For many buyers, renting a mountain home to visitors is what makes owning one possible. But short-term rental (STR) rules in Colorado ski towns have changed a lot in recent years, and they now vary not just by town but sometimes by street. Before you buy a ski-town property expecting rental income, here’s what you need to know.
Please note: STR rules change often. This is general information, not legal advice. Always confirm the current rules for a specific address with the town or county, the HOA and, if needed, an attorney, before you go under contract.
Why the rules vary so much
Colorado lets towns and, since 2020, counties license and regulate short-term rentals. Many mountain communities have used that power to protect housing for local workers. That means a condo in town and a cabin a mile away in the unincorporated county can follow completely different rulebooks.
How major ski towns approach STRs
- Breckenridge: uses a zone-based licensing system with a town-wide cap on licenses and different limits by zone. When a zone is full, new owners may have to join a waitlist. Some hotel-style properties with a staffed front desk fall into a separate category. Keystone and other areas outside town limits follow Summit County’s rules instead.
- Summit County (unincorporated): has its own licensing framework with different rules depending on the type of area.
- Vail and Beaver Creek: require a license for stays under 30 days. Rather than capping licenses, Vail relies on annual fees and requirements such as insurance, while zoning still determines where STRs are allowed.
- Steamboat Springs: uses an overlay map that sets where STRs are permitted, restricted or prohibited. Two condos on the same road can have different rental rights, so check the map before you write an offer.
- Winter Park, Fraser and Grand County: each has its own permit process and requirements. Historically less restrictive than other markets, but rules have been revisited.
Common requirements
- A license or permit, usually renewed every year
- Annual fees, often based on the number of bedrooms
- Occupancy limits tied to bedrooms
- A local responsible agent available 24/7
- Safety inspections, such as smoke and carbon monoxide detectors
- Collecting and paying state and local sales and lodging taxes. Booking platforms collect some taxes, but owners are still responsible for the rest.
- In some towns, special STR excise taxes that fund local housing
Don’t forget the HOA
Even where a town allows STRs, an HOA may restrict them. Under Colorado law, those restrictions generally must be in the recorded declaration, and changing them typically requires a vote of the owners, not just a board decision. Read the declaration and ask whether any changes are being considered.
Questions to ask before you buy
- Which jurisdiction is this address in: the town or the county?
- Is it in a zone or overlay where STRs are allowed?
- Does the property have a current license, and does it transfer to a new owner? In many places it doesn’t.
- Is there a cap or waitlist?
- What do the HOA documents say?
- What are the fees, taxes and insurance costs?
- What did the property actually earn? Ask for real rental history, not just projections.
Run the numbers conservatively
Factor in management fees (often a significant share of rental income), cleaning, HOA dues, insurance, utilities, maintenance, licensing and taxes. Make sure the home still works for you if rental rules tighten. Lenders also treat investment and second homes differently, so talk to a lender early.
Let’s find the right fit
We help buyers compare ski-town properties with rental rules in mind. Read our Colorado ski towns guide, our Vail guide and our mountain home buying tips, or call us at (720) 403-2940.