Durango Short-Term Rental Regulations

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Permit & Licensing

Vacation Rental Limited Use Permit (LUP)

This permit type does not require primary residence.

Application Process

Apply for a Vacation Rental Limited Use Permit (LUP) through the Community Development Department before establishing or advertising the rental. In capped zones (EN-1, EN-2, and capped developments) properties must be placed on a waitlist before being eligible to apply.

Tax Obligations

Combined rate: 14.65% of gross rental income.

Collection: Self-remit: operators collect and remit lodgers' and sales taxes to the City of Durango; state-administered sales tax is remitted to the Colorado Department of Revenue.

Rental Limits

Durango does not impose an annual cap on the number of nights you can rent. Each individual stay must be 29 days or fewer per stay.

Zoning & Restrictions

Allowed only in the Central Business Zone, Mixed-Use Zones, select Planned Development Zones, and Established Neighborhoods (EN) 1 & 2. Prohibited in Twin Buttes, Three Springs, Rock Ridge, and Sky Ridge. EN-1 is capped at 22 permits and EN-2 at 17; other zones have development-specific caps that are mostly full, requiring a waitlist.

Insurance & Safety

Insurance

Durango does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

• On-site parking
• Occupancy standards
• Trash and recycling procedures
• Compliance with the City's noise ordinance

Penalties for Non-Compliance

No STR-specific graduated escalation schedule (e.g., 1st/2nd/3rd offense dollar amounts) exists for vacation rentals. General LUDC enforcement escalation applies: (1) Warning/written direction with up to 14 days to cure (skipped for repeat violators within 24 months or imminent hazards); (2) Citation with civil fine of $10-$1,000 per offense (each day of continued violation = separate offense), payable within 30 days of decision; (3) Administrative revocation of the vacation rental's business license and/or use permit (Sec 6-4-3-2, 'Vacation Rental Violations'); (4) Cease and desist / stop work orders for ongoing violations; (5) Criminal misdemeanor prosecution (used only in egregious/repeat cases) carrying up to $1,000 fine and/or 90 days imprisonment per week of continued noncompliance. A distinct numeric graduated fine schedule ($250/$500/$750/$1,000 for 1st-4th compliance order) exists in the code but is explicitly limited to Stormwater Quality Permit violations, not vacation rentals.

Compliance Checklist

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

1. Meet safety requirements. On-site parking. Occupancy standards. Trash and recycling procedures. Compliance with the City's noise ordinance.
2. Apply for Vacation Rental Limited Use Permit (LUP). Submit application + $750 fee.
3. Register for tax accounts. Set up lodging tax accounts with City of Durango (city sales and lodgers' taxes); Colorado Department of Revenue (state sales tax).
4. Collect and remit taxes. 14.65% on all bookings.
5. Renew annually. $50 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Durango?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Durango requires a Vacation Rental Limited Use Permit (LUP).

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

A Vacation Rental Limited Use Permit (LUP) in Durango costs $750 per year. Renewal is $50 per year.

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

No. Durango allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

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

Durango does not cap the total number of nights per year, but each individual stay must be 29 days or fewer.

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

Short-term rental stays in Durango are subject to a combined 14.65% in lodging taxes. This combines 2.9% Colorado State Sales Tax + 3.0% La Plata County Sales Tax + 3.5% City of Durango Sales Tax + 5.25% City of Durango Lodgers' Tax. The host is responsible for collecting and remitting them.

What happens if you run a short-term rental without a permit in Durango?

No STR-specific graduated escalation schedule (e.g., 1st/2nd/3rd offense dollar amounts) exists for vacation rentals.