Arapahoe County, Colorado Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Arapahoe County, Colorado?

Short-term rentals like Airbnb and VRBO have become increasingly popular in Colorado, including in Arapahoe County. However, regulations around STRs vary significantly across different cities and counties. It's crucial for property owners to understand the specific rules and requirements in their area before starting a short-term rental business.

Currently, Arapahoe County's Land Development Code does not explicitly allow or prohibit short-term rentals in residential areas. The county has received feedback from residents concerned about STRs in their neighborhoods. In response, county officials are conducting public outreach, reviewing regulations in other jurisdictions, and considering drafting proposed regulations for unincorporated parts of Arapahoe County.

Starting a Short-Term Rental Business in Arapahoe County

If you're interested in starting a short-term rental business in Arapahoe County, here are some key steps and considerations:

Check local zoning laws: Before renting out a property, make sure it is zoned for short-term rentals. Regulations often apply to rentals of 30 days or less where the owner is not present. Cities may limit how many nights per year a property can be rented short-term (anywhere from 30-180 nights) and restrict the number of guests allowed at one time. Some areas only allow STRs in primary residences or prohibit them entirely.

Write a business plan: Develop a business plan that outlines your target guests, pricing strategy, marketing approach, and how you will equip and decorate your rental to appeal to your desired customers. Having a solid plan is essential for success.

Consider forming a business entity: Setting up an LLC or other business structure can provide liability protection and tax benefits. Consult with an attorney or tax professional to determine the best approach for your situation.

Obtain necessary licenses and permits: You will likely need a general business license and a short-term rental license demonstrating your property is up to code and complies with health and safety standards. Some cities also require a permit involving a home inspection and annual fee. Check your city and county websites for specific requirements.

Follow tax rules: Just like hotels, short-term rentals must register, collect, and remit sales and occupancy taxes. Work with a property management company, online booking platform, or tax professional to ensure you are meeting all tax obligations. Failure to comply can result in penalties and interest.

Understand owner occupancy requirements: In some cases, like with accessory dwelling units (ADUs) in Arapahoe County, the property owner is required to reside in either the main home or the ADU. Ownership and residency are determined by land title records, voter registration, vehicle registration, etc.

While Arapahoe County is still in the process of developing specific short-term rental regulations, neighboring areas provide a glimpse of what to expect:

• The City of Aurora only allows STRs in primary residences with a business license. Hosts must obtain a permit and pay lodging and sales taxes.
• Centennial defines STRs as spaces rented for 1-29 days and requires hosts to apply for a STR license.
• Denver has a short-term rental license, limits rentals to primary residences, and imposes occupancy limits.

As Arapahoe County moves forward with developing its own short-term rental policies, it's vital for hosts and investors to stay informed and engaged in the process. Following the regulations, once established, will be critical for operating legally and being a good neighbor in the community.

Short-Term Rental Licensing Requirements in Arapahoe County

While Arapahoe County is still in the process of developing specific regulations for short-term rentals, it's important to be aware of the potential licensing requirements that may be implemented in the near future. Based on the practices of neighboring jurisdictions, here's what short-term rental owners and investors in Arapahoe County can expect:

Business License: Most cities and counties require short-term rental operators to obtain a general business license. This involves registering your business with the local government and paying any associated fees.

Short-Term Rental License: In addition to a business license, many areas require a specific short-term rental license or permit. This process typically involves:

1. Completing an application
2. Providing proof of property ownership or landlord permission
3. Demonstrating compliance with health and safety standards
4. Passing a home inspection
5. Paying an annual licensing fee

Primary Residence Requirement: Some jurisdictions, like Denver, only allow short-term rentals in properties that serve as the owner's primary residence. This means you must live in the property for a certain number of days per year and provide proof of residency through voter registration, vehicle registration, or other means.

Occupancy Limits: Cities may impose occupancy limits on short-term rentals based on the number of bedrooms or total square footage. For example, Centennial has an occupancy limit of 2 renters per bedroom, with a maximum of 8 renters total.

Tax Collection: Short-term rental operators are required to collect and remit sales and lodging taxes to the appropriate authorities. This involves obtaining a tax license, charging the correct tax rate to guests, and filing regular tax returns.

To apply for a short-term rental license in Arapahoe County (once the regulations are in place), you will likely need to submit an application along with any required documentation and fees to the county's Public Works and Development Department. The process may take several weeks to a few months, depending on the complexity of your application and the volume of requests being processed.

It's crucial to obtain all necessary licenses and permits before operating a short-term rental. Failure to comply with the regulations can result in significant fines and penalties. For example, in Denver, operating without a license can lead to fines of up to $999 per incident per day. Repeat offenders may be prohibited from applying for a license for up to two years.

As Arapahoe County finalizes its short-term rental policies, it's essential to stay informed and follow the official guidelines provided by the county. Consulting with a local attorney or property management company can also help ensure you are meeting all legal requirements.

Required Documents for Arapahoe County Short-Term Rentals

As Arapahoe County works on developing specific regulations for short-term rentals, it's important to be prepared for the potential documentation that may be required. Based on the practices of neighboring jurisdictions and the county's existing permit processes, here are the documents that short-term rental owners and investors in Arapahoe County may need to provide:

Short-Term Rental Application: This is the primary document you will need to submit to the Arapahoe County Public Works and Development Department. The application will likely require information about the property owner, the rental property address, and the type of short-term rental being operated.

Proof of Property Ownership: You will need to provide evidence that you own the property being used for short-term rentals. This can typically be demonstrated through a deed, title, or property tax record. If you are not the property owner, you may need to provide written permission from the owner to operate a short-term rental.

Proof of Primary Residence: If Arapahoe County implements a primary residence requirement for short-term rentals (as many neighboring jurisdictions have), you will need to provide documentation showing that the rental property is your main place of residence. This may include voter registration, vehicle registration, or utility bills in your name at the property address.

Floor Plan: You may be required to submit a floor plan of the rental property, indicating the number and location of bedrooms, bathrooms, and other living spaces. This helps the county verify that the property meets occupancy limits and health and safety standards.

Parking Plan: Some jurisdictions require short-term rental operators to provide a parking plan, demonstrating that there is adequate off-street parking available for guests. This may involve submitting a site plan or photograph showing the designated parking areas.

Proof of Insurance: You may need to provide evidence of liability insurance coverage for your short-term rental property. This protects both you and your guests in case of accidents or injuries on the premises.

Tax License: To collect and remit sales and lodging taxes, you will likely need to obtain a tax license from the Arapahoe County Treasurer's Office. This involves completing an application and providing information about your short-term rental business.

These documents serve to ensure that short-term rentals in Arapahoe County are operating legally, safely, and in compliance with local regulations. As the county finalizes its short-term rental policies, it will be crucial to consult the official guidelines provided by the Arapahoe County Public Works and Development Department for the most up-to-date and accurate list of required documents.

Arapahoe County Short-Term Rental Taxes

As a short-term rental owner or investor in Arapahoe County, it's crucial to understand the various taxes that apply to your business. Properly collecting and remitting these taxes is not only a legal requirement but also contributes to the local economy and supports essential public services. Here's a breakdown of the key taxes you need to be aware of:

Colorado Sales Tax: The state of Colorado imposes a 2.9% sales tax on short-term rentals. This tax applies to the total listing price, including cleaning fees and any other relevant charges. As an owner, you are responsible for collecting this tax from your guests and remitting it to the Colorado Department of Revenue.

Arapahoe County Lodging Tax: Arapahoe County levies a lodging tax on short-term rentals, which typically ranges from 0.9% to 2%. The exact rate depends on the specific location of your rental property within the county. This tax is in addition to the state sales tax and must be collected and remitted to the county.

Local Sales Tax: Cities and towns within Arapahoe County may impose their own sales taxes on short-term rentals, ranging from 1% to 5%. These local taxes are on top of the state and county taxes and must be collected and remitted to the appropriate municipal authorities.

Local Marketing District Tax: Some areas within Arapahoe County have established local marketing districts to promote tourism and economic development. Short-term rentals in these districts may be subject to an additional tax, typically ranging from 1.4% to 4%. This tax is used to fund marketing efforts and improve local amenities.

Metropolitan District Tax: If your short-term rental is located within a metropolitan district in Arapahoe County, you may be required to collect and remit a metropolitan district tax. These taxes usually range from 0.5% to 5.5%, depending on the specific district.

It's important to note that platforms like Airbnb often collect and remit some of these taxes on behalf of owners. However, it's ultimately your responsibility to ensure compliance with all applicable tax laws. Consulting with a local tax professional can help you navigate the complexities of short-term rental taxation in Arapahoe County.

Tax Deductions and Write-Offs

As a short-term rental owner, you may be eligible for various tax deductions that can help offset your expenses and increase your overall profitability. Some common deductions include:

1. Mortgage interest and property taxes
2. Utilities, such as electricity, water, and internet
3. Cleaning and maintenance costs
4. Supplies and amenities provided to guests
5. Insurance premiums
6. Advertising and marketing expenses
7. Legal and professional fees
8. Depreciation of furniture and equipment

Keeping accurate records and working with a qualified tax advisor can help you maximize your deductions and ensure compliance with all relevant tax laws.

Colorado Wide Short-Term Rental Rules

While most short-term rental regulations in Colorado are determined at the local level by cities and counties, there are a few key state laws that Arapahoe County hosts need to be aware of:

Sales Tax Collection: The state of Colorado requires all short-term rental operators to collect and remit state sales tax on their bookings. The current state sales tax rate is 2.9%. This tax is in addition to any local sales taxes imposed by Arapahoe County or its municipalities.

Lodging Tax: Colorado also levies a statewide lodging tax on short-term rentals, which is currently set at 10.75%. This tax is administered by the Colorado Department of Revenue and is separate from local lodging taxes that may be required by Arapahoe County or its cities.

Property Tax Classification: In Colorado, properties that are used as short-term rentals may be subject to a different property tax classification than traditional residential properties. Residential properties are currently taxed at 6.95%, while nonresidential lodging properties are taxed at 29%. However, the specific classification of a short-term rental property depends on factors such as the number of days rented per year and whether it is the owner's primary residence.

County Regulatory Authority: In 2023, the Colorado legislature passed House Bill 23-1287, which clarifies the authority of county governments to license and regulate short-term rentals. This law allows counties to require permits or licenses for STRs, set fees, and establish rules for obtaining and maintaining licenses. It also gives counties the power to require hosting platforms like Airbnb to remove listings that violate local regulations.

Responsible Agent Requirements: Some jurisdictions in Colorado, such as the Town of Keystone, require short-term rental owners to designate a local "responsible agent" who can respond to issues at the property within a certain timeframe (often one hour). While this is not currently a statewide mandate, it is a common requirement in local STR ordinances.

It's important to note that these state-level regulations are in addition to, not in place of, any specific rules enacted by Arapahoe County or its individual municipalities. As Arapahoe County works to develop its own short-term rental policies, hosts will need to comply with both state and local requirements.

Failure to adhere to state or local laws can result in significant penalties, including fines and the revocation of rental licenses. Short-term rental operators in Arapahoe County should closely monitor both state and county regulations and consult with local authorities or legal professionals to ensure they are fully compliant.

Does Arapahoe County Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like BiggerPockets and Reddit, it appears that Arapahoe County's enforcement of short-term rental regulations is relatively lax compared to other Colorado jurisdictions. Many hosts report operating STRs in unincorporated parts of the county without facing significant pushback from local authorities.

One BiggerPockets user shared their experience: "I've been running an Airbnb in Arapahoe County for over a year now, and I haven't had any issues with the county. As long as you're not causing problems for your neighbors, they seem to take a hands-off approach."

Another investor on Reddit commented: "Arapahoe County is definitely more Airbnb-friendly than places like Denver or Boulder. The regulations are less strict, and enforcement is pretty spotty. I know several hosts who have been operating under the radar without any problems."

However, it's important to note that this lenient attitude may change as Arapahoe County moves forward with developing its own short-term rental ordinance. County officials have expressed concerns about the impact of STRs on housing affordability and neighborhood character, and they are likely to implement stronger oversight and enforcement mechanisms in the future.

A BiggerPockets member cautioned: "Just because Arapahoe County is relatively permissive now doesn't mean it will stay that way. As more communities start cracking down on short-term rentals, I wouldn't be surprised to see the county take a harder line. It's always a risk to operate an STR without proper licensing and permits."

While some hosts may be able to fly under the radar in Arapahoe County for now, it's not a strategy that is likely to be sustainable long-term. As the regulatory landscape evolves, short-term rental operators will need to stay informed and be prepared to adapt to new requirements and enforcement practices.

How to Start a Short-Term Rental Business in Arapahoe County

Starting a short-term rental business in Arapahoe County can be a rewarding venture, but it requires careful planning and compliance with local regulations. Here's a step-by-step guide to help you get started:

1. Research local regulations: Before investing in a property, thoroughly research Arapahoe County's short-term rental regulations. Currently, the county is in the process of developing specific rules for STRs in unincorporated areas. Stay informed about any updates and be prepared to comply with licensing requirements, occupancy limits, safety inspections, and other potential regulations.
2. Choose a property: Select a property that aligns with your business goals and target market. Consider factors such as location, size, amenities, and local attractions. Ensure the property is zoned for short-term rentals and meets any necessary requirements, such as parking and safety standards.
3. Develop a business plan: Create a comprehensive business plan that outlines your target market, pricing strategy, marketing approach, and financial projections. This will serve as a roadmap for your short-term rental business and help you secure financing if needed.
4. Obtain necessary licenses and permits: Once Arapahoe County finalizes its STR regulations, you will likely need to obtain a business license and a short-term rental license. This may involve submitting an application, providing proof of property ownership, passing inspections, and paying associated fees. Allow ample time for the application process, which can take several weeks.
5. Set up your rental space: Furnish and decorate your rental property to appeal to your target guests. Invest in high-quality amenities, such as comfortable bedding, well-equipped kitchens, and reliable Wi-Fi. Ensure the space is clean, safe, and well-maintained.
6. Establish house rules and policies: Develop clear house rules and policies for your guests, including check-in/check-out procedures, occupancy limits, noise restrictions, and pet policies. Communicate these rules clearly in your listing and rental agreement to set expectations and minimize potential issues.
7. List your property:Create a compelling listing on popular vacation rental platforms like Airbnb and Vrbo. Use high-quality photos, detailed descriptions, and competitive pricing to attract potential guests. Optimize your listing with relevant keywords and highlight unique selling points.
8. Implement a marketing strategy: Develop a comprehensive marketing plan to promote your short-term rental. Leverage social media, online travel communities, and local partnerships to increase visibility. Encourage guest reviews and referrals to build a positive reputation and attract repeat bookings.
9. Manage your bookings and guests: Use a reliable property management system to streamline bookings, communication, and payment processing. Be responsive to guest inquiries and provide excellent customer service to ensure positive reviews and repeat business. Consider hiring a professional property manager if you need assistance.
10. Comply with tax obligations: Short-term rental operators in Arapahoe County must collect and remit state and local sales taxes, as well as lodging taxes. Obtain necessary tax licenses, maintain accurate records, and file regular tax returns. Consult with a tax professional to ensure compliance and maximize deductions.

By following these steps and staying informed about Arapahoe County's evolving short-term rental landscape, you can build a successful and compliant STR business. Remember to prioritize guest satisfaction, maintain open communication with local authorities, and adapt to any changes in regulations to ensure long-term success.

Who to Contact in Arapahoe County about Short-Term Rental Regulations and Zoning?

As Arapahoe County works to develop specific regulations for short-term rentals, it's important for current and prospective hosts to stay informed and engaged in the process. Here are the key contacts and resources for navigating STR rules and zoning in Arapahoe County:

Arapahoe County Public Works and Development Department: This department oversees planning, zoning, and land use regulations in unincorporated parts of the county. They are leading the effort to draft and implement STR regulations. You can reach them at:

1. Phone: 720-874-6500
2. Email: publicworks@arapahoegov.com
3. Address: 6924 S. Lima St., Centennial, CO 80112

Arapahoe County Zoning Division: For questions about current zoning rules, allowable land uses, and property-specific concerns, contact the Zoning Division at:

1. Phone: 720-874-6711
2. Email: zoning@arapahoegov.com

Arapahoe County Planning Division: The Planning Division handles land development approvals and long-range planning efforts. They can provide guidance on the STR regulatory process and gather public input. Reach them at:

1. Phone: 720-874-6650
2. Email: planning@arapahoegov.com

Arapahoe County Board of County Commissioners: The County Commissioners will ultimately vote on any proposed STR regulations. You can share your feedback and concerns with them at:

1. Phone: 303-795-4630
2. Email: commissioners@arapahoegov.com

In addition to these official channels, connecting with other short-term rental hosts and industry groups can provide valuable insights and support. Some helpful resources include:

1. Denver Short-Term Rental Alliance (DSTRA): While focused on Denver, this group advocates for fair and reasonable STR regulations across the metro area. They offer educational resources and networking opportunities for hosts. Learn more at https://www.denvershortterm.org/.
2. Colorado Short-Term Rental Alliance (CSTRA): This statewide organization represents the interests of STR owners, managers, and service providers. They work to educate policymakers and the public about the benefits of short-term rentals. Visit their website at https://www.coloradostra.org/.
3. AirBnB Citizen: AirBnB's advocacy arm provides updates on local regulatory issues and helps hosts make their voices heard. You can find information specific to Colorado at https://www.airbnbcitizen.com/colorado/.
4. Short-Term Rental Forum on BiggerPockets: This online community is a great place to connect with other hosts, ask questions, and share experiences. While not specific to Arapahoe County, many Colorado hosts participate. Check it out at https://www.biggerpockets.com/forums/530-short-term-rental.

As you navigate the evolving world of short-term rental regulations in Arapahoe County, staying proactive and engaged is key. By connecting with local officials, industry groups, and fellow hosts, you can help shape policies that balance the needs of all stakeholders while building a successful and compliant STR business.

What Do Airbnb Hosts in Arapahoe County on Reddit and Bigger Pockets Think about Local Regulations?

As Arapahoe County works to develop its short-term rental regulations, it's valuable to hear from hosts who are navigating the current landscape. Here are some insights and experiences shared by Airbnb hosts in Arapahoe County on popular forums like Reddit and BiggerPockets:

Uncertainty about current rules: On the Longmont subreddit, a user asked about the occupancy limits for Airbnbs in the city. Another user responded, "Longmont rightly has strict short term rental regulations. Contact the city's Development Services Center for more information if needed." This exchange highlights the confusion some hosts face in understanding the current patchwork of STR rules across different municipalities in Arapahoe County.

Concerns about enforcement: In a thread on the Denver subreddit, a user shared their experience with illegal short-term rentals in their neighborhood: "We have 2 STRs on our street that the owners don't live in and the city says they can't prove it's a short term rental because they haven't found it listed." This comment suggests that even in areas with established regulations, enforcement can be a challenge, leaving some hosts feeling like they are operating in a gray area.

Impact on housing affordability: On BiggerPockets, a real estate investing forum, a user started a thread titled "Colorado STR regulations" asking for opinions on the best places to operate short-term rentals in the Denver suburbs. While no responses specifically mentioned Arapahoe County, the post itself reflects the growing interest in STRs as an investment strategy and the desire for clear, consistent regulations across the region.

Comparisons to other markets: In a separate BiggerPockets thread about proposed changes to Denver's rules on unrelated adults living together, a user commented, "Aurora; Westminster; Northglenn; Brighton ... Allows 4 unrelated adults." This comparison highlights how STR regulations can vary significantly across neighboring cities and counties, with some hosts looking to areas like Aurora (which is partially located in Arapahoe County) for more favorable rules.

While these examples don't paint a complete picture, they do provide a glimpse into the experiences and concerns of Airbnb hosts in Arapahoe County. As the county moves forward with developing its own STR ordinance, it will be crucial to engage hosts in the process and learn from the successes and challenges of neighboring jurisdictions.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.