Executive Overview: STRs in Lafayette, CO

Yes, short-term rentals are allowed in Lafayette, CO, as of January 1, 2024. The City Council approved new regulations on September 5, 2023, allowing STRs as an accessory use to residential dwellings, subject to strict licensing requirements and operational limitations. STRs must be the operator's primary residence. Second homes and investment properties are not eligible for licensing.

How to Start a STR Business in Lafayette

The licensing process involves three core steps:

1. Prepare Your Property: Ensure compliance with safety requirements and gather necessary documentation.
2. Register for Tax Accounts: Obtain a Sales and Use Tax license (required for all business activity).
3. Apply & Inspect: Submit your STR license application, pay fees ($200), and schedule a safety inspection via the city’s online portal.

The process is fully digitized through the MyGov online portal (public.mygov.us/lafayette_co).

Required Documents, Permits, Licenses & Guidelines

Licenses & Registrations:

• Sales and Use Tax/Business License Account: Mandatory for all business activity in Lafayette. Register at lafayette.munirevs.com (No fee). A six-digit license number is issued.
• Short-Term Rental License: Mandatory to operate an STR. Fee: $200. Valid for two years. Application and payment via MyGov Portal. Requires scheduling a city safety inspection.
• Insurance: Required per Lafayette Municipal Code Section 55-68(f). Must cover the dwelling unit for each calendar year the license is active.

Required Documentation (Uploaded during application as PDFs/JPGs):

• Proof of Identity: Valid Colorado Driver's License or State ID.
• Proof of Primary Residence (2 documents required):
  • Motor Vehicle Registration
  • Voter Registration
  • Federal/State Tax Returns or Financial Documentation
  • Utility Bill
  • Other legal documentation establishing residency (subject to city review).
• Property Owner Permission: If renting the property (signed letter required).
• Local Responsible Party Contact: Name, email, phone, and physical address (must be available 24/7).

Safety Equipment & Property Standards:

• Address Identification: Clearly visible from the street.
• Smoke & Carbon Monoxide Alarms: Installed per code.
• Fire Extinguisher: Multi-purpose portable (min. 2A:10B:C) on each floor, readily accessible.
• Egress Window: Operable window installed in each sleeping room.
• GFCI Protection: Ground Fault Circuit Interrupter protection on receptacles in kitchens, bathrooms, garages, unfinished basements, and outdoors.

Specific Regulations for STRs

Lafayette’s regulations are comprehensive, focusing on minimizing neighborhood impacts and preserving housing:

• Zoning: STRs are an accessory use allowed in all residential zoning districts (except Industrial, Development Resource, and Public districts). Not permitted in multi-family dwellings.
• Primary Residence Requirement: Mandatory. The property must be the operator's domicile (only one permitted). The operator does not need to be physically present during rentals.
• Accessory Dwelling Units (ADUs): On lots with both a primary dwelling and an ADU, STRs are permitted in either unit, but not simultaneously. You cannot use the ADU as your primary residence while renting the main house full-time as an STR.
• Occupancy Limit: Maximum of 2 guests per bedroom, plus 2 additional guests.
• Local Manager: A responsible party must be locally available or within a reasonable drive to respond to issues 24/7.
• Internal Signage: Required inside the STR displaying:
  • License number
  • Name & contact info (phone/email) of the local responsible party
  • Physical address of the STR.
• Safety Inspection: Mandatory initial inspection to verify safety equipment compliance.
• Advertising: The Lafayette license number must be included in ALL advertisements (websites like Airbnb/VRBO, brochures, etc.).
• On-Site Signage: One non-illuminated wall or window sign permitted (max. 1.5 sq. ft.).
• Parking:
  • Guest parking must be on-site.
  • Maximum of 2 vehicles may park off-site only if no on-site parking exists.
• No Simultaneous Rentals: STRs cannot contract with more than one guest party for the same time period within the same dwelling unit (e.g., renting individual rooms separately at the same time is prohibited).
• Taxation: STRs are subject to City Sales Tax and City Lodging Tax. Registration for the tax account is required (See Licenses above). Most hosts remit via platforms like Airbnb.
• License Renewal: STR licenses are valid for 2 years. Renewal process is similar to initial application.

Contact Information & Resources

• City of Lafayette (General):
  • Phone: 303-665-5588
  • Address: 1290 S. Public Road, Lafayette, CO 80026
  • Website: www.lafayetteco.gov
• Sales Tax & Business Licensing:
  • Email: salestax@lafayetteco.gov
• STR Planning & Licensing Project Lead:
  • Philip Kleisler, Principal City Planner
  • Phone: 303-661-1265
  • Email: philip.kleisler@lafayetteco.gov
• STR Application Assistance:
  • Book an appointment via the City's online scheduler: STR Zoning & Licensing Project Booking

Source Links

1. City STR Information Page: https://www.lafayetteco.gov/3959/Short-Term-Rentals
2. STR Regulations & Project Info: https://lafayette-listens.com/str (Links to full ordinance PDF: New Regulations (237 KB))
3. STR License Application Guide: https://www.lafayetteco.gov/DocumentCenter/View/39882/Short-Term-Rental-License_Instructions
4. Sales/Use Tax Account Registration: https://lafayette.munirevs.com
5. STR License Application Portal: https://public.mygov.us/lafayette_co
6. STR Licensing Project Booking: https://outlook.office365.com/owa/calendar/CityofLafayetteShorttermRentalZoningandLicensingProject@lafayetteco.gov/bookings/
7. City Sales Tax Email: salestax@lafayetteco.gov

Critical Notes for Investors:

• Investment Strategy: Lafayette's regulations are specifically designed to restrict STRs to primary residences. Acquiring properties purely for STR investment is not feasible under these rules.
• Compliance is Paramount: Strict adherence to primary residence requirements, occupancy limits, safety standards, and advertising rules is mandatory. The city has enforcement mechanisms for violations.
• Full Compliance Costs: Budget for the $200 initial license fee, biennial renewals, required insurance, and potential costs to bring a property up to the mandatory safety standards (GFCI, egress windows, etc.). The Sales/Use Tax account itself has no registration fee.