Denver Airbnb Laws: What To Know And How To Use Them
Fundamentally, Denver Airbnb laws are meant to facilitate one thing: control available apartments for long-term residents in a city where rents and property prices seem to be in a perpetual state of increase. Denver Airbnb laws are some of the more restrictive in the state of Colorado, but easy to navigate once you get a grasp of them.
License requirements and enforcement penalties are a real thing in Denver, and the tax situation is also evolving, particularly recently, due to recent tax laws implemented by the city. In this guide, we’ll break down exactly how Denver’s Airbnb laws work, what’s changed recently, and how you can stay compliant while optimizing your income.
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Is Airbnb legal in Denver?
Yes, Airbnb is legal in Denver, but it depends on how long you’re renting the place out. If you are renting the place out for less than 30 days, then it must be a primary residence, and you must have legal documentation in the form of a short-term rental license. If you’re offering short stays (under 30 days), you need a short-term rental license, and the property must be your primary residence. That means you actually live there most of the time, even if you’re away during the guest’s stay. The city put this rule in place back in 2016 to prevent investors from buying up homes just to list on Airbnb, which was driving up housing prices and frustrating neighborhoods.
It’s important to note here that Denver’s rules apply only within the City and County of Denver. They don’t apply to the wider metro area, which in some cases encompasses counties and areas that sit right next to Downtown Denver. Surrounding cities like Lakewood, Westminster, Aurora, and Boulder each set their own short‑term rental regulations, ranging from requiring similar primary‑residence licensing to completely banning non-owner-occupied rentals
So, what is a short-term rental in Denver?
A short-term rental (STR) is defined as renting any residential property for fewer than 30 consecutive days. This includes:
- Entire homes listed on Airbnb, VRBO, or other platforms
- Individual rooms or basement suites are rented out on a nightly or weekly basis
- Accessory Dwelling Units (ADUs) if they’re part of your primary residence
Importantly, renting for 30 days or more is not considered a short-term rental, and those properties fall under different regulations.
Primary residence requirement (still in effect as of 2025)
As of 2025, Denver only allows STRs in a host’s primary residence. That means:
- You must live in the home for at least 50% of the calendar year
- You must receive mail, be registered to vote, and file income taxes using that address
- You can only have one active STR license at a time
The primary residence requirement is really what changed everything in the Denver STR market. Prior to the requirement, capital was being poured into Denver, both institutional and retail, with the purpose of “Airbnb-ing” the entire available property in the city. This primary residence rule effectively disqualifies vacation homes, investment properties, and second condos, even if they’re located on the same parcel of land as the host’s main home. Detached units, guest houses, and properties not occupied by the owner for at least half the year are also ineligible. The rule serves as the central dividing line between what Denver considers a legal versus illegal short-term rental, and it is strictly enforced through audits, documentation checks, and neighbor-reported violations.
Why the primary residence rule matters in Denver
Everyone is in agreement that no one wants to see Denver go the way of Los Angeles or New York, where the middle class is disappearing mainly due to skyrocketing housing costs. The primary residence rule is meant to keep people in check and housing stock available for locals. Without it, wealthier investors might scoop up dozens of properties and convert them into full-time vacation rentals, pushing out long-term renters and raising property values too quickly.
Above all else, Denver’s enforcement of the primary residence laws has short-term rental landlords whispering to each other in fear, with barely legible voices. Denver conducts audits, responds to complaints, and requires detailed documentation to prove a property is truly your home.
What you need to legally operate an STR in Denver:
To be fully compliant in 2025, you’ll need:
| Requirement | Why It Matters |
|---|---|
| Short-term rental license | Legally authorizes you to operate an STR in Denver; must be renewed annually |
| Lodger’s Tax ID | Required to collect and remit Denver’s 10.75% lodging tax |
| License number display | Must appear in all public listings (Airbnb, VRBO, etc.); failure to include it is a violation |
| Tax collection and remittance | Hosts must collect the lodging tax from guests and remit it to the city monthly or quarterly |
| Compliance with city ordinances | Includes zoning restrictions, noise limits, trash protocols, and safety inspections |
How to get licensed as an Airbnb host in Denver
While Denver’s short-term rental licensing process has improved over the years, it still involves several steps that some might refer to as “cumbersome” even on the best of days. The city takes compliance seriously, and cutting corners during the licensing process can lead to rejection or, worse, enforcement actions later down the line.
Here’s a breakdown of what to expect when applying for your license in 2025:
Step-by-step licensing process
1. Create an account on Denver’s online portal
Start by visiting Denver’s STR licensing website. You’ll create an account where you can submit your application, upload documents, and track the status of your license.
2. Gather and submit your required documentation
The city requires clear proof that the property is your primary residence. Acceptable documents include:
- A government-issued ID (such as a driver’s license or state ID) showing the property’s address
- A recent utility bill or lease agreement in your name
- Floor plans of the property and interior/exterior photos
- Optional: voter registration or a vehicle registration at the same address (helps if your application is flagged for review)
3. Pay the $50 application fee
This is a non-refundable annual fee required to process your license.
4. Pass required inspections
Most applicants will undergo a fire safety inspection. The inspector checks for smoke and CO detectors, proper egress windows, visible address numbers, and working fire extinguishers. If your unit fails inspection, you’ll be given time to make corrections and reschedule.
5. Display your STR license number on listings
Once your license is approved, you’ll receive a unique license number. This must be included in the title or description of every listing on Airbnb, VRBO, or any other booking platform. Omission can trigger a violation.
6. Renew annually
Licenses expire 12 months from the issue date. Denver will email a reminder, but it’s your responsibility to renew on time and resubmit updated documents if needed.
Remember, these steps aren’t just recommendations for how to live a better life in Denver, they are important for legal compliance with Denver’s STR ordinances.
| Requirement | Description |
|---|---|
| Primary residence | You must live at the property for more than 183 days per year; documentation like ID, utility bills, and tax records are used to verify this. |
| STR license | You must obtain a short-term rental license from the City and County of Denver before listing your property; this authorizes legal operation. |
| Tax registration | Hosts must apply for a Lodger’s Tax ID to collect and remit Denver’s 10.75% lodging tax; Airbnb collects automatically, but hosts doing direct bookings are responsible for manual reporting. |
| Renewal | Your license must be renewed annually through the same portal, with updated documents and continued proof of primary residence. |
💡 Pro Tip:
If your documents don’t perfectly match (e.g., your ID has a different address than your utility bill), your application may be flagged. Be proactive, upload a written explanation or additional proof to avoid delays.
Penalties for noncompliance
Denver takes short-term rental enforcement seriously, and the numbers prove it. In 2024 alone, the city issued more than 850 citations and ordered the shutdown of nearly 200 illegal STRs. From unlicensed listings to fraudulent primary residence claims, the most common violations can result in fines, listing removal, and long-term license bans.
The city uses a combination of automated monitoring tools, complaint-driven investigations, and manual audits to find violators. Airbnb and VRBO data are cross-referenced with license databases, and neighbors can easily report suspected illegal activity via 911. If you think you can fly under the radar, think again.
Common violations:
| Violation | Penalty |
|---|---|
| No license | $150–$1,000 per day |
| Fake primary residence | Immediate revocation, fines up to $5,000 |
| Tax violations | Back taxes + interest + fines |
| Code complaints | $250–$999 per complaint |
How Denver compares to nearby suburbs
Remember, the City and Denver’s short-term rental rules are among the most developed in the state, requiring primary residency, annual licensing, and active enforcement. That primary residence stipulation can be a huge pain, especially, but that doesn’t mean you are out of options. Different counties have different regulations, and below is a list of “Metro-Denver” neighborhoods and how they stack up in terms of Airbnb laws.
City | Primary Residence Required? | Annual STR License Fee | STR Nights Allowed |
|---|---|---|---|
| Denver | Yes | $50 | Unlimited |
| Aurora | No (registration required) | $200 | Unlimited |
| Lakewood | Yes | $100 | 182 nights/year |
| Westminster | No | $75 | Unlimited |
| Englewood | Yes | $100 | Unlimited (with restrictions) |
| Arvada | Yes | $50 | 120 nights/year |
| Wheat Ridge | No (but must apply for permit) | $150 | Unlimited |
This expanded view shows how regulatory environments shift even across a short distance. Cities like Arvada and Lakewood are more restrictive, especially for investors, while Westminster and Wheat Ridge offer greater flexibility, but still require registration or permits. Understanding these nuances helps STR hosts plan smarter expansion strategies across the Denver metro.
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