Denver STR Regulations AND BEST PRACTICES
Helpful information and resources to make sure you can continue to operate your short-term rental legally.
STATE REQUIREMENT: 6.8% Residential Property Tax
All short-term rental owners in Colorado are subject to the state’s 6.8% Property Tax. Airbnb and Vrbo collect and remit this tax on your behalf for reservations booked through each respective platform. Additional tax rates vary depending on county/city tax authorities. It’s always best to check with your local jurisdiction to ensure you’re submitting the correct information.
COUNTY REQUIREMENTS
In the City and County of Denver, a short-term rental unit must be the licensee’s primary residence. A person can only have one primary residence. Investor-owned short-term rentals or multiple licenses per person are prohibited.
DENVER SHORT-TERM RENTAL REGULATIONS
The City of Denver requires a short-term rental must be your primary residence, which is verified during the application process when the applicant provides copies of the documents below with the name and address. The primary residence is defined as a person’s usual place of return.
If it is not your primary residence, you may be able to apply but must obtain a lodging facility license.
Short-term rentals must operate in a manner that does not adversely affect the public health, safety, or welfare of the neighborhood. The unit must have a functioning fire extinguisher, carbon monoxide detector, smoke alarm, and sufficient liability insurance to cover bodily and property damage. Compliance with fire, building, and zoning requirements is mandatory.
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Before Applying for a Short-Term Rental Business License, you must:
- Obtain a Colorado driver’s license or Colorado state ID showing your name and address (if your current Colorado driver’s license has a different address, you can update online here)
- A Lodger’s Tax License
- Inform your insurance company that your property will be used as a short-term rental
- Obtain liability insurance to cover the use of short-term rental in an amount determined appropriate by your insurance company, with a minimum of $1,000,000
- Inform the Homeowners Association if applicable
- Have a functioning fire extinguisher, carbon monoxide detector, smoke alarm and liability insurance to cover bodily and properly damage. Inspection could be required if the department believes the licensed premises compliant with fire, building, or zoning requirements.
To Apply for a Short-Term Rental Business License, you must have these documents:
- A Colorado driver’s license or Colorado state ID showing your name and address
- Two of the following: proof of valid motor vehicle registration, proof of voter registration, a utility bill, or federal or state tax returns or other financial documentation with your name and address.
- A Possession of Property Form signed by the landlord if you do not own the property.
- A Lodger’s Tax License
- The contact information of a general manager or local responsible party to be available to address issues when the licensee is out of town.
After obtaining your license, you must:
- Post the license number in your advertised listing. If you list on Airbnb, you must put it under the “Registration/License Number” field.
- Collect and remit Lodger’s Tax for all short-term stays.
- Airbnb, VRBO, HomeAway are licensed vendor platforms who will remit the Lodger’s Tax portion of your sales to the city, but you are still required to file your taxes, even if it a $0.
- The frequency in which you file tax returns depends on the monthly tax liability, and you could be required to file monthly, quarterly or annually. More info can be found here.
- Post a copy of your license within the unit.
- Provide a brochure in the unit with information containing contact information and instructions on city services. The one provided by the city can be found here, but if you choose to make your own, you must include all the fields on this form
As an ongoing operator of a short-term rental in Denver, you must continue to:
- Maintain functioning safety equipment and liability insurance as described.
- Collect and remit taxes as required.
- Renew your Lodger’s Tax License biannually and your short-term rental business license annually.
Prohibited Uses of Short-Term Rentals:
- Commercial events, large parties, weddings, etc.
- Commercial events, large parties, weddings, etc.
Tax Obligations:
- Lodger’s Tax: STR hosts in Denver must collect a 10.75% tax from guests for stays shorter than 30 days.
- Sales Tax: In addition to the lodger’s tax, hosts must also collect Colorado sales tax (4.0%) and Denver sales tax (4.81%).
- Filing Requirements: Hosts must obtain the necessary licenses and file tax returns, usually quarterly, to report and pay taxes to the City of Denver and the State of Colorado.
Noise Ordinance
Quiet Hours:
10:00 p.m. – 7:00 a.m. daily
Penalty for Violations: A fine up to $5,000
Best Practices
- Do not allow parties at your property and watch out for early warning signs
- Use noise monitoring to monitor noise decibel levels
- Use external security cameras to monitor guest traffic
- Inform guests of noise rules and good neighbor expectations in your listing, house rules, and pre-stay communications
Residential Parking Ordinance
Parking limitations and requirements vary by district throughout the city.
Citations Issues for Violations
Best Practices
- Do not allow parties at your property and watch out for early warning signs
- Use external security cameras to monitor guest parking
- Inform guests of parking limits, requirements, and availability in your listing, house rules, pre-stay communications, and on-site signage
Residential Waste Ordinance
Waste and recycling are to be stored in assigns bins and brought to and from the curb on corresponding pickup days.
Citations Issues for Violations
Best Practices
- Use external security cameras to monitor trash management
- Inform guests of trash and recycling management procedures in your house manual, on-site signage, and in-stay communications
Being a Great Host and Neighbor
Don't Allow Parties
Respect Quiet Hours + USE NOISE MONITORING
Honor Parking Limits
DON'T ALLOW ANY ILLEGAL ACTIVITY
Use Exterior Cameras
Meet your Neighbors and Give them Your information
Maintain Property Exterior
Be an Ambassador to Denver
REPORT A PROPERTY
FREQUENTLY ASKED QUESTIONS
SHORT-TERM RENTAL REGULATIONS
If Denver allows STRs but my HOA doesn’t, can I still host?
No, if your Homeowners Association (HOA) prohibits short-term rentals, you must adhere to their rules even if the city allows them.
What if my property falls outside of city limits – does Denver’s STR ordinance still apply to me?
No, properties outside of Denver city limits are subject to the regulations of their respective local governments.
Do I still have to file tourism taxes if the platforms remit them for me?
Yes, even if platforms like Airbnb and Vrbo remit the lodgers’ tax on your behalf, you are still responsible for filing and paying any applicable state and local sales taxes.
What is considered a short-term rental?
In Denver, a short-term rental is typically defined as a property rented out for less than 30 consecutive days.
How do I obtain a short-term rental license in Denver?
You must apply through the Denver Department of Excise and Licenses, providing necessary documentation such as proof of primary residence and insurance coverage.
What are the safety requirements for short-term rentals in Denver?
Properties must have functioning smoke detectors, carbon monoxide detectors, and fire extinguishers. Liability insurance is also required.
Can I rent out a non-primary residence as a short-term rental in Denver?
No, Denver regulations require that the property must be the owner’s primary residence.
What are the penalties for operating an unlicensed short-term rental in Denver? ?
Operating without a license can result in fines up to $1,000 per day.