Background and FAQs#
Short term rentals (STRs) refer to rentals offered for less than 30 consecutive days. The rental can be a whole house, a private room or space in a house, or shared accommodations. There are numerous on-line platforms catering to STRs, the most popular being Vacation Rental By Owner (VRBO) and Airbnb. Through a 2-year public process, staff engaged with residents and Council to seek means to protect neighborhood livability, maintain the availability of residential housing, protect STR renters, and ensure proper tax collection while accommodating a popular and desired use in the community.
On March 31, 2017 regulations became effective.
-
STRs are dwelling units that are rented for less than 30 days. Two types of STRs are defined:
- Non-primary short term rental is a dwelling unit that is not a primary residence and that is leased in its entirety to one party at a time for periods of less than 30 consecutive days.
- Primary short term primary rental is a dwelling unit that that is the owners primary home and a portion of the home is leased to one party at a time for periods of less than 30 consecutive days. Owners must reside in their primary STR at least 9 months out of the year.
-
Primary STRs are permitted in zones that currently allow all hotels, motels, and bed and breakfast of any size (green areas on map). Non-primary STRs are permitted in zones that currently allow lodging establishments (yellow areas on map).
See Map: Short-term rental zoning map
-
STR operators must obtain a Sales Tax and Lodging Tax License. Third party sites such as Airbnb collect State and County Sales Tax on your behalf. On November 1, 2020 they also began collecting City Sales Tax. They do not collect City Lodging Tax. Please contact the Sales Tax Office for more information.
STRs also require a STR license. This license is $150 with a $100 annual renewal fee.
-
STRs that were utilized as STRs and collected sales and lodging tax prior to the effective date of the licensing ordinance on March 31, 2017, will be allowed to apply for a license until June 30, 2017. Amortizing this use is prohibited by state statute. If a licensed STR property is sold, the new owners will have the ability to apply for a new license in their name.
-
You may consider long-term renting (30 days or more).
-
- Licenses are $150 and are non-refundable and non-transferrable. Annual renewal is $100.
- License must be posted in the STR.
- License number must be included in all advertising.
- Primary Affidavit (if applying for Primary STR license.)
- Proof of primary residence (if applying for Primary STR license.)
- Photos and description of the area to be rented (ex. Back bedroom and bath; downstairs, etc.)
- Name, phone number, and email of local contact must be provided.
- Owner must complete and self-certify that dwelling meets required safety standards.
- Properties may be subject to additional inspection upon complaint.
- Sales and lodging tax collection and remittance.
-
Short-term rentals must provide off-street parking based on the number of bedrooms rented.
Number of Bedrooms Rented
Number of Off-Street Parking Spaces 1—2 1 3—4 2 5—6 3 Off-street parking must be on private property, like a driveway or garage. It cannot include tandem parking, i.e. you cannot count a garage/driveway where two vehicles can park one behind the other as multiple parking spots.
-
Only if the entire building meets the R1 building code requirements. Please contact the Building Department at 970-416-2757 to verify.
-
A carriage house or one side of a duplex that is not a primary residence can be a short term primary rental if it is located on a lot containing a primary residence. An adjacent property does not qualify to be a primary STR.
-
The City is contracting with a specialized company that scrubs over 25 online sites and provides listings and address information. The City will use this information to notify STR operators who are unlicensed or who are in a zone that does not allow this use.
The City will seek voluntary compliance prior to issing any fines.
The licensing provisions refer to Code Section 1-15 regarding general penalties. Violations can be prosecuted as a misdemeanor punishable by a fine up to $2830 and 180 days jail with each day upon which a violation continues considered a separate offense.
-
The STR regulations are designed to reasonably address legitimate policy concerns and impacts on the public from the use of property for STRs. Therefore, the STR regulations will not result in a regulatory taking of property.
-
No, however the new owner can apply for a STR license in their own name within 30 days of closing.
If the property is a legacy property (AKA grandfathered), the new license must remain identical in scope to the original, and the new owner must meet the off-street parking requirements.
-
No. A new property owner must apply for a new STR license in their name within 30 days of closing.
If the property is a legacy property (AKA grandfathered), the new license must remain identical in scope to the original, and the new owner must meet the off-street parking requirements.
-
No. Only the owner may operate a STR. In addition, they may only rent to one party at a time, and the long-term tenant counts as the renter.
-
No. You may only rent to one party at a time.
-
No. This is not a requirement for the City. You can use your first and last name as the business name if you do not have an LLC or other business name set up. We recommend you contact the IRS, Larimer County, and the State of Colorado for their business requirements.