Telluride Short-Term Rental Regulations

New to short-term rentals? Jump to the compliance checklist →

Permit & Licensing

Classic License

This permit type does not require primary residence.

Limited License

This permit type does not require primary residence.

Residential License

This permit type does not require primary residence.

Application Process

Online only via Town of Telluride STR portal. Annual self-inspection checklist required. License non-transferable.

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

Tax Obligations

Combined rate: 17.22% of gross rental income.

Collection: Self-remit

Filing: Monthly

Rental Limits

Telluride annual day limit: 29 days–unlimited (varies by permit type).

Zoning & Restrictions

Non-residential zones only

Insurance & Safety

Insurance

Telluride 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

• Annual self-inspection checklist certifying basic life and safety features
• Random inspections may occur throughout the year
• License must be posted prominently on the property

Penalties for Non-Compliance

• Misdemeanor punishable by fine up to $1,000, or imprisonment up to 90 days, or both
• Each day a violation continues is a separate offense

Platform Requirements

• Platforms have no tax agreements with the Town
• Hosts must self-remit. License number must be displayed in all advertisements.

Compliance Checklist

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

1. Determine your permit type. Telluride has 3 permit types. Identify which applies to your property (Classic License, Limited License, Residential License).
2. Meet safety requirements. Annual self-inspection checklist certifying basic life and safety features. Random inspections may occur throughout the year. License must be posted prominently on the property.
3. Apply for your STR permit. Submit application. Fees vary by type: Classic License $453+; Limited License $370.50+; Residential License $288+. See permit types above to determine which applies.
4. Register for tax accounts. Set up lodging tax accounts with Town of Telluride.
5. Display your permit number. Include your permit/license number in all listings and advertisements.
6. Collect and remit taxes. 17.22% on all bookings.
7. Renew annually. Renewal fees vary by permit type ($453+ / $370.50+ / $288+). See permit types above.

Frequently Asked Questions

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

Yes. Telluride requires a short-term rental permit to operate an Airbnb or Vrbo, and there are 3 permit types. See the permit types above to find which applies to your property.

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

No. Telluride 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 Telluride?

Telluride's annual rental limit depends on the situation: 29 days–unlimited (varies by permit type).

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

Short-term rental stays in Telluride are subject to a combined 17.22% in lodging taxes. This combines 4.5% Telluride sales tax + 2% Town Lodgers' Tax + 2% Lodging excise tax (airline guarantee) + 2.5% Affordable Housing STR Tax + 2.9% Colorado state sales tax + 1.0% San Miguel County sales tax + 1.07% San Miguel Co RTA TR. The host is responsible for collecting and remitting them.

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

Operating without a permit can cost up to $1,000 per day.