This guide provides a comprehensive analysis of short-term rental regulations in Lyons, Colorado, based on official Town communications and supporting materials. It is designed for prospective STR investors and emphasizes compliance with all applicable local, county, and state requirements.

I. Overview: Are Short-Term Rentals Allowed in Lyons, CO?

Yes, short-term rentals (STRs) are allowed in Lyons, CO, under a structured licensing system. The Town of Lyons explicitly regulates STRs, which are defined as lodging accommodations offered for less than 30 consecutive days. The Town's framework is designed to balance the economic benefits of STRs with the need to preserve neighborhood character and residential quality of life.

The primary legal authority for STRs is established in the Lyons Municipal Code (LMC), specifically:

• Section 6-7: Short-term Rental Licenses
• Section 16-10-80: Short-term Rentals (within the zoning code)

Lyons recognizes two distinct pathways for obtaining a license:

1. Primary Residence STR: The property must be the owner's principal residence, occupied for at least nine months of the year.
2. Commercial Unit STR: The property must be a residential unit in a commercially zoned district (C, CEC, CD), with an on-site business representative during normal business hours for at least nine months of the year.

II. How to Start a Short-Term Rental Business in Lyons, CO

The following is a step-by-step process for legally operating an STR in Lyons.

1. Property Eligibility Verification: Confirm that your property qualifies under one of the two licensing pathways described above. Use the STR Zone District Map to verify zoning.
2. Prepare Required Documentation:
   • Complete the appropriate application form (Primary Residence or Commercial Unit).
   • Complete the required safety self-certification form (as outlined in the application).
3. Obtain a Colorado Sales Tax License: This is a state-level requirement. You can register online with the Colorado Department of Revenue. You may also use a third-party agency like Airbnb or Vrbo, which can collect and remit sales tax on your behalf.
4. Submit Application and Fees: Submit your completed application and the $125 new license fee to the Town of Lyons. The Town will review your application for compliance with the LMC and issue a decision within 45 days.
5. Understand Ongoing Obligations: Upon approval, you must comply with all operational regulations (see Section V below), including the monthly filing and payment of the Lodging Occupation Tax.

III. Required Documents, Permits, Licenses, and Fees

• Lyons Short-Term Rental License: This is the primary local permit.
  • Required Forms:
    • Primary Residence Short-Term Rental License Application
    • Commercial Unit Short-Term Rental License Application
    • Renewal Short-Term Rental License Application
  • Fees: $125 for a new license. $50 for a renewal license. A refund of the application fee is available for primary residence STRs that meet accessibility standards, subject to Town staff review.
• Colorado Sales Tax License: A state-level requirement for collecting and remitting sales tax. Registration is done directly with the state.
• Lodging Occupation Tax Filing: A monthly report and payment to the Town of Lyons. The form can be found here: Lodging Occupation Tax Report (Fillable PDF)

IV. Specific Regulations for Short-Term Rentals in Lyons, CO

These regulations are direct excerpts from the operational standards outlined by the Town. Full details are available in LMC Section 6-7.

A. Permitted Zone Districts: STRs are allowed in the following zoning districts: A-1, A-2, E, EC, R-1, R-2, C, CD, and CEC.

B. Occupancy Limits:

• A maximum of two (2) adults per bedroom.
• Regardless of the number of bedrooms, the property may not have more than eight (8) overnight guests.

C. Parking:

• No more than two (2) vehicles may be parked overnight on a public street outside of a licensed STR property.

D. Safety Standards (Self-Certified):

• Functional smoke and carbon monoxide detectors must be present in all bedrooms and other applicable rooms.

E. Prohibited Activities: The following are explicitly prohibited while the STR is in use:

• Outdoor sleeping or installation of tents, canopies, or other temporary arrangements.
• Any outdoor activity that draws an attendance of more than twice the number of permitted occupants.
• Solicitation, advertising, or use of the STR for parties, special events, social gatherings, weddings, or similar uses.
• Cooking or kitchen facilities in guest rooms or bedrooms.
• Owner occupancy of an accessory dwelling unit (ADU) while the principal dwelling is in use as an STR.
• Parking of STR occupant vehicles in alleys or in a manner that blocks emergency access.

F. Signage and Advertising:

• All signage must comply with Article 16-9 of the LMC.
• Every advertisement (online or print) must include the Town of Lyons business license number and the maximum occupancy permitted in the STR.

G. Lodging Occupation Tax:

• A 5% tax is levied on every person/business furnishing accommodations for less than 30 consecutive days.
• The tax is paid monthly via a required report and full payment on or before the 20th of each month.
• Monthly filings are mandatory, even if you report a $0 tax due.

H. Additional State-Level Considerations (Colorado):

• STRs are subject to Colorado state sales tax in addition to the local lodging tax.
• Colorado state law defines a short-term rental as a stay of less than 30 consecutive days.

V. Contact Information for the Local Authority

For all inquiries regarding short-term rentals in Lyons, contact the Town of Lyons directly.

• Primary Contact Email: lodging@townoflyons.com
• Phone: 303-823-6622
• Physical Address:

  Town of Lyons 432 5th Avenue P.O. Box 49 Lyons, CO 80540

• Website: www.townoflyons.com/Short-Term-Rentals

VI. Links to Source Pages

The following is a list of all official source materials referenced in this guide. These are the authoritative documents for the most current regulations and application procedures.

1. Town of Lyons Short-Term Rentals (Main Page)
2. Lyons Municipal Code, LMC Section 6-7: Short-term Rental Licenses
3. Lyons Municipal Code, LMC Section 16-10-80: Short-term Rentals
4. Lyons Short-Term Rental Zoning Map
5. Primary Residence Short-Term Rental License Application
6. Commercial Unit Short-Term Rental License Application
7. Lodging Occupation Tax Report (Fillable PDF)
8. Avalara Blog: State of the state: Colorado short-term rental laws (for general CO context)
9. Town of Lyons Lodging (for confirmation of regulations)
10. Town Council Agenda Item: Vacation/Short Term Rentals by Owner or Agent (for background on regulations)

This guide is based on the official regulations and communication provided by the Town of Lyons. Prospective investors are strongly advised to consult the original source documents for the most up-to-date information before making business decisions.