Montrose, Colorado Short Term Rental Regulations Guide for Airbnb hosts

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.

What do Airbnb hosts actually earn in Montrose?

Montrose hosts earn a median $26,892/year with $157 ADR and 65% occupancy.

Top performers pull in $35,306+ per year.

See the full Montrose market breakdown

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:

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

Registration Requirements:

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

City of Montrose Requirements

Required Documentation:

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

Fire and Safety Standards:

Smoke Detectors in each bedroom and adjacent hallways
Carbon Monoxide Alarms on floors with CO sources
Fire Extinguisher placed near kitchen
Emergency Escape Windows (minimum 5.7 square feet in open position)
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:

Written findings identifying infractions provided to permittee
Opportunity to resolve complaints before revocation
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:

Montrose County Short-Term Rental Registration Requirements
https://montrosecounty.granicus.com/DocumentViewer.php?file=montrosecounty_e7da39be2b411b1f249e087e49f0fa74.pdf
City of Montrose News: Short-Term Rental Code Modifications
https://www.cityofmontrose.org/CivicAlerts.asp?AID=1269&ARC=2120
City of Montrose Planning Services
https://www.cityofmontrose.org/321/Planning-Services

Additional References:

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

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Ask the AI Advisor about Montrose

Montrose sits in the Uncompahgre Valley of western Colorado as the seat of Montrose County, with a population of roughly 20,000 residents. The town has the relaxed, sun-washed feel of a high-desert community, ringed by cottonwood groves and backed by the dramatic peaks of the San Juan Mountains. Long known as a regional agricultural and ranching hub, Montrose today functions primarily as a year-round gateway to some of Colorado's most striking outdoor destinations, most notably the Black Canyon of the Gunnison. It lies about 60 miles south of Grand Junction, the nearest major city, and is reached from there by a scenic drive down the Gunnison River corridor.

Just fifteen minutes east of town, Black Canyon of the Gunnison National Park carves a dramatic gorge more than 2,000 feet deep into ancient rock. Visitors come for the steep overlook drives, the North and South Rim trails, and the chance to peer straight down at the narrow ribbon of the Gunnison River far below. It is the marquee natural attraction in the region and a strong anchor for visitors choosing Montrose as a base.

About 30 miles south of Montrose, the small town of Ouray sits in a steep box canyon and has long been called the "Switzerland of America" for its setting among sheer cliffs. Its historic Main Street is lined with Victorian-era buildings, hot springs pools, and outfitters catering to ice climbers, hikers, and jeep enthusiasts who tackle the nearby Alpine Loop. The drive from Montrose climbs over Ridgway Valley and takes roughly 45 minutes to an hour depending on conditions.

Ridgway State Park, roughly 25 minutes south of Montrose, adds a water-and-campground component to the area's outdoor offerings, with opportunities for boating, fishing, and paddleboarding on Ridgway Reservoir beneath the Sneffels Range. Closer to home, the Ute Indian Museum in southern Montrose preserves the history and artistry of the Ute people through a substantial adobe-walled campus with gardens and rotating exhibits. And roughly an hour and a half south over Dallas Divide, the resort community of Telluride draws winter skiers and summer festival-goers, adding high-end amenities within reach of a Montrose stay.

Montrose works as a short-term-rental base because it sits at the meeting point of very different landscapes: the deep canyons of the Gunnison, the soft high-desert mesas, and the soaring San Juans. Visitors who land here find an affordable, uncrowded home base from which they can pivot between national-park sightseeing, hot-spring soaking in Ouray, reservoir days, and alpine hikes, all within a single trip. That geographic flexibility, paired with a walkable downtown and reliable year-round access, makes the city a quietly strong option for travelers looking to explore western Colorado without bouncing between multiple lodging stops.