OVERREACH OF GOVERNMENT?
>> WHAT WE'VE DONE IS AN
ABSOLUTE LAST OPPORTUNITY TO
GIVE THEM ONE MORE CHANCE.
WE'VE GIVEN THEM AN AFT AND
REQUESTED IF THEY WANT AN
LICENSE, THEY NEED TO SIGN THE
AVID, UNDER PENALTY OF PERJURY,
THAT THIS IS THEIR PRIMARY
RESIDENCE.
RESIDENCE. >> Reporter: WHEN YOU'RE
HITTING PEOPLE WITH FELONY
CHARGES THAT COST A LOT TO
PROSECUTE, THAT MAY BE
EXCESSIVE.
EXCESSIVE. >> Reporter: AS A MEMBER OF A
SHORT-TERM RENTAL COMMUNITY,
THEY BELIEVE DENVER SHOULD BE
FOCUSED ON USING AIRBNB OWNERS
AND NEIGHBORS TO GET ALONG.
>> Reporter: THE CITY IS NOT
INTERESTED IN FIXING THAT.
THEY'RE INTERESTED IN FELONY
CASE WORK, I GUESS.
>> Reporter: BUT THOSE WHO
PROFIT FROM SHORT-TERM RENTALS
INSIST THEY ARE BENEFITING THE
COMMUNITY.
COMMUNITY. >> RESTAURANTS, BREWERIES,
COFFEE SHOPS, A LOT OF THE ART
GALLERY THAT IS ARE AROUND
HERE, THEY'RE BEING FREQUENTED
BY PEOPLE IN THESE AIRBNB'S OR
SHORT-TERM RENTALS.
SHORT-TERM RENTALS. >> Reporter: STILL, THOSE WHO
LIVE NEXT DOOR TO INFECTED
PROPERTIES MAY FEEL THEIR
COMMUNITY HAS BEEN TURNED
UPSIDE DOWN.
UPSIDE DOWN. >> WHEN YOU KNOW YOUR NEIGHBORS
ARE LOOKING OUT FOR YOUR
PROFIT, YOU KNOW, IT INCREASES
THE VALUE OF THE NEIGHBORHOOD.
AND I DON'T JUST MEAN MONEY.
I MEAN THE SENSE OF PLACE AND
THE SENSE OF COMMUNITY.
>> NOW, IT'S IMPORTANT TO NOTE
HERE NOT LONG DID LISA COMPLAIN
ABOUT THE PROBLEM, SHE WAS
APPOINTED CHIEF OF STAFF FOR A
MEMBER OF DENVER CITY COUNCIL.
SO IF THERE ARE ANY FUTURE
CHANGES TO THE CITY ORDINANCE,
SHE MAY HAVE AN IMPACT ON THAT.
A
A SPOKESPERSON FOR AIRBNB TELLS US THAT A MAJORITY OF HOSTS AND
GUESTS ARE GOOD NEIGHBORS BUT
IF HOSTS FAIL TO MEET
STANDARDS, THEY CAN GET KICKED
OFF THE SERVICE.
AS FOR THAT FLAW THAT WE FOUND,
THE CITY SAYS IT WILL NOW
REQUIRE THE NAMES ON PERMITS TO
MATCH SOMEONE'S DRIVER'S
LICENSE.
LICENSE.
LICENSE. SO NOW IT'LL BE HARDER FOR A
BUSINESS TO COME IN, SKIRT THE
LAW, AND BE THAT REALLY
ANNOYING NEIGHBOR ON YOUR
STREET.
STREET.
STREET. >> YEAH.
>> YEAH.
>> YEAH. >> SO SORRY MR. LLC.
I NEED A REAL NAME OUT OF YOU.
>> THERE'S MONEY TO BE HAD HERE
WHICH IS WHY.
>> WE'RE HEARING SOME OWNERS
CAN MAKE $100,000 A YEAR OFF
AIR BNB.
AIR BNB.
AIR BNB. AND IT HELPS, YOU KNOW, COVER
THE COST OF A MORTGAGE.
IF IT WORKS OUT AND PEOPLE
FOLLOW THE LAW, IT WORKS OUT
GREAT.
GREAT.
GREAT. BUT, YOU KNOW, --
>> FOLLOW THE LAW.