Short-Term Rental Status Overview

Short-term rentals ARE allowed in Telluride, Colorado, but they require proper licensing and must comply with specific regulations that vary by zone. The Town of Telluride has established a comprehensive regulatory framework governing short-term rentals with different license types, rental limits, and requirements depending on location and usage patterns.

How to Start a Short-Term Rental Business in Telluride

1. Determine Your License Type

First, identify which license you need based on your property's location and intended use:

• Classic License: For properties in Non-Residential Zones (unlimited rental nights)
• Residential License: For properties in Residential Zones (limited to 3 rentals and 29 nights max per year for short-term)
• Limited License: For any property with maximum 29 nights per year
• Lodging License: For hotels, motels, boardinghouses with on-site lobby
• Mid-Term License: For rentals 30+ nights but less than 6 months (no fee)
• Long-Term License: For rentals 6+ months (no fee)

2. Check Your Zone

Verify if your property is in the Residential Zone by consulting the Residential Zone Map. Properties within the red zone are restricted to Residential Licenses only.

3. Apply for License

• Complete your application through the online portal at Rentalscape
• Application progress cannot be saved, so prepare all materials beforehand
• Include all required affidavits and documentation

Required Documents, Permits, Licenses, and Guidelines

License Fees

Classic License Fee Structure:

• 1 sleeping room: $1,332
• 2 sleeping rooms: $2,211
• 3 sleeping rooms: $3,090
• 4 sleeping rooms: $3,969
• 5 sleeping rooms: $4,848
• 6 sleeping rooms: $5,727

Limited & Residential License Fee Structure:

• 1 sleeping room: $381.50
• 2 sleeping rooms: $392.50
• 3 sleeping rooms: $403.50
• 4 sleeping rooms: $414.50
• 5 sleeping rooms: $425.50

Mid-Term and Long-Term Licenses: No fees

Required Affidavits (Effective July 2025)

All affidavits must be submitted online through Rentalscape:

1. Bulk Notary Form: Must be completed and notarized BEFORE starting application
2. Self-Inspection Affidavit: Required for all licenses (not notarized)
3. Financial Interest/Ownership Disclosure: Required for all licenses (notarized via bulk form)
4. Limited License Affidavit: Only for Limited License holders (notarized via bulk form)
5. Residential Rental Affidavit: Only for Residential License renewals (notarized via bulk form)

Specific Regulations for Short-Term Rentals

Residential Zone Restrictions

Properties in Residential Zones are limited to:

• Short-term rentals (≤29 nights): Maximum 3 separate rentals per year, totaling no more than 29 nights annually
• Long-term rentals (≥30 nights): Maximum 3 rentals per year
• Rentals spanning two calendar years count toward the year they start

Advertising Requirements

• Must include your license number in ALL rental advertisements
• License must be obtained BEFORE advertising or renting

Tax Obligations

Total tax rate: 17.22%

• 11% to Town of Telluride (paid through Rentalscape)
• 6.22% to State of Colorado and San Miguel County (paid through SUTS system)

Tax Payment Schedule:

• Monthly remittance required
• Taxes for previous month available on 1st of following month
• Due by 20th of following month
• Must be paid through your Rentalscape account

Additional Taxes (Effective Jan 1, 2025):

• SMART sales tax increased by 0.82% to 1.07% total
• New Visitor Benefit tax of 1.25%
• These are paid through Colorado's SUTS system

Property Management

• Property management companies must have separate business license
• Only property owners can close licenses or update management companies
• Property managers report and pay taxes for each property in Rentalscape

Contact Information for Local STR Authority

Primary Contact: Ashley Berard
Short Term Rental Program Administrator
Phone: (970) 728-2159
Email: aberard@telluride-co.gov

General Town Contact: Town of Telluride
P.O. Box 397
Telluride, CO 81435
Phone: (970) 728-5700

For SMART Tax Questions: David Averill
Email: david.averill@smarttelluride.com

For State/County Tax Questions: Colorado Department of Revenue
Phone: (303) 238-7378
Website: tax.colorado.gov/sales-use-tax

Source Links

• Primary STR Information: www.telluride-co.gov/740/Short-Term-Rental-Licenses
• License Application Portal: portal.deckard.com/co-san_miguel-town_of_telluride-str-portal
• Residential Zone Map: www.telluride-co.gov/DocumentCenter/View/14320/Town-of-Telluride-Residential-Zone-Map
• STR Info Packet: www.telluride-co.gov/DocumentCenter/View/14564/STR-Info-Packet
• STR Tax Guide: www.telluride-co.gov/DocumentCenter/View/14378/Important-Tax-Information-for-STR-and-Lodging-Businesses
• Finance Department Tax Page: www.telluride-co.gov/401/Taxes
• Bulk Notary Form: www.telluride-co.gov/DocumentCenter/View/15117/STR-Bulk-Notary-Affidavit
• STR Complaint Portal: complaints-str.deckard.com/towntelluride-co-str-complaints/
• Account Closure Form: telluride.formstack.com/forms/rentalscape_account_closure_request
• Management Transfer Form: telluride.formstack.com/forms/property_management_transfer

This regulatory framework ensures controlled growth of short-term rentals while maintaining community character, particularly in residential neighborhoods. Investors should carefully review all requirements and maintain compliance with ongoing tax and reporting obligations.