Overview: Are Short-Term Rentals Allowed in Denver?

Short-term rentals are allowed in Denver, CO, but only under strict regulatory requirements. The City and County of Denver permits short-term rentals through a licensing program, with rentals defined as residential dwelling units rented for one to 29 days. This is a significant departure from a "free-for-all" approach to STRs and represents a heavily regulated environment where only primary residences can be legally operated as STRs.

How to Start a Short-Term Rental Business in Denver

Step-by-Step Process

1. Obtain a Lodger's Tax ID

   • Apply through the Denver Treasury Department
   • This is a prerequisite tax identification number
   • Note: While hosts are required to have this ID, Airbnb automatically collects the Lodger tax on bookings

2. Create an Account with Denver's Permitting and Licensing Center

   • Access the online portal at denvergov.org
   • Complete the account registration process
   • Watch navigation tutorials if needed

3. Submit Your Short-Term Rental License Application

   • Use the online application portal
   • Initial reviews typically take up to 30 days
   • Specialist reviews can take up to 90 days
   • No pre-approval is provided

4. Add License Number to Your Listing

   • Once approved, display your license number on all advertisements

Timeline Expectations

• Overall registration process: 7-10 business days (varies by application volume)
• Initial application review: Up to 30 days
• Specialist review: Up to 90 days
• Note: Current processing times may vary; check the city's website for updates

Required Documents, Permits, Licenses, and Guidelines

Essential Documents

• Colorado driver's license or Colorado identification card
• At least two of the following:
  1. Proof of valid motor vehicle registration
  2. Proof of voter registration
  3. Federal or state tax returns or other financial documentation
  4. A utility bill

Required Permits and Licenses

1. Lodger's Tax ID (from Treasury Department)
2. Short-Term Rental License (primary requirement)
3. Business License (as applicable)

Financial Requirements

• Total registration cost: $150
• Lodger Tax: Automatically collected by platforms like Airbnb on bookings

Specific Regulations for Short-Term Rentals

Primary Residence Requirement

This is the most critical regulation impacting investors:

• Definition: The place where a person's habitation is fixed for the license term and is the person's usual place of return
• Single residence rule: A person can have only one primary residence
• Common misconceptions: Claiming primary residence for tax or other governmental purposes doesn't automatically qualify for STR licensing

Operational Requirements

1. Safety compliance: Hosts must follow all safety regulations
2. Tax obligations: Must comply with all tax requirements including lodging taxes
3. Zoning compliance: Must operate within appropriate zoning areas
4. Insurance requirements: Must maintain appropriate insurance coverage
5. Advertisement rules: All advertisements must display the host's business license number
6. Host presence: There is no specific requirement for the host to be present during rentals

Enforcement Mechanisms

• Fines and penalties: Non-compliance can result in monetary fines
• License revocation: Repeated violations can lead to loss of operating license
• Platform compliance: Booking service providers are prohibited from processing transactions for unlicensed properties

Zoning Provisions

Denver has specific zoning provisions governing STR operations, detailed in the city's zoning code and regulations. Certain areas may have additional restrictions.

Tax Implications

STRs in Denver are subject to lodging taxes, which are typically collected by platforms and remitted to the city. Hosts must maintain proper tax records and comply with all applicable tax obligations.

Contact Information for Local Authority

Primary Contact

• Email: licenses@denvergov.org
• General inquiries: licenses@denvergov.org (include "public comment" in subject line for policy feedback)
• Phone: 3-1-1 (within Denver)
• Outside Denver: (720) 913-1311
• Hearing Impaired Only (TTY): (720) 913-8479

Department

Denver Department of Excise and Licenses

• Responsible for regulation and enforcement of STR licenses
• Protects public health, safety, and welfare through business regulation

Additional Resources

• Application Status: Check status through online portal
• Complaints: Submit through city's complaint system
• General Information: Visit the STR FAQ page on denvergov.org

Important Considerations for Investors

Primary Residence Impact

The strict primary residence requirement significantly impacts investment potential in Denver. This regulation prevents typical investor strategies like purchasing multiple properties for STR operations, as each property must be the host's primary residence.

Enforcement Environment

Denver actively enforces STR regulations through:

• Regular application reviews
• Complaint-based investigations
• Platform collaboration to identify unlicensed operations
• Citation and penalty systems

Business Viability

Given the primary residence limitation and regulatory requirements, Denver's STR market is better suited for:

• Homeowners seeking to occasionally rent their primary residence
• Permanent residents wanting supplemental income
• Properties where the owner maintains actual primary residence

This environment is less suitable for:

• Commercial STR operators with multiple properties
• Investors seeking to purchase non-primary residences for STR purposes
• Large-scale STR operations

Links to Source Pages

• Short-term rentals overview
• Short-term rental laws, rules, and regulations
• Denver short-term rental ordinance
• New short-term rental application
• Short-term rental FAQ
• Lodger's Tax ID application
• Online training videos

This guide reflects information available as of the source documents provided. Denver's STR regulations may change; investors should verify current requirements with the city before making investment decisions.