10-3-19. - Short-Term Rentals.
(a) Short-term rentals are prohibited unless the city manager has issued a valid short-term rental license for the property.
(b) The city manager shall only issue a rental license for short-term rental to:
(1) A natural person, whose name appears on the deed to the property;
(2) A trust, if the beneficiary of the trust is a natural person; or
(3) A not-for-profit corporation licensed pursuant to Section 501(c) of the Internal Revenue Code, provided, however, the city manager shall have discretion to reject any application for a not-for-profit corporation if the city manager deems the application to be inconsistent with the goals of this chapter, which include allowing not-for-profits the opportunity support their mission through short-term rentals, preserving long term rental units and preventing investor owned short-term rentals.
(c) Any application for a rental license for short-term rental shall include the following:
(1) If the applicant is a natural person, the application must include a true copy of a Colorado driver's license or Colorado identification card showing the dwelling unit to be licensed is the applicant's address and a sworn statement that said dwelling unit is the applicant's principal residence;
(2) If the applicant is a trust, a true copy of a Colorado driver's license or Colorado identification card showing the dwelling unit to be licensed is a beneficiary's address and a sworn statement that said dwelling unit is a beneficiary's principal residence;
(3) If the applicant is a not-for-profit corporation, the application shall include proof of the corporation's status under Section 501(c) of the Internal Revenue Code and a statement of the manner in which short-term rentals serve the organization's charitable purpose;
(4) A certification that the dwelling unit is equipped with operational smoke detectors, carbon monoxide detectors and other life safety equipment as may be required by the city manager; and
(5) The names and telephone numbers of two contacts who for owner-operated rentals can be permanent residents on the property and who are capable of responding to the property within sixty minutes.
(d) If the applicant is a natural person, the applicant's name must appear on the deed to the property on which the dwelling unit to be rented is located, and the applicant must possess at least a fifty percent fee simple ownership interest in the property.
(e) If the applicant is a trust, the trust must possess at least a fifty percent fee simple ownership interest in the property.
(f) The city manager shall not issue a license for short-term rental of a property in which an entity that is not tax exempt under Section 501(c) of the Internal Revenue Code holds a fee simple ownership interest.
(g) The city manager shall not issue a license for short-term rental of a permanently affordable dwelling unit.
(h) Short-term rentals shall not be subject to the inspection requirements of Subsection 10-3-3(b), "Terms of Licenses," B.R.C. 1981, except as set forth in subsection (o).
(i) The occupancy of a dwelling unit rented as a short-term rental shall not exceed the occupancy permitted pursuant to Chapter 10-2, "Property Maintenance Code," B.R.C. 1981.
(j) The dwelling unit rented as a short-term rental shall be the licensee's principal residence.
(k) No person shall rent a dwelling unit in a manner that requires or encourages a person to sleep in an area that is not habitable as that term is used in the International Property Maintenance Code as adopted in Section 10-2-2, "Adoption of the International Property Maintenance Code with Modifications," B.R.C. 1981.
(l) No person shall advertise a short-term rental, unless the advertisement includes the valid short-term rental license number once assigned by the city manager.
(m) The city manager shall not issue more than one short-term rental license to any applicant.
(n) The city manager may not issue more than one rental license pursuant to the standards of this chapter related to the use of a dwelling or dwelling unit. The city manager shall not issue a short-term rental license for and no person shall rent as a short-term rental any dwelling, dwelling unit, rooming unit, room or portion of any of the foregoing if the dwelling, dwelling unit, or rooming unit is otherwise licensed as a rental under this chapter or is subject to an affidavit of exemption filed with the city manager pursuant to Subsection 10-3-2(b), "Rental License Required Before Occupancy and License Exemptions," B.R.C. 1981; and, if a dwelling, dwelling unit, rooming unit, room or any portion of the foregoing is licensed as a short-term rental, the city manager shall not issue a rental license for a rental other than short-term rental for and no person shall rent other than for short-term rental the dwelling, dwelling unit, rooming unit, room, or any portion of any of the forgoing.
(o) An accessory dwelling unit or a principal dwelling unit on a detached dwelling unit lot or parcel with an accessory unit may not be rented as a short-term rental unless all the following requirements are met:
(1) Both the accessory dwelling unit and the principal dwelling unit were legally established by February 1, 2019;
(2) A current and valid short-term rental license exists for the unit;
(3) If the accessory dwelling unit is licensed for short-term rental, only the accessory dwelling unit and not any other dwelling unit on the same property may be licensed or used as a rental;
(4) If a principal dwelling unit is licensed for short-term rental, then no accessory dwelling unit on the same property may be licensed or used as a rental;
(5) An accessory dwelling unit may not be rented as a short-term rental for more than one hundred twenty days in any calendar year;
(6) Notwithstanding the provisions of subsection (i), the occupancy of the accessory dwelling unit and the principal dwelling unit must meet the requirements of Subsection 9-8-5(b), B.R.C. 1981; and
(7) Licensing Limitations and Requirements:
(A) After February 1, 2019, no application for a new short-term rental license may be accepted. The city manager may renew unexpired short-term rental licenses pursuant to Section 10-3-7, "License Renewal Procedure for Buildings Occupied as Rental Property," B.R.C. 1981. A license for which a complete renewal application is not filed within ninety days from the expiration date shall be considered expired.
(B) An applicant for a short-term rental license for a detached accessory dwelling unit, as that term is defined in Section 9-16-1, "General Definitions," B.R.C. 1981, must submit an inspection report for the accessory structure containing the unit consistent with the requirements of Subsection 10-3-3(b), B.R.C. 1981.
(C) Notwithstanding the provisions of Section 10-2-2, "Adoption of the International Property Maintenance Code with Modifications," B.R.C. 1981, Appendix C, effective January 2, 2019, the energy efficiency requirements set forth in Section 10-2-2, Appendix C shall apply to detached accessory dwelling units, as that term is defined in Section 9-16-1, "General Definitions," B.R.C. 1981, that are licensed for short term rental.
(p) Any licensee that has submitted a sworn statement pursuant to paragraph (c)(1) or (2) of this section as part of its original application shall complete the following each year within thirty days of the anniversary of the issuance of the short-term rental license:
(1) Submit a sworn statement meeting the requirements of Paragraph 10-3-19(c)(1) or (2), B.R.C. 1981, affirming that the licensed dwelling unit continues to be the applicant or the applicant's principal beneficiary's principal residence; and
(2) Pay the fee described in Section 4-20-18, "Rental Licensing Fees," B.R.C. 1981.
(q) A festival lodging rental license, a form of short-term rental license, may be issued for an eligible property. Such festival lodging rental license may be issued under the same requirements of this Section, except:
(1) For the purposes of this subsection (q), the term tenant licensee refers to an individual or entity seeking a festival lodging rental license on a unit within a building that holds another validly issued rental license;
(2) The application proof of ownership requirements in paragraphs 10-3-19(c)(1), (2) and (3) shall not be required, except that the applicant shall submit a sworn statement of ownership at the time of application, or in the case of a tenant licensee, an attestation from the property owner or agent of the property owner that festival lodging is permitted in the unit must be on file;
(3) The license shall not be subject to the requirements of paragraphs 10-3-19(b), (d), (e), (f), (g), (j), (m), (n), (o) or (p);
(4) The festival lodging rental license is subject to the requirements of subsection 10-3-19(l) and is further restricted to advertisement for, and occupancy during rental dates only while an event for which the city has issued a Special Festival Event License or has otherwise approved a special festival event within city limits, plus ten days prior to the beginning of said license commencement date, and nine days following said license conclusion date. Under no circumstances shall a festival lodging rental license be utilized for more than twenty-nine days per year;
(5) Term: Licenses issued pursuant to this subsection (q) shall expire four years from issuance, except that licenses issued to a tenant licensee on a unit that also holds a valid rental license pursuant to Chapter 10-3, "Rental Licenses," B.R.C. 1981, expire one year from issuance; and
(6) A festival lodging rental licensee shall pay the fee described in Section 4-20-18, "Rental Licensing Fees," B.R.C. 1981.
Ordinance Nos. 8050 (2015); 8104 (2016); 8154 (2016); 8256 (2018); 8304 (2019); 8371 (2019); 8556 (2023); 8571 (2023); 8651 (2025); 8715 (2025); 8743 (2026)