Airbnbs are allowed in Denver, but only in certain neighborhoods and only if you follow specific rules

Denver permits short-term rentals through platforms like Airbnb, but the city has strict zoning rules about where you can operate one and how you run it. You cannot rent out a property in most residential neighborhoods without a license, and even with a license, you face limits on how many days per year you can rent and whether you can rent the whole house or only a room. The rules changed significantly in 2020 and have been tightened since, so older information online may not explore.

The core rule is this: Denver divides short-term rentals into two categories—principal residence rentals (where you live and rent out a room or the whole place while you are away) and non-principal residence rentals (where you own the property but do not live there). Principal residence rentals are allowed in most neighborhoods. Non-principal residence rentals are restricted to specific commercial and mixed-use zones and are much harder to get permission for.

Key Takeaways

  • You can rent out a room in your primary home in most Denver neighborhoods without a license, as long as you live there during the rental period.
  • Renting out your entire home while you are away is allowed in most neighborhoods but requires a short-term rental license from the city.
  • If you own a property where you do not live, you can only operate a short-term rental in specific commercial and mixed-use zones, and you must obtain a license.
  • Denver limits principal residence rentals to 180 days per calendar year, and you must register with the city and carry liability insurance.
  • Violations can result in fines starting at $500 and can escalate to $2,500 or more per violation, plus the city may pursue legal action against you.

Principal Residence Rentals: Renting Your Own Home

If you live in Denver and want to rent out a room or your entire home while you are away, you are operating a principal residence rental. This is the most common type of Airbnb in Denver and is allowed in nearly all residential neighborhoods. You must live in the home as your primary residence, and you can rent it out for a maximum of 180 days in a calendar year—that is roughly six months total, though you can split those days however you want.

To operate legally, you need to register with the city and obtain a short-term rental license. The registration process is done online through Denver's Department of Excise and Licenses. You will need your property address, proof that you own or lease the home, and proof of liability insurance with a minimum of $300,000 in coverage. The license costs $75 per year and takes about two weeks to process. Once you have it, you must display your license number in every Airbnb listing.

You also must follow house rules: no more than two unrelated adults can occupy a bedroom, and you cannot rent to more people than your home's occupancy limit allows. Neighbors can report violations, and the city investigates complaints. If you exceed the 180-day limit or operate without a license, you face fines.

Non-Principal Residence Rentals: Renting Property You Do Not Live In

If you own or lease a property in Denver but do not live there, you cannot operate a short-term rental in most of the city. Non-principal residence rentals are only allowed in specific zones: Downtown Denver, the River North Art District, the Santa Fe Arts District, and certain mixed-use and commercial zones. If your property is in a residential neighborhood, you are not permitted to run a short-term rental at all, even with a license.

If your property is in an allowed zone, you must obtain a non-principal residence short-term rental license. The process is more involved than a principal residence license. You will need to submit a detailed process, proof of ownership or a lease, liability insurance, and sometimes a neighborhood impact statement. The city reviews these applications and may deny them if they determine the rental would harm the neighborhood or violate zoning rules. The license fee is higher—currently $150 per year—and approval can take four to eight weeks.

Non-principal residence rentals also face stricter day limits in some zones and may have additional restrictions on noise, parking, or guest capacity. Check with the Department of Excise and Licenses about the specific rules for your zone before you invest in a property for this purpose.

How to Register and Get Your License

The registration process for a principal residence rental is straightforward and can be completed entirely online. Go to the City and County of Denver's Department of Excise and Licenses website and look for the short-term rental license process. You will need to create an account, fill out the process form, and upload supporting documents.

Required documents include a copy of your deed or lease showing you own or rent the property, proof of liability insurance (a screenshot of your policy or a letter from your insurance company showing the $300,000 minimum), and your property address. Once you submit, the city processes the process and sends you a license number by email, usually within two weeks. You then add this license number to your Airbnb listing in the "House Rules" section or in your description.

The license is valid for one year from the date of issue and must be renewed annually. Set a calendar reminder three months before expiration so you do not accidentally operate without a current license. Renewal is faster than the initial process—usually one week—and costs the same $75 fee.

Insurance and Liability Requirements

Denver requires all short-term rental operators to carry liability insurance with a minimum of $300,000 in coverage. This is not optional, and you cannot obtain a license without proof of it. Standard homeowners or renters insurance does not cover short-term rentals, so you must purchase a separate policy or add a rider to your existing policy.

Several insurance companies offer short-term rental policies in Colorado, including Proper Insurance, Allstate, and some local brokers. These policies typically cost $30 to $100 per month depending on your property value and location. When you explore for your license, you will upload a copy of your policy or a letter from your insurance company confirming the coverage amount. The insurance company name and policy number must match the name and address on your license process.

If you operate without insurance or with insufficient coverage, you are not only violating city rules but also exposing yourself to serious financial risk. If a guest is injured in your home, your homeowners insurance will not cover it, and you could be personally liable for medical bills and damages.

Penalties for Operating Without a License or Breaking the Rules

Denver enforces short-term rental rules through the Department of Excise and Licenses and the Department of Community Planning and Development. Violations carry fines that start at $500 per violation and can reach $2,500 or more. A single month of unlicensed operation can result in multiple violations—one for operating without a license, one for each day over the 180-day limit, or one for each guest complaint.

The city also has the authority to pursue legal action, seek injunctions to shut down your rental, and place a lien on your property if fines go unpaid. Neighbors can report violations anonymously through the city's website or by calling 311, and the city investigates complaints. If you are caught operating illegally, the Airbnb listing itself may be removed from the platform, and you could be banned from hosting in Denver.

The most common violations are operating without a license, exceeding the 180-day limit, and renting to more guests than allowed. Keep detailed records of your rental dates and guest counts so you can prove compliance if the city asks.

Checking Your Neighborhood's Zoning Rules

Before you list a property on Airbnb, confirm that short-term rentals are allowed in your specific neighborhood. Denver's zoning rules are complex, and some residential areas have additional restrictions beyond the citywide rules. You can check your property's zoning on the City and County of Denver's online zoning map, which is free and searchable by address.

Go to the Denver Zoning Information System (DZIS) on the city's website, enter your address, and look at the zoning designation. If your property is in a residential zone (R-1, R-2, R-3, etc.), principal residence rentals are allowed. If it is in a commercial or mixed-use zone, both principal and non-principal residence rentals may be allowed, but check the specific zone rules. If you are unsure, call the Department of Community Planning and Development at 720-913-1311 and ask whether your address allows short-term rentals.

Some neighborhoods have also passed local rules that further restrict short-term rentals, such as limiting the number of licenses issued in that area or requiring neighborhood approval. These rules change, so check the city's website or call before you commit to hosting.

Frequently Asked Questions

Can I rent out my entire home for the whole year if I move out temporarily?

No. If you are renting out your entire home, you must still live there as your primary residence. You can rent it out for up to 180 days per year while you are away, but you cannot rent it for longer than that or move out permanently and continue operating it as a short-term rental. If you move out, your property becomes a non-principal residence rental, which is only allowed in specific zones.

Do I need a license if I only rent out one room and keep the rest of the house private?

Yes. Even if you rent only one room and live in the home full-time, you still need a short-term rental license. The license covers the entire property, not individual rooms. The process and cost are the same as renting out the whole house.

What happens if I go over 180 days in a year?

Each day over 180 is a separate violation and can result in a $500 fine per day. If you rent for 200 days, that is 20 violations at $500 each, totaling $10,000 in fines. The city tracks rental dates through Airbnb data and guest complaints, so exceeding the limit is straightforward to detect.

Can I operate a short-term rental in a condo or apartment building?

It depends on your lease or homeowners association rules. Many condo buildings and apartment complexes prohibit short-term rentals in their bylaws or lease agreements. Check your documents and contact your HOA or landlord before you list. If your lease or HOA forbids it, you cannot legally operate an Airbnb, even if the city allows it.

How do I know if my insurance covers short-term rentals?

Call your insurance company and ask directly. Most standard homeowners and renters policies exclude short-term rental income and do not cover guest injuries. You will need a separate short-term rental policy or a rider added to your existing policy. Get written confirmation from your insurance company before you explore for your city license.