Short-Term Rentals in Denver, CO

Every city handles short-term rentals a little differently. In Denver, Colorado, there are 7 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Primary-Residence-Only Rule

Denver bans short-term rentals of any home that isn't the host's primary residence: investment properties and second homes can't be licensed, and operating one anyway is unlawful under the city code.

Key details: Rule: STR license limited to primary residence. Enforcer: Denver Dept. of Excise and Licenses. Max penalty: $999 fine or 300 days jail. Proof needed: Colorado ID plus two residency documents. Limit: One primary residence per applicant.

Non-primary-residence STRs get the license application denied under Sec. 33-53(a); operating unlicensed risks up to a $999 fine or 300 days in jail under the Sec. 1-13(b) general penalty, with each day a separate offense.

Compared to other cities, Denver takes a harder line on primary-residence-only rule. The enforcement and penalty structure reflects that.

Host Platform Liability

Denver makes it unlawful for booking service providers like Airbnb or Vrbo to accept payment for an unlicensed short-term rental: a strict-liability offense that applies even without proof of knowledge or intent.

Key details: Effective date: February 1, 2020. Liability standard: Strict liability, no intent required. Penalty: $1,000 per violation per day. Enforcing agency: Denver Dept. of Excise and Licenses. Records required: 5 years of booking transaction data.

Accepting payment for an unlicensed listing, or failing to keep the required five years of booking records, draws a civil penalty of $1,000 per violation per day under D.R.M.C. § 33-49(h).

Compared to other cities, Denver takes a harder line on host platform liability. The enforcement and penalty structure reflects that.

Denver caps short-term rentals to a host's primary residence: you can rent out your own home or a room in it, but not a second property or investment unit, and you need a city license first.

Key details: Licensing agency: Denver Dept. of Excise and Licenses. Eligible properties: Applicant's primary residence only. Qualifying stay length: Under 30 consecutive days. License term: One year, renewable. Unlicensed operation penalty: Up to $999 fine or jail.

Operating without a license or outside your primary residence is a criminal violation under the general penalty: up to $999 and 300 days in jail, with each day a separate offense.

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

Occupancy Limits

Denver's zoning code explicitly exempts short-term rentals from any maximum number of guests per night, one of the few limits the city chose not to impose on hosts.

Key details: Guest cap: None: explicitly unregulated by DZC. Governing provision: Denver Zoning Code § 11.8.10.1.J. Residency requirement: Host must live on-site as primary residence. Licensing: Set separately in D.R.M.C. Chapter 33.

There's no guest-count limit to violate; enforcement instead targets the underlying licensing and residency requirements in Chapter 33, where violations can lead to license suspension or revocation.

If you are coming from a city with tighter rules, you will find Denver gives residents more flexibility on occupancy limits.

Insurance Requirements

Denver requires every licensed short-term rental to carry fire, hazard, and liability insurance meeting coverage limits set by the Department of Excise and Licenses, or the operator is committing an unlawful act under the licensing code.

Key details: Requirement: Fire, hazard, and liability insurance. Coverage limits: Set by the director. Enforcing agency: Dept. of Excise and Licenses. Also a license-denial ground: DRMC § 33-53(d). Max fine: $999 per offense.

Operating without required insurance is an unlawful act under DRMC § 33-49(e); the Department of Excise and Licenses can deny, suspend, or revoke the license, and violators face fines up to $999 per offense under the Code's general penalty.

Taxes & Fees

Denver charges the same 10.75% lodger's tax on short-term rentals that it charges hotels, and every licensed short-term rental host must hold a valid city lodger's tax account before renting out a room.

Key details: Tax rate: 10.75% of lodging purchase price. Governing section: DRMC § 53-156(a). Return due: 20th of each month (§ 53-7). STR license tie-in: requires active lodger's tax account (§ 33-48(a)(4)). Late payment interest: 1% per month (§ 53-15(c)).

Failing to file a lodger's tax return or remit collections due is a code violation under § 53-7(d); late payments accrue 1% monthly interest under § 53-15(c), on top of any licensing sanctions.

Short-Term Rental Permits

Denver requires anyone offering a short-term rental to first obtain a license from the Department of Excise and Licenses before operating, and unlicensed booking transactions are unlawful too.

Key details: License required: Before offering any short-term rental. Enforcing agency: Dept. of Excise and Licenses. Primary residence rule: STR must be applicant's primary residence. License term: One year, non-transferable. Booking-provider penalty: $1,000 per violation per day.

Operating without a license, or a booking service collecting payment for an unlicensed rental, brings civil penalties up to $1,000 per violation per day plus license denial or revocation.

The Bottom Line

Denver is tougher than many cities when it comes to short-term rentals. Out of the 7 rules covered here, 3 are rated strict. If you are a homeowner, renter, or business owner in Denver, 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 Denver 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.