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 7 specific rules on the books covering different aspects of short-term rentals, and some of them might surprise you.

Noise Rules

A Lakewood short-term rental that racks up two excessive-noise citations, or a single noise conviction, gives the City's Lodging/STR Licensing Authority grounds to open a show-cause hearing to suspend, revoke or not renew the STR license.

Key details: Revocation trigger: 2 citations or 1 noise conviction. Governing section: LMC § 5.55.070(A)(3). Cross-referenced noise code: LMC § 9.52.040. Application denial trigger: 2+ noise summons in prior 12 months. Possible penalty: Probation, civil fine, or revocation.

Two excessive-noise citations or one noise-ordinance conviction supports a show-cause hearing under § 5.55.070(A)(3); the Authority can then place the license on probation, impose a civil fine under the adopted fine schedule, or revoke the license (§ 5.55.080.C). Two or more noise summons in the prior year also blocks a new or renewal application outright (§ 5.55.060(A)(4)), and probable cause of a willful noise violation supports immediate summary suspension (§ 5.55.070(B)).

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

Short-Term Rental Parking Rules

Lakewood does not set a numeric on-site parking count for short-term rentals. Instead, every STR license application requires a notarized affidavit that all renters will be told about the City's vehicle parking rules, alongside noise, garbage and common-area usage rules.

Key details: Governing section: LMC § 5.55.030(B)(5)(c). Required disclosure: Vehicle parking rules told to renters. Delivery method: Notarized affidavit with application. False affidavit penalty: LMC § 1.16.020; C.R.S. § 18-5-114. Numeric parking-space count: Not set by Chapter 5.55.

Submitting an affidavit that falsely represents renters were informed of parking rules, or omitting the required affidavit altogether, makes the application incomplete and subject to denial under § 5.55.030(B) and § 5.55.060(A)(2). A knowingly false statement on the application is independently unlawful under § 5.55.120(B), punishable under LMC § 1.16.020's general penalty provision and C.R.S. § 18-5-114.

Host Platform Liability

Lakewood requires any short-term rental facilitator or hosting platform a licensee uses to hold its own city business license, and treats an unlicensed-listing as grounds to deny or revoke the property's STR license.

Key details: Facilitator license: Required under Ch. 3.01/3.03. Effective date: September 1, 2023. Listing requirement: License number must display. Enforcement: City Clerk / Licensing Authority.

Listing an STR without the license number displayed is grounds for license denial or revocation; using an STR Facilitator that lacks its own city license violates Section 5.55.090(D).

Primary-Residence-Only Rule

Lakewood issues short-term rental licenses only for Dwelling Units that are the owner's Primary Residence, closing off investor-owned or non-owner-occupied properties from operating as STRs citywide.

Key details: Eligible units: Owner's Primary Residence only. One residence per person: No multiple primary residences. ADU treatment: Counts as part of residence. Effective date: September 1, 2023.

Licensing or operating an STR at a property that is not the owner's Primary Residence is unlawful; the City Clerk will deny the application, and an existing license can be revoked if residency status changes.

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

Repeat Violator Strikes

Lakewood denies new STR licenses to owners whose license was revoked or suspended in the prior five years, and revokes active licenses after two nuisance citations.

Key details: Application look-back: 5 years after revocation. Active-license threshold: 2 nuisance citations. Or: 1 nuisance-code conviction. Decided by: City Clerk / Licensing Authority.

A second nuisance-code citation, or one conviction, supports revocation; a prior revocation or suspension within five years is an independent ground to deny a new application.

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

Insurance Requirements

Lakewood requires every short-term rental license applicant to submit proof of liability insurance covering the property's use as an STR, in an amount no less than $500,000. The proof is one of a dozen items the City Clerk's office checks before an application is deemed complete.

Key details: Minimum liability coverage: $500,000. Governing chapter: LMC Ch. 5.55, adopted 2023. Required at: New application and renewal. Reviewing office: City Clerk. Missing proof consequence: Application denied as incomplete.

An application missing the $500,000 insurance proof is not "complete in every detail" and the City Clerk must return or deny it (§ 5.55.030(B), § 5.55.060(A)(1)). For an already-licensed STR, a failure to maintain conforming insurance can support a show-cause hearing to suspend or revoke the license (§ 5.55.070(A)(8)), with penalties set under § 5.55.080(C) ranging from probation to a civil fine to license revocation.

Short-Term Rental Permits

A Lakewood STR license application must include owner contact information, a premises description, a signed affidavit, a recent inspection report, and proof of required tax licenses.

Key details: Inspection report window: within 30 days of application. Renewal deadline: 45 days before expiry. Affidavit: notarized, required. Tax licenses required: sales/use + lodging tax.

Submitting an incomplete STR application, or a false or misleading affidavit within it, halts processing and can lead to denial or license revocation.

The Bottom Line

Lakewood 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 Lakewood, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

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.