Overview: Are Short-Term Rentals Allowed in Colorado Springs, CO?

YES — Short-term rentals are explicitly allowed in Colorado Springs, CO. The city has established a comprehensive regulatory framework that permits both owner-occupied and non-owner occupied short-term rentals, though with different requirements and restrictions for each type. As of the regulatory updates implemented in December 2019, Colorado Springs has created a structured permitting system that balances residential character preservation with the economic opportunities that short-term rentals provide.

The city distinguishes between two primary categories:

• Owner-Occupied STRs: Properties where the owner resides for at least 185 days annually
• Non-Owner Occupied STRs: Investment properties where the owner does not meet the residency requirement

This regulatory approach ensures that short-term rental operations integrate sustainably within existing neighborhoods while maintaining community standards for health, safety, and neighborhood character.

How to Start a Short-Term Rental Business in Colorado Springs

Step 1: Pre-Application Planning

Before submitting your application, conduct thorough due diligence:

Zoning Verification: Determine your property's zoning classification using the city's SpringsView mapping system. This critical step will determine whether you can pursue an owner-occupied or non-owner occupied STR permit, as non-owner occupied STRs are prohibited in single-family zoning districts.

Market Analysis: Research local demand, pricing strategies, and competition within your specific neighborhood. Consider seasonal variations, local events, and proximity to attractions when developing your business model.

Step 2: Create Electronic Application Account

Colorado Springs requires all STR applications, renewals, and communications through their electronic Accela system:

1. Visit the Applications and Reviews portal
2. Create a user account following the provided How-To guide
3. Familiarize yourself with the electronic submission process
4. Ensure you have all required documentation before beginning your application

Step 3: Determine Permit Type and Requirements

Based on your property and personal circumstances, determine which permit type applies:

For Owner-Occupied STRs:

• Property must be your primary residence
• You must occupy the property for at least 185 days per year
• Military personnel receive special accommodation for temporary duty assignments outside El Paso County

For Non-Owner Occupied STRs:

• Verify property is not in prohibited single-family zones
• Ensure location is at least 500 feet from other non-owner occupied STRs
• Complete additional density restriction compliance

Step 4: Submit Application and Supporting Documentation

Complete your application through the electronic system, ensuring all required documents are uploaded and fees are paid.

Step 5: Await Processing and Address Any Additional Requirements

The Planning & Community Development Department may request additional information. Respond promptly to any requests to avoid delays.

Step 6: Prepare for Operations

Once approved, implement operational procedures including:

• Displaying required permits and emergency contact information
• Establishing weekly trash collection services
• Ensuring insurance coverage remains current
• Implementing guest communication protocols

Required Documents, Permits, Licenses, and Guidelines

Short-Term Rental Permit Application Requirements

Core Documentation:

1. Completed Short Term Rental Checklist and Owner Acknowledgment (4 pages)
2. Proof of Primary Residence (for owner-occupied permits): Two of the following documents:
   • Valid driver's license or State I.D. Card
   • Valid vehicle registration
   • Voter registration
   • Dependent's school registration
   • Note: Mail does not satisfy this requirement
3. Application Fee: $124.95 (payment via cash, credit card, or electronic check)
4. Short Term Rental Affidavit (signed and notarized)
5. Liability Insurance Proof: Minimum $500,000 coverage through:
   • Hosting platform contract (Airbnb/VRBO)
   • Insurance policy documentation
   • Other acceptable documentation
6. Hosting Platform Listing Proof: Email link to your active listing

Additional Considerations:

• City staff reserves the right to request additional proof of residency
• If operating two separate units on one property, separate permits and fees are required
• All taxes owed must be remitted prior to permit issuance

Tax Registration and Compliance Requirements

Sales Tax License: All STR operators must obtain a City Sales Tax License. Marketplace facilitators (Airbnb, VRBO, Expedia) collect and remit city sales tax on their own licenses. If booking independently, you must obtain your own sales tax license and remit taxes directly.

Local Accommodation Tax (LART): STR operators pay LART tax equivalent to hotels, motels, and bed & breakfasts, ensuring competitive tax treatment across all transient lodging providers.

Operational Compliance Documents

Permit Display Requirements:

• City-issued STR permit
• Good Neighbor Guidelines with completed local emergency contact information
• City-issued permit number and valid-through date
• Information must be prominently displayed within the unit

Emergency Contact Documentation:

• 24-hour point of contact who can respond within one hour
• Name and phone number available to guests
• Contact information filed with Planning Department

Specific Regulations for Short-Term Rentals

City of Colorado Springs Regulations

Permit Categories and Restrictions:

Owner-Occupied Short-Term Rentals:

• Must be in lawful dwelling units in zones where residential units are permitted
• Owner must physically occupy property for minimum 185 days annually
• Military exemption available for active duty service members with permanent duty station in El Paso County (up to one year waiver for temporary duty outside county)
• Allowed in all residential zones where dwelling units are permitted

Non-Owner Occupied Short-Term Rentals:

• Prohibited in single-family zoning districts: R-E, R-1 6, R-1 9, and Single-Family PDZs
• 500-foot separation requirement: Must be at least 500 feet from another non-owner occupied STR unit in all other zoning districts
• No waiting list: Currently no waiting list system for non-owner occupied permits

Density and Multiple Unit Regulations:

• Single-family zoning districts: One listing per property (whole house or one room/section)
• R-2 zoning: Two listings per property permitted
• Multi-family zoning: Up to four listings per property permitted
• Condominium complexes: Each owner may operate maximum two STRs within the complex
• No overall cap: City does not limit total number of approved STRs

Occupancy Limitations:

• Maximum overnight occupancy: Two occupants per bedroom plus two additional occupants per dwelling unit
• Absolute maximum: 15 occupants per dwelling unit regardless of bedroom count
• This restriction applies to all STR types

Operational Prohibitions:

• No weddings or large social/commercial events
• Properties must maintain Certificate of Compliance (no "holding" permits on vacant properties)
• Must maintain weekly residential trash collection
• Properties must comply with all planning, zoning, building, and city codes
• Must abide by noise, housing, and public health ordinances

Permit Validity and Transfer Restrictions:

• One-year validity: Annual renewal required with no grace period
• Non-transferable: Permits do not transfer with property title changes
• Owner-specific: Issued to specific individual, not transferable to other parties, entities, or addresses
• Immediate reporting required: Must notify city within 3 days of application information changes

County-Level Regulations

Note: The provided content does not specify any El Paso County-specific STR regulations beyond city requirements. Investors should consult county resources directly for any additional requirements.

State-Level Regulations (Colorado)

Based on the provided content, Colorado requires:

• State Sales Tax License Number for STR operators
• Collection and remittance of all applicable sales and lodging taxes
• Compliance with statewide short-term rental regulations as they may apply

Contact Information for Local Authority

Primary STR Program Contact

Planning & Community Development Department

• Phone: 719-385-5982
• Email: shorttermrentals@coloradosprings.gov
• Website: coloradosprings.gov/str
• Electronic Application Portal: aca-prod.accela.com/COSPRINGS/Default.aspx

Office Location: Development Review Enterprise 2880 International Circle, STE 200-7 Colorado Springs, CO 80910

Additional Department Contacts

General Planning Department (for zoning questions and SpringsView assistance):

• Phone: 719-385-5905
• Email: planningdev@coloradosprings.gov

Code Enforcement (reporting unauthorized STRs):

• Phone: Contact Neighborhood Services Division
• Online Reporting: Available through city website complaint form

Police Non-Emergency (guest-related issues):

• Phone: 719-444-7000
• Emergency: 911

Office of Accessibility (accommodation requests):

• Phone: 719-385-5169

Links to Source Pages

Primary City Resources:

• Colorado Springs STR Main Page: coloradosprings.gov/str
• Electronic Application System: aca-prod.accela.com/COSPRINGS/Default.aspx
• SpringsView Zoning Map: experience.arcgis.com/experience/ae84852f373b43baa3c4a6934e3d742e
• City Code and Charter: codelibrary.amlegal.com/codes/coloradospringsco/latest/overview

Required Documentation:

• STR Application Checklist: coloradosprings.gov/system/files/2025-01/Short%20Term%20Rental%20Checklist%20%28R%29.pdf
• Non-Owner Occupied Affidavit: coloradosprings.gov/system/files/2024-05/str_affidavit_-_non_owner_occupied_002_r.pdf
• Owner Occupied Affidavit: coloradosprings.gov/system/files/2024-05/str_affidavit_-_owner_occupied_r.pdf
• How-To Guide for SpringsView: coloradosprings.gov/sites/default/files/str_how-to_springsview.pdf

Ordinance Documentation:

• Program Adoption Ordinance 18-112: coloradosprings.gov/sites/default/files/inline-images/ordinance_18-112_-_program_adoption.pdf
• Sales Tax Requirement Ordinance 19-49: coloradosprings.gov/sites/default/files/inline-images/ordinance_19-49_-_sales_tax_requirement.pdf
• Occupancy Limitations Ordinance 19-82: coloradosprings.gov/sites/default/files/inline-images/signed_ordinance_19-82.pdf
• Non-Owner Occupied Regulations Ordinance 19-101: coloradosprings.gov/sites/default/files/ordinance_19-101_-_non-owner_occ_regs_3.12.20.pdf

Third-Party Resources:

• Airbnb Host Resources: www.airbnb.com/help/article/3704
• Rent Responsibly Colorado Springs Guide: www.rentresponsibly.org/co/colorado-springs/

Important Note: The content provided indicates that Colorado Springs is currently experiencing technical difficulties with their Accela electronic processing system. While applications are still being accepted, there may be processing delays. Continue submitting applications as normal, and the city will process them as quickly as possible once the technical issues are resolved.

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This comprehensive guide provides everything necessary for informed decision-making and successful navigation of Colorado Springs' short-term rental regulatory landscape. Investors should regularly check for regulatory updates and maintain compliance with all current requirements to ensure continued operation.