Overview: Are Short-Term Rentals Allowed?

Yes, short-term rentals are explicitly allowed in Colorado City, CO (Colorado Springs area), but with comprehensive regulations designed to balance tourism benefits with community housing concerns. The city operates a permitting system that distinguishes between owner-occupied and non-owner-occupied STRs, with different requirements and restrictions for each category.

Starting a Short-Term Rental Business in Colorado Springs

To establish a legal short-term rental operation in Colorado Springs, follow these essential steps:

Initial Planning Phase

1. Property Zoning Verification: Confirm your property is in an approved zoning district for STR operations using the city's SpringsView mapping system
2. Determine STR Type: Decide between owner-occupied (requires 185+ days annual occupancy) or non-owner-occupied status, as this affects where you can operate
3. Business Structure Setup: Establish appropriate business entity and obtain necessary tax identification numbers

Application Process

1. Create City Account: Register through the electronic submittal system via 'Applications and Reviews' portal
2. Submit Complete Application: Provide all required documentation through the online platform
3. Pay Permit Fees: Current fee is $124.95 annually
4. Maintain Active Status: Ensure continuous compliance to avoid permit expiration

Required Documents, Permits, and Licenses

Primary Short-Term Rental Permit Requirements

• Short Term Rental Checklist and Owner Acknowledgment (4-page document)
• Proof of Primary Residence (for owner-occupied permits): Two documents from: valid driver's license/State ID, vehicle registration, voter registration, or school registration
• Signed Short Term Rental Affidavit (owner-occupied or non-owner-occupied versions)
• Liability Insurance Proof: Minimum $500,000 coverage (platform insurance acceptable)
• Platform Listing Verification: Email link to hosting platform listing (Airbnb/VRBO)
• Application Fee: $124.95 annually

Business Licensing Requirements

• Sales Tax License: Required for all STR operators, obtained through city revenue department
• Business Sales Tax Application: Available through city business licensing portal

Supporting Documentation

• Emergency contact information for 24/7 availability
• Property compliance certifications with building and safety codes
• Parking plan demonstrating compliance with residential parking requirements

Specific Regulations by Category

Owner-Occupied STRs

Eligibility: Properties where owner physically occupies dwelling minimum 185 days annually

Permitted Locations:

• All zoning districts allowing residential units
• Lawful dwelling units only (excludes temporary structures)
• No geographic restrictions within permissible zones

Key Requirements:

• Primary residence verification required
• 24/7 emergency contact must be available when property is rented
• Compliance with all residential zoning requirements
• Military exemption available for active-duty service members stationed in El Paso County

Non-Owner-Occupied STRs

Prohibited Areas:

• Single-family zoning districts (R-E, R-1 6, R-1 9, Single-Family PDZs)
• Properties within 500 feet of another non-owner-occupied STR

Permitted Locations:

• All other zoning districts with 500-foot separation requirement
• Multi-family and commercial zoning areas

Density Limitations:

• R-E/R-1 zones: One listing per property
• R-2 zones: Two listings per property
• Multi-family zones: Up to four listings per property
• Condominium complexes: Maximum two STRs per owner within complex

Universal Operating Requirements

• Occupancy Limits: Maximum 2 occupants per bedroom plus 2 additional occupants (15 total maximum)
• Life Safety Equipment: Smoke detectors, carbon monoxide detectors, fire extinguisher required
• Parking: Utilize private driveways first, street parking for overflow where permitted
• Trash Service: Weekly residential trash collection mandatory
• Emergency Contact: 24/7 point of contact capable of 1-hour response time
• Permit Display: Current permit must be prominently displayed in rental unit
• Advertising Requirements: Include permit number in all rental marketing materials

Prohibited Activities

• Hosting weddings or large social/commercial events
• Operating without valid permit or with expired permit
• Commercial food service to guests
• Non-compliance with noise, housing, and public health ordinances
• Operating in properties without Certificate of Occupancy

State and County Level Regulations

State of Colorado Framework

Colorado operates under decentralized STR regulation with no statewide prohibitions. Key state-level considerations:

• HB 20-1093: Grants counties authority to license and regulate STRs
• Sales Tax Collection: Marketplace facilitators must collect and remit state sales taxes
• Property Tax Classification: STR properties currently maintain residential classification pending legislative action

El Paso County

El Paso County has not implemented county-wide STR regulations, deferring to municipal rules within incorporated areas. Unincorporated areas may have different requirements based on specific zoning districts.

Tax Obligations

Required Tax Remittance:

• State Sales Tax: Varies by location
• Local Sales Tax: Colorado Springs combined rate approximately 8.20%
• Lodging Tax: Additional accommodation taxes may apply
• Business Personal Property Tax: Applies to STR equipment and furnishings

Contact Information

Primary STR Administration

Colorado Springs Planning Department

• Phone: 719-385-5982
• Email: shorttermrentals@coloradosprings.gov
• Office Location: Development Review Enterprise, 2880 International Circle, STE 200-7, Colorado Springs, CO 80910
• Hours: Standard business hours (contact for current schedule)

Additional Resources

Accessibility Inquiries: planningdev@coloradosprings.gov or 719-385-5905 Code Enforcement: Neighborhood Services Division for permit compliance issues Emergency Services: 911 for life-threatening situations, 719-444-7000 for non-emergency police response

City Business Licensing

Revenue Department: For sales tax license questions and business registration

Source Links

Primary Regulatory Documents

• Colorado Springs STR Application Portal
• STR Application Requirements Checklist
• SpringsView Zoning Map
• City Code and Charter

Ordinances and Regulations

• Ordinance 18-112 - Program Adoption
• Ordinance 19-49 - Sales Tax Requirement
• Ordinance 19-82 - Occupancy Limitations
• Ordinance 19-101 - Non-Owner Occupied Regulations

Supporting Information

• Zoning Map Usage Guide
• SpringsView Search Instructions

Important Notes for Investors: The regulatory environment remains dynamic, with recent system issues affecting permit processing times. Always verify current requirements before making investment decisions, and consider consulting with local legal counsel familiar with Colorado Springs STR regulations. The city's approach prioritizes community character preservation while allowing STR operations under strict oversight and compliance monitoring.