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Short Term Rentals – Primary Residences

We are often approached by would-be investors seeking properties in Denver to use as short-term rentals. In Denver, specifically, all short-term rentals require a license. Potentially, the biggest obstacle for investors in obtaining a short-term rental license in Denver is that the property is required to be your “primary residence.”

Primary Residence

If you are looking to rent out the property most of the time, this could pose an issue. The phrase “primary residence” can mean different things to different people, but the city of Denver considers this as the place you “usually return to.” As part of the licensing process, you will have to show proof of this through something like a driver’s license or voter registration. If the city of Denver would like, they can deny you a license if they feel that Denver is not the primary place that you live or if they feel that you rent it out more than you live there.

Other Options

This does not mean you don’t have options. There are quite a few surrounding cities that allow short-term rentals on different terms, though all require licenses. Arvada allows rentals but not for more than 240 days per year. In Wheat Ridge, the amount of nonowner occupied rentals is capped by district; not all districts are on a waitlist, but most are. Aurora also requires the rental to be a primary residence but does not provide a maximum number of days per year that a unit can be rented. You may also be able to use a property with an ADU or locked-off basement as a short-term rental. It then is up to you if your primary residence is the large space or the accessory space. Lastly, the city of Denver does not have any restrictions or licensing for rentals of 30 days or more. There are a few key neighborhoods in the Denver metro area that have great demand for monthly furnished units.

A Generator agent is able to help you identify the perfect property that fits whichever parameters you choose. Reach out to start your search.

This is not a comprehensive guide to all the rules for short-term rentals in the Denver area. Please check local municipalities’ websites for the most up-to-date policies.