Overview: STR Status in Fort Collins

Short-term rentals ARE ALLOWED in Fort Collins, Colorado, but with significant regulations and restrictions. The City of Fort Collins has implemented a comprehensive licensing system that permits both primary (owner-occupied) and non-primary (not owner-occupied) short-term rentals, subject to specific zoning requirements, safety standards, and ongoing compliance obligations.

How to Start a Short-Term Rental Business in Fort Collins

Step 1: Determine Property Eligibility

Before proceeding with any applications, verify that your property qualifies for STR use:

1. Use the city's STR zoning map to confirm whether your property location allows short-term rentals
2. Property types that qualify:
   • Single-family dwellings (including townhomes/single-family-attached homes)
   • R-1 hotel/motel occupancies (note: existing R-2 condo/apartment buildings must undergo costly change-of-occupancy process from R-2 to R-1)
3. Property types that do NOT qualify:
   • Multi-family R-2 buildings (apartment or condo buildings with 3+ dwelling units on a single property)

Step 2: Apply for Required Licenses

Complete the licensing process through the city's official channels:

1. Submit STR License Application
2. Obtain Sales and Lodging Tax License
3. Display license number prominently in all listings

Step 3: Ensure Compliance with Operational Requirements

• Meet parking requirements based on bedroom count
• Maintain designated local contact for guests and neighbors
• Follow safety and operational standards
• Implement proper tax collection and reporting procedures

Required Documents, Permits, Licenses, and Guidelines

Primary Licenses Required

1. Short-Term Rental License

   • Initial fee: $150
   • Annual renewal: $100 (due June 30 regardless of application date)
   • Must be renewed yearly with no proration

2. Sales and Lodging Tax License

   • Required for tax collection and remittance
   • Third-party platforms (Airbnb, VRBO) collect and remit taxes under their accounts
   • Self-managed rentals must collect and remit directly

Key Operational Requirements

1. License Display Requirement

   • STR license number must be displayed in all online listings
   • Format: XXXXXXXX-STR (example: 00123456STR)
   • Required on platforms like Airbnb under "Location" section

2. Local Contact Requirement

   • Must designate and register a local point of contact
   • Available for guests, neighbors, and city officials
   • Contact information must be readily accessible

3. Parking Requirements

   • 1-2 bedrooms: 1 off-street parking space
   • 3-4 bedrooms: 2 off-street parking spaces
   • 5-6 bedrooms: 3 off-street parking spaces
   • Must be on private property (driveway/garage)
   • Cannot include tandem parking arrangements

Safety and Operational Standards

• Maintain compliance with building safety codes
• Follow fire/life/safety requirements for R-1 occupancies
• Implement guest screening and rental agreement protocols
• Establish quiet hours and occupancy limits
• Maintain detailed records and inspection logs

Specific Regulations for STRs in Fort Collins

Zoning and Location Restrictions

1. Primary STRs (Owner-Occupied)

   • Permitted in zones allowing hotels, motels, and bed & breakfasts
   • Indicated by green areas on the STR zoning map
   • Owner must reside at property for 9+ months annually

2. Non-Primary STRs (Not Owner-Occupied)

   • Permitted in zones allowing lodging establishments
   • Indicated by yellow areas on the STR zoning map
   • Subject to more restrictive zoning requirements

3. Prohibited Areas

   • Multi-family R-2 buildings (3+ units)
   • Zones with no color coding on the STR zoning map

Tax Obligations

1. City Lodging Tax

   • Rate: 3% on amounts paid by guests
   • Applied to occupancies under 30 consecutive days
   • Remitted monthly to the city

2. State Tax Requirements

   • Colorado state lodging tax obligations apply
   • Registration with Colorado Department of Revenue required
   • Must be collected and remitted according to state guidelines

3. Sales Tax

   • Standard city sales tax rates apply to rental income
   • Filed annually or per city-specified frequency
   • $25 assessment fee for late filings

Recent Regulatory Updates

As of May 2025: The Planning and Zoning Commission voted to recommend removing non-primary short-term rentals from the Old Town North neighborhood's zone district. This recommendation will go before City Council for consideration on June 17, 2025, potentially affecting investors in that specific area.

Contact Information for Local Authorities

STR Licensing Information

Contact: Margaret Moxley
Phone: 970.221.6780
Email: Available through city contact system

Zoning Information

Contact: Sara Hernandez
Phone: 970.221.6248
Email: Available through city contact system

Primary Government Resources

City of Fort Collins Short-Term Rentals
Website: www.fcgov.com/shorttermrentals
Phone: 970.221.6240 (general city contact)

Planning, Development & Transportation Services
Website: www.fcgov.com/pdt
Neighborhood Services
Website: www.fcgov.com/neighborhoodservices

County-Level Contacts (for Unincorporated Areas)

Larimer County Planning Department
Website: www.larimer.gov/planning
Phone: 970.498.7681
Address: 200 W. Oak Street, Fort Collins, CO 80521

Links to Source Pages

1. City of Fort Collins STR Official Page: https://www.fcgov.com/shorttermrentals/
2. STR Zoning Map: https://gisweb.fcgov.com/HTML5Viewer/Index.html?Viewer=FCMaps&layerTheme=Short%20Term%20Rental%20Zoning
3. Property Eligibility Lookup: https://www.fcgov.com/shorttermrentals/str-address-lookup.php
4. STR License Application: https://www.fcgov.com/shorttermrentals/apply
5. Airbnb Fort Collins Guidelines: https://www.airbnb.com/help/article/2374
6. Larimer County STR Regulations: https://www.larimer.gov/planning/short-term-rentals-regulation-updates
7. Colorado Department of Revenue: https://www.colorado.gov/pacific/tax
8. Fort Collins Sales Tax Information: https://www.fcgov.com/salestax/
9. Recent News - Proposed Changes: https://www.coloradoan.com/story/money/business/2025/05/27/change-may-come-for-short-term-rentals-in-fort-collins-neighborhood/83726430007/

Important Investment Considerations

Market Dynamics: Fort Collins presents a mature STR market with established regulations that provide clarity for investors, though ongoing regulatory evolution requires vigilance.

Compliance Costs: Budget for license fees, potential safety upgrades, and ongoing operational compliance costs that can significantly impact profitability.

Zoning Competition: Properties in designated STR zones may command premium prices, while properties in restricted zones face limitations or prohibitions.

Operational Requirements: Professional management and comprehensive compliance systems are essential for success in Fort Collins' regulated STR environment.

Regulatory Monitoring: Stay informed about proposed changes, as evidenced by the 2025 recommendations affecting specific neighborhoods.

Fort Collins offers a viable STR investment market with clear regulations, but success requires thorough due diligence, professional operations, and ongoing compliance with evolving municipal requirements.