HB25-1090: Colorado’s New Rental Law
How much does it cost to book an Airbnb or a short-term rental in the state of Colorado? Colorado’s STR market is becoming increasingly professionalized, with hosts separating expenses like cleaning fees and operational costs from the advertised nightly rate. This makes sense for landlords and property owners, but there have been issues with people abusing this concept and guests paying way over the original nightly rate.
HB25-1090 is supposed to rectify this by making everything more transparent. But how exactly does it work, and what do you need to do as a landlord to navigate it properly? We break it all down below.
Looking to get into the short-term rental market in Colorado?
What is HB25-1090?
HB25-1090 is a Colorado law that requires housing providers to clearly disclose all mandatory fees and to present pricing that reflects the true cost of occupancy. The idea is to prevent misrepresentation: rentals appear less expensive at first glance but include a variety of fees later in the process. Both short-term rental and long-term landlords use a layered pricing strategy to separate operational expenses, such as administration and cleaning, from their base rates. The issue is that some of these are indeed legitimate expenses that properties will incur. The lack of transparency, however, has led to excessive pricing manipulation, particularly in short-term rentals. No one knows what exactly is going on beneath the hood.
HB25-1090 addresses this problem by requiring that all applicable fees be disclosed up-front at the time of booking. It also gives clear instructions on prohibiting deceptive or misleading pricing practices. In addition to being allowed to charge fees, the short-term rental operators will now be required to disclose such fees in an easy-to-understand manner. For short-term rental operators, fees remain allowed, but they must be presented clearly. This shifts the focus from minimizing the visible nightly rate to ensuring accurate and transparent pricing from the beginning.
ProTip
For investors, the key takeaway is that HB25-1090 changes how pricing is presented, not how revenue is generated. Hosts who structure pricing transparently can remain compliant while preserving profitability and maintaining a competitive position.
Why was HB25-1090 introduced?
Colorado ranks among the top 10 tourist destinations, and with all the mountains and outdoor activities, + the basketball prowess of Denver Nuggets’ Nikola Jokic, this is only set to grow. Over the past decade, many rental operators separated cleaning and operational costs from the nightly rate to stay competitive. While effective for pricing flexibility, this made it harder for renters to see the true cost upfront.
As a result, listings with similar nightly rates could have very different total costs once fees were added, with cleaning fees alone often accounting for 15% to 25% of the total stay cost, which is absolutely ridiculous.
| Fee type | Typical range | Purpose | Impact on total guest cost |
|---|---|---|---|
| Cleaning fee | $75 – $250 per stay | Covers turnover cleaning, laundry, and preparation | Can increase total stay cost by 10% – 25% |
| Administrative or management fee | $25 – $100 per stay | Covers operational coordination and management | Adds fixed operational cost regardless of stay length |
| Platform service fee | 10% – 20% of booking subtotal | Charged by booking platform for transaction services | Increases total guest payment beyond host pricing |
| Utility or maintenance fee | $10 – $50 per stay | Covers consumables, utilities, and wear-related costs | Minor individually, but accumulates across fee categories |
Market Reality
Short-term rental operators rely on separate fees because many costs, especially cleaning and turnover—are fixed per stay rather than per night. HB25-1090 does not eliminate these costs. Instead, it ensures that guests can see and evaluate the full price clearly, improving transparency while preserving the underlying economics of STR investments.
How HB25-1090 affects Airbnb hosts and STR operators
HB25-1090 will require a new way for short-term rental hosts to present pricing information, requiring all cleaning fees, maintenance fees, and other mandatory charges to be clearly shown to guests.
The host may still have these mandatory charges, but they can no longer break down their nightly rate and show each item separately. This means that guests will see a more accurate representation of the nightly rate without feeling they are getting ripped off by an underlying price structure. know nothing about. For those with clean and transparent pricing strategies, the effect will likely be small; those with complicated pricing strategies may need to adjust how they display fees and combine them with their overall pricing strategy to ensure compliance with this law.
Before vs after HB25-1090 pricing transparency
Flexible pricing structure with inconsistent disclosure.
Cleaning fees could be disclosed later in the booking process, making the true cost less visible initially.
Total rental cost was often unclear until checkout, limiting accurate comparison between listings.
Mandatory fees were sometimes listed separately or presented inconsistently.
Pricing structures allowed flexibility but could create ambiguity around the final cost.
Transparent pricing structure aligned with regulatory standards.
Cleaning fees must be clearly disclosed upfront as part of the overall pricing structure.
Total rental cost must be transparent and understandable from the beginning of the booking process.
All mandatory fees must be fully disclosed and clearly explained.
Pricing structures must avoid misleading presentation and reflect the true cost of the stay.
For short-term rental investors, HB25-1090 does not eliminate operational fees but requires clearer pricing presentation. Hosts who structure pricing transparently can remain compliant while maintaining revenue stability and improving guest trust.
How pricing transparency affects booking behavior
Show me the incentive, and I’ll show you the result. Transparent pricing does more than just meet compliance requirements; it directly affects guest behavior and the listing’s overall performance. When guests can see everything up front, they tend to book and stick around. Unexpected fees added later in the process often lead to abandoned reservations and lower conversion rates. This behavior is one of the reasons platforms like Airbnb introduced “total price display,” allowing guests to see the full cost, including cleaning and service fees, before checkout.
These figures represent modeled examples based on typical Colorado STR pricing and cleaning fee ranges reported by industry analytics platforms such as AirDNA. Actual performance varies by location, property quality, and seasonality.
Impact of transparent pricing on conversion rates
| Pricing transparency level | Average booking conversion rate | Guest trust level |
|---|---|---|
| Low transparency | 2.1% | Low |
| Moderate transparency | 3.4% | Moderate |
| High transparency | 5.2% | High |
Real example: Colorado Airbnb host adapting to HB25-1090
Understanding how HB25-1090 impacts pricing in practice can be better understood by examining a typical pricing model of a single-bedroom unit that is consistently rented in Denver through an existing year-round booking process. The host uses a standard pricing model for the property, separating operational fees from the nightly rate, making the listing appear more competitive in search results while still recovering operational costs (cleaning and/or management) separately.
For a three-night stay, the pricing looked like this:
- Nightly rate: $160 × 3 nights = $480
- Cleaning fee: $140
- Administrative and service fees: $60
Total guest cost: $680
Effective nightly cost: $227 per night
Before HB25-1090:
| Pricing component | Amount | Description |
|---|---|---|
| Nightly rate | $160 per night | Base price displayed to guests before additional fees |
| Cleaning fee | $140 per stay | Covers turnover cleaning, laundry, and property preparation |
| Service and administrative fees | $60 per stay | Covers management, coordination, and operational overhead |
Although guests initially saw a $160 nightly rate, the actual cost averaged $227 per night after mandatory fees were included, a 42% increase over the visible base price.
After HB25-1090, the host adjusted the pricing structure to improve transparency while maintaining the same overall revenue.
- Nightly rate adjusted to: $195 × 3 nights = $585
- Cleaning fee reduced to: $95
- Administrative fees eliminated and incorporated into the nightly rate
Total guest cost: $680
Effective nightly cost: $227 per night
The total revenue per stay remains unchanged, but the pricing is now clearer and more aligned with regulatory expectations.
This change will help build guest confidence by eliminating confusion about pricing and by complying with Colorado’s new transparency mandates for listings. In addition to complying with transparency mandates, transparent pricing models can, over time, increase the stability of your bookings by allowing you to set fair expectations before a guest commits.
Financial impact on STR investors
For investors, HB25-1090 shifts the market toward clearer pricing standards, reinforcing the importance of operational efficiency and accurate revenue modeling.
Hosts may choose to:
- Incorporate fees into nightly rates
- Reduce separate fees
- Simplify pricing structures
This often leads to more predictable performance.
Revenue structure comparison
| Revenue model | Nightly rate | Separate fees | Total revenue per stay |
|---|---|---|---|
| Pre-HB25-1090 model | $150 | $200 | $800 |
| Post-HB25-1090 adjusted model | $185 | $80 | $805 |
This shows that revenue can remain stable while improving transparency.
Operational changes hosts should make now
HB25-1090 does not require hosts to eliminate fees, but it does require them to present pricing more transparently. For most Airbnb operators, compliance involves restructuring how costs are displayed rather than changing the property’s underlying economics.
Hosts should review their pricing model and ensure that all mandatory costs are clearly reflected in the listing. This often involves incorporating certain operational costs into the nightly rate or simplifying fee structures to improve clarity.
| Operational area | Recommended adjustment | Why it matters |
|---|---|---|
| Fee structure | Review and consolidate mandatory fees | Improves transparency and simplifies pricing |
| Listing presentation | Ensure total costs are clearly explained | Helps guests understand the full price upfront |
| Pricing strategy | Incorporate operational costs into nightly rate when appropriate | Reduces pricing friction and improves booking confidence |
| Listing accuracy | Keep pricing and descriptions consistent across platforms | Reduces compliance risk and guest disputes |
Long-term implications for the Colorado STR market
HB25-1090 reflects a broader transition toward professionalized short-term rental operations. As transparency becomes standard, pricing across the market is likely to become more consistent and easier for guests to evaluate.
• Reduces confusion around total stay cost.
• Improves pricing clarity and market efficiency.
• Reduces negative reviews related to pricing surprises.
• Strengthens long-term booking performance.
• Improves consistency in listing performance.
• Supports more reliable income forecasting.
• Reduces competitive advantage from pricing manipulation.
• Strengthens long-term investment quality across the market.
Over time, markets that prioritize transparency tend to attract more reliable guests and more stable demand, creating a healthier investment environment.
How HB25-1090 affects real estate investment decisions
For investors, HB25-1090 reinforces a fundamental shift already underway in the short-term rental sector: performance is increasingly driven by property quality, location, and operational efficiency rather than fee structure manipulation.
Properties with strong fundamentals remain highly competitive regardless of their price.
Aligned with transparent pricing standards.
Strong location and neighborhood demand.
Professional management and consistent operations.
Competitive and realistic nightly pricing.
Positive guest experience and review performance.
More vulnerable to regulatory changes.
Heavy reliance on separated mandatory fees.
Inconsistent pricing presentation.
Weak operational structure.
Lower guest satisfaction and booking stability.
For investors, long-term success depends on property fundamentals and operational quality rather than fee structure optimization. HB25-1090 accelerates this transition toward a more professional and transparent STR market.
Compliance checklist for Airbnb hosts
The following checklist can help hosts ensure compliance with HB25-1090 and maintain strong operational performance:
| Compliance area | Action required | Risk if ignored |
|---|---|---|
| Fee disclosure | Clearly present all mandatory fees | Potential regulatory exposure |
| Pricing transparency | Avoid misleading or incomplete pricing | Reduced guest trust and booking conversion |
| Listing accuracy | Ensure pricing matches actual guest cost | Guest disputes and negative reviews |
| Operational monitoring | Stay updated on regulatory requirements | Future compliance risk |
FAQ
Does HB25-1090 prevent Airbnb hosts from charging cleaning or service fees?
No, HB 25-1090 prohibits deceptive or misleading advertising and requires that all additional fees be disclosed to the guest prior to booking. It is still permissible for hosts to charge and disclose the following types of charges (e.g., cleaning fees, administrative fees) as long as they are disclosed and transparently communicated to the guest at the time of booking.
Will HB25-1090 reduce the profitability of short-term rentals in Colorado?
HB25-1090 will likely NOT decrease profit margins for most hosts. However, it could possibly alter how the host presents pricing information to guests. As a result, many hosts will still be able to generate the same total income per night as before by charging a slightly higher nightly rate to cover fees previously charged separately.
What should Airbnb hosts do to comply with HB25-1090?
An Airbnb host should check each of their listings to ensure ALL required fees are properly disclosed and included in the listing’s total price. To achieve this, the host may need to modify their pricing structure, update their listing description to reflect the fees they charge, and eliminate any ambiguous or conflicting ways of presenting those fees. Maintaining compliance with HB25-1090 reduces potential liability for non-compliance while increasing guest confidence and booking reliability.