Denver's Short-Term Rentals: The Rules That Matter

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.

Host Presence Rule

Denver short-term rentals under DRMC 33-202 must be the licensed host's primary residence. Hosts may rent rooms or the entire home only when away. One STR license per person; non-primary investor properties cannot operate as STRs in Denver.

Key details: Code reference: DRMC 33-202. Primary residence: Required for license. Licenses per person: One only. Tax obligation: Denver Lodger's Tax.

Operating a Denver STR at a non-primary residence under DRMC 33-202 is a strict violation: licenses are revoked, civil fines reach $999 per night of operation, and platforms must remove unlicensed listings under Denver host-platform liability rules.

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 does not cap nightly STR guest counts under DRMC Chapter 33, but rentals must be the host's primary residence and may only be rented to a single party at a time.

Key details: Code: DRMC Ch. 33, Art. III. Nightly Guest Cap: Not specified. Primary Residence: Required. Booking Parties: Single party at a time. Verification: License, voter, vehicle, utility records.

Operating without a primary-residence license, renting to multiple parties at once, or providing false primary-residence documentation can result in license suspension, revocation, fines, and referral for criminal prosecution for falsified statements.

Insurance Requirements

Denver STR licensees must carry at least $1,000,000 in liability insurance covering the rental property; insurance provided solely by online platforms such as AirCover does not satisfy this requirement.

Key details: Minimum Liability: $1,000,000. Platform Coverage Alone: Not sufficient. Insurer Notification: Required. Code: DRMC Ch. 33, Art. III rules. Proof: Provided to Excise and Licenses.

Operating an STR without the required $1M liability coverage, relying solely on platform-provided protection, or failing to disclose STR use to a homeowner's insurer can result in license denial, suspension, revocation, fines, and personal financial exposure for uncovered guest injuries or property damage.

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

Taxes & Fees

Denver STRs are subject to 10.75% Lodger's Tax plus standard sales tax on stays under 30 days. Hosts must register for a Lodger's Tax account before operating.

Key details: Denver Lodger's Tax: 10.75%. Applies To: Stays under 30 consecutive days. CO State Sales Tax: 2.9%. Account Required: Lodger's Tax account before licensing.

Failure to remit lodger's tax can result in back taxes, interest, penalties, and license revocation.

Compared to other cities, Denver takes a harder line on taxes & fees. The enforcement and penalty structure reflects that.

Permit Requirements

Denver requires STR license ($150/year) limited to primary residences only. Host must live on-site 183+ days/year. No investor-owned STRs. License number required on all listings. $1M liability insurance required.

Key details: License Fee: $150/year. Eligibility: Primary residence only (183+ days). Insurance: $1M aggregate liability. Investor STRs: Prohibited. False Claims: Felony — up to $500,000 fine.

Up to $999 per violation. False residency claims: felony charges, 2-6 years prison, fines up to $500,000. License revocation.

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

Noise Rules

Denver STR operators must comply with DRMC Chapter 36 noise limits. Quiet hours 11 PM–7 AM apply to guests. Violations can jeopardize the STR license.

Key details: Quiet Hours: 11 PM–7 AM. Host Responsibility: Liable for guest noise violations. Complaint Line: 311. License Risk: Suspension/revocation for repeat violations.

Noise fines up to $5,000/day under Chapter 36. STR license can be suspended or revoked for repeated violations.

Parking Rules

Denver STR guests must comply with all standard parking ordinances. Many residential areas have Residential Parking Permit (RPP) zones that restrict non-resident parking.

Key details: RPP Zones: Widespread in Denver neighborhoods. 72-Hour Limit: Applies citywide to all vehicles. Parking Tickets: $25–$75. Report Violations: 311 or denvergov.org.

Parking tickets typically $25–$75. Vehicles parked beyond 72 hours subject to ticketing and possible tow.

The Bottom Line

Denver is tougher than many cities when it comes to short-term rentals. Out of the 7 rules covered here, 4 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.