Denver permits long-term ADU rental without minimum lease terms but restricts short-term rentals (under 30 days) to the operator's primary residence under DRMC Chapter 33, Article XI. An owner-occupied ADU may be the STR unit, but a non-primary-residence ADU cannot legally be rented for stays under 30 days. STR operators need a Business License and a Short-Term Rental License.
DRMC Section 33-381 limits Short-Term Rentals to a host's 'primary residence' as defined in DRMC 33-378. The host must be registered to vote at the address, file Colorado income taxes from the address, and use the address as their primary domicile. An ADU can be the STR unit if the owner lives in it as their primary residence; otherwise, only the principal dwelling can be the STR. STR operators need a Lodgers Tax License from Treasury, a Business License, and an STR License from Excise & Licenses ($25 annual). Stays of 30+ days are not STRs and require only standard Residential Rental Licensing under DRMC 32-330 if the property has 3+ rentable units. Lodger's tax (10.75%) applies to STR receipts under DRMC 53-176. Denver enforces the primary-residence rule by checking voter registration, driver's license address, and tax records during license review.
Operating an STR without a license violates DRMC 33-388 — civil penalty up to $999 per occurrence per day. License denial or revocation for primary-residence-rule violations. Platforms (Airbnb, VRBO) require a Denver STR license number to list; non-compliant listings are removed under DRMC 33-394 platform-accountability rules.
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See how Denver's adu rental restrictions rules stack up against other locations.
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