Short-Term Rentals in Colorado Springs, CO

Colorado Springs maintains 144 local ordinances across all categories, and 8 of those deal specifically with short-term rentals. Here is a breakdown of what the city actually requires, what is prohibited, and where Colorado Springs falls on the strict-to-permissive spectrum compared to other cities.

Occupancy Limits

Colorado Springs caps maximum overnight occupancy of a short-term rental at two occupants per bedroom plus two additional occupants per dwelling unit, with an absolute ceiling of fifteen occupants per dwelling unit, under City Code Section 7.3.301.C.5(h).

Key details: Code Section: Sec. 7.3.301.C.5(h). Per Bedroom: 2 occupants. Per Dwelling Unit: +2 additional occupants. Absolute Maximum: 15 occupants.

Renting to more overnight occupants than the two-per-bedroom-plus-two formula (or more than 15 total) violates the STR permit conditions and may trigger a Code Enforcement notice and permit suspension or revocation.

Host Presence Rule

Colorado Springs requires every Short Term Rental to have an owner or designated local contact reachable the entire time a guest is staying, with a duty to respond to complaints about noise, conduct, or property conditions within one hour. City Code § 7.3.301C.5.g ties this directly to the Short Term Rental Permit the city already requires before any unit can operate.

Key details: Response window: 1 hour to complaints during any stay. Contact-change deadline: update permit within 3 days. Permit authority: § 7.5.510 Short Term Rental Permit. Permit term: 1 year, tied to the owner. Liability insurance floor: $500,000 minimum.

Failing to keep a reachable local contact, or missing the one-hour response window on complaints, feeds into the repeat-offender tracking under § 7.5.907 (Penalties). An owner classified as a repeat offender or chronic repeat offender is barred from holding a Short Term Rental Permit, and any owner whose permit was revoked cannot get a new one for two years. The three-day window to update a changed local contact is itself an enforceable permit condition, not a suggestion.

Repeat Violator Strikes

An owner classified as a repeat or chronic repeat offender under City Code § 7.5.907, or whose Short Term Rental Permit was revoked in the last two years, cannot hold an STR permit under § 7.3.301.C.3.f. Repeat status kicks in after a second violation within six months; chronic status after twelve or more months of ongoing noncompliance.

Key details: Disqualifying status: Repeat or chronic repeat offender, § 7.5.907. Repeat trigger: Second violation within 6 months. Chronic trigger: Violation ongoing 12+ months. Repeat reinspection fee: $250 per reinspection. Chronic reinspection fee: $500 per reinspection.

A repeat offender pays a $250 reinspection fee for every reinspection needed until compliance; a chronic repeat offender pays $500 per reinspection, and failing to honor an agreement to abate triggers immediate chronic-offender reclassification regardless of prior history (§ 7.5.907.B.2). Unpaid reinspection fees can be billed by certified mail with 20 days to pay, after which the Manager may file a lien against the property, plus a 25% administrative surcharge under § 7.5.907.D.

This is one of the stricter rules in Colorado Springs's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

Insurance Requirements

Colorado Springs requires every Short Term Rental owner to carry at least $500,000 in property liability insurance under City Code § 7.3.301.C.3.e, or to show that a hosting platform such as Airbnb or Vrbo already extends equal or greater coverage. The rule applies at permit application and at all times the rental operates.

Key details: Minimum liability coverage: $500,000 property liability insurance. Alternative: Equal hosting-platform coverage accepted. Duration: Required at all times, not just application. Proof required with: STR Permit application, § 7.5.510.C.1.d. Reviewer discretion: Manager decides if platform terms acceptable.

A Short Term Rental Permit application missing proof of the required $500,000 liability coverage, or an owner who lets that coverage lapse after approval, is out of compliance with a standard the Manager must find met 'at all times thereafter' under § 7.3.301.C.3. That failure supports permit denial at application or, for an operating rental, can be treated as a permit-eligibility violation subject to enforcement and nonrenewal under the Short Term Rental Permit process in § 7.5.510.

Taxes & Fees

Colorado Springs taxes short-term rental income two ways: a 2% lodgers tax under City Code § 2.9.105 on any lodging purchased for under 30 consecutive days, plus the City's standard 3.07% sales and use tax. Before renting, § 7.3.301.C.3.c requires the owner to hold a City Sales Tax license and owe the City no debt.

Key details: Lodgers tax rate: 2% of lodging purchase price. General city sales/use tax: 3.07%, applies on top. Auto rental tax comparison: 1% under same Article 9. License required: City Sales Tax license before renting. Debt bar: Owner must owe City nothing.

Failing to collect and remit the 2% lodgers tax or the City's 3.07% sales tax lets the Sales Tax Office assess the unpaid tax plus interest and penalties, with no time limit where a return was filed to evade the tax (§ 2.7.202). Operating without the required Sales Tax license, or while indebted to the City, blocks issuance or renewal of the Short Term Rental Permit under § 7.3.301.C.3.c, and outstanding tax liability can support permit denial.

Short-Term Rental Parking Rules

Short Term Rental guests in Colorado Springs must park in the private driveway first, with overflow only on the street where street parking is permitted. City Code § 7.3.301.C.5.b bans parking anywhere else on-site, front yards, parkways, or rear yards, even on the renter's own lot.

Key details: Priority parking area: Private driveway used first. Overflow option: Street parking, where permitted. Prohibited areas: Front yard, parkway, rear yard. Applies to: Owners and short-term tenants alike. Enforcement link: Repeat violations risk permit revocation.

Guests or owners parking in a front yard, parkway, or rear yard instead of the driveway violate § 7.3.301.C.5.b, an Operating Requirement that must be met at all times the permit is active. Repeated Operating Requirement violations can trigger repeat- or chronic-offender classification under § 7.5.907, which disqualifies the owner from holding a Short Term Rental Permit under § 7.3.301.C.3.f and bars a new permit for two years after any revocation.

Short-Term Rental Permits

Every short-term rental in Colorado Springs must hold a valid short-term rental permit issued by the City before any property, or rooms within it, may be leased to guests, under City Code Section 7.5.1704. The permit costs $124.95, is valid for one year with no grace period, and a separate permit and fee are required for each listing.

Key details: Code Section: Sec. 7.5.1704. Permit Fee: $124.95 per listing, annually. Owner-Occupancy: 185+ days/year in single-family zones. Insurance: $500,000 liability minimum.

Operating a short-term rental without a valid permit, or failing to renew before expiration, may result in a Code Enforcement notice and, for non-owner-occupied units, forfeiture of the established permit; there is no grace period for late applications.

Compared to other cities, Colorado Springs takes a harder line on short-term rental permits. The enforcement and penalty structure reflects that.

Noise Rules

Short-term tenants in Colorado Springs must follow all City noise ordinances, and City Code § 7.3.301.C.5.d flatly prohibits using a Short Term Rental for any commercial or large social event or gathering, such as a wedding. The rule targets party-house use rather than setting a separate STR-specific decibel limit.

Key details: Large events/gatherings: Prohibited outright, incl. weddings. General noise compliance: Tenants bound by City noise ordinances. Complaint response time: Owner/contact must respond within 1 hour. Contact update deadline: 3 days after any change. Enforcement path: Repeat-offender rule can revoke permit.

A confirmed large-event or commercial-use violation, or repeated noise-ordinance violations tied to a rental, exposes the owner to classification as a repeat or chronic repeat offender under § 7.5.907, which under § 7.3.301.C.3.f disqualifies the owner from holding a Short Term Rental Permit. A permit revoked for standards violations also bars a new STR permit for two years.

Compared to other cities, Colorado Springs takes a harder line on noise rules. The enforcement and penalty structure reflects that.

The Bottom Line

Colorado Springs is tougher than many cities when it comes to short-term rentals. Out of the 8 rules covered here, 3 are rated strict. If you are a homeowner, renter, or business owner in Colorado Springs, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

Keep in mind that Colorado Springs can amend these rules at any council meeting. For the most current version of any rule mentioned here, check the specific ordinance page, where we track updates as they happen.