Short-Term Rental Regulations in Colorado Springs, CO

Colorado Springs, nestled at the foot of the majestic Rocky Mountains, offers a unique blend of natural beauty and urban convenience, making it an attractive destination for tourists and adventurers alike. As a result, Airbnb and other short-term rental (STR) platforms have become increasingly popular in the area.

For those considering diving into the Airbnb market or looking to ensure their existing operations are up to par, understanding the local regulations is crucial. This comprehensive guide provides an overview of the STR regulations in Colorado Springs, helping hosts navigate the complexities of compliance.

Overview of STR Regulations in Colorado Springs

Colorado Springs has implemented specific regulations that govern short-term rentals to balance the economic benefits of tourism with the quality of life for local residents. Here’s what you need to know to ensure your Airbnb meets all legal requirements:

Licensing and Registration

1. STR Permit Required: All hosts looking to rent out their property as a short-term rental must first obtain an STR Permit from the City of Colorado Springs. This involves an application process that includes providing proof of liability insurance and ensuring the property meets zoning requirements.
2. Business License: In addition to the STR Permit, hosts must obtain a business license. This step is essential for tax purposes and is integrated into the permitting process.

Tax Obligations

Airbnb hosts in Colorado Springs are required to collect city Lodging and Automobile Rental Tax (LART) from their guests, which is 2% of the rental charge. Additionally, Colorado state sales tax must also be collected. These taxes must be reported and remitted to the Colorado Department of Revenue and the city finance office, respectively.

Safety and Health Regulations

1. Safety Inspections: Properties used for short-term rentals must comply with specific safety standards, including working smoke detectors, carbon monoxide detectors, and fire extinguishers. An inspection may be required to obtain the STR Permit.
2. Compliance with Building Codes: All STRs must adhere to local building codes. This ensures that modifications or additions to the property, such as additional bedrooms or guest facilities, are up to code.