Overview: Are Short-Term Rentals Allowed in Crested Butte, CO?

Yes, short-term rentals (STRs) are explicitly allowed in both the Town of Crested Butte and the Town of Mt. Crested Butte, Colorado, but with specific licensing requirements and regulations that investors must understand before operating.

Short-term rentals are defined as properties rented for 29 consecutive nights or less. Both towns have established comprehensive licensing programs since 2020, with different regulatory frameworks between the two municipalities. The Town of Crested Butte operates a more restrictive system with caps and concentration limits, while Mt. Crested Butte has more flexible licensing with fewer restrictions but still requires full compliance.

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How to Start a Short-Term Rental Business in Crested Butte

Step 1: Determine Your Location Strategy

Town of Crested Butte (Downtown)

• Choose between Primary Occupancy License or Unlimited License
• Verify your property is in an eligible zone district for Unlimited licenses
• Check block face concentration limits (maximum 2 unlimited licenses per 400 linear feet)

Town of Mt. Crested Butte

• No zone restrictions or concentration limits
• Must comply with any HOA restrictions in your specific development
• Property must be within 45 minutes of Mt. Crested Butte for local representative requirement

Step 2: Choose Your License Type

Town of Crested Butte Options:

• Primary Occupancy License: For owners who live there 6+ months annually

  • Allowed in all zone districts
  • 90 rental nights maximum per year
  • $250 license fee
  • No cap on licenses issued

• Unlimited License: For second homes or investment properties

  • Allowed only in R1, R1A, R1C, R1D, R1E, R2, R2C, R3C, B3, B4 zone districts
  • Unlimited rental nights per year
  • Minimum 29 nights rental requirement
  • Maximum 198 licenses total (capped)
  • $800 license fee
  • Limited to 2 per block face

Mt. Crested Butte:

• Single license type with no caps or limits
• Standard licensing requirements apply

Step 3: Application Process and Timeline

Town of Crested Butte:

• Applications and renewals only accepted October 1-31 for next calendar year
• Lottery system for Unlimited licenses when demand exceeds supply
• Inspection required before license issuance
• Processing time: 1-3 weeks after application

Town of Mt. Crested Butte:

• Rolling applications accepted year-round
• 60-day window to complete application and inspection after initial processing
• Processing time: 1-3 weeks after initial processing

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Required Documents, Permits, Licenses, and Guidelines

Core Licensing Documents

Town of Crested Butte:

• Vacation Rental License Application (via MUNIRevs online system)
• Property inspection and compliance verification
• Good Neighbor Guide acknowledgment
• Local contact information
• Sales tax and lodging tax registration
• Business License ($150 annually) - separate from STR license

Town of Mt. Crested Butte:

• Short-Term Rental License Application
• Local Representative & Owner Authorization Form
• Copy of Local Representative's driver's license (must live within 45 minutes)
• Self-Compliance Affidavit
• Good Neighbor Policy acknowledgment

Required Forms and Documentation

Universal Requirements:

• Property ownership verification
• Insurance coverage documentation (homeowner's + STR coverage)
• Guest rules and regulations posting requirements
• Bear-proof trash container compliance (if applicable)
• Parking compliance verification

Town of Crested Butte Specific:

• Vacation Rental Inspection Checklist
• Block face verification documentation
• Zone district compliance verification

Town of Mt. Crested Butte Specific:

• Affidavit of Residency (if Local Representative lacks local driver's license)
• HOA Parking Approval Form (if required by homeowners association)

State-Level Requirements (Colorado)

Sales Tax Collection:

• Retail Sales Tax Return (DR 0100) - monthly filing
• Local Marketing District Tax Return (DR 1490) - monthly filing
• Current rates: 7.5% sales tax plus applicable local lodging taxes

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Specific Regulations by Jurisdiction

Town of Crested Butte (Downtown)

Concentration Limits:

• Maximum 2 Unlimited licenses per block face (400 linear feet)
• Block face defined as 400 linear feet along one side plus 133 feet width
• Concentration maps available through town planning department

Operational Restrictions:

• Vacation rental use is classified as non-residential
• Cannot operate on deed-restricted properties (affordable housing, mixed-use)
• One license per person/entity
• Licenses are non-transferable (new owner must reapply)

Inspection Requirements:

• Initial inspection for all new licenses
• Safety compliance verification
• Parking requirement verification
• Guest capacity verification

Town of Mt. Crested Butte

Operational Framework:

• No zone restrictions or concentration limits
• Local representative must be available within 45 minutes
• Required to maintain current contact information with town
• 10-day notification requirement for representative changes

Community Standards:

• Compliance with Good Neighbor Policy
• Trash and recycling management requirements
• Parking restrictions enforcement
• Noise and occupancy limits adherence

County-Level Considerations

Unincorporated Gunnison County:

• Business licenses not required for STRs in unincorporated areas
• Must comply with Crested Butte South POA requirements if in that subdivision
• State sales tax requirements still apply

Crested Butte South POA:

• Annual STR permit required ($ fee - amount not specified in content)
• Designated responsible party must be located within Gunnison County
• Association rules supersede county requirements
• Annual renewal required by January 31st

Homeowners Association (HOA) Considerations

Common HOA Restrictions: Many Crested Butte area HOAs prohibit or restrict STRs:

• Glacier Lily
• Wildhorse at Prospect
• Gold Link (limited rental periods)
• The Links Condos in Skyland

POA Requirements (Crested Butte South):

• Annual permit renewal
• Responsible party designation
• Insurance requirements
• Guest rules posting
• Parking compliance
• Trash management compliance
• Fine structure for violations

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Contact Information for Local Authorities

Town of Crested Butte (Downtown)

Primary Contact:

• Eric Treadwell, Vacation Rental Coordinator
• Phone: (970) 349-5338, ext. 218
• Email: etreadwell@crestedbutte-co.gov
• Address: 507 Maroon Ave, Crested Butte, CO 81224
• Office Hours: Monday-Friday 8:30 a.m. to 5 p.m.

Online Resources:

• STR Licensing System: crestedbutte.munirevs.com
• Planning Department: townofcrestedbutte.colorado.gov/planning-permitting/licensing-permitting

Town of Mt. Crested Butte

Primary Contact:

• Heidi Sheldon, Short-Term Rental Officer
• Phone: (970) 349-6632, ext. 106
• Email: hsheldon@mtcb.colorado.gov
• Address: 911 Gothic Rd., POB 5800, Mt. Crested Butte, CO 81225

Online Resources:

• STR Program: mtcb.colorado.gov/short-term-rentals
• Town Code: ecode360.com/MT4975

Crested Butte South Property Owners Association

Primary Contact:

• Association Manager
• Phone: (970) 349-1162
• Fax: (970) 349-1163
• Address: 61 Teocalli Road, Crested Butte, CO 81224
• Website: www.cbsouth.net

State of Colorado Tax Authority

Sales Tax Questions:

• Website: www.colorado.gov/tax/education
• Forms: DR 0100 (Retail Sales Tax Return), DR 1490 (Local Marketing District Tax Return)

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Source Links

Official Government Resources

Town of Crested Butte:

• townofcrestedbutte.colorado.gov/planning-permitting/licensing-permitting
• crestedbutte.munirevs.com
• townofcrestedbutte.colorado.gov/sites/townofcrestedbutte/files/documents/Primary_occupancy_Vacation_Rental_Regulations.pdf
• townofcrestedbutte.colorado.gov/sites/townofcrestedbutte/files/documents/Unlimited_Vacation_Rental_Regulations.pdf
• townofcrestedbutte.colorado.gov/sites/townofcrestedbutte/files/documents/STR_FAQ_12-13-2022.pdf

Town of Mt. Crested Butte:

• mtcb.colorado.gov/short-term-rentals
• mtcb.colorado.gov/sites/mtcb/files/documents/STR%20Guide_Updated%20July%202025.pdf
• mtcb.colorado.gov/sites/mtcb/files/documents/Local-Rep-Form_ADA%20Compliant.pdf
• mtcb.colorado.gov/sites/mtcb/files/documents/Good%20Neighbor%20Policy-%20Updated%20June%202025.pdf

Additional Resources

HOA/POA Information:

• crestedbuttesouth.net/wp-content/uploads/2020/12/Short-term-Rental-Policy-2021-revision.pdf

Industry Resources:

• www.rentresponsibly.org/co/crested-butte/

Professional Insight:

• chriskopf.com/crested-butte-short-term-rental-what-owners-need-to-know/

Important Note for Investors

This guide provides comprehensive regulatory information for STR investment in the Crested Butte area. However, regulations can change, and individual property circumstances vary significantly. Always verify current requirements with local authorities before making investment decisions, and consider consulting with local real estate professionals and legal counsel familiar with Crested Butte area regulations.