Short-term rental rules · Denver, Colorado
Short-term rentals in Denver, explained properly.
Denver only allows short-term rentals in the host's primary residence — investor-owned second homes and non-owner-occupied units cannot be licensed. A city business license, a lodger's tax account, and $1 million in liability insurance are required.
Draft. These rules were compiled from the official sources listed below but have not yet been checked line by line. Confirm with the city before making decisions.
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| Are short-term rentals legal? | Yes, primary-residence only[1] |
| Must the owner live there? | Yes — the unit must be the license holder's primary residence[2] |
| Can an ADU be the short-term rental? | Yes, but only if the owner lives in the main house[2] |
| What does a license cost? | Up to $150 to apply, $100/year to renew[3][1]Confirming |
| Is insurance required? | Yes — $1 million in liability coverage[4] |
| Do booking platforms enforce licensing? | Yes — platforms must block unlicensed listings[1] |
| Denver lodger's tax rate | 10.75% of rent[3]Confirming |
| Total tax rate on a short-term rental stay | About 19.9% (10.75% lodger's tax + 9.15% sales tax)[5][3]Confirming |
| Can multiple bookings overlap? | No — only one rental contract at a time[2] |
| Last researched | September 24, 2026 |
Watch this market
Want to know when Denver's rules change?
We watch Denver's official rule pages, council agendas and Colorado legislation. When a change affecting short-term rentals is proposed or passed, we email you what changed, when it takes effect, and a link to the source.
No spam. Unsubscribe anytime. See our privacy policy.
Detailed rules
The full picture, section by section
Eligibility & zoning
| How is primary residence verified? | Multiple factors, not a single document[2] 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. |
|---|---|
| Can a second home or investment property be licensed? | No[1] 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. |
| Does someone local need to be reachable? | Yes — a Local Responsible Party/General Manager[4] 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. |
Licensing & applications
| What does the application require? | Business license, lodger's tax ID, insurance and HOA affidavits[3][4] 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. |
|---|---|
| How often is the license renewed? | Annually[3]Confirming Renewal carries no fee unless the license was previously revoked; a new license costs up to $150. |
Operating requirements
| What counts as a short-term rental? | Stays of fewer than 30 consecutive days[3]Confirming 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. |
|---|---|
| How is the rule enforced? | Complaint-driven and proactive inspections; fines up to $999 per incident[2] 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. |
| Must the license number appear in listings? | Yes[6][1]Confirming Hosts must include their city-issued license/registration ID number on their booking platform listing so the city can match listings to licenses; platforms are barred from processing bookings for unlicensed addresses. |
Taxes & fees
| Lodger's tax | 10.75% of rent, remitted to Denver Treasury[3]Confirming Applies to all short-term rental stays; collected in addition to standard sales tax. |
|---|---|
| Combined sales tax | 9.15% (state, city, RTD, and cultural-district portions)[5] Colorado's state rate is 2.9%; Denver adds a 5.15% city rate, a 1.0% Regional Transportation District rate, and a 0.1% Scientific & Cultural Facilities District rate. |
| Any special property-tax treatment for STRs? | No — a 2024 bill to reclassify non-owner-occupied STRs for property tax purposes failed[7] 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. |
Changes
Recent and pending changes
Checked Denver City Council's legislative tracker (Legistar) and recent Denver Gazette/Westword coverage for pending short-term rental items as of September 2026; found no new STR ordinance currently moving through council. Colorado's legislature has twice tried and failed (2022 and 2024) to pass a bill that would tax non-owner-occupied STRs as commercial lodging property — worth watching for reintroduction in a future session.
HB24-1299, which would have taxed short-term rental units that are not a primary or secondary residence at the much higher "lodging property" tax rate, was postponed indefinitely by the House Finance Committee in a 10-0 vote, following a similar failed attempt in 2022. It never took effect.
Council Bill CB20-1229 prohibited booking platforms such as Airbnb and Vrbo from processing bookings for Denver short-term rentals that lack a valid city license.
Council Bill CB20-0240 updated how the city verifies primary residence and increased short-term rental licensing fees.
Sources
Every rule above links to one of these
Newsletter
Not tracking Denver specifically?
One email a month with STR rule changes across the US markets we track.
No spam. Unsubscribe anytime. See our privacy policy.
Questions
Managing properties in several cities?
Tell us what you're trying to decide and which markets you operate in. We read every message.
This page is general information compiled from official 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.