How Colorado Springs Handles Short-Term Rentals: A Practical Guide

Colorado Springs maintains 135 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.

Insurance Requirements

Colorado Springs requires short-term rental operators to carry a minimum of 1 million dollars in liability insurance covering commercial rental activity, with proof submitted annually at permit renewal. Policies must name the city as an additional insured for enforcement purposes and cover bodily injury, property damage, and liquor liability where applicable.

Key details: Minimum Coverage: 1 million dollars per occurrence. City as Additional Insured: Required. Renewal: Annual certificate of insurance. Platform Coverage: Airbnb and Vrbo host protection qualifies. Enforcement: Planning and Neighborhood Services.

Operating without proof of insurance is a 500-dollar fine and immediate permit suspension until coverage is demonstrated. Knowingly false insurance declarations are fraud under state law.

Night Caps

Non-owner-occupied short-term rentals in Colorado Springs are capped at 185 rental nights per calendar year under City Code Chapter 7 Article 5. Owner-occupied STRs have no annual night cap. The 185-night limit applies cumulatively across all platforms, and operators must log nights in the city's online portal.

Key details: Non-Owner Cap: 185 nights per year. Owner-Occupied Cap: No annual limit. Reporting Frequency: Quarterly through city portal. Per-Night Fine: 250 dollars each over cap. Revocation Ban: Two years after repeat overages.

Each rental night above 185 is a separate 250-dollar violation. Habitual overages result in permit revocation and a two-year ban on new STR applications at the address.

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

Registration Rules

All short-term rentals in Colorado Springs require a permit issued by Planning and Neighborhood Services with annual renewal. Application requires proof of ownership or landlord consent, a life-safety inspection, insurance certificate, local contact available 24/7, and payment of the 229-dollar initial fee plus 119-dollar annual renewal.

Key details: Initial Permit Fee: 229 dollars. Annual Renewal: 119 dollars. Inspection Required: Life-safety pre-approval. Local Contact: Required 24/7 within 60 minutes. Taxes: City LART 2 percent plus state and county.

Operating without a permit draws a 750-dollar first-violation fine, escalating to 1,500 dollars for subsequent offenses, plus back taxes and possible injunctive relief to cease operations.

This is not one of those rules that cities tend to ignore. Colorado Springs actively enforces its registration rules requirements.

Noise Rules

STR guests in Colorado Springs are subject to all city noise ordinances, and the host is responsible for guest compliance. The 10 PM–7 AM quiet hours standard and dB limits in §9.8.104 apply to rental properties.

Key details: Quiet Hours: 10 PM – 7 AM (general standard). Host Responsibility: Owner responsible for guest compliance. Events Banned: Weddings, large social/commercial events prohibited. Good Neighbor Guidelines: Must be displayed inside the STR unit. Code Reference: §9.8.101 (noise), §7.5.510 (STR permit conditions).

Noise violation: $200 to $1,000. Multiple complaints: permit review/revocation. Host responsible for guest behavior.

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

Taxes & Fees

STR stays under 30 days in Colorado Springs are subject to Colorado state sales tax (2.9%), El Paso County tax (1%), and City of Colorado Springs sales tax (3.07%). Hosting platforms like Airbnb and VRBO collect and remit these taxes automatically.

Key details: State Sales Tax: 2.9% (Colorado). El Paso County Tax: 1.23%. City Sales Tax: 3.07% (Colorado Springs). Platform Remittance: Airbnb/VRBO collect and remit automatically. Direct Booking: Requires separate City Sales Tax License.

Non-remittance: penalty + interest. Colorado DOR audit. Tax evasion: misdemeanor charges.

Parking Rules

STR guests in Colorado Springs must use private driveway parking first, with overflow on-street parking only where permitted. STR permits require the host to maintain residential trash service and comply with all parking ordinances.

Key details: Parking Priority: Private driveway first, then on-street. Max Overnight Occupancy: 2 per bedroom + 2, max 15 total. RV Parking: RV street parking ban applies to guests. No Event Parking: Large social events/commercial gatherings banned. Code Reference: §7.5.510 (STR conditions), §9.6.504 (RV parking).

Parking plan non-compliance may affect permit renewal. Street parking violations per city code.

Permit Requirements

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 permit requirements. 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, 4 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.