Denver Short-Term Rental License Guide

Operating a vacation rental in Denver requires navigating specific regulations designed to balance tourism interests with neighborhood preservation. Understanding and complying with these requirements is essential for legal operation and avoiding potentially costly penalties. This comprehensive guide walks you through the entire process of obtaining and maintaining a short-term rental license in Denver.

Whether you’re considering converting a property into a vacation rental or ensuring your existing rental remains compliant, this step-by-step resource will help you navigate Denver’s regulatory landscape with confidence.

Denver Short-Term Rental Regulations Overview

Denver defines short-term rentals as residential property rentals for periods less than 30 consecutive days. The city implemented comprehensive regulations in 2016 with subsequent updates that all operators must follow:

Key Regulatory Requirements:

• Primary Residence Requirement: You can only license the home that serves as your primary residence (where you live at least 6 months per year)
• Business Licensing: Valid license required for all short-term rental operations
• Lodger’s Tax Collection: Operators must collect and remit 10.75% lodger’s tax
• Insurance Requirements: Adequate liability coverage required
• Safety Standards: Properties must meet specific safety requirements
• Neighborhood Notification: License number must appear on all listings

The primary residence requirement is the most significant limitation for investors. Unlike some surrounding municipalities, Denver restricts short-term rentals to owner-occupied properties, preventing the operation of dedicated vacation rental portfolios within city limits.

Step-by-Step License Application Process

Step 1: Confirm Eligibility

Before beginning the application process, verify that your property meets these basic requirements:

• Property is your primary residence (where you live at least 6 months annually)
• Property is a legal dwelling unit (not an accessory structure without legal dwelling status)
• No outstanding violations with the city
• Homeowners association or landlord permits short-term rental use (if applicable)
• Property is not income-restricted or affordable housing

Step 2: Prepare Required Documentation

Gather these documents before starting your application:

• Proof of primary residence (two of the following):

• Colorado driver’s license or ID with current address
• Vehicle registration at property address
• Voter registration at property address
• Tax documents showing property as primary residence

• Proof of insurance covering short-term rental activity
• Property tax ID number (Schedule Number from Assessor’s Office)
• Floor plan or sketch showing rental areas and safety features
• Government-issued photo ID

Step 3: Complete Online Application

Denver’s license application process is conducted online through the city’s business licensing center:

1. Visit Denver Business Licensing Portal
2. Create an account or log in to your existing account
3. Select “Apply for a License” and choose “Short-Term Rental License”
4. Complete all required fields in the application, including:

• Property owner information
• Property details and address
• Safety certification statements
• Insurance information
• Emergency contact information

1. Upload all required documentation
2. Pay the application fee ($25 annually)

Step 4: Obtain Your License

After submission, the approval process typically follows these steps:

• City review of application (usually 3-5 business days)
• Possible requests for additional information
• License issuance upon approval
• Electronic receipt of license certificate

Once approved, you’ll receive your license number, which must be displayed in all online listings for your property. The license is valid for one year from the issue date.

Tax Compliance Requirements

Operating a short-term rental in Denver involves specific tax obligations:

Lodger’s Tax (10.75%)

• Register for a lodger’s tax account through Denver Treasury Division
• Collect 10.75% tax on all rental fees (excluding cleaning fees)
• File returns monthly, quarterly, or annually based on volume
• Payment due by 20th of month following the reporting period

Platform Collection Assistance

Major platforms handle tax collection differently:

• Airbnb: Automatically collects and remits lodger’s tax (hosts must still file returns)
• VRBO/HomeAway: Collects but does not remit taxes (hosts must remit collected taxes)
• Booking.com: Does not collect taxes (hosts responsible for collection and remittance)

Even when platforms collect taxes, hosts maintain legal responsibility for ensuring proper tax compliance and filing returns.

Maintaining License Compliance

Keeping your license in good standing requires ongoing compliance:

Annual Renewal Process

• Renew online 30-45 days before expiration
• Update any changed information
• Provide current proof of primary residence
• Pay renewal fee ($25)

Ongoing Compliance Requirements

• Maintain current contact information with licensing office
• Display license number in all online listings
• Keep safety equipment (smoke detectors, carbon monoxide detectors, fire extinguishers) functional
• Respond to neighbor complaints within 24 hours
• Maintain records of all rental activity for minimum of 3 years
• Submit all required tax returns even during periods of no rental activity

Enforcement and Penalties

Denver actively enforces short-term rental regulations with dedicated compliance staff:

Common Violations and Penalties

• Operating without license: $150 first offense, $500 second offense, $999 third offense
• Listing without license number: $150 per violation
• False primary residence certification: $999 per violation plus possible criminal charges
• Tax non-compliance: Penalties up to 18% plus interest on unpaid taxes
• Safety violations: $150-$999 depending on severity and repeat offenses

Repeated violations may result in license revocation and prohibition from obtaining future licenses.

Alternatives for Non-Primary Residences

If your property doesn’t qualify as your primary residence, consider these alternatives:

Nearby Municipalities with Different Regulations

• Arvada: Allows non-primary residence short-term rentals
• Golden: Permits non-primary residence short-term rentals with specific license
• Wheat Ridge: Allows non-primary residence short-term rentals with certain restrictions
• Unincorporated Jefferson County: More permissive regulations for mountain properties
• Lakewood: Allows non-primary residence short-term rentals in certain zones
• Morrison, Evergreen, Conifer: Subject to Jefferson County regulations

Long-Term Rental Alternatives

• Traditional long-term leases (12+ months)
• Medium-term furnished rentals (1-6 months targeting relocating professionals)
• Corporate housing partnerships

Call to Action

Navigating Denver’s short-term rental regulations can be complex, but proper compliance protects your investment and ensures sustainable operation. Simplify Renting offers comprehensive management services that include license application assistance, renewal management, and ongoing compliance monitoring.

Our experienced team stays current with Denver’s evolving regulations to ensure your property remains compliant while maximizing its earning potential within regulatory boundaries.

Get Expert License Assistance

Contact us today for a complimentary consultation about your property’s licensing requirements and management options.