Denver has established comprehensive regulations for short-term rentals (STRs) to balance the growing vacation rental industry with neighborhood preservation and housing availability. This guide covers everything you need to know about legally operating an Airbnb or vacation rental in Denver, Colorado.
License Required
Yes - Short-Term Rental License
Primary Residence Only
Must live there 275+ days/year
Denver's short-term rental regulations were first implemented in 2016 and have evolved significantly since then. The city defines a short-term rental as any residential property rented for fewer than 30 consecutive days. These regulations are enforced by the Denver Department of Excise and Licenses in coordination with the Treasury Division for tax compliance.
The cornerstone of Denver's STR policy is the primary residence requirement, which limits short-term rentals to the host's primary home. This policy was designed to prevent investors from purchasing multiple properties solely for vacation rental purposes, helping to preserve housing stock for long-term residents.
Key Point: Denver distinguishes between "hosted" stays (where the owner is present) and "un-hosted" stays (where the property is vacant). Both require licensing, but the same primary residence rules apply to each.
Who Needs to Comply?
Homeowners renting their property on Airbnb, Vrbo, or other platforms
Tenants subletting with landlord permission (written consent required)
Property managers operating STRs on behalf of owners
Anyone advertising or accepting bookings for stays under 30 days
License Requirements
All short-term rental operators in Denver must obtain a valid Short-Term Rental License before listing their property. Operating without a license is illegal and subject to significant penalties.
How to Apply for a Denver STR License
Create an Account: Register on the Denver eLicensing portal at denvergov.org
Complete Application: Fill out the Short-Term Rental License application form
Provide Proof of Residency: Submit documents proving primary residence (see requirements below)
Submit Insurance Proof: Provide certificate of liability insurance with minimum $1 million coverage
Pay Application Fee: Submit the $50 application fee (non-refundable)
Pass Inspection: Schedule and pass a safety inspection if required by the city
Receive License: Processing typically takes 2-4 weeks
License Fees
Fee Type
Amount
Frequency
Initial Application
$50
One-time
Annual Renewal
$25
Yearly
Late Renewal
$50
Per occurrence
License Reinstatement
$100
Per occurrence
Required Documentation
Government-issued photo ID with property address
Colorado driver's license or state ID showing property as primary address
Recent utility bills (within 60 days) in your name at the property
Voter registration or vehicle registration at the property address
Proof of liability insurance ($1 million minimum coverage)
HOA approval letter (if applicable)
Landlord written consent (if renting)
Annual Renewal Required: STR licenses must be renewed annually. Denver sends renewal notices 60 days before expiration, but it is your responsibility to ensure timely renewal. Failure to renew results in automatic license expiration and potential fines for continued operation.
Primary Residence Requirement
Denver's primary residence requirement is the most important regulation for STR operators to understand. This rule fundamentally limits who can operate a short-term rental in the city.
Definition of Primary Residence
Your primary residence is the home where you live for at least 275 days per calendar year (approximately 9 months). This is the address that appears on your driver's license, tax returns, and voter registration.
What This Means for Hosts
Single Property Limit: You can only have ONE licensed STR - your primary home
No Investment Properties: Second homes, vacation homes, and investment properties do NOT qualify
No Multiple Listings: You cannot obtain STR licenses for multiple properties in Denver
Entire Home or Rooms: You can rent the entire home when away or individual rooms while present
Proving Primary Residence
The city requires at least two forms of proof that the property is your primary residence:
Colorado driver's license or ID with property address
Most recent federal or state tax return showing property address
Current voter registration at property address
Vehicle registration at property address
Utility bills in your name (gas, electric, water - not cable/internet)
Enforcement: Denver actively investigates primary residence claims. The city uses data analysis, platform monitoring, and tips from neighbors to identify fraudulent claims. Providing false information on your license application can result in license revocation, fines, and potential criminal charges.
Zoning Restrictions
Unlike some cities with complex zoning rules for STRs, Denver takes a relatively straightforward approach - if the property is your primary residence and is zoned for residential use, you can apply for an STR license.
Allowed Zoning Districts
Short-term rentals are permitted as an accessory use in most residential and mixed-use zones, including:
Single-Unit (SU) zones
Two-Unit (TU) zones
Row House (RH) zones
Multi-Unit (MU) zones
Urban Center (UC) zones with residential uses
Mixed-Use (MX) zones with residential components
HOA and Building Restrictions
While the city may approve your STR license, your Homeowners Association (HOA), condo association, or apartment building may have separate rules prohibiting or restricting short-term rentals. You are responsible for:
Reviewing your HOA covenants, conditions, and restrictions (CC&Rs)
Checking condo association bylaws and rules
Obtaining written approval from your landlord if renting
Verifying any deed restrictions on the property
Important: Having a city-issued STR license does not override private restrictions. Many Denver HOAs and condo buildings prohibit short-term rentals entirely. Violation of HOA rules can result in fines, legal action, and forced sale of your property.
Taxes & Fees (10.75% Lodger's Tax)
Denver short-term rental operators are responsible for collecting and remitting various taxes on their rental income. Understanding these tax obligations is crucial for legal compliance and accurate financial planning.
Denver Lodger's Tax
The primary tax applicable to short-term rentals is Denver's Lodger's Tax at 10.75%. This tax applies to all accommodations rented for fewer than 30 consecutive days.
Tax Type
Rate
Collected By
Denver Lodger's Tax
10.75%
City of Denver
Colorado State Sales Tax
2.9%
Colorado DOR
RTD Tax (if applicable)
1.0%
Colorado DOR
Cultural Facilities District
0.1%
Colorado DOR
Typical Total Tax Rate
14.75%+
-
Platform Tax Collection
Most major booking platforms have entered into tax collection agreements with Denver and Colorado:
Airbnb: Collects and remits Denver lodger's tax and Colorado state taxes automatically
Vrbo: Collects and remits Denver lodger's tax and Colorado state taxes automatically
Booking.com: Collects and remits applicable taxes in most cases
Direct Bookings: You are responsible for collecting and remitting all taxes yourself
Verify Platform Tax Status: Even if your platform collects taxes, you should verify this with the Denver Treasury Division and maintain records. You remain ultimately responsible for tax compliance regardless of platform collection.
Tax Registration & Filing
If you receive direct bookings or use platforms that don't collect taxes, you must:
Register for a Denver Tax ID with the Treasury Division
Register with the Colorado Department of Revenue for state taxes
File monthly or quarterly returns depending on volume
Remit collected taxes by the due date (typically the 20th of the following month)
Hosting Limits & Rules
Denver imposes several operational rules on short-term rental hosts to ensure guest safety and minimize neighborhood impacts.
Occupancy Limits
Maximum occupancy must comply with building and fire codes
Generally limited to 2 persons per bedroom plus 2 additional guests
Cannot exceed the limits specified on your STR license
Must be clearly communicated in your listing
Safety Requirements
Working smoke detectors on every level and in each bedroom
Carbon monoxide detectors if property has fuel-burning appliances or attached garage
Fire extinguisher accessible to guests
Clear emergency exit routes and information posted
Host responsible for guest behavior and any violations
Excessive complaints can result in license suspension
No outdoor events or parties without proper permits
Parking Requirements
Provide information about on-site parking availability
Communicate street parking rules and permit requirements
Cannot exceed normal parking capacity of the property
Listing Requirements
Your STR listing must include:
Valid Denver STR license number displayed prominently
Accurate property description and photos
Maximum occupancy limits
House rules including quiet hours and parking
Local contact person available 24/7 for emergencies
Penalties for Non-Compliance
Denver takes STR regulation enforcement seriously. The city uses multiple methods to identify violations, including platform monitoring, data analysis, and a complaint-based system.
Fines and Penalties
Violation
Penalty
Additional Consequences
Operating without a license
Up to $999/day
Cease operations immediately
False information on application
$999 + license revocation
Barred from future licensing
Failure to display license number
$150-$500
Listing removal
Tax evasion
Back taxes + 10-25% penalty
Interest charges, potential criminal charges
Repeated noise violations
$150-$999 per incident
License suspension/revocation
Exceeding occupancy limits
$500-$999
License suspension
Warning: Denver actively monitors Airbnb, Vrbo, and other platforms for unlicensed listings. The city has partnered with third-party services to identify properties operating without valid licenses. First-time offenders may receive a warning, but subsequent violations result in maximum fines.
Enforcement Process
Detection: City identifies potential violation through monitoring or complaint
Investigation: Excise and Licenses investigates the property
Notice of Violation: Written notice sent to property owner
Compliance Period: Typically 10-30 days to correct violation
Citation/Fine: If not corrected, fines are assessed
Appeal Process: Violators can appeal through administrative hearing
2026 Regulatory Updates
Denver continues to refine its short-term rental regulations. Here are the key changes and updates effective in 2026:
January 2026
Enhanced Platform Coordination
Denver has expanded data-sharing agreements with major platforms to improve enforcement. Platforms now verify license status before allowing new listings and remove unlicensed properties more quickly.
January 2026
Updated Safety Inspection Requirements
New and renewing licenses may require updated safety inspections focusing on fire safety, carbon monoxide detection, and emergency egress. Random inspections have also increased.
Q1 2026
Digital License Display
Denver now accepts digital license certificates that can be displayed via QR code linking to the city's verification database, making it easier for guests and neighbors to verify license status.
Ongoing
Neighborhood Impact Study
The city is conducting an ongoing study of STR impacts on housing availability and neighborhood character. Results may influence future policy changes.
Stay Informed: Regulations can change. Sign up for alerts from the Denver Department of Excise and Licenses and check the city website regularly for updates. Working with a local STR-specialized real estate agent can also help you stay current on regulatory changes.
Frequently Asked Questions
Yes, Denver requires all short-term rental operators to obtain a Short-Term Rental License from the Denver Department of Excise and Licenses. The property must be your primary residence, meaning you live there at least 275 days per year. The license costs $50 for the initial application and $25 for annual renewals. Operating without a license can result in fines up to $999 per day.
Denver's primary residence requirement means you can only operate a short-term rental in your primary home - the residence where you live for at least 275 days per year. You must provide proof of residency such as a driver's license, voter registration, or utility bills. Investment properties and second homes do not qualify for STR licensing in Denver.
Denver short-term rental operators must collect and remit a total lodger's tax rate of 10.75%. Additionally, you must collect the Colorado state sales tax of 2.9% and any applicable special district taxes. Most major platforms like Airbnb and Vrbo automatically collect and remit these taxes on your behalf, but you should verify your platform's tax collection status with the city.
Operating an unlicensed short-term rental in Denver can result in fines of up to $999 per day of violation. The city actively monitors listing platforms and uses third-party services to identify unlicensed operators. Repeat violations can result in permanent prohibition from obtaining an STR license and potential criminal charges. Tax evasion can result in additional penalties from the Denver Treasury Division.
To apply for a Denver STR license: 1) Create an account on the Denver eLicensing portal, 2) Complete the Short-Term Rental application, 3) Provide proof of primary residency (driver's license, utility bills, etc.), 4) Submit proof of liability insurance with minimum $1 million coverage, 5) Pay the $50 application fee, 6) Schedule and pass a safety inspection if required. Processing typically takes 2-4 weeks.
No. Denver's primary residence requirement prohibits short-term rentals in investment properties, second homes, or vacation homes. Only the property where you live at least 275 days per year can be licensed as an STR. This rule was implemented to preserve housing availability for long-term residents. If you're interested in STR investing in Colorado, consider nearby markets with different regulations or speak with a local STR agent about compliant strategies.
Need Help Navigating Denver STR Regulations?
Connect with a local Denver real estate agent who specializes in short-term rentals and understands the regulatory landscape.