Is Rental Arbitrage Legal in Denver, CO?
Only in your own home. Denver licenses short-term rentals only in the host's primary residence, every listing must show the license number, and booking platforms may not process bookings for unlicensed rentals.
Can a renter do rental arbitrage here? Only your own home. Short-term rentals are licensed only in the host's own primary residence, so leasing a separate unit to rent out is not possible.
Requirements
- Denver short-term rental license
- The unit must be the host's primary residence
- License number on every advertisement and listing
- A brochure for guests with the licensee's contact details and neighborhood information
- Lodger's tax registration
Restrictions
- No license for a unit that isn't the host's primary residence
- Booking platforms may not process transactions for unlicensed short-term rentals (Council Bill 20-1229), with fines for violations
Taxes and Fees
- Denver lodger's tax: 10.75%
- State and special district taxes also apply
Official permit or registration page
Next Step
Legal is one half of the decision. The other half is whether the deal earns enough to be worth the risk.
Sources
Frequently Asked Questions
- Can I Lease a Second Unit in Denver to Rent Out Short-Term?
- No. Denver only licenses short-term rentals in the host's own primary residence.
- Does the License Number Have to Be on My Listing?
- Yes. Every advertisement and listing must show the Denver license number.
- What Happens to Unlicensed Listings?
- Booking platforms may not process transactions for unlicensed short-term rentals (Council Bill 20-1229), and hosts can be fined or lose their license for violations.
- What Taxes Apply in Denver?
- The 10.75% lodger's tax on bookings, plus state and special district taxes.