Short-Term Rentals in Colorado

May 24, 2017 | Bill Henry

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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