Is Airbnb Legal in Denver?

Airbnb and other short-term rentals are legal in Denver only if the rental is the host’s primary residence and the host has a valid short-term rental license. Denver also requires all advertisements to display the host’s business license number. Hosts must follow related rules covering safety, taxes, zoning, and insurance.

Denver’s framework is not “short-term rentals are allowed everywhere if you pay a fee.” It is closer to: short-term rentals are allowed as an accessory use of the host’s primary residence, subject to licensing and compliance requirements. Denver City Council adopted the original short-term rental ordinance in 2016, and the city later updated the primary residence requirement and fee structure in 2020.

So if you are trying to figure out whether your home can legally operate as an Airbnb, the first question is not “How many bedrooms does it have?” The first question is: Is this actually your primary residence under Denver’s rules?

What Denver Means by “Primary Residence”

Denver defines primary residence as the place where a person’s habitation is fixed for the term of the license and that person’s usual place of return. A person can have only one primary residence. The city also says that claiming a property as a primary residence for some other purpose, like taxes, does not automatically make it a primary residence for Denver short-term rental licensing.

That “usual place of return” language matters.

Denver may look at factors such as:

• whether the applicant claims another location for domestic, legal, billing, voting, or licensing purposes

• whether the applicant usually returns to the short-term rental location

• whether legal documents or tax records list a different address

• whether work, income, motor vehicle registration, or other evidence points to another home being the real center of life

• whether the amount of time the property is rented suggests it is not really the applicant’s primary residence

For example, Denver’s FAQ makes clear that “I stay here when I’m in Denver” is generally not enough. If a person does not usually return to the STR location to live, it likely would not qualify as their primary residence. The city also says that returning to the property just to clean it or turn it over between stays does not count as returning there to live.

In other words, Denver is not just checking whether you have some connection to the property. It is trying to determine whether this is actually your real home.

Can You Airbnb a Second Home or Investment Property in Denver?

Usually, no.

Denver’s FAQ states plainly that if the property is not your primary residence, it is not eligible to be licensed as a short-term rental. The city notes that renting such a property on a short-term basis would require pursuing a different type of licensing route, such as a lodging facility license, and that those uses are restricted to certain zone districts and may trigger building-code and zoning requirements.

That is the single biggest misunderstanding owners have.

A lot of people assume one of the following:

• “I own the property, so I can Airbnb it.”

• “I stay there sometimes, so it counts.”

• “It’s my Denver place, even though I mostly live somewhere else.”

• “I can just use it as a second home and rent it out when I’m gone.”

Under Denver’s current rules, those facts by themselves do not make the property eligible.

The city also says each unit in a duplex is a separate primary dwelling unit. That means a person who lives in one duplex unit cannot get a short-term rental license for the adjacent unit, because that other unit is not their primary residence.

This is the part where many owners need a strategy shift. If a Denver property does not qualify as a primary residence STR, the best move is often to evaluate whether it makes more sense as a mid-term furnished rental, a long-term rental, or in some very limited cases a different licensed use. The right answer depends on the property and the owner’s goals. Luckily, at Here's The Deal, we manage all types of rentals from short-term to long-term. If you're looking at options to rent your home, feel free to reach out, and someone from our team will help guide you through the process!

What Do You Need to Legally Operate a Short-Term Rental in Denver?

If your property does qualify, Denver’s application and compliance pages lay out a fairly clear checklist.

1. A valid short-term rental license

Denver states that all short-term rentals must have a license. The application page currently lists a $50 application fee and a $100 license fee. The city says it strives to conduct an initial review within seven business days, though full approval can take longer depending on complexity and whether the application is complete.

2. Proof that the property is your primary residence

Denver requires documentation of primary residency at application and renewal. The city may request additional documentation and investigate further if there are questions about whether the dwelling is truly the applicant’s primary residence.

3. Your license number on all advertisements

Denver says it is unlawful to advertise a short-term rental without displaying the license number. That means your Airbnb or VRBO listing needs the business license number shown.

4. Landlord permission if you are a renter

Denver’s application instructions say that if you are a renter, you should get permission from your landlord to use the property as a short-term rental.

5. HOA notice if applicable

The city also says that if you have an HOA, you should notify it of your intent to use the property as a short-term rental. Denver’s FAQ further notes that HOAs can prohibit short-term rentals through private covenants and rules.

6. Insurance

Denver says the licensee must maintain at least $1 million in liability insurance covering the property’s use as a short-term rental, or only list through hosting platforms that provide that coverage. The application instructions also tell applicants to verify platform coverage or obtain their own insurance and inform their insurance carrier of the intended STR use.

7. Basic safety setup and local contact coverage

The application page tells hosts to make sure the property has smoke detectors, carbon monoxide detectors, and a fire extinguisher. It also tells applicants to identify a local responsible party, also called a general manager, who can address property issues if the host is unavailable.

8. Tax registration and ongoing compliance

The Denver application page instructs hosts to register for a lodger’s tax account. It also notes that even if a platform collects lodger’s taxes, required filings still have to be submitted on time.

This is why hosts should think of Denver STR compliance as an operating system, not just a one-time form.

What Other Rules Do Denver Airbnb Hosts Need to Follow?

Even after you get licensed, Denver expects hosts to stay in compliance.

The city says license holders must:

• maintain the dwelling as their primary residence

• only rent under one reservation or booking at a time

• avoid negatively affecting the safety, health, and welfare of neighbors

• keep contact information up to date

• renew annually before the license expires

Denver also says a short-term rental license can be denied, sanctioned, or revoked if the property is found to be adversely affecting the neighborhood or if it is found not to be the licensee’s primary residence.

So this is not a “get licensed once and forget it” situation. If your use of the property drifts away from the city’s rules, the risk does not disappear just because you were approved at one point.

What Happens If You Operate an Airbnb Illegally in Denver?

Denver’s rules page says hosts who do not follow the rules can be fined or lose their license. The FAQ also says licenses can be denied or revoked if the property is not actually the applicant’s primary residence or if the short-term rental is found to be adversely affecting public health, safety, or neighborhood welfare.

That matters for two reasons.

First, it means the city’s primary-residence rule is not just symbolic. It is enforceable.

Second, it means hosts should be very cautious about trying to “finesse” the rule with a property that is not truly their usual place of return. The costs of getting it wrong can be much higher than just a rejected application.

If there is real uncertainty, it is better to pause and evaluate the property honestly than to build a rental strategy on a weak compliance assumption.

What If Your Property Does Not Qualify for Airbnb in Denver?

If your property is not your primary residence, Denver says it is not eligible for a short-term rental license. In that case, owners generally need to think differently.

Depending on the property, common alternatives include:

Mid-term furnished rentals

For some Denver owners, 30+ day furnished rentals can be a much cleaner path than trying to force a property into a short-term model that does not fit the rules.

Long-term rentals

If stability, lower turnover, and cleaner compliance matter more than nightly-rate upside, a traditional long-term rental may be the strongest option. For more information on our long-term management services, check out our page here.

Evaluating whether a different licensed use is realistic

Denver’s FAQ notes that some non-primary-residence short-term uses would require a lodging facility license and may involve zoning and building-code hurdles. That path is not a casual workaround. It is a more complex use case that may be restricted by zone district and construction requirements.

This is where a lot of owners actually save themselves money by being realistic early. A property that is not a legal STR under Denver’s rules may still be a very good rental asset. It just may be the wrong fit for classic Airbnb use.

Final Thoughts: How Denver Owners Should Think About STRs

So, is Airbnb legal in Denver?

Yes — but only when the property is the host’s primary residence, the host has a valid short-term rental license, the ad displays the license number, and the host stays in compliance with Denver’s related operating rules.

That is the short answer.

The more useful answer is this: Denver is a city where short-term rental success starts with compliance. Before you think about occupancy, cleaning teams, pricing strategy, or furnishing, you need to know whether the property actually qualifies.

If it does, great — then the next question is how to operate it well.

If it does not, that does not mean the property has no rental value. It usually means you should look seriously at another strategy, like mid-term or long-term rental, instead of trying to force an Airbnb model that does not fit the city’s rules.

Want help figuring out whether your Denver property is a fit for short-term, mid-term, or long-term rental? Contact our team for a custom strategy review and we’ll help you think through the legal fit, the management burden, and the best path for your goals.