Denver Rental Permit Guide 2026: How to Get Your STR License and Stay Compliant in the Mile High City

Denver has one of the clearest and most consistently enforced short-term rental frameworks in Colorado. The rules are not complicated, but they are strict on one point above all others: only your primary residence qualifies. If you understand that rule and comply with it, the Denver licensing process is straightforward. If you try to work around it, the consequences are severe.

I have watched Denver's STR market evolve over the years, and what strikes me most is how effectively the city has enforced the primary residence requirement compared to other cities that have similar rules on paper but weak enforcement. Denver uses a third-party monitoring service to scan more than 25 online platforms for compliance. They are actively looking for unlicensed rentals and misrepresented primary residences.

The Primary Residence Requirement: Denver's Core Rule

Denver defines a short-term rental as any residential lodging provided to guests for fewer than 30 consecutive days. Every STR in Denver must be the host's primary residence. The city defines primary residence as "the place in which a person's habitation is fixed for the term of the license and is the person's usual place of return."

In plain terms: you must actually live there. Not occasionally visit. Not maintain a mailing address there. Actually live there as your home. You can have only one primary residence, which means you can hold only one active STR license in Denver.

You can rent individual rooms while you are living in the property. You can rent your entire home while you are temporarily away on a trip or vacation. What you cannot do is purchase a second property, leave it vacant, and list it on Airbnb as an investment rental. That model is not legal in Denver under any STR license.

The stakes for misrepresenting primary residence are unusually high in Colorado. Providing false information on a Denver STR license application to claim a non-primary residence as your primary home can result in felony charges under Colorado law, with potential penalties of two to six years in prison and fines up to $500,000. That is not a risk worth taking.

You Need Two Licenses, Not One

This is the most common thing Denver hosts do not realize before they apply. Denver requires two separate licenses to legally operate a short-term rental. Both must be active. Having only one is not sufficient.

The first is a General Business License. This establishes your STR operation as a taxable business entity in the City and County of Denver. It is administered by the Excise and Licenses department.

The second is a Short-Term Rental License. This specifically authorizes you to rent your primary residence for stays of fewer than 30 days. The STR license must be renewed annually for a fee of $100.

Both applications go through Denver's Excise and Licenses portal at denvergov.org. You can submit them simultaneously or in either order, but both must be obtained before you list your property. Display both license numbers in your listings.

What the Application Requires

The Denver STR license application asks for proof of primary residence, which typically includes a Colorado driver's license showing the property address, voter registration, utility bills, or a combination of these. If your ID shows a different address, expect additional documentation requests.

You will also need to provide evidence of adequate liability insurance, safety equipment documentation (working smoke detectors, carbon monoxide detectors, fire extinguisher), and basic property information.

Initial applications are generally reviewed within 30 days. Applications that require specialist review, such as properties in certain historic districts or those with pending issues, can take up to 90 days. Plan accordingly and do not list your property until the license is issued.

Tenants who want to operate an STR in Denver must provide a written landlord permission affidavit in addition to all the standard documentation. Get this in writing before you apply. Verbal permission is not sufficient and will not satisfy the city's requirements.

Denver's Noise Ordinance and Operational Rules

Denver updated its noise ordinance in 2025. The current limits are 55 dBA during daytime hours and 50 dBA at night for residential areas. As a host, you are responsible for making sure your guests understand and comply with these limits. Include the noise rules in your house rules, listing description, and pre-stay communications.

Denver STRs cannot be used for commercial events, large parties, weddings, or gatherings that exceed normal residential use. Even one large-event violation can result in license suspension. Be explicit in your listing about this restriction.

Taxes for Denver Short-Term Rental Hosts

Denver hosts owe two primary local taxes on short-term rental income. The city sales tax rate is 4.81 percent. The Denver Lodger's Tax is 10.75 percent. These are collected on the rental amount paid by guests for stays of fewer than 30 days.

For Airbnb and VRBO bookings, both platforms typically collect and remit the Denver Lodger's Tax on your behalf. However, you are still responsible for maintaining your own tax account with Denver's Department of Finance and filing returns, even if the platforms are remitting the tax for you. Confirm what each platform is remitting and file your returns accordingly.

Colorado does not require a state-level STR permit, but you do need a Colorado sales tax license, which is valid for two years and must be renewed. Register through the Colorado Department of Revenue.

Annual Renewal: The $100 You Cannot Forget

Your Denver STR license expires annually. The renewal fee is $100. The renewal process requires you to update your contact information and reconfirm your primary residence status. If anything has changed since your original application, address it at renewal time.

Denver's monitoring service scans platforms continuously. An expired license is one of the first things their system flags. If your license lapses, expect a compliance notice and possible listing suspension. Renew before the expiration date, not after you receive a notice.

ADUs and Room-by-Room Rentals in Denver

If your property has an attached Accessory Dwelling Unit (ADU) or basement apartment that is part of your primary residence, you can include it in your STR license. The key word is attached. Detached ADUs on the same lot but with separate entrances and separate dwelling classifications may have different treatment. Check the specifics with Denver's Excise and Licenses department before listing a detached unit.

Renting individual rooms within your primary residence while you live there is permitted and is one of the most common Denver STR models. Room-by-room rentals are fully compliant as long as the property is your primary residence and you hold valid licenses.