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

Short-term rentals are explicitly allowed in Pueblo, Colorado. According to the city's 2018 STR ordinance, short-term rentals are defined as "residential properties that are rented to a visitor for fewer than 30-days." The city has established a comprehensive regulatory framework that permits STRs across multiple zoning districts while implementing specific safety and operational requirements.

In Pueblo County, short-term rentals are also legal, regulated by the Pueblo County Planning and Development Department. Both jurisdictions allow STRs as long as hosts obtain proper licensing and comply with applicable regulations.

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

Starting an STR business in Pueblo requires a systematic approach to licensing, compliance, and regulatory adherence. Here's the step-by-step process:

1. Business Registration and Entity Setup

• Register your business with the Colorado Secretary of State (if operating as LLC or corporation)
• Obtain a federal EIN from the IRS if establishing an LLC or corporation
• Open a business bank account separate from personal finances

2. Obtain Required Licenses and Permits

The licensing process involves multiple steps and departments:

City-Level Licensing:

• Apply for a Sales Tax License through the City Sales Tax Office
• Secure a STR Lodging License through the City Sales Tax Office
• Obtain zoning verification through the Planning and Community Development Department

County-Level Requirements:

• Comply with Pueblo County Planning and Development Department regulations
• Ensure property zoning compliance for STR use

3. Safety and Compliance Setup

• Install required safety equipment: smoke detectors, carbon monoxide detectors, and fire extinguisher
• Complete a certification checklist addressing fire safety, parking, and emergency procedures
• Prepare printed information packets for guests

4. Tax Registration and Setup

• Register for state sales tax with Colorado Department of Revenue
• Set up systems to collect and remit applicable taxes

Required Documents, Permits, Licenses, and Guidelines

City of Pueblo Requirements

Primary Licenses:

1. Sales Tax License - Issued by City Sales Tax Office
2. STR Lodging License - Issued by City Sales Tax Office

Application Requirements:

• Completed application form from City License Officer
• Self-certification under penalty of perjury
• Proof of legal U.S. residency
• Proof of possession of the licensed premises
• Certification checklist addressing fire/safety regulations, parking, and emergency procedures

Zoning Verification:

• Zoning verification through Planning and Community Development Department
• STRs permitted in all residential and agricultural zone districts
• STRs allowed in business districts for residences established prior to 1968

Property Qualifications

• Must be legitimate dwelling units (no tents or RVs unless properly zoned)
• Compliance with all applicable building and safety codes
• Properties must meet habitability standards

Guest Information Requirements

Each STR must provide printed information including:

• Licensee's contact information
• Local responsible party's contact information
• Emergency contact information
• Parking restrictions
• Noise and amplified sound restrictions
• Trash collection schedule
• Water usage information
• Fire evacuation routes
• Other information required by City License Officer

Specific Regulations for Short-Term Rentals in Pueblo and Colorado

City of Pueblo STR Regulations

Licensing and Operations:

• Licenses are non-transferable
• Annual renewal required
• No limit on number of STRs in residential areas (currently less than 1% of city residences are STRs)
• STRs can be licensed whether property is owner's primary residence or non-primary residence

Safety Requirements (Mandatory):

• Smoke detector on licensed premises during each occupancy
• Carbon monoxide detector on licensed premises during each occupancy
• Fire extinguisher on licensed premises during each occupancy
• Violations constitute unlawful operation

Advertising Regulations:

• License number must be clearly displayed on all advertisements
• Advertisements cannot be posted without valid license number

Compliance Requirements:

• Must comply with all applicable city and state laws
• Compliance with same lodging enforcement procedures as other establishments
• Licenses subject to revocation under Municipal Code provisions

Pueblo County STR Regulations

• Zoning laws apply primarily to residential areas
• Properties must comply with county planning and development requirements
• Rural cabins and residential homes are popular STR property types in the county

State of Colorado STR Regulations

Business Registration:

• Business registration with Colorado Secretary of State (if operating as LLC/corporation)
• Federal EIN required for LLCs/corporations
• State sales tax license valid for two years, renewable

State-Level Taxes:

• Colorado Sales Tax: 2.9%
• Additional local sales taxes vary by jurisdiction
• County lodging taxes: typically 0.9% to 2%
• Local marketing district taxes: 1.4% to 4%
• Metropolitan district taxes: 0.5% to 5.5%

HOA Restrictions (Statewide)

• HOAs have significant authority under Colorado Common Interest Ownership Act (CCIOA)
• HOAs can prohibit STRs or impose restrictions through CC&Rs
• Some HOAs enforce 30-day minimum rental periods
• Occupancy and guest restrictions may apply
• Additional HOA fees and fines may be imposed for STR violations
• Some properties may have grandfather clauses allowing existing STR operations

Contact Information for Local STR Authorities

City of Pueblo

City Sales Tax Office

• Issues Sales Tax License and STR Lodging License
• Contact: City License Officer
• Address: City of Pueblo, 100 N Market St., Pueblo, CO 81003
• Phone: (719) 553-2300

Planning and Community Development Department

• Provides zoning verification
• Phone: (719) 553-2905
• Website: www.pueblo.us

Pueblo County

Pueblo County Planning and Development Department

• Regulates county-level STR requirements
• Website: county.pueblo.org/planning-and-development-department
• Chapter 17.120 Supplementary Regulations reference available

Colorado State Agencies

Colorado Secretary of State

• Business registration
• Website: www.sos.state.co.us
• Phone: (303) 894-2200

Colorado Department of Revenue

• State sales tax license
• Website: cdor.colorado.gov
• Phone: (303) 238-7378

Tax Obligations and Rates

City of Pueblo Taxes

• Sales Tax: 3.7%
• City Lodging Tax: 4.3%
• Total City Tax Rate: 8.0%

State of Colorado Taxes

• State Sales Tax: 2.9%
• Local Sales Tax: Varies 1% to 5% by jurisdiction
• County Lodging Tax: 0.9% to 2% (varies by county)
• Local Marketing District Tax: 1.4% to 4%
• Metropolitan District Tax: 0.5% to 5.5%

Important Note: Airbnb may collect and remit some taxes on behalf of owners, but verification is required to ensure compliance.

Enforcement and Penalties

Unlawful Acts (City of Pueblo)

• Operating STR without smoke detector, carbon monoxide detector, and fire extinguisher
• Operating non-compliant STRs under city and state laws
• Advertising STR without license number clearly displayed
• Violations subject to same enforcement procedures as other lodging establishments
• Licenses can be revoked under Municipal Code provisions

HOA Enforcement

• STR registration fees
• Daily fines for unauthorized rentals
• Increased HOA dues for rental properties
• Legal action for rule violations

Source Links and References

• City of Pueblo STR Permitting and Licensing Document
• Pueblo County Planning and Development - Chapter 17.120
• Colorado Secretary of State Business Registration
• Colorado Department of Revenue
• Colorado Common Interest Ownership Act (CCIOA)

Key Considerations for STR Investors

1. Zoning Compliance: Ensure property is properly zoned for STR use
2. HOA Restrictions: Review HOA CC&Rs thoroughly before purchasing or listing
3. Safety Equipment: Budget for required safety equipment installation
4. Tax Planning: Understand complete tax obligations at city, county, and state levels
5. License Renewal: Annual renewal required for city licenses, two-year renewal for state sales tax license
6. Insurance: Obtain appropriate liability insurance coverage
7. Neighbor Relations: Consider community impact and potential neighbor concerns

This guide provides a comprehensive foundation for operating a compliant short-term rental business in Pueblo, Colorado. Always verify current regulations and requirements with local authorities before making investment decisions.