STRWATCH.AI / CO / Denver

Is a short-term rental legal in Denver, CO?

HEAVILY REGULATED

Denver's residential STR license covers stays under 30 days and requires the operator to maintain the primary dwelling as their primary residence.

See permits and requirements

Sources checked18 open items listed below

Denver Zoning Code §§11.8.10 and 11.12.7.7 restrict STR operation to natural persons maintaining the primary dwelling as their primary residence. A qualifying ADU must be accessory to a primary single-unit dwelling; an operator living in an ADU cannot operate this STR accessory use. The one-contract limit applies across the primary home and ADU, even with multiple resident license holders. The code sets no STR nightly guest maximum, excludes event rentals and RVs/travel trailers, and allows only one non-illuminated, non-animated wall/window sign up to 100 square inches. Employees or regular assistants must have their primary residence on the same lot. Former Chapter 59 residential districts are addressed by the city's April 5, 2018 determination; confirm parcel zoning and private restrictions. The current FAQ says a 29-night advertising minimum is exempt, conflicting with the code's under-30-day definition; do not rely on that exception without city confirmation. The STR definition and permanent-resident tax exemption are distinct; a 30-day stay alone does not establish every tax exemption.

Permits and requirements

Short-Term Rental License $50 application fee plus $100 license fee; $100 annual renewal
Denver Department of Licensing and Consumer Protection
Renewal: Annual; §32-10 and current renewal instructions allow filing up to 90 days before expiry. A late renewal is allowed within 90 days, but no operation after expiry until a complete application and fees are submitted; the manager may still require cessation. The webpage lists 20% late fee in days 1–30 and 50% in days 31–90, while §32-10(c) says less than/more than 30 days and leaves exact day 30 unclear. Confirm the assessed fee. After day 90, obtain a new license unless a complete renewal and fee were already submitted. The FAQ's 60-day early window differs from the current code and renewal page.
Apply online after obtaining a Denver lodger's-tax account. Current city instructions require a valid Colorado driver license or ID and at least two listed primary-residence documents; a non-owner supplies a signed possession-of-property certificate. The property must have smoke and carbon-monoxide detectors and a fire extinguisher, identify a local responsible party, and provide the required renter brochure. The license number must appear in advertising, and one reservation may operate at a time. Display the license or a clear copy. Current application pages say contact changes are due within 72 hours, but their manager-update section and the signed rules allow 30 days for manager changes; clarification is needed. Section 33-48 also requires possession proof (deed, lease or equivalent) and written owner permission for nonowners; applications self-certify truth under penalty of perjury. Licenses cannot transfer between people or locations (33-51). Keep a rolling year of total rented nights and rental dates (33-55(a)). Renewals include any notice of violation or disciplinary action (33-52(b)). Under §32-5, incomplete applications close after one year; reopening for documented good cause may be requested within 30 days after closure. The current renewal page gives 14 days to correct missing materials and notes specialist review can take up to 90 days from completeness, not a guaranteed approval time.
official source
Denver Lodger's Tax License $0 license fee (current Treasury page)
Denver Department of Finance
Renewal: Biennial: §32-107 expires tax licenses December 31 of odd-numbered years; renew by January 1 of the following even-numbered year
Treasury now states there is no fee for its Retailer's Sales, Use and Lodger's Tax licenses, contrary to the STR FAQ's variable fee. Hosts still need the account and assigned returns, including when Airbnb collects lodging tax. Lodger's tax is collected at payment and returns are due by the twentieth after the reporting period; do not use the stay date instead. Pay lodging and occupational-privilege taxes through Denver eBiz, not the sales/use-only SUTS channel. The STR tax guide also requires applicable sales/use tax on furnishings and supplies; separate retail charges for food, beverages or other goods require sales-tax collection and a separate sales-tax license/return. Current §32-107 independently confirms no tax-license fee and the biennial schedule. Keep tax records for four years following the return due date or tax payment under §53-9, longer while an audit remains open; this is separate from STR booking records. Section 53-8 requires a return within ten days after selling or quitting the business, with successor purchase-price withholding until tax clearance.
official source
Liability insurance Cost not verified
Denver Department of Licensing and Consumer Protection
Renewal: Maintain throughout operation
Notify the property insurer before any STR transaction and submit the city affidavit. Carry at least $1 million aggregate liability coverage (or more if the insurer requires) throughout the license term, or conduct each transaction through a platform providing equivalent coverage for the entire stay. Loss of coverage triggers automatic suspension under the posted rules. Section 33-49(e) separately requires fire and hazard insurance as well as liability insurance.
official source
HOA notice when applicable Cost not verified
Denver Department of Licensing and Consumer Protection
Notify the HOA before obtaining the license and submit the required affidavit. Renters also need landlord permission. Neither licensing nor notice overrides private prohibitions.
official source
Zoning Compliance and Inspection Cost not verified
Denver Community Planning and Development / Licensing and Consumer Protection
The January 2023 zoning policy says new and renewed STR licenses do not routinely trigger a zoning inspection or separate zoning-use permit; applicants self-certify. Complaint inspections remain possible and relevant open enforcement can prevent licensing. The STR FAQ separately says dwelling-status questions can trigger inspection and refusal causes denial; its scope versus the zoning policy remains unresolved.
official source
Colorado Retail Sales Tax License (unless a qualifying marketplace-only exception applies) Cost not verified
Colorado Department of Revenue
Rule 39-26-103 requires a retailer to obtain a Colorado sales-tax license before making retail sales. Special Rule 44 exempts a seller that exclusively offers and actually sells through qualifying facilitators only when the required conditions are met: the facilitator is obligated to collect or voluntarily registered, correct transaction information is supplied, and an explicit tax-collection contract or certification is held. Multichannel/direct sellers must maintain a license; retain adequate sales records and refresh relief documentation annually. Follow the Department's assigned filing frequency: monthly by default; approved quarterly for average monthly state/state-administered collections above $50 but below $1,100, approved annual for $50 or less. A lower frequency requires approval; zero-sales returns remain due for licensed retailers. Current license fee and renewal cycle were not established from these rules.
official source

The full picture

Denver's residential STR license covers stays under 30 days and requires the operator to maintain the primary dwelling as their primary residence. Renting that home while temporarily away is allowed; a permitted ADU on the same lot may also qualify. Separate simultaneous bookings in the home and ADU are prohibited. The license costs $150 initially and $100 annually thereafter. Ordinary lodging tax totals 14.75%: 10.75% Denver lodger's tax plus 4% state-administered sales taxes. A separate lodging-facility licensing and zoning route may be available for non-primary-residence properties; this is not permission to operate an investment-home STR.

Taxes on guests & hosts

TaxRateApplies toPlatform collectsOfficial source
Denver Lodger's Tax 10.75% Denver lodging, including mandatory cleaning/pet charges; refundable security deposits are excluded. §53-155 exempts a natural person who continuously resides for at least 30 consecutive days OR has the right to do so under a written arrangement. The City's STR tax guide describes a written agreement plus actual payment for 30 days; those additional documentary conditions are not identical to the codified language. Confirm a disputed exemption with Treasury. Government/charitable exemptions require direct billing, direct entity payment and qualifying use. A platform collects as vendor only if it processes payment and appears as merchant of record; otherwise the host remits. Not verified source
State-Administered Lodging Sales Taxes 4% combined (2.9% state + 1% RTD + 0.1% special district) Taxable lodging in Denver; 4% is the combined state-administered amount, not the state rate alone. Current Colorado Rule 39-26-704–4 requires a natural-person permanent resident and a written agreement for at least 30 consecutive days for the state exemption; enforceable electronic contracts qualify, but a canceled check alone is insufficient. State-administered local authorities may opt out, so do not assume the whole combined 4% is exempt. Licensed retailers file assigned-schedule returns, including zero-sales periods, generally by the twentieth after the period with a next-business-day extension for weekends/holidays. Qualifying marketplace-only sellers may be exempt from state licensing; direct/multichannel sales retain obligations. Named-platform performance and local exemption elections remain unverified. Not verified source
Denver Business Occupational Privilege Tax $4 per month for each owner, partner, or manager actively participating in the business Businesses selling short-term lodging in Denver; no $500 monthly minimum applies to a self-employed owner or proprietor. Businesses with taxable employees also owe the $4 employer share per employee and withhold $5.75 per employee earning at least $500 monthly for Denver services; these are not booking-platform lodging taxes. No source

Enforcement

PenaltiesDRMC 1-13(b) provides a general maximum, where no specific penalty applies, of $999 per offense, up to 300 days imprisonment, or both, with any identical state-law offense limited to its state-law penalty. Under 1-13(c), each continuing day ordinarily constitutes a separate offense. Chapter 33 authorizes suspension/revocation for denial grounds, including false or incomplete eligibility, lack of primary residence, missing insurance and adverse neighborhood impacts; posted signed rules also allow fines and nonrenewal and automatically suspend for missing required liability coverage. A late-renewal window does not permit operation until the City receives a complete renewal and requisite fees. Incorporated §32-15 also permits administrative fines or fines in lieu of suspension up to $5,000 per violation unless another provision controls; nonpayment by the specified date can cause suspension without another hearing. These are distinct from the general criminal maximum and provider-specific civil fines. After a similar-license revocation, §32-15(h) bars receiving or acting on a new application for two years. Summary suspension under §32-14 requires specified findings; ordinary sanctions follow investigation and a show-cause opportunity.
Platform liabilityDRMC 33-49(f) prohibits booking service providers from receiving payment directly or indirectly for unlicensed STRs, with strict liability. Sections 33-49(g)-(h) add a $1,000 civil penalty per violation per day for prohibited transactions or record noncompliance, in addition to the referenced general penalty. Providers retain five years of host name, address, booking dates, price and license number under 33-55(b). The current codified start date still says February 1, 2020, whereas the City laws page states February 1, 2021; that historical effective-date discrepancy remains unresolved.
NotesComplaints may be submitted to the Department of Licensing and Consumer Protection. Enforcement-history anecdotes were omitted because official case records were not fetched. January 2023 zoning policy describes complaint-driven inspections and denial while relevant zoning enforcement remains open. Under 33-50, the local responsible party must remain in Denver throughout the rental period, have access and decision authority. The on-premises brochure includes host/local/emergency contacts, parking/noise restrictions, trash schedule, water restrictions and fire evacuation routes. General noise, building and fire law continues to apply. Under §32-11(b), a denial without a hearing may be challenged by a written hearing request to the manager within ten days of mailing the denial order unless a specific provision controls; an imposed filing fee must accompany the request. Tax sanctions are separate: §53-16 adds a 15% penalty, minimum $25, for nonfraudulent late filing/payment plus 1% interest for each month or fraction from the due date. Fraud invokes §53-17's 50% penalty. A tax assessment/refund-denial protest generally must reach the manager within 30 days; the code's §53-25 judicial-review route states 30 days plus a double-amount bond/cash deposit. Do not rely on that local 30-day wording as the controlling court deadline: Colorado Supreme Court Brown v. Walker Commercial (2022 CO57) applies Rule106(b)'s 28-day limit unless a statute supplies another limit and rejects excusable-neglect extensions; a municipal 30-day provision did not control there. Obtain prompt confirmation of the specific remedy and any bond requirement.

What we could not verify (18)

  • The city tax guide explains when a lodging platform is the vendor for Denver lodger's tax, but platform-by-platform collection cannot be generalized; collectedByPlatform remains null.
  • No exhaustive current City Council docket search was completed for proposed Denver STR amendments; pending_changes is empty based only on the official program materials reviewed.
  • Colorado state-law preemption of local STR regulation and any current STR litigation were not established from a fetched official source.
  • Official instructions conflict: FAQ 29-night advertising exemption versus code under-30-day definition; FAQ 60-day versus renewal-page 90-day early renewal; 72-hour contact updates versus 30-day manager updates. Confirm before relying on more permissive instructions.
  • Current §32-107 confirms no tax-license fee, December 31 odd-year expiry and renewal by January 1 of the following even year. Treasury's annual mailing language does not establish annual renewal; follow the account notice. The STR FAQ's variable-fee statement is not used as controlling.
  • Zoning policy waives routine STR zoning inspections but the FAQ describes possible dwelling-status inspections. Scope/cost and generally applicable noise, parking, fire and building requirements remain unresolved.
  • Former Chapter 59 accessory STR permission is documented by the 2018 determination still linked by the current zoning portal; parcel-specific and private restrictions need confirmation.
  • Current SOS rules establish state sales-tax licensing, assigned-schedule/zero-sales filing and qualified marketplace-only relief. Current Colorado license fees/renewal interval, district exemption elections and named-platform collection remain unverified; insurance/HOA/inspection charges remain unknown where null.
  • Current DRMC 33-49(f)-(g) still says February 1, 2020 for booking-provider duties, while the City laws page says February 1, 2021. Current obligations and $1,000 civil penalty are established, but the historical effective date remains inconsistent.
  • Current municipal text was read through Ordinance 0852-26 enacted July 13, 2026 (Supplement 147 Update 3); later adopted/proposed amendments were not exhaustively screened through September 29.
  • The February2026 DOR lodging guide remains403, but current official SOS rules now establish state permanent-resident, licensing/filing and marketplace relief. Complete taxable-charge treatment, district exemption opt-outs and named-platform conduct still require confirmation.
  • Renewal window discrepancy between official pages: city FAQ says renewal may be submitted up to 60 days before expiration; the renewal application page says up to 90 days.
  • The current Denver Treasury lodging table supports the 4% combined state-administered component (2.9% state, 1% RTD and 0.1% special district), not a 4% state-only tax. Current SOS rules establish conditional facilitator duties but not actual named-platform remittance; collection remains null. District exemption elections remain unverified.
  • CB20-1229 effective-date ambiguity: the signed bill text reads 'on and after February 1, 2020' for the platform prohibition, while the city's laws/rules page states it took effect February 1, 2021.
  • No 2025-2026 Denver ordinance or rule changes to the STR program were found in official sources or news searches, but absence of change could not be positively proven; a check of Denver City Council records for 2025-2026 amendments to DRMC Ch. 33 Art. III is recommended.
  • Current §53-155's natural-person permanent-resident exemption allows continuous residence OR a written right to reside for at least 30 days; the City STR guide describes written agreement plus actual payment. Treasury implementation/documentation requires confirmation. The municipal30daycourt-review wording must not be relied on over the28dayRule106 limit identified in SupremeCourtBrown; confirm remedy-specific procedures promptly.
  • The renewal webpage charges 20% for its first 30 days and 50% for days31–90; current §32-10(c) uses less than/more than30 days, leaving exact day30 unclear. Confirm the assessed fee and any cessation order; the grace period alone does not authorize operation.
  • Colorado license fees and renewal cycle were not established from the recovered current rules. District permanent-resident exemption elections and platform-specific remittance require separate current proof; no universal collection or blanket day-30 exemption scalar is asserted.

Sources

A markdown mirror of this page lives at /denver-co.md for AI tools and researchers.

STRWatch publishes educational information about short-term rental regulation, checked against the official sources linked above as of the date shown. It is not legal advice, and rules change — a city can move between the times we check it. For decisions with money at stake, confirm with the authority linked above or a local attorney.