Short-term rentals (STRs) continue to be a profitable opportunity in Denver, but local regulations are getting stricter every year. If you’re planning to list your property on Airbnb or Vrbo in 2026, understanding Denver’s STR rules is not optional it’s essential.
This guide breaks down everything Denver hosts need to know about licensing, zoning, taxes, primary residence rules, and penalties in clear, simple language.
Whether you’re a first-time host or scaling a luxury short-term rental portfolio, this article will help you stay compliant and profitable.
What Is Considered a Short-Term Rental in Denver?
In Denver, a short-term rental is defined as:
A residential property rented for fewer than 30 consecutive days.
This includes:
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Airbnb listings
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Vrbo rentals
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Furnished Finder stays
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Any platform offering stays under 30 days
Even if you rent your home occasionally, Denver law still applies.
Denver’s Primary Residence Rule (Critical for 2026)
One of the most important STR regulations in Denver is the Primary Residence Requirement.
What does this mean?
You can only operate a short-term rental if:
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The property is your primary residence
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You live there for at least 183 days per year
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The address matches your driver’s license, tax records, or voter registration
What’s NOT allowed?
Investment-only STR properties
Multiple Airbnb units under one owner
Corporate-owned short-term rentals
Exception:
Some limited exemptions exist for:
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Accessory Dwelling Units (ADUs)
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Certain zoning overlays (very rare)
👉 This rule is actively enforced and expected to remain strict in 2026.
Denver Short-Term Rental License Requirements
Before listing your property, you must obtain a Denver Short-Term Rental License.
Documents Required:
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Proof of primary residence
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Government-issued ID
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Denver sales tax license
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Lodger’s tax registration
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Proof of insurance
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Floor plan (in some cases)
License Fee:
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Typically renewed annually
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Fees vary depending on updates and city revisions
Listing without a license can result in fines and forced delisting.
Denver Zoning Laws for STRs
Zoning plays a major role in whether your property can legally operate as an STR.
Commonly Allowed Zones:
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Single-unit residential zones (with primary residence compliance)
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Some mixed-use residential zones
Potential Restrictions:
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HOAs may prohibit short-term rentals
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Condo associations often enforce stricter rules than the city
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Neighborhood overlays may limit guest capacity or parking
👉 Always check both city zoning and HOA bylaws before listing.
Denver STR Taxes You Must Pay
Operating a short-term rental in Denver means collecting and remitting multiple taxes.
Required Taxes:
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Denver Lodger’s Tax
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Denver Sales Tax
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Colorado State Sales Tax
Many platforms collect some taxes automatically, but you are still responsible for compliance.
⚠️ Failure to file taxes correctly can lead to:
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Back taxes
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Penalties
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License suspension
Safety & Operational Requirements for Hosts
Denver also enforces guest safety and operational standards.
Minimum Requirements:
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Smoke detectors in all sleeping areas
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Carbon monoxide detectors
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Fire extinguisher
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Emergency contact information posted inside the unit
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Occupancy limits per bedroom
Luxury STRs are often inspected more closely, especially in high-traffic neighborhoods.
Penalties for Non-Compliance in Denver
Denver actively monitors STR listings.
Possible Penalties:
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Fines per violation
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License revocation
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Platform takedowns (Airbnb/Vrbo cooperation)
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Legal action for repeat offenses
The city uses data scraping and complaint-based enforcement, making compliance more important than ever in 2026.
Upcoming STR Trends & What to Expect in 2026
While laws may evolve, industry experts expect Denver to:
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Maintain the primary residence rule
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Increase enforcement automation
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Tighten licensing verification
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Apply higher penalties for repeat offenders
Hosts who operate professionally with proper management and compliance will continue to succeed.
How Professional STR Management Helps You Stay Compliant
Managing Denver STR regulations while maximizing revenue can be overwhelming.
A professional short-term rental management company can:
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Handle licensing & renewals
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Ensure tax compliance
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Monitor regulation changes
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Optimize pricing and occupancy
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Protect you from costly mistakes
This is especially valuable for luxury STR owners who want passive income without legal risk.
Final Thoughts: Is Denver Still Worth It for STR Hosts?
Yes if you do it right.
Denver remains a strong market for luxury short-term rentals, but only for hosts who:
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Follow city regulations
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Operate legally
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Focus on guest experience and compliance
If you’re planning to list in 2026, understanding the rules now gives you a competitive advantage.
