Westcliffe, Colorado Short Term Rental Regulations Guide for Airbnb hosts

Overview: Short-Term Rental Legality in Westcliffe, CO

Short-term rentals are explicitly allowed in Westcliffe, CO. The Town of Westcliffe has established a comprehensive licensing program for vacation rentals, offering two distinct categories: STR-1 (owner-occupied dwellings) and STR-2 (non-owner occupied properties). Westcliffe operates independently from county restrictions—properties located within town limits can obtain STR licenses regardless of any county-level moratorium affecting unincorporated areas.

What do Airbnb hosts actually earn in Westcliffe?

Westcliffe hosts earn a median $26,974/year with $177 ADR and 56% occupancy.

Top performers pull in $38,769+ per year.

See the full Westcliffe market breakdown

Starting a Short-Term Rental Business in Westcliffe, CO

Step 1: Determine License Category

STR-1: Owner-occupied dwelling unit or dwelling unit on a two-dwelling unit property
STR-2: Non-owner occupied property rented or offered for rent
Note: STR-1 has no density limits or restrictions; STR-2 is subject to "DENSITY-STR 2 Refer Exhibit A" (specific density requirements not detailed in provided documents)

Step 2: Pre-Application Preparation

Before submitting your STR license application, ensure the following:

Property Compliance Verification: Confirm your property meets all health, life safety, and municipal code standards
Insurance Evaluation: Secure appropriate liability insurance coverage for short-term rental operations
Tax Registration: Obtain Colorado sales tax license and lodgers' tax account registration
Fire Safety Arrangements: Schedule inspection with Wet Mountain Fire Department
Legal Documentation: Prepare deed or lease documentation proving lawful possession

Required Documents, Permits, Licenses, and Guidelines

Primary Licensing Requirements

Short-Term Rental License Application

Mandatory Documents:

Proof of lawful possession (deed or lease)
If not the property owner: notarized written authorization from owner
Current insurance coverage proof
Colorado Department of Revenue sales tax license registration
Lodgers' tax account registration with Colorado Department of Revenue
Completed self-compliance affidavit
Affidavit confirming compliance with all license requirements and no conflicting private covenants
Fire inspection certification from Wet Mountain Fire Department

Associated Business Licensing

Colorado State Sales Tax License (required for all STR operations)
Westcliffe Business License ($40/year, due January 1st, $25 late fee after February 15th)

Safety and Compliance Standards

Health & Life Safety Requirements

Structural Integrity: All building components must be sound and properly maintained
Occupancy Limits: Maximum 2 persons per bedroom plus 2 additional occupants (must be clearly advertised)
Detection Systems:
- Smoke detectors outside each sleeping area, in sleeping rooms, and on each living area level
- Carbon monoxide detectors within 20 feet of sleeping areas
Fire Safety:
- Fire extinguishers within 30 feet of kitchen, on each living level, and in garage
- Emergency exit maps/floor plans required
Utilities: Operable toilet, sink, and bathtub/shower with privacy enclosures

Property Identification and Addressing

Street address visible from street (minimum 4-inch height, ½-inch width numbers on contrasting background)
License number, local agent, and property owner contact information posted conspicuously inside property

Community Impact Requirements

Parking and Traffic Management

Adequate on-site parking for renter use
On-street parking permitted where allowed by town (first-come, first-served basis, not exclusively reserved)
No interference with public parking availability

Guest Communication and Community Relations

Inform renters of noise ordinances (no excessive or unreasonable noise at any time)
Communicate trash/recycling regulations and scheduled pickup times
Provide sufficient trash and recycling receptacles complying with town code
Comply with night lighting ordinances to minimize exterior light usage after dark
If pets allowed: inform guests of leash laws, pet waste disposal requirements, and noise considerations

Advertising Requirements

Mandatory inclusion: License number must appear immediately following property description in all advertising

Specific Regulations

Town of Westcliffe Regulations (Municipal Code Title 10, Chapter 1, Section 16)

Bi-annual license renewal required
Compliance with all residential dwelling ordinances
Owner responsibility for license maintenance and renewal
Subject to Zoning Enforcement Officer evaluation and approval

Custer County Regulations

Important: As of March 27, 2025, Custer County adopted a moratorium on new STR permits in unincorporated areas through December 31, 2025. This moratorium:

Does NOT affect properties within Westcliffe town limits
Exempts properties with existing valid permits (they may continue operating and renew)
Allows county planning staff time to align local rules with forthcoming state regulations

State of Colorado Requirements

Colorado sales tax license registration mandatory
Lodgers' tax account establishment required
State On-site Wastewater Treatment Systems (OWTS) regulations apply to properties using septic systems

Contact Information

Town of Westcliffe (Primary Authority for Town Properties)

Address:
P.O. Box 406
1000 Main Street
Westcliffe, CO 81252

Phone: 719-783-2282 (Extensions 10 or 11 for forms)

Email: Contact through phone for application forms and guidance

Hours: Monday through Friday, 8:00 AM to 5:00 PM

Website: townofwestcliffe.colorado.gov/applications-forms

Custer County Planning & Zoning (For Unincorporated Areas and Reference)

Address:
205 S 6th Street
Westcliffe, CO

Phone: 719-783-2669

Fax: 719-783-9907

Email: PZ@custercounty-co.gov

Hours: Monday through Thursday, 8:00 AM to 5:00 PM

Website: custercounty-co.gov/pz

Wet Mountain Fire Department (Fire Inspections)

Website: wetmountainfire.com/services/

Note: Direct contact information not provided in source documents; inspection required through their services

Source Links

Investment Recommendation: Westcliffe presents a viable STR market with clear licensing pathways for town-located properties. The county moratorium affects only unincorporated areas, creating opportunity for town-limited investments. Prospective operators should prioritize early application processing due to bi-annual renewal cycles and ensure full compliance with safety standards to maintain license status.

Next step

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Ask the AI Advisor about Westcliffe

Westcliffe is a small high-country town in Custer County, in south-central Colorado, with a population of roughly 600 residents. Set at nearly 7,900 feet in the Wet Mountain Valley between the Wet Mountains and the Sangre de Cristo Range, it has the feel of a quiet, sky-focused retreat rather than a busy tourist hub. The community is best known for its exceptionally dark night skies, having been designated one of the world's International Dark Sky Communities, and for serving as a low-key gateway to some of the most dramatic alpine and desert terrain in the southern Rockies. It sits about 55 miles southwest of Pueblo and roughly 140 miles south of Denver, with Colorado Springs approximately 90 miles to the north.

One of the most compelling nearby draws is the Sangre de Cristo Wilderness, which rises just west of town. The wilderness protects a stretch of high-altitude terrain studded with 14,000-foot peaks, alpine lakes, and the famous Crestone group, attracting hikers, backpackers, and climbers throughout the summer season. Trailheads such as those in the Music Pass and South Colony basin areas can be reached from Westcliffe in well under an hour, depending on the specific access road.

A short drive south leads to Great Sand Dunes National Park and Preserve, where the tallest sand dunes in North America spill against the base of the Sangre de Cristos. From Westcliffe, the park is roughly a 90-minute drive via the San Luis Valley, making it feasible as a day trip or a stop on a longer Colorado itinerary. Visitors typically pair a dune hike or sandboard session with a visit to the seasonal Medano Pass Creek for splashing through shallow flows at the dune's edge.

To the north, the Royal Gorge Bridge and Park spans one of the deepest canyons in Colorado, with a suspension bridge crossing the Arkansas River more than 950 feet above the water. The park is about an hour and a half from Westcliffe, sitting just outside Canon City, and offers a contrast in tone from Westcliffe's quiet valleys, with an amusement park setting, scenic gorge views, and a rim trail for those who prefer a more low-key experience.

Closer to home, the surrounding Custer County roads, the Wet Mountain Valley's working ranches, and the neighboring historic town of Silver Cliff add character to a Westcliffe stay. Visitors can wander small galleries, attend a summer concert or star party, and use the area as a base for scenic drives along the Frontier Pathways Scenic and Historic Byway, which loops through the region.

Westcliffe's appeal for short-term rentals lies in this combination of genuine small-town character, a globally recognized dark-sky designation, and ready access to wilderness, dunes, and canyon country. Travelers drawn to stargazing, hiking, and uncrowded landscapes tend to stay multiple nights, which supports healthy occupancy patterns for property owners looking to serve a more nature-oriented guest.