Meta Description: Navigate Denver’s short-term rental regulations with confidence. Learn about licensing requirements, compliance strategies, and how to legally operate your vacation rental in Denver’s regulated market.
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Short-Term Rental Regulations in Denver: What Property Owners Need to Know

Denver’s vacation rental market presents lucrative opportunities for property owners, but navigating the city’s regulatory landscape is essential for legal operation and sustainable returns. Since implementing comprehensive short-term rental regulations in 2016, Denver has maintained a structured framework that both enables vacation rental activity and places significant restrictions on which properties qualify for licensing.

Understanding these regulations is critical for current and prospective property owners looking to participate in Denver’s thriving short-term rental ecosystem. This guide breaks down the essential requirements, compliance strategies, and potential consequences of non-compliance to help you operate legally and confidently within Denver’s regulatory framework.

With proper planning and the right approach, property owners can successfully navigate these regulations while achieving strong returns in one of America’s most dynamic vacation rental markets.

Primary Residence Requirement: The Foundation of Denver’s Regulations

The cornerstone of Denver’s short-term rental regulations is the primary residence requirement. To legally operate a short-term rental in Denver, the property must be the owner’s primary residence, defined as the place where they live for at least 60 days per year. This requirement effectively prohibits non-owner occupied investment properties from operating as traditional vacation rentals (stays under 30 days).

The city verifies primary residence status through several methods, including property tax records, voter registration, tax documents, and utility bills. Falsifying primary residence status carries significant penalties, including fines up to $999 per violation and potential criminal charges for sworn false statements.

This regulation has fundamentally shaped Denver’s vacation rental landscape by preventing corporate and out-of-state investors from operating large portfolios of short-term rentals, which has helped maintain housing availability for long-term residents while still allowing homeowners to generate supplemental income from their properties.

Licensing Requirements and Process

All short-term rental operators in Denver must obtain a business license specifically for short-term rental activity. The license costs $100 annually and must be renewed each year. The application process requires proof of primary residence, attestation of compliance with safety requirements, and proof of adequate liability insurance (minimum $1 million coverage).

Applicants must also provide their lodger’s tax ID number, as all short-term rentals are required to collect and remit the 10.75% lodger’s tax on rental income. Most major booking platforms like Airbnb and Vrbo now collect and remit this tax automatically, but operators should verify this process is functioning correctly.

Denver maintains a publicly searchable database of licensed short-term rentals, and the city actively investigates properties operating without proper licensing. The entire licensing process can be completed online through the city’s business licensing portal, with most applications processed within 2-3 business days.

Operational Requirements and Restrictions

Beyond the primary residence and licensing requirements, Denver imposes several operational standards for short-term rentals. Properties must comply with all building, fire, and housing codes, including requirements for functioning smoke and carbon monoxide detectors. Properties must also post their license number on all advertisements and listings.

Good neighbor guidelines must be provided to all guests, including information about trash collection, noise restrictions, and parking regulations. Property owners are responsible for ensuring guests comply with these requirements, and repeated guest violations can jeopardize a property’s license status.

Unlike some cities, Denver does not impose specific limits on the number of nights a property can be rented annually, provided it maintains its status as the owner’s primary residence. This allows for significant flexibility in how owners structure their rental calendar throughout the year.

Compliance Strategies for Property Owners

Given Denver’s clear regulatory framework, property owners have developed several strategies to legally participate in the short-term rental market. Those with primary residences can operate traditional vacation rentals with stays under 30 days by obtaining proper licensing and maintaining compliance with operational requirements.

For investment properties that don’t qualify as primary residences, mid-term rentals offering stays of 30+ days provide a viable alternative. These mid-term rentals fall outside Denver’s short-term rental regulations and don’t require the specific STR license, though they still need standard business licensing and tax compliance.

Some investors utilize corporate housing structures for non-primary residence properties, focusing on business travelers and relocation clients seeking stays of 30+ days. This approach can deliver strong returns while remaining fully compliant with Denver’s regulatory framework.