Overview: Are Short-Term Rentals Allowed?

Short-term rentals are explicitly prohibited within the City of Black Hawk itself as of February 28, 2024. The Black Hawk City Council voted to completely eliminate short-term rentals as a permitted use in all residential zone districts within the city limits. This prohibition applies to both new applications and any existing operations.

However, short-term rentals are allowed in unincorporated areas of Gilpin County (the county surrounding Black Hawk), subject to strict licensing requirements and caps. The distinction between city jurisdiction and county jurisdiction is critical for investors to understand.

How to Start a Short-Term Rental Business in This Market

Market Reality

Given Black Hawk's prohibition on STRs, viable investment opportunities exist only in unincorporated Gilpin County areas surrounding Black Hawk. Potential properties would be located in neighboring communities such as Rollinsville, areas along Tolland Road, Virginia Canyon Road, or other unincorporated county locations.

Application Process

1. Determine License Tier - Assess whether you qualify for Tier 1 (owner-occupied), Tier 2 (county resident, non-owner occupied), or Tier 3 (non-county resident)
2. Join the Waitlist - Since the license cap has been met, you must first join the official waitlist through the county portal
3. Prepare Documentation - Gather all required materials per the submittal checklist
4. Site Inspection - Ensure property compliance with posting requirements and safety standards
5. License Issuance - Wait for notification from county when position comes up

Critical Timing Note: Community Development cannot provide estimates on waitlist duration, making this market particularly challenging for new investors.

Required Documents, Permits, Licenses, and Guidelines

Mandatory Licensing

All short-term rentals in unincorporated Gilpin County require a valid STR license under County Ordinance 22-04.

Required Documentation

Based on the Application Submittal Checklist:

• Complete license application
• Proof of property ownership or legal right to operate
• For Tier 1: Proof of primary residency and intent to occupy during rentals
• For Tier 2: County residency affidavit and documentation
• For Tier 3: Documentation of non-county residency status
• Property information and legal description
• Contact information for local emergency services
• Insurance documentation
• Payment of applicable fees

Required Postings

According to the Initial Site Inspection requirements:

• Gilpin Good Neighbor Guidelines (required posting)
• Emergency contact information
• Property address and license number
• Maximum occupancy limits
• Trash and recycling instructions
• Parking regulations
• Quiet hours and noise restrictions

Tax Compliance

Gilpin County Lodging Tax compliance is mandatory. The Notice of Lodging Tax to Vendors document outlines requirements for tax collection and remittance.

Specific Regulations by Jurisdiction

City of Black Hawk (Prohibited)

• Complete prohibition of short-term rentals as of February 28, 2024
• Applies to all residential zone districts
• Both CB4 and CB5 ordinances eliminate STRs entirely
• No grandfathering provisions mentioned in the provided content
• No exceptions for any type of STR operation

Unincorporated Gilpin County (Regulated)

• License Required - No advertising or operation without valid STR license
• License Tiers:
  • Tier 1: Owner-occupied properties only; allows renting portion of property or dwelling; must be present during rental periods
  • Tier 2: County residents, non-owner occupied; maximum 2 licenses per resident
  • Tier 3: Non-county residents; maximum 1 license per person
• License Caps: Combined 5% cap on total housing units for Tiers 2 and 3; 155 total licenses allocated for 2025
• Occupancy Limits: Maximum 30 consecutive days per rental period
• Transfer Restrictions: STR licenses are non-transferable once issued
• Primary Residence Requirement: For Tier 1, must be actual primary residence with owner present during rentals
• Advertising Restrictions: Tier 1 cannot advertise as "whole house" or "whole property" rentals

State of Colorado

No specific Colorado state-level regulations are provided in the source material for this analysis. Investors should research state requirements separately.

Enforcement and Compliance

Violations

• Operating without a valid license results in citations
• Citations may impact future license eligibility
• Tier 1 violations include advertising whole property rentals when only portions are permitted
• License revocation possible for violations

Complaint Process

Residents can file short-term rental complaints through the Gilpin County online portal. The Community Development department handles enforcement and follows up on violations.

Contact Information

Gilpin County Community Development (STR Administrator)

Physical Address: Gilpin County 203 Eureka Street P.O. Box 366 Central City, Colorado 80427

Phone: 303-582-5214 Fax: 303-582-5440

Online Resources:

• STR License Waitlist Application Portal: gilpincountyco.portal.opengov.com/categories/1086/record-types/6514
• STR Complaint Filing: gilpincountyco.portal.opengov.com/categories/1086/record-types/6472
• Website: gilpincounty.colorado.gov/departments-offices/community-development/short-term-rentals

City of Black Hawk (STR Prohibition)

Physical Address: Black Hawk City Hall 211 Church Street Black Hawk, Colorado

Website: www.cityofblackhawk.org/ Note: While specific phone contact wasn't provided in the source material, investors can contact the city through the official website for any property-specific inquiries within city limits.

Source Links

Primary Regulatory Documents

• Gilpin County Short-Term Rentals Main Page
• Ordinance 22-04 Short Term Rental Regulations
• Resolution 22-24 Zoning Text Amendments Section 3.10

Application and Compliance Resources

• STR Application Submittal Checklist
• Affidavit of Residence
• Gilpin Good Neighbor Guidelines
• Site Inspection Checklist and Required Posted Information
• Notice of Lodging Tax to Vendors

News and Updates

• Black Hawk STR Prohibition Article

Online Portals

• STR License Waitlist Application
• STR Complaint Filing

Investment Conclusion: Given Black Hawk's complete prohibition on STRs, viable investment opportunities are limited to unincorporated Gilpin County properties. However, the waitlist system with capped licenses and inability to predict timing creates significant barriers to entry. Investors should carefully consider the regulatory uncertainty and potentially lengthy wait times before committing capital to this market.