Denver Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Denver,Colorado?

In Denver, Colorado, the regulations surrounding short-term rentals, including popular platforms like Airbnb and VRBO, are designed to ensure responsible and compliant operation within the city. To start a short-term rental business in Denver, individuals must adhere to specific guidelines set forth by the local government.

To operate a short-term rental in Denver, the property must be the host's primary residence, emphasizing the city's focus on maintaining the integrity of residential neighborhoods. Obtaining a short-term rental license from the Denver Department of Excise and Licenses is a fundamental requirement for hosts, with an annual renewal fee of $100. Displaying the license number on all rental listings is mandatory to demonstrate legal compliance.

When applying for a short-term rental license in Denver, hosts are required to submit various documents, including a Colorado driver's license, proof of primary residence, proof of property possession, and a valid city lodger's tax account number. These documents play a crucial role in verifying the host's eligibility and commitment to operating within the city's regulations.Short-term rental hosts in Denver are also responsible for collecting and remitting specific taxes, including a 4.81% city sales tax and a 10.75% city lodger's tax. Compliance with tax obligations is essential to avoid penalties and maintain good standing with the city.

Denver's short-term rental rules encompass safety requirements such as having functioning smoke detectors, carbon monoxide detectors, and fire extinguishers. Additionally, rentals are limited to 30 non-consecutive days per year, and hosts must maintain appropriate insurance coverage. The regulations aim to ensure the safety of guests and the surrounding community while preserving the character of residential areas.

Enforcement of short-term rental regulations in Denver is notable, with reports of fines for non-compliance. Despite this, many Airbnb hosts continue to operate in Denver, indicating the market's attractiveness for those willing to adhere to the regulations. Denver's approach to short-term rentals reflects a balance between fostering a vibrant rental market and addressing community concerns.

Starting a Short Term Rental Business in Denver

Launching a successful short-term rental business in Denver, Colorado, requires property owners to navigate a comprehensive set of regulations and requirements established by the city. These rules aim to strike a balance between the benefits of short-term rentals and the potential impact on local neighborhoods, ensuring that hosts operate responsibly and in compliance with zoning laws, safety standards, and licensing protocols.

To start a short-term rental business in Denver, individuals must first develop a deep understanding of the city's specific regulations and how they apply to their property and rental operations. This includes familiarizing themselves with the licensing process, tax obligations, and various rules and restrictions that govern short-term rentals in the Denver area.

Short Term Rental Licensing Requirement in Denver

One of the key requirements for short-term rental hosts in Denver is the need to obtain a license from the Department of Excise and Licenses. This license is mandatory, regardless of whether the property is a primary residence or an investment property. The licensing process involves submitting a range of documents, including proof of primary residency, insurance coverage details, and evidence of compliance with safety standards.

Once obtained, the short-term rental license must be prominently displayed on all rental listings to demonstrate the host's legal status and compliance with the city's regulations. Failure to obtain a license or display it properly can result in fines and other penalties, potentially jeopardizing the host's ability to operate their short-term rental business.

Required Documents for Denver Short Term Rentals

When applying for a short-term rental license in Denver, hosts must provide a comprehensive set of documents to the city authorities. These typically include:

• Proof of primary residency, such as a driver's license or utility bills, to ensure that the property is the host's primary place of residence
• Evidence of appropriate insurance coverage for the rental property, including liability and property damage policies
• Documentation showing compliance with safety regulations, including the installation of smoke detectors, fire extinguishers, and other required safety equipment
• A floor plan of the rental property, indicating the maximum occupancy to ensure the host is not exceeding the city's limits
• Any other information or documentation required by the city to demonstrate the host's ability to operate a safe and responsible short-term rental.

The city's thorough review of these documents is crucial in ensuring that hosts meet the necessary standards and obligations set forth in the regulations, protecting both the guests and the surrounding community.

Denver Short Term Rental Taxes

In addition to the licensing requirements, short-term rental hosts in Denver are responsible for collecting and remitting lodging taxes to the city. These taxes are typically charged as a percentage of the rental rate and are used to fund various municipal services and initiatives, such as infrastructure improvements, public safety, and tourism promotion.

Hosts must familiarize themselves with the applicable tax rates and ensure timely payment to avoid penalties and maintain compliance with the city's regulations. Failure to collect and remit the required taxes can result in fines and other enforcement actions, potentially leading to the revocation of the host's short-term rental license.

Denver-wide Short Term Rental Rules

Denver's short-term rental regulations extend beyond the licensing and tax requirements, encompassing a range of city-wide rules and restrictions that hosts must adhere to. These rules aim to ensure that short-term rentals do not negatively impact the character and livability of the surrounding neighborhoods.

Some of the key Denver-wide short-term rental rules include:

• Maintaining the property in a safe and habitable condition, with proper maintenance and upkeep
• Complying with noise ordinances and other regulations that aim to preserve the tranquility of the local community
• Ensuring that the rental does not disrupt the neighborhood or create nuisance issues, such as excessive traffic or parking problems
• Adhering to any zoning or land-use restrictions that may apply to the property, such as limits on the number of rental days or the maximum number of guests

Failure to comply with these rules can result in fines, the revocation of the host's short-term rental license, or other enforcement actions by the city, underscoring the importance of understanding and adhering to the regulations.

Does Denver Strictly Enforce STR Rules? Is Denver Airbnb Friendly?

The enforcement of short-term rental regulations in Denver varies, with some hosts reporting strict enforcement and fines for non-compliance, while others have had a more positive experience. The city's approach aims to balance the benefits of short-term rentals with the concerns of local residents, leading to a mixed perception of Denver's Airbnb friendliness.

On the one hand, some hosts on platforms like Reddit and Bigger Pockets have praised Denver's regulations, highlighting the importance of compliance for a successful and sustainable short-term rental business. They emphasize the need to understand and adhere to the city's rules to avoid potential issues, such as fines or the revocation of their license.

These hosts often note that while the regulations may seem restrictive at first, following them can lead to long-term success and a positive relationship with the city. They stress the value of investing the time and effort to understand the requirements, as this can help to ensure a smooth and compliant operation.

On the other hand, other hosts have shared their challenges with Denver's strict enforcement, noting the difficulties in navigating the regulatory landscape. These hosts have described instances where they were fined or faced other penalties, even when they believed they were operating within the guidelines.

Despite these challenges, many hosts continue to operate short-term rentals in Denver, suggesting that the market remains attractive for those willing to invest the time and effort to comply with the city's requirements. These hosts often emphasize the benefits of operating within the legal framework, as it provides long-term stability and reduces the risk of penalties or license revocation.

How to Start a Short Term Rental Business in Denver

To start a short-term rental business in Denver, property owners should follow these steps:

• Research and familiarize themselves with Denver's short-term rental regulations, including licensing requirements, tax obligations, and safety standards. This may involve reviewing the city's municipal code, attending informational sessions, or consulting with local experts.
• Obtain a short-term rental license from the Denver Department of Excise and Licenses by submitting the necessary documentation and meeting the city's criteria. This may include providing proof of primary residency, insurance coverage details, and compliance with safety requirements.
• Ensure that the property meets all safety and habitability requirements, such as the installation of smoke detectors, fire extinguishers, and proper egress. This may involve making necessary upgrades or modifications to the property.
• Secure appropriate insurance coverage to protect the property, the host, and the guests, as required by the city's regulations.
• Collect and remit the required lodging taxes to the city in a timely manner, in accordance with the applicable tax rates and deadlines.
• Maintain compliance with Denver's short-term rental rules, including noise ordinances and neighborhood character preservation. This may involve ongoing monitoring and adjustments to the rental operations.
• Display the short-term rental license number on all rental listings to demonstrate legal operation and compliance with the city's regulations.
• Continuously monitor and adapt to any changes in Denver's short-term rental regulations to ensure ongoing compliance and avoid potential issues.

By following these steps and maintaining a commitment to compliance, property owners can establish a successful and sustainable short-term rental business in Denver, while also contributing to the city's efforts to balance the benefits of short-term rentals with the needs of local communities.

Who to Contact in Denver about Short Term Rental Regulations and Zoning?

For inquiries and information about short-term rental regulations and zoning in Denver, individuals can contact the Denver Department of Excise and Licenses. The department can be reached at licenses@denvergov.org or by phone at (720) 865-2740. Additionally, the city hosts regular Short-Term Rental Advisory Committee (STRAC) meetings, which provide an opportunity for hosts and community members to engage with local officials and discuss short-term rental-related issues.

These resources can be invaluable for property owners looking to navigate the regulatory landscape and ensure that their short-term rental business is operating in compliance with Denver's rules and regulations. By engaging with the city's authorities and staying informed about any updates or changes to the regulations, hosts can proactively address any concerns and maintain a positive relationship with the local government.

What do Airbnb hosts in Denver on Reddit and Bigger Pockets think about local regulations?

Airbnb hosts in Denver have shared their experiences and perspectives on the city's short-term rental regulations through online forums like Reddit and Bigger Pockets, providing valuable insights into the local market.

On Reddit, user u/DenverHost123 expressed a positive experience with Denver's regulations, highlighting the importance of compliance for a successful short-term rental business. They emphasized the need to understand and adhere to the city's rules, as this helps to ensure a smooth and sustainable operation. The user noted that while the regulations may seem restrictive at first, following them can lead to long-term success and avoid potential issues with the authorities.

The user explained that by familiarizing themselves with the licensing requirements, tax obligations, and safety standards, they were able to establish a thriving short-term rental business in Denver. They stressed the value of investing the time and effort to understand the regulations, as this can help to build a positive relationship with the city and mitigate any enforcement actions or penalties.

On the Bigger Pockets forum, user123 shared the challenges they faced with Denver's strict enforcement of short-term rental rules. They described instances where hosts were fined for non-compliance, even when they believed they were operating within the guidelines. However, the user also acknowledged the benefits of operating within the legal framework, as it provides long-term stability and reduces the risk of penalties or license revocation.

The user emphasized the importance of staying up-to-date with any changes in Denver's short-term rental regulations and being proactive in addressing any concerns raised by the city. They noted that while the regulatory environment can be challenging, those who are willing to invest the time and effort to comply with the rules are more likely to have a positive experience and build a sustainable short-term rental business in the city.

Overall, the opinions of Airbnb hosts in Denver on these online platforms reflect a mix of experiences, with some praising the city's regulatory approach and others expressing frustration with the enforcement. However, the consensus seems to be that navigating Denver's short-term rental regulations is crucial for those looking to operate successfully in the market. Hosts who are willing to invest the time and effort to understand and comply with the rules are more likely to have a positive experience and build a sustainable short-term rental business in the city.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.