Short-Term Rental (STR) Guide for Palmer Lake, Colorado

1. Overview: Are Short-Term Rentals Allowed in Palmer Lake, CO?

Yes, short-term rentals are explicitly allowed in Palmer Lake, CO. The Town of Palmer Lake has established a structured licensing system for STRs under Chapter 5.08 of its Municipal Code. This system is defined by specific regulations, annual license caps, safety requirements, and a two-tiered class system based on owner occupancy. Investors must obtain an annual license to operate legally.

2. How to Start a Short-Term Rental Business in Palmer Lake

The process for starting an STR in Palmer Lake is application-based and governed by the town. Here is a step-by-step guide:

1. Determine Eligibility and Class: Confirm your property is located within Palmer Lake town limits. Decide which class of license to apply for:
   • Class 1 (Owner-Occupied): The property is your primary legal residence.
   • Class 2 (Non-Owner-Occupied): The property is not your primary residence.
2. Review Requirements: Thoroughly review the safety features affidavit (Section 4 of the application) and the regulations outlined in Ordinance No. 12-2023 and the Municipal Code (Chapter 5.08).
3. Gather Required Documents: Compile all documents listed in Section 3 below before submitting your application.
4. Submit Application: Submit your completed application, along with all supporting documents and fees, to the Town of Palmer Lake.
   • Processing Time: The town requires a minimum of 10 days to process the application.
   • License Term: Licenses are valid from May 1 to April 30 each year.
5. Safety Inspection (If Required): Be prepared for the town to access the property for a safety check once per year or to investigate a complaint.
6. Operate Compliantly: Once approved, ensure all advertising displays the license number, all sales and lodging taxes are paid, and the property is maintained to safety standards. You must also file a remittance form with the Town of Palmer Lake even if no fees were collected in a given month.

3. Required Documents, Permits, Licenses, and Guidelines

Before an STR application can be considered, the following must be submitted:

• Completed Short-Term Rental Application Form (signed).
• Site Plan: A drawing indicating the guests' accommodations, common areas, trash receptacles, and parking.
• Proof of Ownership.
• Proof of Business Entity: (e.g., from Airbnb management company, or see Colorado STR Tax information sheet if none).
• Copy of Current and Valid Sales Tax License: (from a management company like Airbnb, or see Colorado STR Tax information sheet if none).
• Proof of Current Property Tax Payment.
• Proof of Current Insurance Coverage.
• Proof of Conditional Use: (only if a conditional use permit was issued by the Town for the property).
• Acknowledgement of Regulations: Completed by both the Owner and the Agent.
• Affidavit of Approved Safety Features: A self-checklist signed by the applicant confirming compliance with all listed safety features (smoke detectors, carbon monoxide detectors, fire extinguishers, etc.).
• Applicable Fees.
• Additional Information: As required by the Town to evaluate the property.

License Fees:

• Class 1 (Owner-Occupied):
  • New License: $250
  • Annual Renewal: $150
• Class 2 (Non-Owner-Occupied):
  • New License: $500
  • Annual Renewal: $300
• Non-Refundable Application Fee: $25 (included in the total fee, regardless of outcome).

4. Specific Regulations for Short-Term Rentals in Palmer Lake, CO

Palmer Lake's regulations are comprehensive and include the following key points:

• License Classes and Caps:
  • Class 1 (Owner-Occupied) Licenses: Subject to an annual cap, but the specific percentage is not fully detailed in the provided content (the ordinance text appears to be partially redacted for this point).
  • Class 2 (Non-Owner-Occupied) Licenses: Subject to a strict cap of 5% of the total number of residential parcels within the town, as determined by the El Paso County Assessor.
• Licenses per Parcel: The Town will issue no more than one license per parcel, unless a conditional use permit is obtained for multiple units.
• License Term and Renewal:
  • Term: May 1 to April 30 each year.
  • Renewal: Must be submitted annually, and the Town will approve it if the application is complete, fees are paid, a new safety affidavit is submitted, there are no current violations, and the owner has not been cited for more than one violation in the last 12 months.
  • Rental Requirement: To be eligible for renewal, the STR must have been rented for a minimum of 14 days during the previous term. An affidavit of non-use can be submitted for extenuating circumstances, but this is only allowed once.
• Owner-Occupied Definition: A property is considered "owner-occupied" if it is the owner's legal, primary residence.
• Local Agent: All non-owner-occupied STRs must have a designated "Local Agent" who is available 24/7 and can respond to emergencies within one hour. This agent must have access to the property and the authority to manage it.
• Safety Requirements: Annual safety checks are mandatory. The Town can also conduct safety checks upon complaint. Properties must meet a detailed list of interior and exterior safety standards, including operational smoke/CO detectors, fire extinguishers, unobstructed exits, guardrails, and visible address numbers.
• Advertising: All advertisements for the STR must prominently display the license number issued with the approved permit.
• Taxes: Owners are responsible for timely payment of all property taxes and for maintaining current sales and lodging tax licenses. They must file a monthly remittance form with the Town, showing either taxes collected or a declaration of no fees collected.
• Conditional Use Permits: If a property has a conditional use permit issued by the Town, proof of this must be submitted with the application.

5. Contact Information for Local Authority

For questions, applications, and renewals, contact the Town of Palmer Lake directly:

• Town of Palmer Lake
• Physical Address: 42 Valley Crescent, PO Box 208, Palmer Lake, CO 80133
• Phone: (719) 481-2953
• Fax: (719) 488-9305
• Website: www.townofpalmerlake.com
• Town Clerk/Administrator: Dawn A. Collins
• Mayor: The provided document lists the title but not the name; the Town's website should be consulted for the current mayor.

6. Links to Source Pages

The information in this guide is derived from the following official documents and pages:

• Town of Palmer Lake Short-Term Rental License Application Form (PDF)
• Town of Palmer Lake Ordinance No. 12-2023 - Amending STR Regulations (PDF)
• Town of Palmer Lake Municipal Code (Refer to Chapter 5.08 for the full code on Short-Term Rentals).