Overview: Are Short-Term Rentals Allowed in Eagle, CO?

Short-term rentals are explicitly allowed in Eagle, Colorado. The Town of Eagle has established a comprehensive regulatory framework that permits short-term rentals while imposing registration requirements, lodging taxes, and business licensing obligations. As of 2025, the Town of Eagle allows both whole-home and partial-home short-term rentals, though operators must comply with all municipal ordinances, complete annual registration, and obtain a separate business license.

Importantly, Eagle County has decided against implementing county-level short-term rental regulations. In May 2025, the Eagle County Board of Commissioners determined that short-term rental regulations should remain at the municipal level and through homeowners associations and metro districts, rather than creating duplicate county ordinances.

How to Start a Short-Term Rental Business in Eagle, CO

Starting a short-term rental business in Eagle requires following these specific steps:

Step 1: Initial Assessment and Compliance Review

• Verify that your property is located within Eagle town limits (not in unincorporated Eagle County)
• Review your property's zoning to confirm short-term rental use is permitted
• Check homeowners association (HOA) or metro district rules that may restrict short-term rentals
• Ensure the property meets all building and safety requirements

Step 2: Short-Term Rental Registration

• Complete annual short-term rental registration with the Town of Eagle
• Registration is required before advertising or renting your property
• There is no fee for registration, but it must be renewed annually by January 1st
• Register through the online portal via Xpress Bill Pay

Step 3: Obtain Town of Eagle Business License

• Apply for a Town of Eagle business license through the Town Clerk after STR registration approval
• This license applies to multiple rental properties (one "whole home" and one "partial home" rental)
• Separate fees apply for the business license (amount not specified in provided materials)

Step 4: Set Up Tax Compliance Systems

• Implement systems to track all rental income and fees
• Prepare for monthly lodging tax remittance (6% of gross rental income)
• Set up accounts with the online tax payment system

Step 5: Property Preparation and Compliance

• Display your STR registration document prominently within the rental unit
• Ensure property meets all health and safety standards
• Prepare for potential inspections

Required Documents, Permits, Licenses, and Guidelines

Mandatory Requirements:

1. Short-Term Rental Registration

   • Annual registration required
   • No registration fee
   • Must be completed before advertising or renting
   • Registration document must be displayed in the rental unit

2. Town of Eagle Business License

   • Required for all lodging providers
   • Obtained through Town Clerk after STR registration
   • Fee applies (amount not specified)
   • Covers multiple rental properties under single ownership

3. Lodging Tax Registration

   • Automatic with STR registration
   • Monthly tax filing requirement

Supporting Documentation:

• Property ownership verification
• Business license application
• Self-compliance affidavit (available through town website)
• Monthly lodging tax forms (required even with no rental activity)

Platform Registration:

• Registration must be completed independently of rental platforms
• Neither Airbnb nor Vrbo collect or remit lodgers' tax to the Town of Eagle
• Owners are responsible for all tax remittance and compliance

Specific Regulations for Short-Term Rentals

Municipal Regulations (Town of Eagle):

Tax Obligations:

• 6% Lodging Tax on gross short-term rental income
• Tax applies to all consideration including cleaning fees, pet charges, extra person fees, booking fees, and amounts received from lodging intermediaries
• Monthly filing requirement due by the 10th of each month for the preceding month
• Penalty: 10% of tax due or $10.00, whichever is greater
• Interest: 1.5% per month (18% annually) on unpaid balance
• If the 10th falls on a weekend, payment is due the following Monday

Operational Requirements:

• Registration Limits: Maximum of one "whole home" rental and one "partial home" rental per owner
• Each property requires separate STR registration
• Registration renewal deadline: January 1st annually
• Monthly tax filing required regardless of rental activity
• STR registration document must be displayed prominently in the rental unit

Advertising and Rental Restrictions:

• Cannot advertise or rent without valid registration and business license
• Properties must comply with all zoning and building regulations
• Health and safety standards must be maintained

County-Level Regulations:

No county-level regulations exist. Eagle County decided in May 2025 against creating a short-term rental ordinance. Regulations are left to municipalities (like the Town of Eagle), HOAs, and metro districts.

State-Level Context:

Short-term rental regulation in Colorado is primarily handled at the municipal level. The provided materials indicate that many Colorado communities have varying degrees of licensing requirements, including nearby mountain communities like Aspen, Avon, Vail, Breckenridge, and others.

Contact Information for Local Authority

Town of Eagle - Primary Contacts:

Short-Term Rental Program:

• Email: rentals@townofeagle.org
• Phone: 970-328-6354 (main town line)

Town Clerk (Business Licenses):

• Email: clerk@townofeagle.org

General Town Information:

• Phone: 970-328-6354
• Address: 200 Broadway, P.O. Box 609, Eagle, CO 81631
• Fax: 970-328-5203

Eagle County (No STR Regulations, but for Context):

• Phone: (970) 328-8600 | (800) 225-6136
• Email: info@eaglecounty.us
• Spanish inquiries: preguntas@eaglecounty.us
• Address: 500 Broadway, PO Box 850, Eagle, CO 81631

Source Links

Official Town of Eagle Resources:

• Town of Eagle STR Registration & Lodging Tax Page
• Short-Term Rental Frequently Asked Questions
• STR Registration Form
• STR Registration Renewal
• Tax Form & Payment Portal
• STR Self-Compliance Affidavit
• Town of Eagle STR Ordinance 06-2020

County Resources:

• Eagle County Draft STR Ordinance Page (Note: Ordinance was rejected in May 2025)

News Sources:

• Vail Daily - County Decides Against STR Regulations

Municipal Code:

• Eagle Municipal Code - Short-Term Rentals

Important Note for Investors: This guide reflects the regulatory environment as of 2025. Eagle has a well-established STR framework that allows investment while maintaining regulatory oversight. The absence of county-level regulations means that operators should focus entirely on complying with Town of Eagle requirements, though they should also verify any HOA or metro district restrictions that may affect their specific property.