Short-term rental rules · Avon, Colorado
Short-term rentals in Avon, explained properly.
The Town of Avon, in Eagle County, requires a Short Term Rental License, which also serves as the Town business license, before a home is operated or advertised as a rental of fewer than 30 consecutive days. Short-term rentals are allowed through the Short Term Rental Overlay zone district and, by application, inside the Town Core, but not in a deed-restricted unit or one used as a primary or full-time residence. Outside the Town Core, the licenses for each multi-family Property are capped at 15% of its units, with no limit on Resident Occupied or Limited (42-night) licenses. Annual fees run from $150 to $500, and the Town adds a 2% community housing short-term rental tax and a 4% public accommodations tax. We haven't reviewed the zoning map showing which properties are in the overlay, the Town Core Map, the primary-residence definition, the general business license penalties or three ordinances adopted in August and October 2026 but not yet in the code, so confirm an address with the Town before you buy.
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| Are short-term rentals allowed? | Conditional: allowed in the Short Term Rental Overlay (STRO) zone district and, by application, inside the Town Core, with a Town license; not permitted in a unit that is deed restricted or used as a primary or full-time residence [1] [2] Clause 1 Clause 2Confirming |
| Town short-term rental license required? | Yes: a Short Term Rental License, which also serves as the Town business license for the unit, must be obtained before operating or advertising a rental of fewer than 30 consecutive days; the fee is paid annually. License types: STR, Limited (L-STR), Resident Occupied (RO-STR) and Front Desk/Manager for time share [3] Clause |
| Annual license fees | RO-STR $150; Front Desk/Manager for time share $250 plus $25 for each bedroom used for short term rental; STR and Limited STR by size: studio or one bedroom $350, two bedrooms $400, three bedrooms $450, four or more bedrooms $500; paid annually in place of the business license fee [3] ClauseConfirming |
| Local taxes on short stays | Two Town taxes are written into the Code: a 2% community housing short-term rental tax (Chapter 3.29, in effect since January 1, 2022) and a 4% public accommodations tax on hotel rooms, condominium units, timeshare units and other accommodations (Chapter 3.28); Colorado's state tax is separate [4] [5] [1] Clause 1 Clause 2 Clause 3Confirming |
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Detailed rules
The full picture, section by section
Licensing and limits
| Is there a cap on the number of short-term rental licenses? | Conditional: only in the STRO zone district and outside the Town Core, the licenses for a Property are capped at 15% of its residential units, rounded up and never fewer than one; there is no limit on RO-STR or L-STR licenses [3] Clause Section 5.04.050(g) sets the cap. A Property means a multi-family residential development tied to a site-specific subdivision plat approval, which typically has a distinct subdivision name. The cap is set per Property, not Town-wide. How licenses under the cap are allocated among applicants hasn't been reviewed yet; ask the Community Development Department. |
|---|---|
| Is there an annual limit on rental nights? | Yes: a Limited Short Term Rental (L-STR) license is limited to 42 nights of rental within the 365-day period the license is valid, not counting rental periods of more than 30 consecutive nights [3] Clause Section 5.04.050(b)(2) defines the Limited Short Term Rental and its 42-night limit. L-STR licenses are not counted against the 15% license cap in Section 5.04.050(g). |
| Can a deed-restricted or primary-residence unit be rented short term? | Conditional: the zoning text bars short term rental in a unit that is deed restricted or used as a primary or full-time residence, but a Resident Occupied Short Term Rental (RO-STR) license lets a full-time resident rent a portion of the residence, such as other bedrooms, without renting the whole residence [1] [3] Clause 1 Clause 2Confirming Section 7.20.090 says short term rental is not permitted for a residential unit that is deed restricted for affordable housing, or for long-term, primary or full-time residential use (and the Town Core text bars units reserved for Community Housing). Section 5.04.050 separately creates the RO-STR license for a residence that is the holder's Primary Residence (defined in Section 3.12.020, which hasn't been reviewed yet), where a portion of the residence, not the entire residence, is rented. An RO-STR holder must name the resident or residents and be physically in residence for a portion of each day that there are renters. The two sections treat primary residences differently, and how the overlay's bar applies to an RO-STR hasn't been settled from the sections reviewed, so confirm with the Town before relying on either reading. |
Operating rules
| Must a management contact be available to renters? | Yes: the license holder must give all renters current contact information, including a cell phone number and email address, for a Management Contact who responds by phone or email within 4 hours and in person (personally or through a designee or agent) within 24 hours [3] Clause Section 5.04.050(d)(1). The contact handles urgent matters such as water leaks or heating malfunctions. This is one of the Minimum STR Management Requirements, which the holder must continuously meet and affirm by affidavit each year. |
|---|---|
| What is the maximum occupancy? | Two persons per bedroom and loft area, plus two persons [3] Clause Section 5.04.050(d)(3), one of the Minimum STR Management Requirements. Failing to continuously meet these requirements is grounds for denial, suspension or revocation of the license. |
| What parking is required? | One legal off-street parking space that meets the parking requirements of a Development Plan approved by the Town, or the minimum parking requirements in the Avon Development Code [3] Clause Section 5.04.050(d)(6). The Development Code's parking minimums haven't been reviewed yet, so the number of spaces for a given property isn't stated here. |
| What safety equipment is required? | Smoke alarms, carbon monoxide alarms and fire extinguishers as required to meet minimum building codes for transient occupancy; wood burning fireplaces, stoves and chimneys must be cleaned annually [3] Clause Section 5.04.050(d)(2) and (d)(4). The building code's specific equipment requirements haven't been reviewed yet. |
| What noise and nuisance rules apply? | The license holder must tell renters that noise disturbing occupants of neighboring residential units is not permitted before 8:00 a.m. or after 10:00 p.m., and that nuisances, including odors, smoking and barking dogs, will not be tolerated [3] Clause Section 5.04.050(d)(8) and (d)(9). The Code's general noise and nuisance chapters haven't been reviewed yet. |
| Must the license number appear in advertisements? | Yes: every advertisement must prominently display the Avon business license number as "Avon STR License No." followed by the number; the license must be obtained before the rental is advertised [3] Clause Section 5.04.050(f). Advertisement covers signage, mailing, print, internet listings, email, social media, telephone and any other communication meant to induce a person to rent the property. Advertising without a license, or leaving out the number, is a violation of Chapter 5.04. |
| What other management requirements apply? | The holder must keep the property fit for occupancy (plumbing, electrical, heating and cooling, doors and windows), provide trash and recycling service or access on the property, represent the unit and its amenities accurately, and give renters these rules and the license number [3] Clause Section 5.04.050(d)(5), (7), (10) and (11). The Town may also set additional minimum information for renters. |
Enforcement
| What are the penalties for violations? | The Community Development Department investigates complaints and recommends non-action, a warning, a fine, or denial, suspension or revocation of the license; revocation follows the procedures in Section 5.04.110, and the general violation, penalty and enforcement provisions of Chapter 5.04 apply [3] [4] Clause 1 Clause 2Confirming Section 5.04.050(i). The fine amounts and the general Business License provisions in Chapter 5.04 (including Section 5.04.110) haven't been reviewed yet, so no fine amount is stated here. Operating without a license, advertising without one, leaving the license number out of an advertisement, and failing to meet the minimum management requirements are each violations. The Code's lodging and short-term rental tax chapters add their own interest and penalties: for example, Chapter 3.29 adds interest of 1.5% per month and a 10% penalty (50% where fraud or intent to evade is shown) on late or deficient tax. |
|---|
State law that also applies
| State sales tax on short stays | 2.9%, plus any local sales taxes the state collects [6] [7] Clause 1 Clause 2 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). |
|---|---|
| Which stays are taxed? | Stays of less than 30 days [7] Clause 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. |
| Colorado sales tax license required? | Yes, unless you rent only through a booking platform that collects the state-collected taxes for you [7] [6] Clause 1 Clause 2 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. |
| Do booking platforms collect state taxes? | Yes, for state-collected taxes [7] Clause 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). |
| City lodging and home-rule city taxes | Paid to the city, not the state [7] Clause 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. |
Changes
Recent and pending changes
We read the Town of Avon Home Rule Charter and Code on Municode (online content updated September 23, 2026, codified through Ordinance 26-09 adopted July 28, 2026): Section 5.04.050, Section 7.20.090, the Town Core definition in Section 7.08.010, and Chapters 3.28 and 3.29. Three ordinances adopted since then (26-10, 26-11 and 26-01) are not in the code yet and we haven't reviewed their text. We haven't found or reviewed the Town Council agendas, so a newer change could exist. Watch the code's list of adopted ordinances not yet codified and the Town Council agendas.
The Town Council adopted this ordinance on October 6, 2026. It is listed on Municode as enacting Municipal Code Section 9.08.110 on deceptive business practices, and the Municode code title page says it has been enacted but not yet codified. We haven't reviewed its text, so we can't say whether it changes anything on this page.
The Town Council adopted this ordinance on August 25, 2026. It is listed on Municode as approving amendments to Municipal Code Title 15, Building and Construction, and the Municode code title page says it has been enacted but not yet codified. We haven't reviewed its text, so we can't say whether it changes anything on this page.
The Town Council adopted this ordinance on August 25, 2026. It is listed on Municode as repealing Section 3.40.100, Impact Fee Schedule, and the Municode code title page says it has been enacted but not yet codified. We haven't reviewed its text, so we can't say whether it changes anything on this page.
Sources
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This page is general information compiled from public sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.