Overview: Are Short-Term Rentals Allowed in Denver?

Yes, short-term rentals are explicitly allowed in Denver, Colorado, but they are subject to comprehensive regulations enacted in 2016 and updated through 2022. The city permits STR operations exclusively for properties that serve as the owner's primary residence, effectively prohibiting investment properties from being used as short-term rentals.

How to Start a Short-Term Rental Business in Denver

Step 1: Verify Property Eligibility

• Ensure the property is your primary residence (where you live more than half the year)
• Confirm the property aligns with your driver's license, voter registration, and tax records
• Verify zoning compliance within Denver's residential zones

Step 2: Complete Required Safety Preparations

• Install functioning smoke detectors on every floor
• Install carbon monoxide detectors within 15 feet of sleeping areas
• Provide at least one fire extinguisher on the entry level
• Post evacuation routes and emergency contact information
• Display the property address clearly visible from the street

Step 3: Apply for Licensing

• Create an account with Denver's Permitting and Licensing Center
• Submit application through the online portal at denvergov.org
• Pay the $50 application fee
• Provide required documentation (detailed below)

Step 4: Set Up Tax Collection Systems

• Obtain a lodger's tax license from the Treasury Department
• Register for sales tax collection with Colorado Department of Revenue
• Implement systems to collect and remit required taxes

Required Documents, Permits, Licenses, and Guidelines

Primary Documents Required:

• Government-issued photo ID (Colorado driver's license preferred)
• Proof of residence documentation (utility bills, voter registration)
• Signed affidavit of lawful presence
• Property ownership documentation or landlord permission
• Proof of liability insurance ($1,000,000 minimum coverage)

Essential Licenses and Permits:

• Short-Term Rental License: $50 application fee, $100 annual renewal
• Business License: Required for STR operations
• Lodger's Tax License: For collecting city lodging taxes
• Sales Tax License: For collecting state and local sales taxes

Safety and Operational Guidelines:

• Maximum occupancy: 2 people per bedroom plus 2 additional guests
• Quiet hours: 10 PM - 7 AM weekdays, 10 PM - 8 AM weekends
• 24/7 local contact person required when host is unavailable
• Property address must be clearly visible from the street
• Proper waste management and disposal systems required

Specific Regulations for Short-Term Rentals

Primary Residence Requirement

The most critical regulation is that STRs must be the owner's primary residence, defined as:

• The place where habitation is fixed for the license term
• The person's usual place of return
• Supported by documentation showing consistent residency
• Limited to one primary residence per person

Licensing and Compliance Requirements:

• Annual License: Must be renewed every year with updated documentation
• Advertisement Compliance: All listings must display the business license number
• Platform Compliance: Booking platforms face $1,000 fines per transaction for listing unlicensed properties
• Occupancy Limits: Strictly enforced based on bedroom count and property size

Tax Obligations:

• Lodger's Tax: 10.75% on all stays under 30 days
• State Sales Tax: 4.0%
• Denver Sales Tax: 4.81%
• Occupational Privilege Tax: $48 annually
• Total Tax Rate: Approximately 19.56% on rental income

Safety and Insurance Requirements:

• Minimum Liability Insurance: $1,000,000 coverage required
• Safety Equipment: Smoke detectors, carbon monoxide detectors, fire extinguishers
• Emergency Preparedness: Posted evacuation routes, emergency contacts, property address
• Regular Maintenance: All safety equipment must be functional and current

Operational Restrictions:

• Rental Duration: 1-29 days (30+ days requires different licensing)
• Single Contract Rule: Only one rental contract at a time per property
• Noise Regulations: Strict enforcement of quiet hours
• Waste Management: Proper disposal systems and timely removal required

Contact Information for Local Authority

Denver Department of Excise and Licenses

• Phone: (720) 865-2740
• Email: EXLApplications@denvergov.org
• Website: denvergov.org/Government/Agencies-Departments-Offices/Agencies-Departments-Offices-Directory/Business-Licensing

Additional Contacts:

• General City Services: Call 3-1-1 or (720) 913-1311
• Denver City Council: (720) 337-2000
• STR Questions: licenses@denvergov.org

Online Resources:

• License Applications: www.denvergov.org/AccelaCitizenAccess/
• STR Information Hub: denvergov.org/Government/Agencies-Departments-Offices/Agencies-Departments-Offices-Directory/Business-Licensing/Business-licenses/Short-term-rentals

Source Links

1. Denver Official STR Laws and Regulations: denvergov.org/Government/Agencies-Departments-Offices/Agencies-Departments-Offices-Directory/Business-Licensing/Business-licenses/Short-term-rentals/Short-term-rentals-laws-rules-regulations

2. Denver STR Licensing Portal: denvergov.org/Government/Agencies-Departments-Offices/Agencies-Departments-Offices-Directory/Business-Licensing/Business-licenses/Short-term-rentals

3. Denver Municipal Code (STR Ordinance): library.municode.com/co/denver/codes/code_of_ordinances?nodeId=TITIIREMUCO_CH33LO_ARTIIISHRMRE

4. Safely.com Denver STR Guide: safely.com/articles/denver-short-term-rental-law/

5. Proper Insurance Colorado STR Laws: www.proper.insure/regulations/airbnb-laws-colorado/

6. Steadily Insurance Denver Guide: www.steadily.com/blog/airbnb-short-term-rental-laws-regulations-denver

Key Compliance Reminders

• Only primary residences are eligible - investment properties cannot be used as STRs
• $1,000,000 liability insurance is mandatory - standard homeowner's policies typically exclude business activities
• All advertisements must display license numbers - failure to comply results in fines
• Annual license renewal is required - late renewals may result in penalties
• Tax collection and remittance is the host's responsibility - quarterly reporting may be required
• Safety equipment must be maintained and functional - regular inspections are recommended
• Quiet hours and occupancy limits are strictly enforced - violations can result in license revocation

Denver's regulations are comprehensive and strictly enforced, with the city maintaining approximately 90% compliance rates through active monitoring and significant penalties for violations. Property owners should consult with legal and insurance professionals to ensure full compliance with all requirements.