Overview: STR Status in Commerce City, CO

Short-term rentals are explicitly ALLOWED in Commerce City, Colorado as of January 1, 2025, subject to strict licensing requirements and zoning regulations. The City has implemented a comprehensive Short-Term Rental License Program that permits STRs in single-family detached and attached (duplex) dwellings within specific zoning districts, while maintaining robust oversight to ensure community compatibility.

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How to Start a Short-Term Rental Business in Commerce City

Step 1: Determine Property Eligibility

Before proceeding, verify that your property meets the following criteria:

• Property Type: Single-family detached or attached (duplex) dwelling units only
• Zoning Districts: Must be zoned R-1, R-2, R-3, AG, or Planned Unit Development that permits single-family units by right
• Location: Properties must comply with the 500-foot separation requirement from other licensed STRs
• Accessory Use Status: STRs must operate as an accessory use to long-term residential use

Step 2: Prepare for Licensing Requirements

Ensure you can meet these operational requirements:

• Primary Residence Requirement: A long-term resident must occupy the dwelling unit for the majority of the year
• Responsible Agent: Designate an agent within 30 miles, available 24/7
• Insurance: Obtain minimum $500,000 liability coverage
• Safety Compliance: Meet all specified safety standards and inspection requirements

Step 3: Complete Application Process

Applications are submitted through the City's online licensing system:

• Portal: eTRAKiT Portal
• Processing: Applications processed in order of receipt upon complete submittal
• Timeline: Applications available starting January 6, 2025

Step 4: Annual Renewal Process

• Validity: All licenses valid for one year from issuance
• Renewal: Annual renewal required with updated documentation
• Record Keeping: Maintain rental records and compliance documentation

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Required Documents, Permits, Licenses, and Guidelines

Primary License

• Short-Term Rental License: $150 annual fee, valid for one year
• Application Method: Through eTRAKiT online portal
• Processing: Order of receipt upon complete application and fee payment

Required Documentation

Proof of Address

• Utility bill or similar documentation showing the STR address

Proof of Possession

• Valid warranty deed, valid lease, or other verification of right to possess
• If not owner: written documentation from property owner authorizing STR operation

Responsible Agent Documentation

• Agent must have access and authority to manage the unit
• Must be located within 30 miles of the STR
• Available 24/7 for complaints and violations
• Property owner may serve as responsible agent

Neighbor Notification Proof

• List of addresses and persons notified (adjacent properties, behind, across street)
• Copy of notice including contact information for licensee and responsible agent

Insurance Requirements

• Liability insurance with minimum $500,000 coverage
• City recommends STR rider through insurance provider

Self-Inspection Certification

Affirmation that the STR meets all safety standards:

• Fully charged fire extinguisher in accessible location
• Insect screens on all exterior windows
• Smoke alarms in each sleeping room/area
• Carbon monoxide detectors within 15 feet of sleeping areas
• Secure handrails on all interior/exterior stairways
• GFCI protection on specified outlets (bathrooms, kitchens, garages, etc.)
• Working electrical outlets and lighting in all occupied rooms
• Functional plumbing with hot and cold water
• Defect-free sidewalks
• Working heating and water systems
• Final approvals for any work requiring building permits

Good Neighbor Guide

Upload completed guide including:

• Trash and recycling schedules and requirements
• Quiet hours and quality of life considerations
• Designated parking areas and rules
• Emergency and non-emergency contact information
• Licensee and responsible agent contact information
• HOA or community association rules and restrictions

Additional Permits and Compliance

• Building Permits: Required for any construction work
• Tax Registration: Colorado Department of Revenue sales tax license
• Local Tax Compliance: File returns with required taxing agencies

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Specific Regulations for Short-Term Rentals

Zoning and Location Restrictions

• Permitted Zones: R-1, R-2, R-3, AG, Planned Unit Development (single-family permitted by right)
• Prohibited: Multi-family units and townhomes
• Separation: Maximum one STR within 500 feet of another licensed STR in residentially zoned districts
• Zoning Lookup: Use City's Property Lookup Tool

Operational Limits

• Maximum Stay: 30 consecutive days per guest
• Occupancy: Maximum two persons per bedroom plus two additional persons
• Simultaneous Rentals: Only one guest/party allowed at a time per dwelling unit
• No Events: Rental for meetings, banquets, parties, weddings, fundraisers prohibited

Parking Requirements

• On-Site Parking: Must occur on same lot as STR
• Vehicle Limit: Limited to number of legally established spaces on lot
• No Additional Parking: No additional parking beyond existing legal spaces required
• Street Parking: If no legal parking on lot, maximum two vehicles may park on street

Accessory Dwelling Units (ADUs)

• ADU Operation: STRs permitted in legally permitted ADUs
• Principal Unit Requirement: Long-term resident must occupy principal dwelling
• Simultaneous Rentals: ADU and principal unit may rent simultaneously under one contract, but not separately
• ADU Occupancy: ADU itself doesn't require long-term resident

Prohibited Activities

• Food Service: No preparing or serving food to STR guests by owner or representatives
• Exterior Signage: No exterior signage permitted
• Commercial Events: No hosting of commercial or large-scale events

Safety and Inspection Requirements

• Self-Inspection: Initial self-certification required
• City Inspection: May be required if:
  • More than one code violation in past 12 months
  • More than three complaints in past 12 months
  • City Manager deems self-inspection insufficient
• Fire Safety: Fire extinguisher, smoke detectors, CO detectors required
• Electrical Safety: GFCI protection in specified locations
• Structural Safety: Secure handrails, defect-free sidewalks

Guest Guidelines and Communication

• Good Neighbor Guide: Must be posted in unit
• Noise Ordinance: Post section 6-2011 (Unreasonable Noise) visibly in unit
• Contact Information Sign: Display on interior of front door in English and Spanish:
  • Owner and responsible agent contact information
  • Police non-emergency number
  • Neighborhood-specific information (parking, noise, trash, etc.)
  • Fire evacuation routes

Record Keeping Requirements

Maintain records including:

• Total number of nights rented
• Rental dates
• Any notices of violation or disciplinary actions
• Copy of records required for renewal application

Tax Responsibilities

• Tax Collection: Owner/licensee responsible for all required tax returns
• Payment Liability: Ultimately responsible for payment of any tax, interest, or penalties
• Multiple Agencies: File with city, state, and other required taxing agencies

Advertising Requirements

• License Number: Must be included in all advertisements
• Compliance: All listings must reflect licensed status and compliance

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Contact Information for Local Authority

Primary Contact

Mireya Melendez
City Clerk's Office
Phone: 303-289-5053
Email: mmelendez@c3gov.com

City Main Contact

City of Commerce City
Address: 7887 E. 60th Ave., Commerce City, CO 80022
Phone: 303-289-3600
Website: www.c3gov.com

Department-Specific Contacts

• Code Enforcement: 303-227-8820
• Police Non-Emergency: 303-288-1535
• Emergency: 911

Online Resources

• eTRAKiT Portal: https://www.c3gov.com/Business-Development/eTRAKiT-Portal
• Zoning Lookup: https://arcgis.c3gov.com/PropertyLookup/index.html
• Property Information: https://maps.app.goo.gl/GDM9bbUbJLgtZBrY7

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State-Level Regulations (Colorado)

Tax Registration and Filing

• State Sales Tax License: Required registration with Colorado Department of Revenue
• Online Registration: Available through state website
• Filing Requirements: Regular lodging tax returns required

Lodging Tax Obligations

Short-term rental operators may be subject to:

• State Sales Tax: Administered by Colorado Department of Revenue
• County Lodging Tax: Varies by county
• Local Marketing District Tax: Where applicable
• Special District Tax: Depending on location
• City Lodging Tax: May be administered by state or local authority

Marketplace Collection

• Platform Collection: Some marketplaces (Airbnb, Vrbo) collect certain Colorado taxes
• Operator Responsibility: Even with marketplace collection, operators must register and file returns
• Compliance Verification: Operators responsible for ensuring full compliance

Definition and Timeframes

• Short-Term Rental Definition: Reservations of less than 30 consecutive days
• Local Authority: Colorado communities have broad authority to regulate STR operations
• Varying Requirements: Tax rates and requirements vary by jurisdiction

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Source Pages and References

Primary City Sources

1. City of Commerce City Short-Term Rental License Program - Main program page with comprehensive regulations
2. Ordinance 2648 - Short Term Rentals Land Development Code - Zoning and land use regulations
3. Ordinance 2653 - Short-Term Rentals Licensing Regulations - Licensing requirements and operational rules

Supporting Documents

4. Commerce City Good Neighbor Guide - Required guest guidelines template
5. eTRAKiT Portal - Online application system
6. Property Lookup Tool - Zoning verification

State Resources

7. Colorado Department of Revenue Sales Tax Information - State tax registration and requirements
8. Avalara Colorado STR Tax Guide - Comprehensive state tax compliance information

News and Analysis

9. Citizen Portal Article - Implementation announcement and context

Market Information

10. RedAwning Commerce City Report - Market trends and revenue projections

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Important Notes for Investors

1. Compliance First: Ensure full compliance with all city and state regulations before beginning operations
2. HOA Considerations: Review and comply with any HOA rules that may be stricter than city regulations
3. Insurance Review: Consult with insurance providers about STR-specific coverage needs
4. Tax Planning: Factor in all tax obligations when calculating investment returns
5. Record Maintenance: Implement robust record-keeping systems from day one
6. Neighbor Relations: Proactive community engagement can prevent violations and complaints
7. Regular Updates: Regulations may evolve; stay informed about any changes

This guide provides a comprehensive foundation for STR investment in Commerce City. Given the complexity of regulations and the importance of compliance, consider consulting with legal and tax professionals familiar with local STR requirements.