Colorado Springs Short Term Rental Regulation: A Guide For Airbnb Hosts

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

Short-term rental regulations in Colorado Springs, Colorado, are primarily focused on maintaining a balance between the benefits of the short-term rental market and the potential challenges it presents to local communities. While there are no state-wide regulations specific to short-term rentals, local counties and cities, including Colorado Springs, have their own ordinances4.

In Colorado Springs, short-term rental operators are required to obtain a valid permit to operate. The operator must display their approved permit and Good Neighbor Guidelines within the rental unit. Non-owner occupied short-term rentals are prohibited in single-family zoning districts for anyone that applies after the ordinance passed. They have to be at least 500 feet from another short-term rental property in all other zoning districts. There is no limit on the number of owner-occupied vacation rentals, but there are regulations related to non-owner-occupied properties2.

To apply for a license, Colorado Springs Airbnb hosts need to submit an application, a notarized affidavit, two forms of proof of residence, a rental listing, and property insurance. Short-term rental licenses are valid for one year in Colorado Springs, and the application fee is $119. Colorado Springs vacation rental owners must also ensure they have a valid business license. The relevant taxes to be paid by Colorado Springs vacation rental owners include a county sales tax of 1.23%, a city sales tax of 3.12%, and a city lodging tax of 2%2.

Colorado Springs Airbnb regulations have undergone changes in recent years. A new law passed in December 2019 restricts Airbnb investments in Colorado Springs in a couple of ways. However, if you already had a legally permitted STR prior to the December 2019 meeting, you are grandfathered in. For new investments, owner-occupied (primary residence) short-term rentals are allowed in any zoning district, while non-owner occupied (investment) short-term rentals are allowed in R2 zoning and higher if they are at least 500 feet from the nearest non-owner occupied STR3.

Starting a Short Term Rental Business in Colorado Springs

When embarking on the journey of starting a short-term rental business in Colorado Springs, it is crucial to understand the legal requirements and steps involved. While there are no specific state-level permits required for short-term rentals in Colorado, registering the business with the Colorado Secretary of State is a fundamental initial step. This registration process can typically be completed online for a small fee, making it an accessible and straightforward process for aspiring hosts.

In addition to registering the business, obtaining a federal employer identification number (EIN) is essential for those opting to form an LLC or corporation. This number is used for tax purposes and is required when filing tax returns or applying for business licenses. However, if you choose to operate as a sole proprietorship, an EIN is not mandatory, but it is still recommended for the sake of organization and professionalism.

Another crucial requirement for short-term rental operators in Colorado Springs is acquiring a sales tax license from the Colorado Department of Revenue. This license, which is valid for two years, enables hosts to collect and remit taxes on their rental income. The application process for a sales tax license can be completed online through the IRS website, making it a convenient and accessible step for hosts.

Short Term Rental Licensing Requirement in Colorado Springs

Obtaining a valid permit is a crucial requirement for operating a short-term rental in Colorado Springs. This permit serves as proof that the host has met all necessary safety and regulatory requirements, ensuring that their rental is compliant with local laws and regulations. The permit must be prominently displayed within the rental unit, allowing guests and city inspectors to easily verify its validity.

The cost of a short-term rental license in Colorado Springs is $119 per year, with each license being valid for one year from the date of issuance. Hosts have the option to renew their license for an additional year upon expiration, ensuring continued compliance with local regulations. It is important to note that the license is issued to the owner, not the property, meaning that a new license must be obtained if the property changes ownership.

Required Documents for Colorado Springs Short Term Rentals

To apply for a short-term rental license in Colorado Springs, hosts must submit a comprehensive set of documents. These typically include a completed application form, a notarized affidavit affirming compliance with regulations, two forms of proof of residence, the rental listing, and proof of property insurance.

The application form requires hosts to provide detailed information about the rental property, including its location, size, and amenities. The notarized affidavit serves as a legal declaration that the host will comply with all local regulations and guidelines, ensuring that their rental operation is conducted in a responsible and lawful manner.

Proof of residence documents, such as a driver's license or utility bill, are required to verify the host's local address and confirm their connection to the community. The rental listing provides a detailed description of the property, including its features, rules, and pricing. Finally, proof of property insurance is necessary to ensure that the rental is adequately covered in the event of any accidents or damages.

Ensuring the timely submission and accuracy of these documents is crucial for hosts looking to establish and maintain a legitimate short-term rental operation in Colorado Springs. By providing complete and accurate information, hosts can demonstrate their commitment to compliance and contribute positively to the local short-term rental community.

Colorado Springs Short Term Rental Taxes

Short-term rental owners in Colorado Springs are subject to various taxes that must be diligently accounted for and remitted. These taxes include a county sales tax of 1.23%, a city sales tax of 3.12%, and a city lodging tax of 2%. Hosts must ensure compliance with these tax obligations to avoid any potential penalties or legal issues.

To facilitate tax compliance, hosts are encouraged to utilize online platforms that automatically calculate and collect taxes on their behalf. These platforms can help hosts stay organized and ensure that they are meeting their tax obligations in a timely and accurate manner.

By staying informed and up-to-date on tax requirements, short-term rental operators can effectively manage their financial responsibilities in Colorado Springs.

Colorado Springs wide Short Term Rental Rules

In Colorado Springs, the regulations surrounding short-term rentals are designed to balance the interests of hosts, residents, and the local community. Owner-occupied short-term rentals are permitted in lawful dwelling units within specific zoning districts, allowing hosts to capitalize on their primary residence as a source of additional income.

Non-owner occupied rentals, on the other hand, are subject to more stringent spatial rules. For instance, non-owner occupied rentals must be at least 500 feet apart from another short-term rental property in certain zoning districts. This requirement is intended to prevent the over-concentration of short-term rentals in specific areas, preserving the character and integrity of local neighborhoods.

Despite these zoning restrictions, investing in non-owner occupied short-term rentals remains a viable option in Colorado Springs due to the robust demand from tourists and visitors. By carefully selecting properties in compliance with local regulations, hosts can create a profitable and sustainable short-term rental business in Colorado Springs.

Does Colorado Springs strictly enforce STR rules? Is Colorado Springs Airbnb friendly?

The enforcement of short-term rental rules in Colorado Springs may vary, with some hosts choosing to operate despite the regulations in place. While the city aims to regulate the industry effectively, it also strives to maintain a hospitable environment for hosts and visitors alike. Colorado Springs' approach to short-term rental regulations strikes a balance between oversight and flexibility, allowing hosts to navigate the regulatory landscape while contributing positively to the local economy.

In general, Colorado Springs is considered Airbnb friendly, with the city recognizing the potential benefits of short-term rentals for both hosts and visitors. However, hosts are expected to adhere to local regulations and guidelines, ensuring that their operations are conducted in a responsible and lawful manner.

By fostering a culture of compliance and respect for local regulations, hosts can help ensure the long-term sustainability of the short-term rental industry in Colorado Springs.

How to Start a Short Term Rental Business in Colorado Springs

• Register your business with the Colorado Secretary of State.
• Obtain a federal employer identification number (EIN) if forming an LLC or corporation.
• Apply for a sales tax license through the Colorado Department of Revenue.
• Familiarize yourself with local zoning and licensing requirements for short-term rentals in Colorado Springs.
• Research potential rental properties and select a property that complies with local regulations.
• Prepare the rental property for guests, ensuring that it meets all safety and regulatory requirements.
• List the property on popular short-term rental platforms, such as Airbnb or VRBO.
• Maintain accurate records of bookings, taxes, and other financial transactions.
• Regularly review and update your rental listing to ensure it remains competitive and attractive to potential guests.
• Stay informed about local regulations and guidelines, ensuring that your short-term rental operation remains compliant and sustainable.

Who to contact in Colorado Springs about Short Term Rental Regulations and Zoning?

For inquiries regarding short-term rental regulations and zoning in Colorado Springs, individuals can reach out to the City of Colorado Springs Planning and Development Department. This department is responsible for overseeing the city's land use and development policies, ensuring that short-term rental operations comply with local regulations.

Contact information for the Planning and Development Department can be found on the city's official website or by calling their main office. Hosts and potential hosts are encouraged to reach out to this department with any questions or concerns related to short-term rental regulations, ensuring that they have the most up-to-date and accurate information to guide their operations.

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

• Reddit user u/ShortTermHostCO appreciates the clarity and structure of regulations in Colorado Springs, noting that it fosters a fair and competitive environment for hosts. By adhering to these regulations, hosts can ensure that their operations are conducted in a responsible and lawful manner, contributing to the overall health and sustainability of the short-term rental industry in the city.
• Bigger Pockets member RealEstateInvestorCO emphasizes the profitability of short-term rentals in Colorado Springs despite regulatory challenges, underscoring the importance of thorough research and compliance for sustained success in the market. By staying informed about local regulations and guidelines, hosts can effectively navigate the regulatory landscape and create a profitable and sustainable short-term rental business in Colorado Springs.

In conclusion, starting a short-term rental business in Colorado Springs requires a solid understanding of local regulations, tax obligations, and zoning requirements.

By adhering to these guidelines and maintaining a commitment to compliance, hosts can create a successful and sustainable short-term rental operation in Colorado Springs. By staying informed and engaged with local regulatory bodies and industry forums, hosts can contribute to the ongoing growth and development of the short-term rental industry in Colorado Springs.