Colorado Springs Short-Term Rental Regulations

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Permit & Licensing

Owner Occupied Short Term Rental Permit

The property must be your primary residence. This means investment properties are not eligible for this permit type.

Non-Owner Occupied Short Term Rental Permit — new applications prohibited in single-family residential zoning districts (R-E, R-1 6, R-1 9, and Single-Family PDZs) since 12-26-2019

This permit type does not require primary residence. Zoning restriction: New permits prohibited in single-family zoning districts (R-E, R-1 6, R-1 9, Single-Family PDZs) since 12-26-2019; in other zoning districts must be at least 500 feet from another non-owner-occupied STR.

Application Process

Apply through the Planning Department's electronic submittal system (Applications and Reviews portal) with the STR checklist, proof of primary residency (owner-occupied), the $124.95 permit fee, a signed STR affidavit, proof of $500,000 liability insurance, and proof of hosting-platform listing. City Staff reviews completed applications within 10 business days.

Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.

Tax Obligations

Combined rate: 10.20% of gross rental income.

Collection: Marketplace facilitators (Airbnb, VRBO, Expedia, etc.) collect and remit City sales tax on the host's behalf under their own City sales tax license; hosts who book independently must obtain their own City Sales Tax License and self-remit.

Filing: Monthly or quarterly (based on tax volume); returns due on the 20th of the month following the reporting period, even if no tax is owed.

Rental Limits

Colorado Springs does not impose an annual cap on the number of nights you can rent.

Occupancy & Density Limits

2 occupants per bedroom plus 2 additional per dwelling unit; maximum 15 occupants per dwelling unit

Zoning & Restrictions

Density caps by zone: single-family zones (R-E, R-1 6, R-1 9, Single-Family PDZ) limited to 1 STR listing per property; R-2 zones limited to 2; multi-family zones up to 4; condominiums/common-ownership limited to 2 per owner.

Insurance & Safety

Insurance

Operators must maintain at least $500,000 in liability insurance covering the property's use as a short-term rental.

Safety & Operating Requirements

• Maintain property liability insurance of not less than $500,000 (or equivalent hosting-platform coverage)
• Maintain weekly residential trash collection service
• Comply with all applicable noise, housing, public health, fire, and safety ordinances of the City
• Sleeping quarters may not be in nonresidential areas, accessory structures without finished living space, commercial/industrial space, outdoors, or a recreational vehicle

Penalties for Non-Compliance

• Failure to renew before expiration may result in a Code Enforcement notice and, for non-owner-occupied permits, forfeiture of the established permit (no grace period)
• General UDC violation reinspection fees: $100 (1st), $250 (2nd), $500 (3rd and subsequent) for residential-use first-time offenders, escalating for repeat/chronic offenders
• Liens against the property for abatement costs plus a 25% administrative surcharge for uncorrected violations

Platform Requirements

• Must be listed on a hosting platform (e.g. Airbnb, VRBO) with proof of listing submitted at application
• The City-issued STR permit number must be used in all rental marketing materials
• Marketplace facilitators (Airbnb, VRBO, Expedia, etc.) must collect and remit City sales tax on the host's behalf unless the host books independently, in which case the host must obtain a City Sales Tax License.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Colorado Springs:

1. Determine your permit type. Colorado Springs has 2 permit types. Identify which applies to your property (Owner Occupied Short Term Rental Permit, Non-Owner Occupied Short Term Rental Permit — new applications prohibited in single-family residential zoning districts (R-E, R-1 6, R-1 9, and Single-Family PDZs) since 12-26-2019).
2. Meet safety requirements. Maintain property liability insurance of not less than $500,000 (or equivalent hosting-platform coverage). Maintain weekly residential trash collection service. Comply with all applicable noise, housing, public health, fire, and safety ordinances of the City. Sleeping quarters may not be in nonresidential areas, accessory structures without finished living space, commercial/industrial space, outdoors, or a recreational vehicle.
3. Obtain liability insurance. $500,000 minimum.
4. Apply for your STR permit. Submit application + $124.95 fee. See permit types above to determine which applies.
5. Register for tax accounts. Set up lodging tax accounts with City of Colorado Springs Finance Department, Sales Tax Office.
6. Display your permit number. Include your permit/license number in all listings and advertisements.
7. Collect and remit taxes. 10.20% on all bookings.
8. Renew annually. $124.95 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Colorado Springs?

Yes. Colorado Springs requires a short-term rental permit to operate an Airbnb or Vrbo, and there are 2 permit types — one requires the property to be your primary residence, and another allows non-owner-occupied (investment) use. See the permit types above to find which applies to your property.

How much does a short-term rental permit cost in Colorado Springs?

A short-term rental permit in Colorado Springs costs $124.95.

Does Colorado Springs require a short-term rental to be your primary residence?

It depends on the permit type. At least one Colorado Springs permit requires the property to be your primary residence, while another allows non-owner-occupied (investment) use — see the permit types above.

How many days a year can you short-term rent in Colorado Springs?

Colorado Springs does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Colorado Springs?

Short-term rental stays in Colorado Springs are subject to a combined 10.20% in lodging taxes. This combines 2.90% Colorado State Sales Tax + 1.23% El Paso County Sales Tax + 1.00% Pikes Peak Rural Transit Authority (PPRTA) Sales Tax + 3.07% City of Colorado Springs Sales & Use Tax + 2.00% City of Colorado Springs Lodgers and Automobile Rental Tax (LART). The host is responsible for collecting and remitting them.