Overview: Are short-term rentals allowed in Cascade, CO?

• Yes. Short-term rentals (STRs) are allowed in the unincorporated community of Cascade (El Paso County). Colorado is a “ Dillon’s Rule” state and allows municipalities and counties to license and regulate STRs. El Paso County has not adopted a countywide STR licensing or permitting system, and Cascade lies outside city limits; therefore, there is no local STR permit requirement in Cascade. You may operate an STR in residential zones subject to underlying zoning, HOA/covenants, and general public health/safety, noise, and nuisance laws. State-level taxes apply. Note: Adjacent cities such as Colorado Springs and Manitou Springs have city-specific STR regimes; those rules generally do not extend into unincorporated areas.

How to start a short-term rental business in this market

1. Confirm legality and zoning

• Verify the parcel’s current zoning allows residential use and lodging. Confirm no recorded covenants, HOA restrictions, or deed restrictions ban transient rentals. Check for recorded CCRs or deed restrictions and any HOA rules that may limit STRs.
• If part of an HOA, review the recorded covenants (not just rules) and consider whether any STR restrictions must be amended under Colorado law (e.g., CRS § 38-33.3-205(1)(l) and § 38-33.3-217(4.5)).
• Confirm utilities, access, parking, and any restrictive covenants related to “no inn” or “no transient occupancy” use.

2. Prepare the property for safe operations

• Install and maintain working smoke detectors, carbon monoxide alarms, and at least one ABC fire extinguisher on the entry level.
• Post address, emergency contact information, and evacuation routes in a visible location.
• Establish clear quiet hours and guest rules; ensure compliance with noise, trash, parking, and nuisance ordinances. If possible, designate on-site or nearby parking and secure trash storage/disposal arrangements.
• Assemble local guidebooks, lockbox/smart-lock setup, and reliable vendors (cleaning, maintenance, snow removal).

3. Obtain required licenses and taxes

• Register for a Colorado Sales Tax License if you will collect and remit sales tax on STR bookings (generally required if renting for fewer than 30 consecutive days).
• If you use a booking platform, Colorado law assigns collection/remittance duties to “marketplace facilitators,” but you remain responsible for compliance. Verify whether your platform will collect and remit the required state and local taxes on your behalf.
• If you opt out of platform collection or a platform is not collecting a specific local lodging tax, register with the applicable local tax authority and collect/remit those taxes yourself.
• Consider appropriate liability insurance for STR operations. A standard homeowners policy is generally insufficient for business activity.

4. Publish and price your listing

• Include maximum occupancy, address, contact information, and any required disclosures (e.g., quiet hours, parking rules).
• Ensure the listing aligns with your maximum occupancy, parking allowances, HOA covenants, and local rules.
• Monitor seasonal demand (peak in late spring–summer and winter months) and adjust pricing accordingly.

5. Operate and remain compliant

• Keep detailed records: guest nights, revenue, taxes collected/remitted, communications, incident reports, and maintenance logs.
• Address complaints promptly and maintain a 24/7 local contact.
• Renew business registrations and file tax returns on time (see timelines in “Required documents, permits, licenses, and guidelines” below).

Required documents, permits, licenses, and guidelines

• State-level licenses/taxes

  • Colorado Sales Tax License: Obtain from the Colorado Department of Revenue before collecting/remitting sales tax for stays under 30 days. Marketplaces often collect and remit state sales tax for you, but you must ensure accurate reporting and retain records. If no marketplace collects for you, register and collect yourself.
  • Sales/lodging tax collection: State sales tax applies. Local lodging/accommodation taxes and state-collected local sales taxes may also apply depending on the jurisdiction. It is your responsibility to identify the correct tax rate(s) and remit. If you are unsure, contact the Colorado Department of Revenue and your county/municipal tax authority to confirm.
  • Note: The information on “Lodging and Auto Rental Tax (LART)” at 2% for Cascade appears to be inaccurate. Always verify current rates with the Department of Revenue and local authorities before collecting.

• Local requirements (Cascade—unincorporated El Paso County)

  • No countywide STR license has been adopted in El Paso County; therefore, no local STR permit is required in Cascade. Confirm there are no pending county updates before launching.
  • Zoning and use: Confirm the property is in a zone district that allows residential lodging as an STR. Do not assume prior approvals in adjacent cities (e.g., Colorado Springs) apply to Cascade.
  • HOA/recorded covenants: If the property is governed by an HOA, review recorded covenants for STR limitations and ensure compliance. Amending covenants generally requires owner vote and proper procedure under Colorado law.
  • Safety and postings: Post address, emergency contact, and evacuation routes; ensure smoke/CO alarms and fire extinguisher are present and functional.
  • Parking/noise/trash/nuisance: Follow county-level noise, nuisance, solid waste, and parking rules for guest behavior and property management. Provide guests with clear guidelines to avoid violations.

• Insurance considerations

  • Standard homeowners insurance generally excludes business activity (short-term rentals). Consider carrying a dedicated STR property and liability policy. Be prepared to show proof of coverage to HOAs and local authorities if asked.
  • Adequate liability limits are strongly recommended given guest injuries, property damage, and third-party claims risk.

Specific regulations applicable to Cascade/El Paso County and Colorado

• State framework

  • County authority: HB 20-1093 (CRS § 30-15-401(1)(s)(I)) authorizes counties to license and regulate STRs. El Paso County has not adopted such a countywide system as of the sources provided.
  • Tax collection by platforms: HB 19-1240 assigns sales tax collection/remittance to marketplace facilitators for sales by marketplace sellers. However, owners are not relieved of compliance; if a platform fails to collect, you must collect and remit.
  • Property tax classification: As of the sources provided, no statewide reclassification of STR properties from residential to nonresidential has passed. Monitor legislative developments, as proposals have been introduced and may resurface.

• County posture (El Paso County)

  • No countywide STR licensing or permitting system has been adopted per the sources. Adjacent cities such as Colorado Springs and Manitou Springs operate their own systems, but those do not apply to unincorporated Cascade.
  • If El Paso County adopts countywide STR rules in the future, you would need to comply with the new ordinance, including any licensing, local lodging tax, and safety requirements.

• Municipal context (nearby, for comparison only)

  • Colorado Springs and Manitou Springs have active STR systems (e.g., permits, caps, minimum distances, occupancy/parking limits). These systems are city-specific and do not govern unincorporated areas like Cascade. If you own near city limits, ensure you know whether the subject property is within city boundaries or not.

Taxes: Collecting and remitting

• Marketplace platforms: Under Colorado law, marketplaces generally collect and remit state sales tax (and often applicable local taxes) on your bookings. Confirm your platform remits the correct local rates and retains records for you.
• Owner collection: If no platform collects for you or if you book directly, you must register for a Sales Tax License, collect the correct rates, and remit to the state and applicable local authorities on schedule.
• Lodging/accommodation taxes: Some counties and municipalities impose additional lodging or accommodation taxes. It is your responsibility to verify and collect the correct rate for your jurisdiction. As noted above, the 2% “LART” claim for Cascade is not confirmed by the provided sources and should be independently verified.
• Filing cadence: Sales tax returns are typically filed monthly, quarterly, or annually depending on volume and your business registration. Check your account status for specific deadlines and filing frequency. The provided sources do not include a specific filing cadence for El Paso County or local lodging taxes; verify directly with the Department of Revenue and the local tax authority.

Contact information (local authority in charge of STRs in this market) Note: Cascade is within El Paso County and outside any municipality. There is no active countywide STR licensing system per the provided sources. The following contacts are authoritative references for confirmation, licenses/tax registrations, and updates.

• El Paso County (County Government)

  • General: El Paso County, Colorado
  • Phone: 719-520-6000
  • Website: www.elpasoco.com

• Colorado Department of Revenue (Sales Tax License and state tax info)

  • Phone: 303-238-7378
  • Website: tax.colorado.gov

• HOA/recorded covenants

  • If your property is governed by an HOA or covenants, contact the HOA management company or review the recorded covenants (county clerk and recorder). Colorado law restricts HOA boards from amending STR-use restrictions without following formal covenant amendment procedures and owner voting thresholds.

Links to source pages

• The State of Short-Term Rentals in Colorado (Colorado Lawyer Magazine, April 2022): cl.cobar.org/features/the-state-of-short-term-rentals-in-colorado/
• Vacation Rental Management in Cascade-Chipita Park, Colorado (Summer): www.gosummer.com/vacation-rental-management/cascadechipita-park-colorado
• Updated Airbnb Laws and Regulations in Colorado (Proper Insurance, Aug 2025): www.proper.insure/regulations/airbnb-laws-colorado/

Key notes for STR investors

• Always verify current county and local rules before launch. Municipal/county STR regulations evolve rapidly.
• If your property lies very near city limits, confirm the jurisdictional boundary with the county assessor and city planning to avoid misapplying city rules to an unincorporated parcel.
• Keep meticulous records of guest nights, revenue, and tax remittances; set reminders for filing deadlines and renewals.
• Be conservative on occupancy and parking limits relative to zoning and HOA covenants; avoid over-marketing capacity that could lead to code or covenant violations.

This guide reflects the provided sources and current best understanding of Colorado and El Paso County policies for unincorporated Cascade. For specific tax rates and any future county/municipal rule changes, verify directly with the Department of Revenue, El Paso County, and any relevant local taxing districts.