Colorado Short Term Rental and Airbnb Laws

Sep 12, 2024, written by Dennis Shirshikov
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The state of Colorado is home to many locations that are ideal for Airbnb investments as they attract hundreds of thousands of tourists in various seasons throughout the year. However, Colorado short term rental laws are not always conducive to these types of investments. 

While there are no statewide rules, most Colorado counties and cities have enabled their own regulations that sometimes severely limit or entirely prohibit non-owner occupied vacation rentals. Before buying a property to rent out on Airbnb in Colorado, you need to check out your local legislation to ensure compliance.

For assessment of a specific address in Colorado, submit your property to one of the best Airbnb property management companies in the state.

Colorado's Definition of a Short Term Rental

Colorado does not have a statewide definition of short term rentals. Counties and cities have their own definitions which basically classify STRs as dwelling units or parts of dwelling units that are rented to transient guests for remuneration for a period of less than 30 consecutive days. 

The types of properties that are allowed for such use - single-family homes, duplexes, townhouses, condominiums, guest houses, accessory dwelling units (ADUs), and others - vary from one Colorado market to another. Hotels, motels, and bed and breakfast establishments are excluded from this definition.

Starting a Short Term Rental Business in Colorado

The State of Colorado does not have a universal process for launching an Airbnb business. The process depends on local regulations, but there are many common steps and requirements among Colorado counties and cities.

The most common steps to starting a short term rental business in Colorado are:

  • Local business license/sales and use tax license: All Colorado vacation rental business owners need to pay sales and use tax to the state, county, and city. This requires obtaining a business license from the local revenue authorities.
  • Local short term rental license or permit: The majority of Colorado locations demand a STR permit or license which typically needs to be renewed on an annual basis. Applying for a license/permit requires the submission of documentation that provides information about the property, the owner, and the local agent and that confirms compliance with applicable federal, state, and local laws, regulations, and ordinances.
  • Zoning district restrictions: In many Colorado markets, owner-occupied and non-owner occupied short term rentals are permitted in certain zoning districts and prohibited in others.
  • Health and safety regulations: Colorado vacation rentals need to meet federal, state, and local standards related to the health and safety of guests and neighbors. These include but are not limited to trash removal and recycling as well as wastewater treatment.
  • Liability insurance coverage: Colorado Airbnb hosts need to have liability insurance unless the listing websites where they advertise their STR offer such coverage.
  • Fee payment: STR license and permit applications and renewals are subject to fees that are in the range of a few hundred dollars per year.
  • Required paperwork: Airbnb property owners need to prepare a number of documents to be allowed to rent on a short term basis in Colorado. These include documents related to property ownership, floor plans, parking plans, emergency contact information, informational brochures for guests, and others.
  • Best practices for starting a short term rental business in Colorado: When getting started with a vacation rental in the State of Colorado, you need to review county- and city-level regulations and ordinances that are usually available on local government websites. As the Colorado short term rental market is very dynamic, you should keep an eye for recent changes in rules. If you have any doubts, you should consult with a local legal expert. Alternatively, you can work with an Airbnb manager who will not only help you understand and meet all legal requirements but also manage your property for passive real estate income.

Before starting a Colorado Airbnb business, it's important to be aware of and compliant with county and city regulations to avoid hefty fines or business suspension.

Short Term Rental Licensing Requirements in Colorado

Short term rental property owners don't need to obtain state-level licenses or permits in Colorado. However, most Colorado counties and cities require a local STR license or permit as well as a business license for paying sales and use tax.

In most cases, applicants need to submit documents with basic information about the property and themselves in addition to their local agent. Generally, they need to prove ownership, available emergency contact information, and compliance with relevant health, fire, safety, maximum occupancy, parking, and trash collection ordinances. Colorado jurisdictions do not typically require property safety inspections to grant a license/permit, but authorities need to be able to access rentals for inspections on demand.

Failure to provide necessary information when applying for a license/permit results in a denial.

License Renewals for Short Term Rentals in Colorado

In the majority of Colorado markets, STR licenses and permits need to be renewed on an annual basis. Renewal fees are a few hundred dollars. Not submitting a renewal application on time means that owners cannot operate a vacation rental.

Meanwhile, business licenses - also referred to as sales and use tax licenses - need to be renewed annually too.

Required Documents for Colorado Short Term Rentals

To get a short term rental license in Colorado, property owners need to submit certain documentation and information.

The requisite documentation and information to get a short term rental license in Colorado are:

  • Business license number
  • Federal EIN
  • Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
  • Personal ID
  • Proof of ownership
  • Proof of primary residence, if applicable
  • Statements certifying compliance with applicable laws
  • Copies of brochures to be made available in the STR
  • Proof of payment of fees

Required documents might somewhat vary from one Colorado city to another, so investors need to check out the exact rules in their market.

Colorado Short Term Rental Taxes

Colorado vacation rental owners need to pay the following taxes:

  • Sales and use tax: Hosts need to collect and remit state, county, and local sales and use tax at rates that vary from one location to another.
  • Lodging tax/accommodations tax: Many Colorado jurisdictions charge a lodging tax or an accommodations tax at varying rates.
  • Short term rental income tax: Federal and local income tax rates apply.
  • Property tax: State and municipal property tax rates apply.

The good news for Colorado STR owners is that they can deduct many business-related expenses from their taxable income to reduce it. 

Eligible deductibles available to Colorado short term rental owners include:

  • Real estate property depreciation (it's a good idea to do a short term rental cost segregation study to maximize benefits)
  • Mortgage interest
  • Mortgage insurance premium
  • Airbnb insurance
  • Property tax
  • Property maintenance costs
  • Cost of furniture, appliances, and electronics
  • Airbnb management fees
  • Marketing and advertising costs
  • Cleaning fees
  • Accounting, legal, and other professional service fees
  • Home office and business travel expenses

It's important to take advantage of all applicable deductibles in order to minimize the amount of taxes you need to pay on your rental income to maximize cash flow.

Statewide Short Term Rental Rules in Colorado

The State of Colorado does not impose any short term rental regulations. This is left to individual counties and cities.

In most Colorado markets, STR property owners are obliged to:

  • Have a license or a permit
  • Hold a business license
  • Pay taxes
  • Comply with zoning regulations
  • Provide life safety equipment
  • Dispose of trash properly
  • Comply with maximum occupancy rules

Violations to any local rules can lead to fines as well as license/permit suspensions and revocations.

Short Term Rental Laws by Colorado City

While Colorado does not regulate vacation rentals, the state doesn't limit the right of counties and cities to control Airbnbs. Most Colorado local authorities have introduced their own laws to counteract the negative impact of the quick spread of the short term rental industry while allowing local residents to benefit from its economic advantages.

These are the short term rental laws in the top Colorado cities for this real estate investment strategy:

1. Denver, Colorado Short Term Rental Laws

The City of Denver introduced short term rental regulations with City Council Bill CB16-0262 in June 2016, which went into effect as of January 2017. Rules are currently incorporated under Article III of the City Code of Ordinances.

Denver defines a short term rental as any dwelling unit that is offered, provided, or operated as lodging accommodations to guests for remuneration for a period of less than 30 consecutive days. It's important to highlight right away that STRs are only allowed in the owner's primary residence, and a person can have only 1 primary residence. 

With regards to accessory dwelling units, attached and detached ADUs can be rented out on a short term basis, while the host resides in the primary dwelling unit, but the primary unit cannot be operated as a vacation rental with the host residing in the ADU. Moreover, certain zoning district regulations apply in the City of Denver.

Denver short term rentals need to have a license, and applying for one requires:

  • Colorado driver's license or Colorado state ID
  • 2 documents indicating the applicant's primary residence
  • Proof of possession of the property
  • Valid city Lodger's Tax account number
  • Certification that the information on the application is accurate
  • $50 application fee + $100 annual license fee

Denver short term rental licenses are valid for 1 year and cost $100 per year. They are non-transferable. Licenses might be suspended or revoked in case of violations.

Denver Airbnb hosts need to abide by the following rules:

  • Have a functioning smoke detector, carbon monoxide detector, and fire extinguisher
  • Display the license number on all advertisements
  • Have fire, hazard, and liability insurance coverage
  • Provide a brochure on the premises including the licensee's contact information, local responsible party's contact information, and emergency contact information

Vacation rental owners in Denver have to pay the following taxes:

  • Lodger's Tax: A Lodger's Tax license needs to be obtained biannually for a fee of $50/2 years. The Denver rate is 10.75% of revenue.
  • Occupational Privilege Tax (OPT): This tax is imposed on businesses and on employees receiving compensation of at least $500/month. The Employee OPT rate is $5.75/month, the Business OPT rate is $4.00/month per taxable employee, and the OPT rate for owners, partners, and managers is $4.00/month per owner, partner, or manager.
  • Sales Tax: If applicable, the Denver combined sales tax rate is 8.81%.
  • Business Personal Property Tax: The rate for residential properties is 7.2%.

All in all, Denver has very restrictive short term rental rules. Non-owner occupied short term rentals are entirely prohibited, while owner-occupied vacation rentals (primary residences) need to be licensed and are heavily taxed.

2. Colorado Springs, Colorado Short Term Rental Laws

The City of Colorado Springs controls short term rentals with multiple ordinances. Ordinance 18-112 adopts the short term rental program. It defines a short term rental unit as a residential dwelling unit or portion of it that is rented for less than 30 days at a time.

There are 2 types of Colorado Springs STRs:

  • Owner-occupied short term rentals: These properties are physically occupied by the owner for at least 185 days per year. They are allowed in lawful dwelling units in zones where residential units are permitted. There is no cap on the total number of owner-occupied short term rentals in the city.
  • Non-owner occupied short term rentals: These are not permitted in single-family zoning districts including R-E, R-1 6, R-1 9, and Single-Family PDZs. In all other zoning districts, they must be located 500' from one another. There is a cap on the total number of allowed non-owner occupied short term rentals.

One person can operate multiple vacation rentals. In R-E, R-1 6, R-1 9, and Single-Family PDZs, one listing of a property is allowed, whether a whole house or a room/section of the house. In R-2, 2 listings of a single property are permitted. Multi-family zoned properties can have up to 4 listings. In a condominium complex, each owner can operate up to 2 STRs within the complex.

Running a vacation rental business in Colorado Springs requires a short term rental permit. 

To apply for a short term rental permit in Colorado Springs, the applicant needs to submit:

  • Standard application form
  • Safety self-inspection certification
  • Sales tax license customer ID
  • Owner's, property manager's, or agent's name, address, and 24/7 phone number
  • Proof of insurance
  • Proof that the permit review criteria will be met
  • Statement that the owner has read and understands the rules and regulations
  • $119 permit fee

Colorado Springs short term rental permits are valid for 1 year, and renewals cost $119.

Colorado Springs Airbnb properties and their owners need to comply with the following:

  • Obtain a sales tax license
  • Maintain weekly residential trash collection services
  • Maintain liability insurance of no less than $500,000 unless the hosting platform has equal or higher coverage
  • Remain compliant with all planning, zoning, building, and other City codes
  • Not be classified as a repeat offender or a chronic repeat offender
  • Not have a short term rental permit revoked over the past 24 months
  • Abide by all applicable noise, housing, public health, fire, and safety ordinances
  • Utilize parking in private driveways first with overflow parking on the street where permitted
  • Not prepare or serve meals to guests
  • Not use the rental for commercial or large social events or gatherings
  • Prominently display the permit in the property
  • Use the permit number in all rental marketing materials
  • Be available 24/7 when the property is rented
  • Limit occupancy to 2 occupants per bedroom plus 2 additional occupants, for a total of up to 15 occupants per property

Violations of any rules can be punished with permit suspension or revocation.

The combined sales and use tax rate in Colorado Springs is 8.20%.

In conclusion, while Colorado Springs allows non-owner occupied short term rentals, they are limited to certain zoning districts only and capped at a fixed number. Before purchasing an investment property to start an Airbnb business, investors need to ensure that their location is within permitted zoning districts and that the city is currently issuing non-owner occupied short term rental permits.

3. Adams County, Colorado Short Term Rental Laws

Adams County has not implemented any short term rental ordinances at the county level. This means that vacation rentals are legal, unlimited, and unregulated. They don't require a state STR license or permit, but they still need a business license to pay sales tax and lodging tax.

Nevertheless, individual cities and towns within Adams County have introduced their own Airbnb laws and regulations.

Following are the vacation rental rules in some of the major cities in Adams County:

Thornton

The City of Thornton has enacted Ordinance No. 3558 to regulate short term rentals. They refer to a form of temporary lodging where all or a portion of a home is rented for less than 30 days at a time. Eligible property types include entire or parts of attached and detached single-family dwellings as well as ADUs when the principal dwelling is the owner's primary residence.

Importantly, a vacation rental can only be operated from the owner's primary residence, meaning where the owner resides for more than 50% of the year.

Running a Thornton, Adams County Airbnb business needs to meet the following regulations:

  • Have a short term rental license. A person can hold only 1 license, and a property can have only 1 license. Licenses are valid for 1 year and need to be renewed prior to expiry. They are subject to an annual fee.
  • Not exceed maximum occupancy of 2 persons per legal conforming bedroom plus 2 additional persons, for a total of 10 persons per property
  • Comply with applicable parking regulations (no additional parking needed)
  • Have smoke detectors, at least one carbon monoxide detector, and at least one fire extinguisher
  • Comply with applicable federal, state, and local laws
  • Display the license number in all advertisements
  • Not host commercial events
  • Have liability insurance coverage for at least $1,000,000
  • Provide the license number, property owner's or local emergency contact's contact information, emergency services contact information, maximum number of occupants, location of trash receptacles and trash collection process, location of areas for authorized marijuana use, and other behavioral expectations in the property
  • Be a legal resident of the US

In Thornton, the combined sales and lodging tax rate is 11.75%.

Westminster

The City of Westminster also has its own short term rental regulations, under Chapter 24 of the City Code of Ordinances. An STR is defined as the rental of a dwelling unit for monetary consideration for a period of less than 30 days. 

This excludes hotels, motels, and bed and breakfasts. Eligible property types include but are not limited to single-family dwellings, duplexes, townhomes, and condominiums.

Westminster Airbnb hosts need to comply with the following rules:

  • Have a short term rental license. Licenses are valid for 2 years and are non-transferable. A person can hold a single license only. A $200 fee needs to be paid to get a license.
  • Notify guests of all applicable restrictions and requirements
  • Comply with all applicable laws
  • Host only 1 party at a time
  • Not use the property for non-residential uses
  • Abide by the maximum occupancy
  • Display the current license in all advertising
  • Have operational smoke detectors, carbon monoxide detectors, fire extinguishers, and other life safety equipment
  • Provide weekly residential trash service

The total sales tax in Westminster, Adams County is 8.60%, and the accommodations tax is 7.00%.

Northglenn

The City of Northglenn regulates short term rentals in Ordinance 1773 of 2019.

Northgless Airbnb operators need to follow these rules:

  • Have a short term rental license. A license is valid for 1 year and needs to be renewed before January 1.
  • Have a business license
  • Comply with applicable health and safety standards
  • Post in a visible place in the property the license number, property owner's or manager's contact information, emergency services contact information, fire escape routes, method and timing of trash disposal and recycling, and maximum occupancy
  • Have working smoke and carbon monoxide detectors and fire extinguishers
  • Ensure that the interior and the exterior of the property are in good repair
  • Ensure that there are no active hazards
  • Ensure that the property is pest and vermin free
  • Comply with applicable zoning, subdivision, and building regulations
  • Include the license number in all advertisements

Northglenn total sales tax rate is 8.75%, the total use tax rate is 3.00%, and the total accommodations tax rate is 9.75%.

To conclude, Adams County has very diverse short term rental rules that vary from one city to another. Interested investors need to check out regulations in their selected market to confirm that Airbnb businesses are legal and relatively unrestricted there.

4. Arvada, Colorado Short Term Rental Laws

The City of Arvada uses the City's Land Development Code to control short term rentals. A STR is defined as a dwelling, a portion of a dwelling, or an accessory dwelling unit that is rented to transient guests for less than 30 consecutive days. 

Both property owners and long term tenants can operate a vacation rental. A person can have up to 3 Airbnb rentals in Arvada, and each has to host no more than 1 reservation at a time. Each short term rental can be rented for up to 240 days per calendar year.

Operating a short term rental business in Arvada requires a short term rental permit and a business license. Applying for both documents can be done online. 

To get a business license in Arvada, Colorado, an applicant needs:

  • Property address
  • Written authorization of the property owner to operate a short term rental if the applicant is not the property owner
  • Local contact person's name and phone number to handle issues 24/7
  • Site plan or floor plan identifying the room(s) that will be rented if only a portion of a dwelling unit will be rented
  • Indication that 1 off-site parking is available if only a portion of a dwelling unit is rented
  • Indication that the short term rental is provided with an operational smoke detector, carbon monoxide detector, and fire extinguisher
  • Induction that a brochure provided by the City detailing relevant ordinances, rules, and regulations is available in the property
  • Indication that a brochure created by the STR operator showing the local contact's name, phone number, and email is available in the rental
  • Acknowledgement that the total number of unrelated persons that can occupy the property is limited by the City Code
  • Acknowledgement that the vacation rental will not be used for commercial and large social events and gatherings
  • Acknowledgement that the rental will comply with all federal, state, and local laws
  • $150 permit fee

An Arvada STR permit is valid for 1 year, after which it needs to be renewed to continue operating legally.

The local sales and use tax rate in Arvada is 3.46%, and the lodging tax rate is 2.00%.

In brief, Arvada short term rental laws allow non-owner occupied Airbnb rentals but limit the maximum occupancy to about two-thirds of the year.

5. Boulder, Colorado Short Term Rental Laws

In the City of Boulder, short term rentals are regulated in Section 10-3-19 of the Municipal Code. These are defined as properties that are rented for 29 consecutive days or less. The property needs to be the owner's principal residence, which refers to the dwelling unit in which they reside for more than half the year. Airbnb arbitrage is illegal.

Operating a Boulder Airbnb business requires a short term rental license. To apply for a license, the applicant's name has to be on the deed to the property and they need to hold at least 50% interest in the property. 

The application process for a Boulder short term rental license necessitates submitting:

  • True copy of the Colorado driver's license or Colorado state ID card
  • Sworn statement that the dwelling unit is the applicant's principal residence
  • Certification that the dwelling unit is equipped with operational smoke detectors, carbon monoxide detectors, and other life safety equipment
  • Two contacts' names and phone numbers who can respond to the property within 60 minutes
  • $190 rental license fee + $25 business license fee

While licenses are valid for 4 years, a Short Term Rental Annual Affidavit form and a $20 fee are required annually. This Affidavit certifies principal residence. A license application and a $190 fee need to be submitted every 4 years. A person can hold only 1 short term rental license at a time. Airbnb hosts also need to have a business license.

The maximum occupancy of a vacation rental in Boulder depends on the zoning district.

  • P, A, RR, RE, and RL zoning districts: Up to 3 persons or members of a family plus up to 2 additional persons. If the operator resides on the property, the operator and their family members count as 1 person.
  • MU, RM, RMX, RH, BT, BC, BMS, BR, DT, IS, IG, IM, and IMS zoning districts: Up to 4 persons or members of a family plus 2 additional persons. In case the operator lives on side, the operator and their family members count as 1 person.

Vacation rentals do not need to undergo safety inspections.

The combined sales tax in Boulder is 9.045%.

In sum, Boulder short term rental laws are very limiting, allowing only owner-occupied operations.

6. Fort Collins, Colorado Short Term Rental Laws

The City of Fort Collins regulates short term rentals in Ordinance No. 045 of 2017 and defines them as properties rented out for less than 30 consecutive days. Eligible property types include whole houses, private rooms or spaces in a house, and shared accommodations. 

Vacation rentals are allowed in single-family dwellings including single-family-attached homes and R-1 hotel/motel occupancies. They are not allowed in multi-family R-2 buildings.

There are 2 types of short term rentals in Fort Collins:

  • Primary (owner occupied) STRs: This is a dwelling unit that is the owner's primary residence and a part of it is leased to 1 party at a time for less than 30 consecutive days. The owner must reside on the property for at least 9 months per year. These are allowed in zoning districts that permit hotels, motels, and bed and breakfasts of any size.
  • Non primary (not owner occupied) STRs: This is a dwelling unit that is not a primary residence and that is leased in its entirety to 1 party at a time for less than 30 consecutive days. These are permitted in zoning districts that allow lodging establishments.

Both types of STRs require a license.

To apply for a short term primary or non primary rental license, owners need to submit:

  • Documentation that the applicant is the owner of the dwelling unit
  • Documentation that the dwelling unit is the applicant's primary residence, for short term primary rental license only
  • Valid sales and use and lodging tax licenses
  • Compliance with all federal, state, and local laws
  • Certification that the dwelling unit complies with specific sanitation, mechanical, electrical, structural, and fire safety requirements
  • Proof of liability insurance
  • One or more persons available to respond within 4 hours
  • Specification of which portions of the dwelling unit will be available for use by renters, for short term primary rental license only
  • $150 license fee

Both types of licenses are valid for 1 calendar year, from January 1 to December 31, regardless of the date on which they were issued. Licenses need to be renewed on an annual basis, and the annual renewal fee is $100. Each license is for a single property only. They are non-transferable.

Fort Collins Airbnb hosts and their rentals need to comply with the following regulations:

  • Display the license number in all listings and advertisements
  • Display a copy of the license on the premises
  • Comply with all applicable code provisions
  • Comply with all sanitation, mechanical, electrical, structural, and fire safety requirements
  • Provide guests with access only to the portions of the property specified in the license
  • Maintain necessary insurance
  • Prevent the cultivation or processing of marijuana and marijuana products in the dwelling unit
  • Provide off-street parking based on the number of bedrooms rented
  • Rent to 1 party only at a time

Violations are subject to various penalties. They can also result in license suspension and revocation as well.

In Fort Collins, the total sales tax rate is 8.05%, while the total accommodations tax is 11.05%.

All in all, Fort Collins STR regulations allow both owner-occupied and non-owner occupied vacation rentals, but owners need to pay heavy taxes. Before buying a property to rent out on a short term basis, investors need to make sure it's located in a zoning district that allows these activities.

7. Douglas County Springs, Colorado Short Term Rental Laws

Douglas County regulates short term rentals with Ordinance No. O-023-003. Douglas County uses the term short term rental to refer to the rental of a lodging unit for a term of less than 30 consecutive days, where a lodging unit can signify a dwelling or a portion of it. This definition excludes hotels, motels, campgrounds, and bed and breakfast establishments.

Airbnb properties in Douglas County unincorporated areas require a short term rental license. This applies to all zone districts. A dwelling within a Planned Development (PD) zone district can be licensed only if the PD allows short term rental use.

Submitting a STR license application in Douglas County requires:

  • Completed license application form
  • Written, notarized declaration that the local responsible agent is entitled to act as the owner's representative
  • Copy of the Renter Information Interior Signage
  • Copy of the Renter Written Instructions
  • Parking plan
  • Signed affidavit certifying that the property complies with applicable life safety standards
  • Copy of the use permit issued by the Douglas County Health Department for the on-site wastewater treatment system
  • Copies of inspection reports and determinations by the Douglas County Building Division and the Douglas County Health Department that short term rental use of the lodging unit is acceptable
  • License application review fee

Douglas County short term rental licenses are valid for 1 year and need to be renewed in a timely manner. They are non-transferable.

Vacation rentals in Douglas County and their owners need to comply with the following rules:

  • Not have outdoor signs advertising the short term rental
  • Ensure compliance with all applicable federal, state, and local standards and regulations
  • Have an issued certificate of occupancy
  • Conform to on-site wastewater treatment system regulations
  • Not be used for purposes other than those for which the property was designed or intended
  • Have operable smoke detectors, carbon monoxide detectors, and portable fire extinguishers
  • Maintain an operable fire sprinkler system, if available
  • Have an operable toilet, sink, and bathtub or shower in the same building as the short term rental
  • Have electrical panels with each circuit clearly labeled
  • Ensure that pools, spas, and hot tubs meet the County Residential Building Code
  • Not have portable outdoor charcoal grills, fireplaces, fire rings, and other ember-producing equipment
  • Prohibit campfires, use of ember-producing equipment, shooting of weapons for recreation, use of fireworks, and use of ATVs and other non-licensed vehicles
  • Ensure that there is a sufficient number of trash receptacles
  • Not exceed the maximum occupancy of 2 persons per bedroom
  • Ensure that motor vehicles and trailers can be accommodated on the permitted and approved driveway
  • Post a copy of the license on site
  • Maintain Renter Written Instructions including a copy of the Ordinance, fire extinguisher and emergency egress location description, vehicle and trailer parking spaces, alternative parking locations, trash and recycling receptacles location and regulations, snow removal instructions, noise policies, pet policies, HOA policies, good neighbor and lessee guidelines, and other necessary information
  • Include a short term rental property description in all advertising
  • Collect and remit all applicable federal, state, and local taxes
  • Allow property inspections by relevant authorities
  • Have only 1 reservation at a time

Violations may result in licenses being suspended, revoked, or non-renewed.

The sales tax rate in Douglas County depends on the exact street address of the short term rental property.

To conclude, Douglas County Airbnb rules allow non-owner occupied short term rentals in permitted zone districts, so this is a viable option for out-of-state investors.

Bottom Line

Colorado short term rental laws vary from one county and city to another as there are no statewide regulations. In general, the State of Colorado has strict and frequently prohibitive Airbnb rules that severely limit or sometimes even prohibit non-owner occupied vacation rentals. Still, some top-performing Colorado Airbnb markets allow this strategy as long as certain zoning and licensing requirements are met.

This article was written by
Dennis Shirshikov

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