Short-Term Rentals in Lakewood, CO: What Residents Actually Need to Know
If you live in Lakewood or are thinking about moving there, short-term rentals are one of those things you probably won't think about until they affect you directly. Lakewood has 6 specific rules on the books covering different aspects of short-term rentals, and some of them might surprise you.
Insurance Requirements
Lakewood requires every short-term rental licensee to carry liability insurance covering use of the premises as a short-term rental, in an amount not less than $500,000, with proof submitted as part of the LMC Chapter 5.55 license application.
Key details: Minimum Liability: $500,000. Code: LMC Ch. 5.55. Coverage Use: Premises as short-term rental. Proof: Required at application and renewal. Compared to Denver: Lower than Denver's $1M.
Operating without the required $500,000 liability coverage, allowing the policy to lapse, or submitting false proof of insurance can result in license denial, suspension, revocation, and Chapter 5.55 fines up to $5,000, in addition to personal exposure if a guest is injured.
Occupancy Limits
Lakewood Municipal Code Chapter 5.55 bans whole-home short-term rentals of less than 30 days; only home-share rentals of individual rooms inside the owner's primary residence are allowed, which structurally limits guest counts.
Key details: Code: LMC Ch. 5.55. Whole-Home <30 Days: Prohibited. Home-Share Rooms: Allowed, owner present. Primary Residence: Required. Numeric Guest Cap: Not specified in Ch. 5.55.
Operating a whole-home short-term rental, renting while not maintaining the property as a primary residence, or exceeding building-code habitable occupancy can lead to license denial, suspension, revocation, and fines of up to $5,000 under Chapter 5.55 enforcement provisions.
Compared to other cities, Lakewood takes a harder line on occupancy limits. The enforcement and penalty structure reflects that.
Permit Requirements
Lakewood requires short-term rental operators to obtain a license and comply with safety and zoning requirements. A sales tax license is also required.
Key details: License: Business and sales tax license required. Safety: Smoke/CO detectors required. Local Contact: Must be available for issues. Listing: Must display license number.
Operating without a license results in fines. Properties failing safety inspections cannot operate until corrected.
Parking Rules
Lakewood STR operators should provide parking information to guests. Guest vehicles must comply with city parking regulations.
Key details: Operator Duty: Provide parking info to guests. Street Parking: City regulations apply. Lawn Parking: Prohibited. Off-Street: Recommended where possible.
Parking violations result in standard citations. Persistent issues may factor into license review.
Taxes & Fees
Lakewood STR operators must collect and remit the city's lodger's tax and state sales tax on short-term rental income.
Key details: Lodger's Tax: City lodger's tax on stays under 30 days. State Tax: CO sales tax applies. License: Sales tax license required. Reporting: Regular reporting to city finance.
Failure to collect and remit taxes results in penalties, interest, and potential license revocation.
Noise Rules
STR guests in Lakewood must comply with the city's noise ordinance. Operators are responsible for informing guests about quiet hours from 10 PM to 7 AM.
Key details: Quiet Hours: 10 PM–7 AM. Operator Duty: Inform guests of rules. Enforcement: Lakewood Police. Repeated Issues: May affect license.
Noise violations by guests can result in citations and potential license revocation for operators after repeated complaints.
The Bottom Line
Lakewood'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 Lakewood is broadly strict or permissive.
This guide is based on Lakewood's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.