How Centennial Handles Short-Term Rentals: A Practical Guide

Centennial maintains 39 local ordinances across all categories, and 6 of those deal specifically with short-term rentals. Here is a breakdown of what the city actually requires, what is prohibited, and where Centennial falls on the strict-to-permissive spectrum compared to other cities.

Insurance Requirements

Centennial's STR ordinance requires hosts to maintain general liability insurance for the rental property. The application process under Ord. 2021-O-14 calls for documentation as part of the licensing package. Standard homeowners policies typically exclude commercial STR activity, so a dedicated STR endorsement or commercial policy is generally needed.

Key details: Required Coverage: General liability insurance. Authority: Ord. 2021-O-14, Ch. 6 Art. 9. Homeowners Policy: Typically excludes STR use. Verify Amount: Confirm with City Clerk.

Operating without required liability insurance: license denial, suspension, or revocation. Lapsed coverage discovered during renewal: potential non-renewal until proof is provided.

Occupancy Limits

Centennial caps short-term rental occupancy at two renters per bedroom, with a hard maximum of 8 renters per property regardless of bedroom count. Children under 16 are exempt from the per-bedroom count. Gathering size is limited to no more than twice the occupancy limit, restricting parties and events.

Key details: Per Bedroom: 2 renters (children under 16 exempt). Property Maximum: 8 renters total. Gathering Cap: 2x the occupancy limit. Code: Ch. 6, Art. 9; Ord. 2021-O-14.

Exceeding occupancy or gathering limits: citation under STR ordinance. Repeated violations: potential license suspension or revocation. Hosts remain responsible for guest compliance.

Compared to other cities, Centennial takes a harder line on occupancy limits. The enforcement and penalty structure reflects that.

Noise Rules

Centennial STR hosts must post Neighborly Renter Rules near the front door and ensure guests comply with the city's noise ordinance. The same citywide noise standards apply, and hosts are responsible for guest behavior. Repeated noise complaints may jeopardize the STR license.

Key details: Renter Rules: Must be posted near front door. Host Liability: Responsible for guest behavior. Night Limit: 50 dB (state law). License Risk: Repeated complaints may revoke.

Guest noise violations: host may be cited. Repeated complaints: potential STR license revocation. Graduated fines apply per the noise ordinance.

Taxes & Fees

Centennial administers its own sales tax and STR hosts must collect and remit applicable state and local taxes on all rental transactions. The annual STR license fee is $150 per property. Colorado's 3.9% state sales tax on accommodations applies in addition to local taxes.

Key details: State Tax: 3.9% sales tax. Local Tax: City sales tax applies. License Fee: $150/year. Administration: City-administered.

Failure to collect and remit taxes: potential license revocation and tax penalties. Unpaid taxes may accrue interest.

This is not one of those rules that cities tend to ignore. Centennial actively enforces its taxes & fees requirements.

Parking Rules

Centennial's STR regulations require hosts to communicate parking expectations to guests. Standard residential parking rules apply: street parking limited to 14 days, RV/trailer parking limited to 48 hours at a time on the street. No specific STR parking mandates exist beyond general rules.

Key details: Street Limit: 14 days for vehicles. RV/Trailer: 48 hours at a time. Host Duty: Communicate parking rules. STR-Specific: No additional requirements.

Exceeding street parking limits: parking citation. Blocking driveways or fire hydrants: immediate tow risk.

Permit Requirements

Centennial requires an active short-term rental license for all properties offering lodging for 1-29 days. The annual license fee is $150 per property with a one-time $50 application fee. Owner occupancy (185 days/year) is typically required. Ordinance No. 2021-O-14 established the licensing framework.

Key details: License Fee: $150/year + $50 application. Owner Occupancy: 185 days/year required. Occupancy: 2 persons per bedroom. Ordinance: 2021-O-14.

Operating without a license: code enforcement action. Non-compliance with occupancy limits or posting requirements: potential license revocation.

Compared to other cities, Centennial takes a harder line on permit requirements. The enforcement and penalty structure reflects that.

The Bottom Line

Centennial is tougher than many cities when it comes to short-term rentals. Out of the 6 rules covered here, 3 are rated strict. If you are a homeowner, renter, or business owner in Centennial, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

All of the above reflects Centennial's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.