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

Short-term rentals are permitted in Limon, Colorado, but with significant restrictions depending on the zoning district and operational structure. The town distinguishes between different types of temporary lodging, and the regulatory framework is primarily contained within the 2014 Land Development Code.

Key Findings:

• Bed & Breakfast establishments are allowed as conditional uses in the Commercial Business District (CBD)
• Hotels and motels are permitted uses-by-right in commercial zones (CBD, CH-1, CH-2)
• Residential zones generally prohibit commercial lodging operations, allowing only very limited home occupations
• Traditional Airbnb-style STRs are not explicitly addressed in the current code framework

How to Start a Short-Term Rental Business in Limon

1. Zoning Compliance Strategy

Commercial Zone Path (Recommended):

• Target properties in the Commercial Business District (CBD), Highway Commercial District (CH-1), or Mixed Commercial District (CH-2)
• For bed & breakfast operations: Apply for conditional use permit in CBD zone
• For hotel/motel operations: Proceed with use-by-right in commercial zones
• For mixed-use properties: Consider CH-2 zone which allows both commercial and residential uses

Residential Zone Limitations:

• Home occupations are permitted but must be "clearly incidental and secondary" to residential use
• Cannot create additional traffic or require additional parking
• No persons may be employed other than residents
• No mechanical equipment except domestic purposes
• No outdoor storage beyond domestic needs

2. Permit Application Process

For Commercial Zone STRs:

1. Submit site plan to Town Manager for review
2. Obtain building permit for the proposed use
3. For conditional uses (bed & breakfast): Planning Commission review and Board of Trustees public hearing
4. Ensure compliance with all zoning district requirements

For Residential Zone Home Occupations:

1. Submit documentation demonstrating compliance with home occupation criteria
2. No additional permits typically required for incidental operations

3. Business Registration and Tax Compliance

• Register business with Town of Limon
• Obtain appropriate state sales tax licenses
• Comply with Colorado lodging tax requirements
• Maintain records for municipal and state reporting

Required Documents, Permits, Licenses, and Guidelines

Required Documents

For Commercial STR Operations:

• Completed site plan showing:
  • Property boundaries and dimensions
  • Building location and setbacks
  • Parking arrangements
  • Access points and utilities
• Detailed business plan outlining:
  • Number of rental units/guest rooms
  • Management structure
  • Operational procedures
• Conditional use application (for bed & breakfast in CBD)
• Building permit application
• Proof of property ownership or lease agreement

For Bed & Breakfast Operations:

• Special documentation addressing neighborhood compatibility
• Guest room specifications and amenities
• Breakfast service details (if applicable)
• Parking plan demonstrating no additional traffic impact

Building and Safety Permits

• Building permit for any structural modifications
• Fire safety inspection and approval
• Health department approval (if serving food)
• ADA compliance verification
• Electrical and plumbing permits as required

Business Licenses

• Town of Limon business license
• Colorado sales tax license
• Lodging establishment license (if applicable)
• Food service license (for bed & breakfast breakfast service)

Zoning and Land Use

• Zoning compliance verification
• Site plan approval from Town Manager
• Conditional use permit (for bed & breakfast)
• Variance application (if seeking exceptions to zoning requirements)

Specific Regulations for Short-Term Rentals

City of Limon Regulations

Commercial Business District (CBD):

• Hotels and motels: Permitted uses-by-right
• Bed & breakfast homes: Conditional uses requiring special review
• Must meet all district design standards
• Parking requirements must be satisfied
• Architectural compatibility with downtown character required

Highway Commercial District (CH-1):

• Motels: Permitted uses-by-right
• No bed & breakfast provisions specifically listed
• Designed for intensive vehicle access and parking
• Location typically at highway intersections

Mixed Commercial District (CH-2):

• Allows both commercial retail/business uses and residential uses
• No specific STR provisions listed
• Potential for mixed-use STR operations
• More flexible zoning approach

Residential Zones (ER, R-1, R-2, R-3, R-4):

• No explicit STR allowances
• Only "home occupations" permitted with severe restrictions:
  • Must be clearly incidental and secondary to residential use
  • No additional traffic generation
  • No additional parking space requirements
  • Only residents may be employed
  • No mechanical equipment except domestic purposes
  • No outdoor storage beyond domestic needs

Lincoln County Regulations

No county-specific STR regulations identified in provided materials. County regulations would apply only to unincorporated areas outside Limon town limits.

State of Colorado Regulations

Colorado Vacation Rental Act (HB 21-1311):

• Requires registration with Colorado Department of Revenue
• Annual registration renewal required
• Local authority may require additional permits
• Must comply with local zoning and health regulations
• Sales tax and lodging tax obligations apply

Health and Safety Requirements:

• Colorado Department of Public Health and Environment oversight
• Local health department inspections
• Fire safety code compliance
• Building code compliance

Tax Obligations:

• Colorado sales tax (varies by jurisdiction)
• State lodging tax
• Local lodging tax (if applicable)
• Income tax reporting requirements

Operational Restrictions

Guest Stay Duration:

• No specific minimum stay requirements identified in town code
• Traditional hotel/motel guest patterns anticipated
• Bed & breakfast typically operates on daily basis

Owner Presence Requirements:

• Bed & breakfast operations may require owner on-site presence
• Hotel/motel operations typically allow off-site management
• Home occupations must have resident operator

Parking and Traffic:

• No additional parking may be required for home occupations
• Commercial STRs must meet standard parking requirements
• Traffic generation cannot exceed residential home occupation limits

Contact Information

Town of Limon - Municipal Government

• Address: Town of Limon, Colorado
• Building Inspector: Trevor Williams
• Town Manager: Dave Stone
• Town Clerk: Chris Snyder
• Building Department: Contact through Town Hall

Planning and Zoning Department:

• Planning Commission: Reviews conditional use permits and zoning matters
• Board of Trustees: Final approval authority for zoning matters
• Town Manager: Initial application review and staff level approvals

Key Departments:

• Building Inspections: Trevor Williams (Building Inspector)
• Planning/Zoning: Town Manager's Office
• Business Licensing: Town Clerk's Office

Contact Process:

1. Initial Inquiry: Contact Town Manager's Office
2. Building Permits: Contact Building Inspector Trevor Williams
3. Zoning Questions: Planning Commission through Town Manager
4. Business Licensing: Town Clerk's Office

Source Pages

1. Town of Limon Land Development Code (2014): www.townoflimon.com/images/pdf/LDC/LDC_2014_complete.pdf

Key sections referenced:

• Basic Definitions (Section 114) - Definitions of lodging types
• Zoning Districts (Section 202) - Permitted uses by zone
• Commercial Business District (202.3.7) - Hotel/motel and bed & breakfast provisions
• Home Occupations (503) - Residential zone limitations
• Permits and Enforcement (115) - Application and approval processes

Important Disclaimers for STR Investors

1. Code Currency: The Land Development Code was last updated in 2014. Check for recent amendments or updates.

2. Explicit STR Gap: The code does not specifically address modern short-term rental platforms like Airbnb, suggesting the framework predates widespread STR adoption.

3. Interpretation Required: Limited guidance on how traditional zoning provisions apply to platform-based STRs.

4. Conditional Use Process: Bed & breakfast operations require Planning Commission review and Board approval, which may involve public hearings.

5. Enforcement Mechanisms: Town has authority to investigate complaints and enforce violations through fines, permit revocation, and legal action.

6. Nonconforming Rights: Existing uses that may become nonconforming are grandfathered, but new STRs must comply fully with current regulations.

Recommendation: Engage with Town Manager's Office early in the planning process to discuss specific STR proposals and confirm interpretation of current regulations for short-term rental operations.