Chapter 1

Denver Airbnb Rules: Your Complete Guide

Last updated: July 2025

Running a short-term rental in the Mile High City can be incredibly profitable, but navigating Denver’s Airbnb laws requires careful attention to detail. From licensing requirements to tax obligations, understanding the local laws will help you operate legally while maximizing your rental income.

This comprehensive guide covers everything hosts need to know about current regulations, the potential for income, and getting started in one of America’s hottest rental markets.

Don’t see the form to download our vacation rental agreement? Click here.

Yes, Airbnb is legal in Denver. However, regulations on the industry have increased over the past few years. The city has implemented a licensing system that aims to manage short-term rentals while balancing the needs of locals by preventing them from being priced out of their neighborhoods.

Is Denver a good place to have an Airbnb?

Denver is a solid place to operate a short-term rental business. According to AirDNA, a vacation rental host can expect to earn an average annual income of over $40,000. While it’s still catching up to other U.S. markets, Denver is expected to grow.

Breaking down Denver Airbnb rules

As with any business in the city, there are specific Denver short-term rental laws every host must follow. Let’s take a look at some of the most important things to know about Denver short-term rental rules.

Primary residence requirement

The biggest hurdle that prospective hosts face is Denver’s primary residence rule. As the name suggests, the vacation rental must be the host’s primary residence for the majority of the year. The purpose of this strict requirement is to prevent outside investors from transforming neighborhoods into entire vacation rental districts.

Short-term rental license application

As with most cities, a short-term rental license is required for all vacation rentals. This license applies to rentals that host guests for 29 days or less. Once you’ve received your license number, it must be displayed in your listing.

General liability insurance

Denver requires that short-term rental hosts have general liability insurance. General liability insurance typically covers bodily injury of a guest or damage to a guest’s belongings. It also protects a host if a guest damages common areas. An example of this would be if a guest breaks a piece of furniture in a shared lobby or causes damage to a shared amenity, such as a pool or gym.

Zoning rules

It’s important to note that not all areas in Denver allow Airbnbs. To save yourself from disappointment, double-check Denver’s zoning rules to ensure you can legally operate a vacation rental.

What to know about the Denver Airbnb tax

Denver short-term rental hosts face several tax obligations at the city, county, and state levels:

FAQs about Denver Airbnb laws

Is Airbnb profitable in Denver?

Yes, Airbnb can be profitable in Denver. As the market continues to grow, hosts can expect to earn an annual income of over $40,000.

What happens if I don’t follow Denver’s Airbnb rules?

Noncompliance with Denver Airbnb regulations may result in fines and legal consequences. While enforcement hasn’t been consistent, Denver previously fined Airbnb hosts without the proper licensing up to $1,000 per day.

Do I have to live at my Airbnb?

Generally, yes. Denver short-term rental regulations require the primary owner or tenant of a property to be present during all short-term rentals.

Can I rent out multiple properties on Airbnb in Denver?

No. Denver’s short-term rental rules state that you can only rent out your primary residence. This means you cannot legally rent out secondary properties or investment properties as short-term rentals within the city.

Are there taxes I need to collect and remit as an Airbnb host in Denver?

Yes. Airbnb hosts in Denver are required to collect and remit both state and local taxes on their short-term rentals. Airbnb generally collects these taxes on behalf of the host and submits them directly to the appropriate authorities. If you’re using a platform outside of Airbnb or a direct booking website, be sure to check with the tax authorities to determine your obligations as a short-term rental host.

Getting started with your Airbnb in Denver

Ready to set up your Airbnb in Denver? Below is a step-by-step guide to help you make the most of your new business venture.

1. Understand Denver’s short-term rental regulations

To operate legally in Denver, ensure you familiarize yourself with the local policies outlined in this guide. Particularly important Denver Airbnb rules include primary residency requirements, licensing, and tax obligations.

2. Obtain the required licenses

To start hosting, you’ll need a short-term rental license. Follow these steps to get licensed:

  • Provide proof of primary residence.
  • Submit a completed short-term rental application through the city’s online portal.
  • Pay the necessary fees for processing your license.

3. Install safety equipment

Make sure your listing aligns with city’s safety standards by completing the following tasks:

  • Install functional smoke and carbon monoxide detectors.
  • Provide fire extinguishers in a visible area of your space.

4. Set up your tax accounts

Denver requires hosts to collect and remit lodging taxes. Register for a Colorado State Sales Tax License and a Denver Lodger’s Tax account. Platforms like Airbnb often assist with this, but always confirm compliance.

5. Create a standout listing

After these logistical steps are handled, focus on creating an engaging and detailed listing. Highlight the features that make your listing special, use high-quality images, and respond quickly to inquiries to build positive guest reviews.

Key takeaways

Navigating the Denver Airbnb rules may seem complex, but understanding the key requirements is a must. Ensuring your property is eligible, obtaining the necessary licenses, and complying with local tax regulations are important first steps.

Additionally, creating a standout listing with attention to detail and excellent guest communication can help attract bookings and build your reputation. By staying informed and adhering to these guidelines, you will have a positive hosting experience in Denver.

Are you already a host in Denver? Lodgify’s vacation rental software is here to help you efficiently manage your business, increase your direct bookings through your own website, and streamline operations across platforms like Airbnb and Vrbo.

Whether you’re new to the market or looking to expand, why not give Lodgify’s vacation rental software a try with a 7-day free trial? Our property management tools have everything you need to simplify your operations and maximize your revenue.

Don’t see the form to download our vacation rental agreement? Click here.