Questions for Short-Term Rental Owners and Investors in Colorado Springs

Rentals available for less than 30 days are governed under the Colorado Springs Code as Short-Term Rentals.

Short-Term Rental Owners must first obtain a city sales-tax customer ID and a Short-Term Rental Permit. Permit application requirements include an owner/non-owner election, a state sales tax license, a safety self-certification, proof of insurance, and identification of the responsible contact. Applicants must also demonstrate compliance with the occupancy limits in Colorado Springs Code § 7.3010(C).

Each rental allows two occupants, plus two more for every bedroom, with a maximum of 15 people.

Driveway parking must be used first, and overflow must be limited to lawful street parking. Parking in yards or roadways is prohibited. Owners must maintain weekly trash service, and meal services, commercial events, large events, and weddings are prohibited.

Each dwelling unit may have only one short-term rental. An owner may have no more than two short-term rentals in the same multifamily building, although exceptions may apply when the building contains four or fewer total dwelling units.

A property with an accessory dwelling unit cannot also operate a short-term rental unless it was grandfathered in on June 30, 2025, and has maintained that use since.

Initial and renewed permits are valid for one year from issuance. Each permit is tied to a specific owner and property and expires when the property is sold or transferred. A buyer cannot keep the seller’s permit, and a seller cannot use that permit for a different property.

Owners must maintain at least $500,000 in liability coverage and prominently post the permit and emergency information.

A designated responsible contact must live in El Paso County, be available 24/7, and be able to respond within one hour. Changes to that contact must be updated within three days.

Yes. A property is owner-occupied if the owner lives there for at least 185 days per year. Non-owner-occupied short-term rentals face restrictions that do not apply to owner-occupied properties.

A non-owner-occupied rental cannot be within 500 feet of another non-owner-occupied short-term rental. These rentals are also prohibited in:

• R-E (Single-Family – Estate).
• R-1 6 (Single-Family – Medium).
• R-1 9 (Single-Family – Large).
• Single-Family PDZ (Single-Family – Planned Development Zone).

Exceptions based on military duty may apply.

Check the eligibility of the property. Confirm the city boundary, zoning, 500-foot spacing, owner status, unit count, and ADU cutoff.

Plan for the operating requirements. Confirm bedrooms, egress, parking, insurance, a local contact, tax account, safety requirements, and any HOA or lease requirements.