Short-Term Rental Regulations in Colorado Springs, Colorado for 2024

Licensing and Permits

• Short-Term Rental Permit: Required for all short-term rental operations. The permit is valid for one year and costs $119, with the option to renew annually.
• Sales Tax License: Owners must obtain a sales tax license from the Colorado Department of Revenue to collect and remit sales tax on rental income.
• Business License: A valid business license is also required for short-term rental operations.

Types of Short-Term Rentals

• Owner-Occupied Short-Term Rentals: Properties physically occupied by the owner for at least 185 days per year. Allowed in lawful dwelling units in zones where residential units are permitted. No cap on the number of owner-occupied short-term rentals.
• Non-Owner Occupied Short-Term Rentals: Prohibited in single-family zoning districts (R-E, R-1 6, R-1 9, and Single-Family PDZs). Must be at least 500 feet away from another non-owner occupied short-term rental unit in other zoning districts.

Zoning Compliance

• Short-term rentals must comply with local zoning laws. Non-owner occupied rentals have specific spatial restrictions.

Safety and Occupancy Requirements

• Occupancy Limits: Limited to two guests per bedroom plus two additional guests, for a total of up to 15 occupants per property.
• Safety Inspections: Properties must pass safety inspections to ensure compliance with building codes, including functioning smoke detectors, carbon monoxide detectors, and fire extinguishers.

Hosting Requirements

• Primary Residence Requirement: For owner-occupied rentals, the owner must live on the property for a minimum of 185 days per year.
• Noise and Nuisance Regulations: Owners must ensure that guests comply with local noise ordinances and do not create disturbances.

Tax Obligations

• Sales Tax: Owners must collect and remit sales tax to the Colorado Department of Revenue. The combined sales and use tax rate in Colorado Springs is 8.20%.
• Lodger’s Tax: An additional lodger’s tax applies to short-term rentals, which is 2% in Colorado Springs.
• Income Tax: Rental income is subject to federal and state income taxes.

Additional Requirements

• Liability Insurance: Maintain liability insurance of no less than $500,000 unless the hosting platform has equal or higher coverage.
• Weekly Residential Trash Collection: Maintain weekly residential trash collection services.
• Parking: Utilize parking in private driveways first with overflow parking on the street where permitted.
• No Commercial Use: Properties cannot be used for commercial or large social events or gatherings.
• Local Contact: A local contact person must be available 24/7 to handle issues.
• Permit Display: The permit must be prominently displayed within the rental unit.

Compliance and Enforcement

• Compliance with Ordinances: Owners must comply with all applicable noise, housing, public health, fire, and safety ordinances.
• Penalties for Non-Compliance: Violations can result in permit suspension or revocation.

Top Neighborhoods for Airbnb Revenue in Colorado Springs, Colorado

1. Downtown Colorado Springs

• Average Revenue: $29.3K per year
• Average Daily Rate: $148.3 per night
• Average Occupancy Rate: 66%
• Appeal: Downtown Colorado Springs is a vibrant hub of entertainment, culture, and business, offering a blend of urban amenities and small-town charm. Its central location makes it an attractive destination for visitors seeking an authentic Colorado experience.

2. Old Colorado City

• Average Revenue: $27.9K per year
• Average Daily Rate: $144.8 per night
• Average Occupancy Rate: 65%
• Appeal: This historic district offers a unique blend of small-town ambiance and modern amenities. It is a popular destination for its charming atmosphere and proximity to local attractions.

3. Knob Hill

• Average Revenue: $27.5K per year
• Average Daily Rate: $131.4 per night
• Average Occupancy Rate: 72%
• Appeal: Knob Hill is a charming neighborhood with a mix of history, convenience, and high demand. Its proximity to downtown and various local attractions makes it an appealing choice for visitors.

4. Venetian Village

• Average Revenue: $25K per year
• Average Daily Rate: $122.8 per night
• Average Occupancy Rate: 72%
• Appeal: This neighborhood is known for its unique architectural style inspired by Venice, Italy, offering a tranquil retreat with Instagrammable homes and themed rentals.

5. Springs Ranch

• Average Revenue: $18.3K per year
• Average Daily Rate: $134 per night
• Average Occupancy Rate: 55%
• Appeal: Although it has a lower occupancy rate compared to other areas, Springs Ranch offers residential charm, stunning mountain views, and a strong sense of community, making it an inviting atmosphere for both residents and visitors.

These neighborhoods are highly appealing due to their unique blend of historical charm, modern amenities, and proximity to major attractions such as Pikes Peak, the Garden of the Gods, and the Cheyenne Mountain Zoo, which are significant draws for tourists visiting Colorado Springs.

Furnishing Your Airbnb in Colorado Springs: Tips for an Inviting and Locally Inspired Space

Understanding Your Space and Budget

• Know what your spaces can accommodate: Refer to your floor plan to optimize the layout and avoid overcrowding rooms.
• Set your budget: Create checklists for must-have and nice-to-have items to manage your expenses effectively.

Choosing the Right Furniture

• Select durable and easy-to-clean furniture: Opt for pieces with washable covers, especially for sofas and beds, to maintain cleanliness and longevity.
• Pick space-saving furniture with big functionality: Consider sofa beds, folding tables, and ottomans with hidden storage to maximize space.
• Invest in quality mattresses: Choose memory foam mattresses for durability and comfort. Use mattress covers to extend the life of your mattresses.

Reflecting Colorado Springs' Unique Style

• Choose a theme or color palette: Draw inspiration from local aesthetics, such as natural colors and mountain-inspired decor. Use social media platforms like Pinterest and Instagram for ideas.
• Use local and natural elements: Incorporate elements like pine, stone, or earthy tones to reflect the city's natural surroundings.

Ensuring Comfort and Functionality

• Provide ample storage: Include wardrobes, bedside tables with drawers, and hooks for coats to keep guests' belongings organized.
• Ensure high-speed internet and necessary appliances: Install high-speed WiFi, and equip your kitchen with essentials like a coffee maker, microwave, and toaster.

Enhancing the Living Areas

• Create a cozy living room: Include a comfortable couch or sofa bed, coffee tables, end tables, and a smart TV. Add throw pillows and an area rug to enhance the ambiance.
• Optimize the dining area: Use a sturdy dining table and comfortable, lightweight chairs. Add decorative items like tablecloths, runners, and candles.

Bathroom and Bedroom Essentials

• Provide luxury bathroom amenities: Include high-quality towels, a hairdryer, basic toiletries, and a first-aid kit. Ensure there is ample storage for guests' toiletries.
• Furnish bedrooms with essentials: Include beds, nightstands, lamps, and full-length mirrors. Ensure there are hangers and a closet or clothing rack for guests' clothing.

Outdoor and Additional Considerations

• Utilize outdoor spaces: If applicable, furnish outdoor areas with a dining table, patio chairs, and an umbrella to create an inviting outdoor space.
• Ensure guest safety and security: Install smoke detectors, carbon monoxide detectors, and consider digital locks on bedroom doors. Provide a safe for valuables if possible.
• Make your Airbnb accessible: Consider adding ramps, wide doorways, and grab bars in bathrooms to make your space accessible to guests with disabilities.

Final Touches

• Add decorative items: Incorporate local artwork, interesting frames, or unique paintings to give your space a personal touch.
• Provide extra essentials: Offer items like spices, coffee, board games, and laundry detergent to make guests feel at home.

Practical Tips to Run a Successful Short Term Rental Business in Colorado Springs, Colorado

To ensure the success and smooth operation of a short-term rental business in Colorado Springs, several practical tips can be implemented:

Noise Regulations and Guest Communication

Inform guests about quiet hours and noise regulations to maintain a good relationship with neighbors and comply with local ordinances. Including this information in both digital and physical house manuals helps set clear expectations.

Comprehensive House Manual

Create a detailed house manual that includes instructions on using appliances, Wi-Fi passwords, and other essential information. This manual should be both digital, accessible through a guest portal or email, and physical, placed in a convenient location within the rental property.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with clear instructions on how to access the property, along with photos of the lock and any other relevant entry points.

Parking Instructions

Include detailed parking instructions with photos to help guests understand where and how to park their vehicles. This can be particularly important in areas with limited parking or specific parking regulations.

By implementing these strategies, you can enhance guest satisfaction, reduce potential issues, and ensure your short-term rental business in Colorado Springs operates efficiently and compliantly with local regulations.

Here is a brief list of house cleaning providers in Colorado Springs, Colorado:

House Cleaning Providers in Colorado Springs

Merry Maids of Colorado Springs

• Offers expert house cleaning services with 40 years of experience.
• Provides cleaning solutions that enhance the cleanliness and feel of your home.

Erika's House Cleaning LLC

• A family-owned business providing quality house cleaning services.
• Services include regular maintenance, one-time deep cleanings, and partnership with Cleaning for a Reason to support cancer patients.

Molly Maid of Colorado Springs

• Provides customized cleaning plans with no contracts and a 24-hour warranty.
• Offers a variety of house cleaning services backed by the Neighborly Done Right Promise.

Maid to Shine

• Top-rated maid service serving Colorado Springs, Monument, the Tri-Lakes area, Manitou Springs, and Falcon.
• Known for using natural, hypoallergenic cleaning products and offering customized cleaning schedules.

Colorado Springs House Cleaning

• A trusted and reliable maid service with over 35 years of experience.
• Specializes in weekly, bi-weekly, monthly house cleaning, deep cleaning, move in/out cleaning, and office cleaning.

Colorado Springs Short-Term Rental Management Fees: A Comprehensive Overview

In Colorado Springs, the fees for managing short-term rental properties can vary significantly, typically ranging from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management, which includes guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum, often ranging from 25% to 30% of the rental income. This comprehensive approach ensures a seamless experience for both property owners and guests, but it comes at a higher cost. On the other hand, basic services that may only include rent collection and minimal oversight can be less expensive, falling closer to the 10% mark. Additionally, property owners may incur extra fees for services such as cleaning, repairs, and design, which can add to the overall cost of management.