Overview: Short-Term Rentals in Montrose, CO

Short-term rentals ARE explicitly allowed in Montrose, Colorado, both within the city limits and in Montrose County. The city has adopted specific regulations and definitions for short-term rentals, requiring compliance with municipal codes, while the county has established a separate registration process for properties outside city limits.

How to Start a Short-Term Rental Business in Montrose

Step 1: Determine Jurisdiction

• City of Montrose: Properties within city limits fall under municipal regulations
• Montrose County: Properties outside city limits require county registration

Step 2: Obtain Required Licensing/Registration

• City Properties: Apply for Sales Tax License through City of Montrose
• County Properties: Obtain Short-Term Rental Registration from Montrose County Planning Department

Step 3: Ensure Zoning Compliance

• Verify your property zoning allows short-term rentals
• City zoning code must be consulted for properties within city limits

Step 4: Complete Application Process

• Submit required documentation
• Pay applicable fees
• Pass required inspections

Required Documents, Permits, Licenses, and Guidelines

Montrose County Requirements

Required Documents:

1. Completed Short-Term Rental Registration Application
2. Property Ownership Documentation
3. Proof of Adequate Insurance Coverage
4. Onsite Wastewater Treatment System (OWTS) Approval (if not served by municipal/community sewer)
5. Access Permit (Montrose County or State of Colorado)

Registration Requirements:

1. Short-Term Rental Registration from County Planning Department (valid for 3 years, $90 fee)
2. Sales Tax License from City of Montrose (for properties within city limits)
3. Insurance Policy adequate for short-term rental operations

City of Montrose Requirements

Required Documentation:

1. Sales Tax License Application
2. Business License (as required for lodging establishments)
3. Compliance with Municipal Zoning Code

Fire and Safety Standards:

1. Smoke Detectors in each bedroom and adjacent hallways
2. Carbon Monoxide Alarms on floors with CO sources
3. Fire Extinguisher placed near kitchen
4. Emergency Escape Windows (minimum 5.7 square feet in open position)
5. Adequate Ingress/Egress paths from bedrooms

Specific Regulations for Short-Term Rentals

Montrose County Regulations

Occupancy and Capacity:

• Occupancy limited to capacity of onsite wastewater treatment system
• Additional occupants may require Administrative Review of OWTS adequacy
• No public health hazards permitted

Local Contact Requirements:

• 24-hour local contact required if owner/manager not on-site
• Contact information must be provided to County and updated as needed
• Guests must be provided with 24-hour contact number
• Property owner/manager must provide contact to neighbors upon request

Property Standards:

• House number clearly visible from street
• Adequate trash facilities for guest impacts
• All guest parking on STR property (exceptions possible through Planning Department)
• Registration posted visibly for guests
• Sign limitations: Maximum 10 square feet if used for advertising

Operational Requirements:

• Insurance policy adequate for STR operations
• Compliance with all registration requirements throughout operation
• Notification to neighbors within 500 feet required
• Access permit approved before STR use

Noise and Disturbance Regulations:

• Outdoor amplified sound must cease by 10:30 PM Sunday through Thursday
• Outdoor amplified sound must cease by 11:30 PM Friday and Saturday

City of Montrose Regulations

Definition of Short-Term Rental:

"A type of lodging wherein a dwelling unit, either in full or in part, is rented to temporary occupant(s) for monetary consideration for fewer than thirty (30) consecutive days."

Included Uses:

• Bed and breakfasts (considered a type of short-term rental)
• Room/boarding houses with stays under 30 days
• Home-sharing arrangements meeting the definition

Tax Requirements:

• Sales Tax License required for all short-term rentals
• Same requirements as traditional lodging providers
• Tax collection and remittance obligations apply

Revocation and Enforcement

County Revocation Triggers:

• Non-compliance with any registration terms
• Three written complaints within one calendar year
• Public health hazards

Revocation Process:

1. Written findings identifying infractions provided to permittee
2. Opportunity to resolve complaints before revocation
3. One-year waiting period for new permit after revocation

Appeal Process:

• Appeal to Board of County Commissioners available
• Must be in writing with basis for appeal
• Appeals limited to interpretation/misapplication of requirements
• 45-day deadline for Board agenda placement

Contact Information for Local Authorities

Montrose County Planning and Development Department

Primary Authority for County STRs

• Address: 949 N. 2nd Street, Montrose, CO 81401
• Phone: (970) 249-6688
• Services: Short-term rental registration, zoning compliance, enforcement

City of Montrose Planning Services

Authority for City STRs

• Address: City Hall, 400 E Main Street, P.O. Box 790, Montrose, CO 81402
• Phone: (970) 240-1407
• Fax: (970) 240-1499
• Email: Available through department contact forms
• Hours: Monday-Thursday, 8 AM - 6 PM
• Services: Zoning compliance, sales tax licensing, municipal code enforcement

City of Montrose Finance Department

Sales Tax Licensing

• Address: 433 S. First Street, Montrose, CO 81401
• Website: CityOfMontrose.org/SalesTax
• Phone: (970) 240-1400 (main number)
• Services: Sales tax license applications, tax collection guidance

Source Pages

Primary Official Sources:

1. Montrose County Short-Term Rental Registration Requirements
   https://montrosecounty.granicus.com/DocumentViewer.php?file=montrosecounty_e7da39be2b411b1f249e087e49f0fa74.pdf

2. City of Montrose News: Short-Term Rental Code Modifications
   https://www.cityofmontrose.org/CivicAlerts.asp?AID=1269&ARC=2120

3. City of Montrose Planning Services
   https://www.cityofmontrose.org/321/Planning-Services

Additional References:

4. Montrose Municipal Code (Title XI - Land Development Regulations)
   https://library.municode.com/co/montrose/codes/code_of_ordinances?nodeId=PTIICOOR_TITXILADERE

5. City of Montrose Sales Tax Information
   http://www.CityOfMontrose.org/SalesTax

Key Takeaway for Investors: Montrose offers a welcoming environment for short-term rental investments with clear regulatory pathways. Whether operating within city limits or in the county, operators must navigate specific registration and licensing requirements while maintaining high safety and neighborhood standards. The three-year county registration and city sales tax licensing requirements create a structured but manageable compliance framework for legitimate short-term rental operations.