Fort Collins permits long-term ADU rental without minimum lease terms but restricts short-term rentals (under 30 days) under City Code Chapter 15, Article XVI. ADUs may operate as STRs only in designated zones and with a Short-Term Rental License from the Sales Tax Department. Primary STRs require owner presence; non-primary STRs are limited to specific zoning districts.
Fort Collins City Code Section 15-489 divides STRs into Primary (owner's primary residence) and Non-Primary categories. Primary STRs are allowed in all residential zones with a license. Non-Primary STRs (no owner on-site) are limited to mixed-use and commercial zones — most Fort Collins ADUs in single-family residential zones cannot legally serve as Non-Primary STRs. STR licenses cost $150 initial plus annual renewal under Section 15-490. Lodging tax of 3.0% city plus 2.0% state plus 0.8% county applies under Section 25-242. Stays of 30+ days are not STRs and require no special licensing beyond standard rental compliance. The City enforces the zoning rule by cross-referencing license applications with parcel zoning and may inspect for compliance with the U+2 occupancy rule (no more than three unrelated adults — see Section 3.8.16 of the LUC).
Operating an STR without a license or in a prohibited zone violates City Code 15-493 — civil penalty up to $2,650 per occurrence per day. License denial or revocation for primary-residence-rule violations. Platforms (Airbnb, VRBO) require a Fort Collins STR license number to list; non-compliant listings are subject to removal. U+2 violations can trigger separate code-enforcement actions under LUC 3.8.16.
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