If you’re considering short-term rentals in Denver, understanding the city’s regulations is essential. This comprehensive guide explains licensing requirements, zoning restrictions, and compliance tips to help property owners legally operate their Airbnb or VRBO in Denver.
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Denver’s Short-Term Rental Regulations: A Complete Guide for Property Owners

Thinking about turning your Denver property into a short-term rental? Before you start welcoming guests and collecting those five-star reviews, you need to understand the rules of the game. Denver has specific regulations governing short-term rentals that every property owner must follow to operate legally and avoid potentially costly penalties.

At SimplifyRenting, we’ve helped countless property owners navigate Denver’s short-term rental landscape. This guide breaks down everything you need to know about the city’s regulations, licensing requirements, and compliance best practices.

What Qualifies as a Short-Term Rental in Denver?

Denver defines a short-term rental as the rental of a residential dwelling unit, or portion of it, for less than 30 consecutive days. This includes rentals listed on platforms like Airbnb, VRBO, HomeAway, and similar booking sites.

It’s important to note that Denver’s regulations apply specifically to short-term rentals. If you’re renting your property for 30 days or more at a time, different rules apply under standard residential leasing laws.

Denver’s Primary Residence Requirement

One of the most significant regulations in Denver is the primary residence requirement. To operate a short-term rental in Denver, the property must be your primary residence—meaning it’s the place where you live for at least 183 days per year.

This requirement was implemented to prevent investors from purchasing multiple properties solely for short-term rental purposes, which could potentially reduce housing availability for local residents.

What This Means for Property Owners:

You can rent out your entire home when you’re away (on vacation, business trips, etc.), but you cannot purchase or maintain a property exclusively for short-term rental purposes if you don’t live there.

You can also rent out a portion of your home (like a basement apartment or spare bedroom) while you continue living in the main residence.

Obtaining a Short-Term Rental License in Denver

All short-term rental operators in Denver must obtain a license from the city. Here’s what you need to know about the licensing process:

License Requirements:

To qualify for a license, you must provide proof that the property is your primary residence. This can include documents such as your voter registration, tax documents, or utility bills that show your name and the property address.

You’ll need to attest that your property meets basic safety requirements, including functioning smoke detectors, carbon monoxide detectors, and fire extinguishers.

You must have liability insurance that covers short-term rental activity, with a minimum of $1 million in coverage.

Application Process:

Applications can be submitted online through the Denver Business Licensing Center.

The current fee for a short-term rental license is $25 annually (though fees are subject to change, so always check the city’s website for the most current information).

Your license number must be displayed on all online listings and advertisements for your rental property.

Tax Requirements for Denver Short-Term Rentals

Operating a short-term rental in Denver means you’re responsible for collecting and remitting certain taxes:

Lodger’s Tax (10.75%): This is charged on the price of accommodations for stays of less than 30 consecutive days.

Sales Tax: Denver’s standard sales tax applies to short-term rentals.

Some booking platforms automatically collect and remit these taxes on your behalf, but as the property owner, you’re ultimately responsible for ensuring all taxes are properly paid.

Zoning and Homeowner Association Considerations

Even with a city license, your property might face additional restrictions:

Zoning: While Denver’s zoning code generally allows short-term rentals in residential areas, specific zone districts might have additional limitations.

HOA and Condo Restrictions: If your property is part of a homeowners association or condominium complex, check the bylaws or CC&Rs (Covenants, Conditions, and Restrictions). Many HOAs have implemented their own restrictions or outright bans on short-term rentals, which can supersede your legal right to operate under city regulations.

Compliance and Enforcement

Denver takes short-term rental compliance seriously. The city actively enforces its regulations through:

Regular audits of online listings to ensure they have valid license numbers

Investigation of complaints from neighbors or guests

Verification of primary residence status

Penalties for non-compliance can include fines starting at $150 for first offenses and increasing with subsequent violations, license revocation, and even criminal charges for operating without a license.

Good Neighbor Guidelines

Beyond legal requirements, being a good neighbor is essential for the long-term success of your short-term rental. Denver encourages hosts to:

Provide guests with clear information about parking restrictions and regulations

Set explicit rules about noise, especially during evening hours

Give neighbors your contact information so they can reach you if issues arise

Properly manage trash and recycling in accordance with city schedules

Let SimplifyRenting Handle the Complexity

Navigating Denver’s short-term rental regulations can be complicated, especially when you’re also trying to market your property, manage bookings, and maintain your space. That’s where we come in.

At SimplifyRenting, we specialize in full-service short-term rental management in Denver. Our team stays up-to-date with all city regulations and handles the compliance aspects of your rental property, giving you peace of mind while maximizing your rental income.

Ready to turn your Denver property into a successful, compliant short-term rental?

Contact SimplifyRenting today to learn how our comprehensive management services can help you navigate the regulatory landscape while boosting your rental income by up to 24% above similar properties. Our local expertise and dedication to regulatory compliance mean you can enjoy the benefits of short-term rental ownership without the headaches.

Get started now by calling us or filling out our online contact form. Transform your property into a profitable, fully compliant short-term rental with SimplifyRenting as your trusted partner.