AURORA | New rules being considered by Aurora City Council governing short-term rentals like Airbnb are proving controversial with some homeowners who use those services.

Beyond requiring a business license and collection of the city’s lodger’s tax, a measure awaiting council would also require homeowners renting their home via Airbnb to occupy 75 percent or more of a home — effectively banning any whole-home rentals.

One of the more than 120 Airbnb operators in Aurora was frustrated at the possibility of the new rule passing.

“It strikes me as (a) blatant disregard to my freedom of privacy,” said Paul, an Aurora resident who rents out part of his home using Airbnb and did not want to give his last name. “I should be able to let whoever I want to stay at my house stay freely without having to worry about city ordinances.”

Trevor Vaughn, manager of the city’s tax and licensing division, said other home-based businesses in the city must follow that requirement.

Aurora officials say the measure would not apply to rentals longer than 30 days. Those rentals are only required to be reported on a landlord’s tax returns.

Aurora’s Finance Department estimates there are between 120 and 170 Airbnb-style businesses in Aurora at any given time, and that 25 percent advertise their entire home for rent. City staff also estimate top-performing renters make between $15,000 and $48,000 in sales annually.

City officials say Aurora could make between $3,000 and $6,000 per year if these businesses were required to pay the city’s 8-percent lodger’s tax.

The measure would require all vacation rental hosts with an Aurora address to apply for a $38 Aurora business license and collect an 8-percent lodger’s tax from each guest they host.

Last year, Gary Wheat, President of Aurora’s tourism site Visit Aurora, said the city generated $7.5 million in lodger’s tax revenues. About 12.5 percent of the city’s lodger’s tax goes to Visit Aurora, while the rest goes into Aurora’s general fund. He said the city’s lodger’s tax has grown 20 percent over the last three years, with the addition of new hotels such as the Hyatt Regency this year and Woolley’s Classic Suites last year.

He said though the city has seen increases in lodger’s tax, it is still affected by Airbnb, especially when there are numerous listings.

“If we have 120 listings for Airbnb, that would equate to about 120 rooms. That would be an additional hotel,” he said. “Recommending the collection of lodger’s tax, it creates a level playing field for our hotels.”

Wheat said that by regulating Airbnb homes in Aurora, Visit Aurora could also begin working with the homeowners to promote them alongside local hotels.

“This allows Aurora to bring the Airbnb brand into our marketing system. They can get those quality visitors who come through our website,” he said. “They are one of our Aurora lodging partners. That’s why going forward, this is something that will enhance the homeowners’ experience as well.”

Bob LeGare, an at-large Aurora councilman and member of the Aurora City Council’s Planning and Economic Development Policy Committee, said the measure is also a way to protect the quality of life of Aurora residents.

“There are a lot of things you can’t use your house for that would be very lucrative for the owners,” he said. “The reality is we’re talking about a house becoming a hotel. I think there’s an impact there. The people that live next door to future hotels think it’s impactful to have potential people coming and living next door to them.”

He said that putting some restrictions on Airbnb rentals would also help the city ease a near zero-vacancy rental market.

“Every single one of those homeowners that wants a daily rental, any one could lease their house in a matter of days to a qualified occupant at a rent rate that’s historical,” he said.

Aurora officials are also looking to require residents to include a business license number as part of their Airbnb listing, or for the company to collect the tax at the point of sale. According to city documents, Airbnb may be willing to collect the tax, but city officials say the company will not share data that is necessary for enforcement.

Last November, the city issued its first vacation rental business license to Saurabh Chawla, an active Airbnb host who was barred from renting out his home after a neighbor complained about the amount of people frequently coming in and out of his east Aurora home.

Vaughn said five homes have been licensed for short-term rentals since then, but that the city has not been actively seeking out homeowners who use Airbnb and requiring them to obtain business licenses.

Denver City Council considered a similar measure this month and gave initial approval to a proposal that would allow short-term vacation rentals only in a resident’s primary home and not a second home, according to The Denver Post.

The measure is scheduled to be discussed at the June 6 Aurora City Council study session.