Short-term rentals in Denver, explained properly.

The city weighs where the applicant claims residency for legal, tax, or voting purposes, how often they return to the property within the year, their employment location and income sources, how frequently the unit is rented out, and military deployment status. Staying at the property only when it isn't rented, or only "when in Denver," does not qualify.

Non-owner-occupied units and investor-owned second homes cannot obtain a short-term rental license in Denver; this is the central restriction of the ordinance and the main reason Denver is more restrictive than many peer cities.

Every license must designate a Local Responsible Party or General Manager with contact information, per Denver Municipal Code section 33-50, to respond to issues at the property.

Applicants apply through the Department of Excise and Licenses for a business license, register separately with the Treasury Division for a lodger's tax ID, and submit affidavits confirming their insurer and (if applicable) their HOA have been notified of the short-term rental use.

Licenses run for one year and must be renewed on time to avoid fines; renewal can be done up to 60 days before expiration. The $100 annual license fee applies each year (a new license also pays a one-time $50 application fee).

Denver's ordinance defines short-term rentals by the length of stay; longer bookings fall outside the STR licensing regime and are treated as standard tenancies. A listing that sets a minimum stay of 29 nights does not need a license, but the city requires that minimum to be enforced in the booking calendar, not just stated in the listing text.

The city investigates complaints and also runs proactive inspections/audits of listings. Violations can draw fines of up to $999 per incident, with license suspension or revocation for properties that harm neighborhood health, safety, or welfare.

It is unlawful to advertise a Denver short-term rental without displaying the city-issued business file number; on Airbnb it goes in the "Registration/License Number" field. Platforms are also barred from processing bookings for unlicensed addresses.

Applies to short-term rental stays instead of Denver's 5.15% city sales tax; the State of Colorado separately collects 4%. Licensees also owe Denver's occupational privilege tax ($48 a year).

Colorado's state rate is 2.9%, plus 1.0% RTD and 0.1% Scientific & Cultural Facilities District (4% collected by the state). Denver's 5.15% city sales tax applies to ordinary retail sales, but short-term lodging pays Denver's 10.75% lodger's tax instead.

HB24-1299 would have reclassified short-term rental units not used as a primary or secondary residence as "lodging property" (a higher, non-residential property tax classification). The Colorado House Finance Committee postponed it indefinitely on April 22, 2024, so it did not become law; a similar prior version also failed in 2022. Watch for reintroduction.