Short-term rentals in Arvada, explained properly.

Except as noted in the section or the Rules, a Permit may be issued only in the name of one natural person 18 years of age or older with an Ownership Interest of 20 percent or more in the Property, or who is the named beneficiary of a trust holding the Property. An entity that holds a Permit or license on May 1, 2026 may continue to hold it for the duration of its term. On renewal the entity must designate a natural person as its Permittee. If an entity's Permit lapses, expires, is abandoned or revoked, or the Property is sold or transferred, a new Permit must be issued to a natural person. A Permittee's ownership falling below 20 percent ends the permit (see the transfer rule).

LDC 3-1-5-3(H)(2) limits each person to three permits. Separately, only one STR Permit may be issued per Lot (M.2). Each Permit is assigned a unique number that must appear in all advertising and listings.

LDC 3-1-5-3(M)(2). Renting a bedroom, lock-off or other portion of the permitted Property is allowed under the same permit (see the portion-rented rule).

A Permit is issued only to the Permittee and only for the Property named; it does not run with the Property. If the Permittee sells or transfers their Ownership Interest, or their interest falls below 20 percent, the Permit is deemed terminated and revoked as of the date of the sale or transfer. A buyer needs a new Permit in the buyer's own name.

LDC 3-1-5-3(M)(1). This sits alongside the rule that an STR may be allowed in a primary Dwelling.

Operating without a business license is unlawful (LDC 3-1-5-3(S)(7)), and a conviction for it can bar a new application for one year. A business license application is processed by the director of finance under the City Code. We haven't reviewed the business license fee.

A Permit issued on March 20 of a year is valid through March 19 of the following year unless suspended, revoked or abandoned. Renewals follow the section and the STR Program Rules, which we haven't reviewed. STR licenses valid when the ordinance took effect stayed in effect until they expired or were suspended, revoked or abandoned.

The one-year bar applies to a revoked Arvada STR Permit and to a guilty finding in municipal court for operating an STR without a Permit, not posting the Permit inside the Property, falsifying, defacing or altering a Permit, offering an STR without a business license, or not paying lodging, sales and other taxes. The Director also may not accept an incomplete application.

By filing an application the applicant consents to inspections to decide eligibility or check compliance with other laws. The Director may allow a city inspector or a licensed or certified third-party inspector to do the inspection. We haven't reviewed the inspection standards.

LDC 3-1-5-3(L)(6). Permittees must keep records of the total nights and dates the STR was rented (subsection N), starting from the date the Permit was issued and, on renewal, for one year before the current Permit was issued.

LDC 3-1-5-3(R)(4) applies to any person or Marketplace Facilitator. The LDC defines an STR as a rental of less than 30 consecutive calendar days, and renting for 30 or more consecutive days is outside the section.

The Permit application must list the number of bedrooms at the STR's largest configuration, and the maximum number of overnight occupants must appear in all advertising. Exceeding the limit is unlawful for anyone, including guests.

LDC 3-1-5-3(L)(1). If the entire premises is used or rented as an STR, no additional on-site parking space is required.

LDC 3-1-5-3(L)(5). The parking rule treats renting only part of the premises differently from renting all of it.

Advertising or listing an STR without the Permit number clearly displayed is unlawful for any person or Marketplace Facilitator. The Permit must also be affixed near the primary entrance so an ordinarily observant person entering can see it. The maximum overnight occupancy must appear in advertising too.

Renting or offering an STR without all three is unlawful (LDC 3-1-5-3(S)(2)), and a Peace Officer may issue a summons for it without a prior warning. The Property must also comply with the City's property maintenance, fire and building codes.

Renting or offering an STR without that insurance is unlawful (LDC 3-1-5-3(S)(6)). The coverage limits are set by the Director, and we haven't reviewed them.

LDC 3-1-5-3(R)(7). Cameras that capture only outdoor areas such as a porch, driveway, lawn, garden, patio or deck are allowed. A Permittee or agent may record inside the Property when no one is renting it, or when each guest has been told of and consented to the recording beforehand. Guests may record in areas they are allowed to be in, and officials may record within the course of their duties.

LDC 3-1-5-3(T)(5). A Peace Officer may issue a summons for it without a prior warning. The definition of Large Social Gathering hasn't been reviewed, so the size that triggers the rule isn't confirmed here.

Noise must comply with Chapter 38 of the City Code, and a nuisance as defined in that chapter is not allowed. The Permittee must keep weekly rubbish and garbage service and follow the International Property Maintenance Code, including lawn mowing, weed removal, and snow and ice removal. These duties apply to the Permittee, guests and occupants.

A Permittee keeps the total nights rented, the dates rented and other records needed to comply, from the date the Permit was issued (and for one year before a renewal Permit was issued). Each Marketplace Facilitator keeps, for five years from each transaction, the Permittee's name, the STR address, the booking dates, the price the guest paid and the Permit number. Failing to keep the records is unlawful.

Under LDC 3-1-5-3(R) it is unlawful for a Marketplace Facilitator to knowingly advertise or facilitate an unpermitted STR or take payment for one, to list an STR without the Permit number, or to broker online STR reservations for payment without a City business license. A platform must remove an unpermitted STR within seven calendar days of notice from the Director that the STR is not permitted or the Permit is suspended or revoked. We haven't reviewed the definition of Marketplace Facilitator.

Non-payment of lodging, sales and other taxes is unlawful and can bar a new application for one year; Permittees are subject to City finance department audits. We haven't reviewed Article V of Chapter 98, so the City tax rates and filing rules aren't confirmed here.

A guilty finding in municipal court for offering or renting an unpermitted Property, not posting the Permit, or falsifying, defacing or altering a Permit carries a minimum fine of $2,000.00 per violation. Any other violation of the section carries a minimum of $500.00 for a first conviction, $1,000.00 for a second within any 365-day period and $2,000.00 for a third or later. No part of a minimum fine may be suspended. A judge may impose conditions and a greater sentence, including imprisonment, under Section 1-5 of the City Code. Every day a violation continues is a separate violation. A Peace Officer may issue a summons without a warning for listed violations, including no permit, no business license, exceeding occupancy, a Large Social Gathering and missing safety equipment.

Administrative proceedings follow the STR Program Rules, which we haven't reviewed. Criminal and administrative action can run at the same time. Delinquent charges, assessments or taxes become a lien against the property once recorded; if unpaid 30 calendar days after the statement, the city clerk may certify them to the county treasurer for collection with a ten percent penalty. The Director can also place conditions on a permit, and a property can be red-tagged under the building code.

Colorado charges its 2.9% state sales tax on the entire amount charged for rooms and accommodations. A stay may also owe local sales taxes that the Colorado Department of Revenue collects for counties and special districts, and any sales tax of a home-rule city that collects its own tax (see below).

State sales tax does not apply to a room or accommodations rented to a person who is a permanent resident of it and has a written agreement to occupy it for at least 30 consecutive days. Shorter stays are taxed.

The Colorado Department of Revenue says anyone who offers rooms or accommodations for rent must get a Colorado sales tax license and collect sales tax on taxable rentals. A seller who makes sales only through a marketplace may be exempt from licensing, collection and filing if the marketplace collects all state and state-administered local sales taxes for them. The license costs $16 (prorated) plus a $50 deposit, a separate license is needed for each business location, and licenses expire on December 31 of odd-numbered years.

For rooms rented through a marketplace (including online platforms), the marketplace facilitator must collect and remit the state sales tax and the local sales taxes the state collects, plus any county lodging tax and local marketing district tax. City taxes in home-rule cities are separate (see below).

The Colorado Department of Revenue does not administer any lodging tax imposed by a city or town, and it does not collect sales tax for home-rule cities that collect their own. Those taxes are licensed, filed and paid with the city.