Colorado short-term rentals (STR) is a booming industry, reportedly earning $32 million in revenue this year. In terms of regulations, Colorado is still finding its feet – recently passing a number of regulations on homeowners and landlords that utilize short-term rental platforms like Airbnb, VBRO and Homeaway. For those who currently rent out their property, or are considering on jumping on the STR-bandwagon, here are some thing you’ll need to know.
Who is eligible?
- Must be a legal U.S. resident.
- The property must be your primary residence (2nd/vacation homes are not eligible in Colorado).
- If renting, you must obtain written approval from the owner of the property.
- If your property is a condominium, must abide by HOA for rules regarding STRs.
For those who are eligible, the state of Colorado now requires short-term renters to apply for a business license, which costs $25 per year. Additionally, renters will also need to apply for a lodger’s tax ID and have the proper rental insurance. Once everything is acquired, to stay compliant the renter will need to follow the below requirements in Colorado:
- Must post business license number on all ads, including Airbnb and VRBO listings.
- Guests must be provided with rental packet that notifies guests of city rules and restrictions and pertinent rental safety information.
- General liability insurance must be maintained in case of property damage.
- Rental property must have smoke and carbon monoxide detectors, as well as a fire extinguisher.
Renters who do not follow state rules risk receiving a $999 fine per incident and/or being reported to Excise and License Investigators. It’s important to stay knowledgeable and be in compliance with state rules on STRs. For further information consult your real estate attorney.
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