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

Short-term rentals ARE allowed in Littleton, Colorado, but with significant restrictions. The city has implemented a regulatory framework that explicitly prohibits the issuance of new licenses for non-primary residences (non-owner-occupied properties). As of October 2021, Ordinance 25-2021 established that:

• New licenses are only available for primary residences (owner-occupied properties)
• Existing non-primary STR license holders may renew their licenses, but no new licenses will be issued for investment properties
• All STRs must be licensed and comply with comprehensive regulations

This represents a highly restrictive environment for STR investors, as the market is effectively closed to new investment property listings while grandfathering in existing operations.

How to Start a Short-Term Rental Business in Littleton

Step 1: Verify Property Eligibility

Critical Requirement: Your property must be within Littleton city limits and serve as your primary residence (where you live 9+ months per year). Use the city's Address Wizard to confirm jurisdiction.

Step 2: Understand License Types

• Short-Term Primary Rental License: Owner-occupied properties (new licenses available)
• Short-Term Non-Primary Rental License: Non-owner-occupied properties (renewals only for existing licensees)

Step 3: Complete Application Process

Platform: All applications must be submitted through the eTRAKiT online portal

Timeline: Application processing takes up to four weeks

Payment: Over-the-counter payments are not accepted

Step 4: Meet All Regulatory Requirements

Property must comply with all safety, zoning, and operational requirements before licensing approval.

Required Documents, Permits, Licenses, and Guidelines

Essential Documents Checklist

All STR License Applications Must Include:

1. Colorado Driver's License or Colorado Identification Card
2. Liability Insurance Declaration Page (minimum $500,000 coverage)
3. Completed Property Inspection Checklist (city-provided form)
4. Proof of Posting Good Neighbor Guest Guidelines in unit
5. Partially Completed Good Neighbor Owner Handout with:
   • List of adjacent property addresses
   • Emergency contact information
6. Proof of Ownership
7. Two of the following documents (to establish primary residence):
   • Motor vehicle registration
   • Voter registration
   • Federal or state tax returns
   • Utility bill
   • Mortgage statement
8. $200 License Fee

Licenses and Permits Required

Primary Licenses:

• Short-Term Rental (STR) License (primary residence)
• Business & Sales/Use Tax License (automatically issued with STR application)

Operational Permits:

• Annual property inspection approval
• Good Neighbor documentation compliance
• Parking compliance verification

Specific Regulations for Short-Term Rentals

Property Restrictions

Prohibited Locations:

• Accessory Dwelling Units (ADUs)
• Recreational vehicles, travel trailers, or temporary structures
• Properties where marijuana is cultivated, processed, or produced
• Non-primary residences (new applications)

Occupancy Limits

• Maximum 8 occupants per property
• Maximum 2 adults per bedroom
• Single party rental (no more than one group per reservation)

Parking Requirements

• Minimum 2 off-street parking spaces required
• Must be properly surfaced according to city code
• Number of bedrooms cannot exceed available parking spaces
• Location and availability must be listed in advertisements

Operational Requirements

Owner Responsibilities:

• Maintain $500,000 liability insurance at all times
• Complete annual property inspection using city checklist
• Post STR license number in all advertisements
• Display Good Neighbor Guest Guidelines inside property
• Deliver/mail Good Neighbor Owner Handout to adjacent properties
• Maintain current contact information with city
• Respond to issues within 2 hours during rental periods

Advertisement Requirements:

• STR license number must be displayed on all online listings
• Include parking space information
• Display occupancy limits
• Include booking calendar (1-28 day minimum stays)

Tax Obligations

Sales and Use Tax:

• Standard sales tax applies to all rentals under 30 days
• Collection and remittance required by host

Additional Lodger Tax:

• 5% additional tax effective January 1, 2023
• Funds arts, culture, tourism, and visitor promotion
• Applies to all STRs under 28 consecutive days

Zoning Compliance

• Property must conform to residential zoning
• Compliance with building codes, fire safety, and property maintenance standards required
• Good Neighbor requirements for neighborhood compatibility

Contact Information for Local Authority

Primary STR Contact:

• Email: STR@littletongov.org

Finance Department (Tax and Licensing):

• Phone: 303-795-3768 or 303-795-3956
• Hours: Monday-Friday, 8am-5pm
• Responsibilities: Sales/use tax, license issuance, tax collection

Planning Division (Zoning and Compliance):

• Phone: 303-734-8076
• Hours: Monday-Friday, 8am-5pm
• Responsibilities: Zoning restrictions, eTRAKiT system support

Code Compliance Division (Enforcement):

• Phone: 303-795-3758
• Hours: Monday-Friday, 7am-4pm
• Responsibilities: Violation enforcement, compliance monitoring

24/7 STR Compliance Hotline:

• Phone: 720-310-2171
• Purpose: Emergency reporting, violation complaints

General City Contact:

• Address: 2255 W. Berry Avenue, Littleton, CO 80120
• Phone: 303-795-3700
• Website: www.littletonco.gov

Links to Source Pages

1. City STR Licensing Portal: www.littletonco.gov/Business/Business-License/Short-Term-Rental-STR-License
2. eTRAKiT Online Application System: permit9.littletonco.gov/etrakit/
3. Ordinance 25-2021 (Full Text): www.littletonco.gov/files/sharedassets/public/v/1/building-amp-development/documents-building/res-and-ord/ordinanceno252021shortterm.pdf
4. Property Inspection Checklist: www.littletonco.gov/files/sharedassets/public/v/1/business/documents/licenses/property-inspection-checklist_revjan2024.pdf
5. Good Neighbor Documents: www.littletonco.gov/files/sharedassets/public/v/2/business/documents/licenses/str-good-neighbor-documents-final-11-3-20-fillable.pdf
6. eTRAKiT Help Guides: www.littletonco.gov/Building-Development/eTRAKiT-Online-System/eTRAKiT-Help-Guides
7. Address Wizard (City Limits Verification): www.littletonco.gov/Community/Map-Gallery/Address-Wizard
8. STR Compliance Hotline Tips Webform: secure.hostcompliance.com/littleton-co/complaints/type

Investment Implications

For New Investors: Littleton presents significant barriers to entry due to the primary residence requirement. Investment in non-owner-occupied STRs is essentially closed to new market participants.

For Existing License Holders: Non-primary STR licensees may continue operations through renewals, creating a limited supply scenario that may benefit existing operators while maintaining neighborhood stability.

Market Strategy Consideration: Any STR investment in Littleton must be owner-occupied or leverage existing grandfathered licenses, dramatically limiting scalable investment opportunities in this market.