Short-Term Rentals in Centennial, CO

Centennial maintains 86 local ordinances across all categories, and 4 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.

Taxes & Fees

Centennial short-term rental hosts must hold a valid City sales tax license and pay all sales taxes and fees owed to the City on time, or risk license suspension, revocation, and escalating penalties.

Key details: Sales tax license: Required at application, Sec. 4-1-500. Ongoing duty: Pay all City taxes/fees timely. First penalty: $150 administrative penalty. Interest on unpaid penalty: 5% per month, compounding. Revocation trigger: 3+ findings of noncompliance in 12 months.

Nonpayment triggers a $150 penalty for a first finding, $300 for a second, $500 for a third, 5% monthly interest, license suspension up to six months, and revocation after repeat violations.

Short-Term Rental Permits

Beyond the license itself, Centennial requires short-term rental applicants to file a recorded deed proving ownership and a scale site plan marking parking, trash storage, and occupancy limits.

Key details: Ownership proof: Recorded Arapahoe County deed. Site plan: Parking, trash, occupancy, signage. Min. off-street parking shown: 2 spaces. Update deadline: 5 days after any change.

Filing an incomplete application under § 6-9-50 is grounds for license denial under § 6-9-40(4), and failing to update changed information within five days violates § 6-9-70(14).

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.

The Bottom Line

Centennial's short-term rentals rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Centennial is broadly strict or permissive.

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.