Thinking about selling a Denver home you’ve been hosting on Airbnb or VRBO? Denver’s short-term rental rules are strict, and they can shape your price, your buyer pool, and your timeline. In this guide, you’ll learn how the primary‑residence rule, licensing, taxes, and new state proposals may affect your sale, plus a simple checklist to prepare with confidence. Let’s dive in.
Denver STR rules at a glance
Denver requires a short‑term rental license for stays of 1 to 29 nights, and you can only license your primary residence. You must display your license number in all ads, maintain liability insurance that covers STR use, and follow city tax rules. Review the city’s requirements on the official short‑term rental laws and rules page for specifics and history of updates since 2016. See Denver’s STR laws and rules.
Licenses renew annually. The city may inspect, asks you to document primary residence, and can fine up to $999 per violation. There is a 90‑day renewal grace period, and proactive enforcement is common. Check Denver’s license renewal guidance for timing and process.
Taxes to plan for
Denver’s lodger’s tax rate on taxable lodging is 10.75 percent. Platforms may collect some taxes, but you are still responsible for city accounts and filings. Learn about lodger’s tax accounts and other business tax details on the city’s finance page. Review Denver business tax information.
State changes to watch
Colorado lawmakers have considered reclassifying some STRs for property‑tax purposes, with proposals that could treat intensive STRs more like lodging property. Some language references thresholds and future effective dates, including January 1, 2026 in at least one proposal. Keep an eye on county assessor guidance and state bill updates. Track SB24‑033 and related legislation.
What this means for your sale
License does not transfer
Denver STR licenses are linked to a person who can prove the property is their primary residence. A buyer cannot assume they will inherit your license. The new owner must qualify and apply under city rules after closing. City guidance indicates residential‑style licenses are not transferable when ownership changes.
Smaller investor buyer pool
Because Denver’s program is for primary residences, investor buyers who want non‑owner‑occupied STRs are often not candidates. This can narrow demand and affect competitive pricing compared to markets where investor STR purchases are allowed. The city’s rules and enforcement focus support this reality. Review the city’s STR rules to understand what buyers can and cannot do.
Valuation and lending considerations
Appraisers and lenders will value the property based on legal use and reliable income. If STR income will not continue under a new owner or could be reclassified for taxes, expect appraisers to rely on owner‑occupied or long‑term rental comparables. Lenders also require documentation for rental income and avoid hotel‑like projects. See Fannie Mae’s rental income guidance.
HOA and community rules
HOAs can limit or prohibit STRs if allowed by their recorded declarations. Buyers will ask for governing documents, and restrictions can affect marketability. Review Colorado’s HOA FAQs to understand how covenants and rules interact with city licensing.
Compliance and enforcement
Denver actively enforces STR rules through platform cooperation and direct actions. Licenses have been revoked and unlicensed hosts have faced penalties. This makes documented compliance a key selling point. Read a report on Denver’s enforcement efforts.
Market snapshot and context
City data shows several thousand STR licenses on file, and third‑party providers often show a higher count of active platform listings. The difference reflects methodology: city license records versus scraped listings and booking data. Treat counts as ranges, not exact totals. You can view local license snapshots in Denver’s open data STR dataset.
Analytics firms also report meaningful average daily rates and occupancy for many neighborhoods, but estimates vary by provider and date. If you plan to highlight revenue in your marketing, cite the source and timeframe.
Seller checklist: documents and decisions
Use this quick list to prepare your property and reduce surprises in escrow.
Assemble proof of compliance:
- Current STR license number and expiration date. Confirm details on the city’s renewal page.
- Lodger’s tax registration and recent filings. Review business tax requirements.
- Any inspections, complaints, notices, or fines from Excise & Licenses.
- Insurance policy declarations showing liability coverage that includes STR use.
- HOA governing documents and any STR‑related rules, if applicable. Check state HOA FAQs.
Plan for license status at closing:
- Assume the license will not transfer. Coordinate with the buyer on when STR operations cease and what the buyer must do post‑closing. Note renewal timelines and the 90‑day grace period. See renewal guidance.
Update disclosures:
- Complete the Colorado Seller’s Property Disclosure and include known STR use, income, complaints, citations, and any tax delinquencies. Review the state’s SPD guidance.
Align marketing and operations:
- Market truthfully. If a buyer must be a primary resident to continue STR use, say so in the remarks. Make sure any active STR ads include the license number per city rules. See the city’s STR rules.
Coordinate financing expectations:
- If a buyer plans to use rental income to qualify, expect underwriting to ask for tax returns or lease history. Appraisers will verify lawful use and may discount non‑transferable STR income. Reference Fannie Mae’s rental income standards.
Manage calendars and bookings:
- Decide whether to accept new reservations during the listing period. Most booking calendars do not transfer, so clarify who handles future stays and refunds in the contract. Watch license renewal dates so platforms do not block your calendar.
How The Corbitt Group helps
Selling an STR‑experienced home in Denver takes clear strategy. You get pricing and positioning advice that reflects city rules, a document game plan for clean due diligence, and premium listing exposure that reaches qualified buyers. Our neighborhood‑level knowledge across south Denver suburbs pairs with white‑glove service to keep your sale efficient and low stress.
If you’re weighing when to list, how to present STR income, or how to address HOA or tax questions, we’re here to help. Let’s talk through the nuances and build a plan that fits your goals.
Ready to map out your sale? Contact The Corbitt Group to get started.
FAQs
Can a buyer keep operating my Denver STR after closing?
- Not automatically. Denver’s license is tied to a primary residence demonstration, so the buyer must apply and qualify on their own. If they cannot, they generally cannot continue STR operations as a residential use.
Do I need to pause my Airbnb while the home is for sale?
- Not by default. Many sellers keep operating, but you should plan for showings, guest coordination, potential refunds, and what happens to future bookings at closing.
Will STR activity change my Colorado property taxes?
- Possibly. State proposals aim to classify some intensive STRs more like lodging property in future tax years, which could change your tax bill. Monitor county assessor guidance and state updates.
What STR documents should I share with buyers?
- Provide your license number and expiration, lodger’s tax registration and filings, any inspections or notices, STR‑inclusive insurance declarations, and HOA documents. Also complete the Seller’s Property Disclosure fully.
How do appraisers and lenders view STR income in Denver?
- They focus on legal, supportable income. If STR income will not continue for a new owner, appraisers may use different comps and lenders may limit qualifying income from STR sources.
