Short-Term Rentals in Denver: How to Start Your Airbnb in Denver

Are you considering using your property as a short-term rental? GLO specializes in assisting property owners convert their homes into short-term rentals and obtaining the proper licenses.

How Does Licensing for Short-Term Rentals Work in Denver?

Short-term rentals, which are residential properties rented for less than 30 days, have gained significant popularity in recent years due to the rise of platforms like Airbnb and VRBO.com. To address this trend, local governments have implemented regulations through mandatory licensing to ensure the safety and well-being of both renters and property owners.

In fact, Colorado has some of the country’s most restrictive laws for short-term rentals. For example, the City of Denver requires owners to have a license to rent their property and only allows owners to rent their primary residence. Colorado also collects a variety of sales taxes and sets minimum safety standards for licensing. It is also one of the leading states in terms of enforcing these requirements, with actual investigators who ensure that those who have a license still meet the requirements. These requirements are constantly changing and vary widely depending on which jurisdiction you’re in.

GLO is one of the leading law firms for short-term rental properties in Colorado and will take care of all your licensing needs, ensuring that you comply with all licensing regulations while renting your property. 

Am I Qualified for a Short-Term Rental License in Denver?

In order to get a license to rent your property on a site like Airbnb, you must apply for a short-term rental license through the municipality your property is in. Before applying, you must make sure your primary residence complies with the City’s safety, taxes, zoning, and insurance rules. You must take extra safety precautions such as making sure your property is equipped with proper smoke detectors, as well as verify that your hosting platform provides at least the statutory prescribed amount in liability insurance. Once you have met these requirements, you are ready to apply. 

What Do I Have to do Once I Get My Short-Term Rental License?

Once you receive your short-term rental license from your Colorado municipality, you must maintain all the same conditions that you had to meet to receive your license. If your property falls below these minimum standards, you must inform the city immediately. Failure to do so is against the law, and you could face criminal legal action.

Licenses are automatically renewed every year unless the City believes you are violating these requirements. If the City believes you are in violation, they will set a hearing to determine if your license should be renewed, revoked, or suspended. If the city has notified you of a potential violation or if you have been disciplined in the last year, you must attach those documents in the application for renewal. 

You must also create a brochure for your short-term rental that includes contact information for you and the General Manager of the property. The brochure should also provide information about the neighborhood and the property, such as trash pickup schedules, fire exit locations, and the location of the extinguisher.

Can I Advertise my Property? 

You are free to advertise your property, but you must put your short-term rental license number in any advertisement. This includes when you list your property online. If you are using Airbnb, you must add your license number to your property listing. If you fail to do so, you risk license revocation. As mentioned above, the licensing requirements are constantly changing, so it is a good idea to check with competent legal counsel before posting an advertisement.

How GLO Can Help

The complexities of Colorado's short-term rental laws, from deciphering primary residence rules and zoning to ensuring ongoing tax compliance and advertising requirements, underscore the value of professional legal counsel. At GLO, our Colorado short-term rental attorneys possess an in-depth understanding of these multifaceted regulations.

We guide property owners through every step of the process, from initial qualification assessment and meticulously preparing your short-term rental license application to advising on crucial safety regulations and tax obligations. Our expertise helps you navigate the intricacies of Denver short-term rental rules and other local ordinances, ensuring your property is in full compliance. We also help you understand and implement the necessary liability insurance for short-term rentals and ensure your advertising adheres to all legal requirements. While we don't handle residential property closing or directly offer title insurance Colorado, our focus on comprehensive short-term rental compliance helps ensure your property is ready for a smooth and legally sound operation. By anticipating potential legal hurdles and proactively addressing them, GLO helps you minimize risks, avoid costly penalties, and establish a successful and compliant short-term rental business, allowing you to maximize your property's potential without unnecessary stress.

Please fill out an Intake Form to inquire about working with GLO.

GLO has prepared this blog to provide general information on legal issues that may be of interest. This blog does not provide legal advice for any specific situation and this does not create an attorney-client relationship between any reader and GLO or its attorneys. GLO engages clients only through specific fee arrangements and signed engagement letters. GLO does not guarantee any results. 

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