Short-term rental rules in Colorado vary a lot by jurisdiction and change often. This is a general primer, not legal advice — always confirm the current rules with your specific city or county before you list. (We keep our owners current and can serve as your local licensing contact.)
You'll almost always need a license or permit
Most Colorado jurisdictions that allow short-term rentals require you to register for a license or permit before hosting, renew it annually, and post the license number on your listings. Applications commonly ask for proof of ownership, a local contact, safety items (smoke and CO detectors, a fire extinguisher), and proof of insurance.
Taxes apply
Short-term stays are generally subject to state and local sales tax plus lodging or occupancy taxes. Platforms like Airbnb and Vrbo collect some of these automatically in many places — but not always all of them, and the gaps are the owner's responsibility. Getting this right from day one avoids painful back-taxes.
Metro and mountain rules differ
- Denver metro tends to restrict short-term rentals to your primary residence, which limits investment-only STRs. Evergreen and unincorporated Jefferson County have their own considerations.
- Mountain and resort areas — Grand County, the Town of Winter Park, Fraser and their neighbors — often allow non-primary STRs but may cap permits by zone, set occupancy limits, require local contacts, and enforce parking and noise rules. Some areas use waitlists or temporary moratoriums.
Don't forget the HOA
Even where the city allows STRs, your HOA or covenants may restrict or ban them, or set minimum-stay rules. Check your governing documents early — this is the rule owners most often miss.
Why it matters for your bottom line
Compliance isn't only risk-avoidance. Minimum-stay rules, occupancy caps, and permit timing all affect how much your home can earn — and getting licensed correctly the first time avoids fines and listing takedowns.
This is exactly the kind of thing a local manager handles for you. We stay on top of the rules in the markets we serve, keep owners advised of changes, and can act as your local licensing and permit contact.