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Commerce City, CO

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STR Regulations for Commerce City, Colorado

Overview: STR Status in Commerce City, CO

Short-term rentals are explicitly ALLOWED in Commerce City, Colorado as of January 1, 2025, subject to strict licensing requirements and zoning regulations. The City has implemented a comprehensive Short-Term Rental License Program that permits STRs in single-family detached and attached (duplex) dwellings within specific zoning districts, while maintaining robust oversight to ensure community compatibility.

What do Airbnb hosts actually earn in Commerce City?

Commerce City hosts earn a median $29,535/year with $182 ADR and 67% occupancy.

Top performers pull in $53,704+ per year.

See the full Commerce City market breakdown

How to Start a Short-Term Rental Business in Commerce City

Step 1: Determine Property Eligibility

Before proceeding, verify that your property meets the following criteria:

  • Property Type: Single-family detached or attached (duplex) dwelling units only
  • Zoning Districts: Must be zoned R-1, R-2, R-3, AG, or Planned Unit Development that permits single-family units by right
  • Location: Properties must comply with the 500-foot separation requirement from other licensed STRs
  • Accessory Use Status: STRs must operate as an accessory use to long-term residential use

Step 2: Prepare for Licensing Requirements

Ensure you can meet these operational requirements:

  • Primary Residence Requirement: A long-term resident must occupy the dwelling unit for the majority of the year
  • Responsible Agent: Designate an agent within 30 miles, available 24/7
  • Insurance: Obtain minimum $500,000 liability coverage
  • Safety Compliance: Meet all specified safety standards and inspection requirements

Step 3: Complete Application Process

Applications are submitted through the City's online licensing system:

  • Portal: eTRAKiT Portal
  • Processing: Applications processed in order of receipt upon complete submittal
  • Timeline: Applications available starting January 6, 2025

Step 4: Annual Renewal Process

  • Validity: All licenses valid for one year from issuance
  • Renewal: Annual renewal required with updated documentation
  • Record Keeping: Maintain rental records and compliance documentation

Required Documents, Permits, Licenses, and Guidelines

Primary License

  • Short-Term Rental License: $150 annual fee, valid for one year
  • Application Method: Through eTRAKiT online portal
  • Processing: Order of receipt upon complete application and fee payment

Required Documentation

Proof of Address

  • Utility bill or similar documentation showing the STR address

Proof of Possession

  • Valid warranty deed, valid lease, or other verification of right to possess
  • If not owner: written documentation from property owner authorizing STR operation

Responsible Agent Documentation

  • Agent must have access and authority to manage the unit
  • Must be located within 30 miles of the STR
  • Available 24/7 for complaints and violations
  • Property owner may serve as responsible agent

Neighbor Notification Proof

  • List of addresses and persons notified (adjacent properties, behind, across street)
  • Copy of notice including contact information for licensee and responsible agent

Insurance Requirements

  • Liability insurance with minimum $500,000 coverage
  • City recommends STR rider through insurance provider

Self-Inspection Certification

Affirmation that the STR meets all safety standards:

  • Fully charged fire extinguisher in accessible location
  • Insect screens on all exterior windows
  • Smoke alarms in each sleeping room/area
  • Carbon monoxide detectors within 15 feet of sleeping areas
  • Secure handrails on all interior/exterior stairways
  • GFCI protection on specified outlets (bathrooms, kitchens, garages, etc.)
  • Working electrical outlets and lighting in all occupied rooms
  • Functional plumbing with hot and cold water
  • Defect-free sidewalks
  • Working heating and water systems
  • Final approvals for any work requiring building permits

Good Neighbor Guide

Upload completed guide including:

  • Trash and recycling schedules and requirements
  • Quiet hours and quality of life considerations
  • Designated parking areas and rules
  • Emergency and non-emergency contact information
  • Licensee and responsible agent contact information
  • HOA or community association rules and restrictions

Additional Permits and Compliance

  • Building Permits: Required for any construction work
  • Tax Registration: Colorado Department of Revenue sales tax license
  • Local Tax Compliance: File returns with required taxing agencies

Specific Regulations for Short-Term Rentals

Zoning and Location Restrictions

  • Permitted Zones: R-1, R-2, R-3, AG, Planned Unit Development (single-family permitted by right)
  • Prohibited: Multi-family units and townhomes
  • Separation: Maximum one STR within 500 feet of another licensed STR in residentially zoned districts
  • Zoning Lookup: Use City's Property Lookup Tool

Operational Limits

  • Maximum Stay: 30 consecutive days per guest
  • Occupancy: Maximum two persons per bedroom plus two additional persons
  • Simultaneous Rentals: Only one guest/party allowed at a time per dwelling unit
  • No Events: Rental for meetings, banquets, parties, weddings, fundraisers prohibited

Parking Requirements

  • On-Site Parking: Must occur on same lot as STR
  • Vehicle Limit: Limited to number of legally established spaces on lot
  • No Additional Parking: No additional parking beyond existing legal spaces required
  • Street Parking: If no legal parking on lot, maximum two vehicles may park on street

Accessory Dwelling Units (ADUs)

  • ADU Operation: STRs permitted in legally permitted ADUs
  • Principal Unit Requirement: Long-term resident must occupy principal dwelling
  • Simultaneous Rentals: ADU and principal unit may rent simultaneously under one contract, but not separately
  • ADU Occupancy: ADU itself doesn't require long-term resident

Prohibited Activities

  • Food Service: No preparing or serving food to STR guests by owner or representatives
  • Exterior Signage: No exterior signage permitted
  • Commercial Events: No hosting of commercial or large-scale events

Safety and Inspection Requirements

  • Self-Inspection: Initial self-certification required
  • City Inspection: May be required if:
    • More than one code violation in past 12 months
    • More than three complaints in past 12 months
    • City Manager deems self-inspection insufficient
  • Fire Safety: Fire extinguisher, smoke detectors, CO detectors required
  • Electrical Safety: GFCI protection in specified locations
  • Structural Safety: Secure handrails, defect-free sidewalks

Guest Guidelines and Communication

  • Good Neighbor Guide: Must be posted in unit
  • Noise Ordinance: Post section 6-2011 (Unreasonable Noise) visibly in unit
  • Contact Information Sign: Display on interior of front door in English and Spanish:
    • Owner and responsible agent contact information
    • Police non-emergency number
    • Neighborhood-specific information (parking, noise, trash, etc.)
    • Fire evacuation routes

Record Keeping Requirements

Maintain records including:

  • Total number of nights rented
  • Rental dates
  • Any notices of violation or disciplinary actions
  • Copy of records required for renewal application

Tax Responsibilities

  • Tax Collection: Owner/licensee responsible for all required tax returns
  • Payment Liability: Ultimately responsible for payment of any tax, interest, or penalties
  • Multiple Agencies: File with city, state, and other required taxing agencies

Advertising Requirements

  • License Number: Must be included in all advertisements
  • Compliance: All listings must reflect licensed status and compliance

Contact Information for Local Authority

Primary Contact

Mireya Melendez
City Clerk's Office
Phone: 303-289-5053
Email: mmelendez@c3gov.com

City Main Contact

City of Commerce City
Address: 7887 E. 60th Ave., Commerce City, CO 80022
Phone: 303-289-3600
Website: www.c3gov.com

Department-Specific Contacts

  • Code Enforcement: 303-227-8820
  • Police Non-Emergency: 303-288-1535
  • Emergency: 911

Online Resources

State-Level Regulations (Colorado)

Tax Registration and Filing

  • State Sales Tax License: Required registration with Colorado Department of Revenue
  • Online Registration: Available through state website
  • Filing Requirements: Regular lodging tax returns required

Lodging Tax Obligations

Short-term rental operators may be subject to:

  • State Sales Tax: Administered by Colorado Department of Revenue
  • County Lodging Tax: Varies by county
  • Local Marketing District Tax: Where applicable
  • Special District Tax: Depending on location
  • City Lodging Tax: May be administered by state or local authority

Marketplace Collection

  • Platform Collection: Some marketplaces (Airbnb, Vrbo) collect certain Colorado taxes
  • Operator Responsibility: Even with marketplace collection, operators must register and file returns
  • Compliance Verification: Operators responsible for ensuring full compliance

Definition and Timeframes

  • Short-Term Rental Definition: Reservations of less than 30 consecutive days
  • Local Authority: Colorado communities have broad authority to regulate STR operations
  • Varying Requirements: Tax rates and requirements vary by jurisdiction

Source Pages and References

Primary City Sources

  1. City of Commerce City Short-Term Rental License Program - Main program page with comprehensive regulations
  2. Ordinance 2648 - Short Term Rentals Land Development Code - Zoning and land use regulations
  3. Ordinance 2653 - Short-Term Rentals Licensing Regulations - Licensing requirements and operational rules

Supporting Documents

  1. Commerce City Good Neighbor Guide - Required guest guidelines template
  2. eTRAKiT Portal - Online application system
  3. Property Lookup Tool - Zoning verification

State Resources

  1. Colorado Department of Revenue Sales Tax Information - State tax registration and requirements
  2. Avalara Colorado STR Tax Guide - Comprehensive state tax compliance information

News and Analysis

  1. Citizen Portal Article - Implementation announcement and context

Market Information

  1. RedAwning Commerce City Report - Market trends and revenue projections

Important Notes for Investors

  1. Compliance First: Ensure full compliance with all city and state regulations before beginning operations
  2. HOA Considerations: Review and comply with any HOA rules that may be stricter than city regulations
  3. Insurance Review: Consult with insurance providers about STR-specific coverage needs
  4. Tax Planning: Factor in all tax obligations when calculating investment returns
  5. Record Maintenance: Implement robust record-keeping systems from day one
  6. Neighbor Relations: Proactive community engagement can prevent violations and complaints
  7. Regular Updates: Regulations may evolve; stay informed about any changes

This guide provides a comprehensive foundation for STR investment in Commerce City. Given the complexity of regulations and the importance of compliance, consider consulting with legal and tax professionals familiar with local STR requirements.

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Commerce City

Market Saturation Score

036912
High Saturation
8/ 12
months with declining YoY revenue
8–10 declining months: high saturation - supply likely outpacing demand.
View Full Commerce City Market Analysis

Photos of Commerce City

Overview of Commerce City

Commerce City sits in Adams County in north-central Colorado, just northeast of Denver and within the larger Denver-Aurora-Lakewood metropolitan area. With a population of roughly 65,000 residents, it has grown from its roots as an agricultural and industrial community into a sprawling suburb that blends working-class neighborhoods, light industry, and large swaths of open prairie. The city is best known as a gateway to Denver and as a hub for sports and outdoor recreation in the northern metro area, and it lies only about 10 miles northeast of downtown Denver, a drive of roughly 15 to 20 minutes in normal traffic.

One of the most distinctive destinations in and around Commerce City is the Rocky Mountain Arsenal National Wildlife Refuge, a sprawling 15,000-acre preserve that occupies the western side of the city. Once a site of chemical weapons production, it was cleaned up and converted into one of the largest urban wildlife refuges in the United States, where visitors can spot bison, prairie dogs, mule deer, and bald eagles along a network of trails and driving loops. It sits essentially at the edge of Commerce City, just a few minutes from most neighborhoods, making it an easy morning or evening outing for short-term rental guests.

Just to the south of the city, Dick's Sporting Goods Park anchors the northern Denver sports scene as the home stadium of the Colorado Rapids of Major League Soccer. The 18,000-seat venue regularly hosts MLS matches, international friendlies, rugby fixtures, and concerts, drawing visitors from across the region and giving Commerce City a lively event calendar throughout the spring, summer, and fall.

A short drive west brings guests to the heart of downtown Denver, about 15 to 20 minutes away, where attractions like the Denver Art Museum, Union Station, and the Denver Zoo offer a full day of urban exploration. To the east, Denver International Airport is roughly 15 miles away, making Commerce City a convenient overnight stop for travelers arriving late or departing early, or for visitors who want a more affordable base than central Denver.

Commerce City is a compelling short-term rental market because it offers something most northern Denver suburbs cannot: room to spread out, easy highway access, and immediate proximity to a major wildlife refuge, a professional sports venue, and downtown Denver, all within a short drive. Its mix of newer housing stock, big-box retail, and wide-open prairie gives it a practical, unpretentious character that appeals to road-trippers, sports fans, and families looking for a comfortable base from which to explore the broader Front Range.

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