Short Term Rental License Program
As of January 1, 2025, Short-Term Rentals (STRs) are legally permitted within the City subject to zoning and licensing requirements.
Applications for licenses will be available starting Monday, January 6.
What is a short-term rental unit?
A short-term rental unit (STR) is defined as a lodging service within a single-family attached (duplex) or detached dwelling unit, for compensation, to a person or persons for periods of less than 30 days, but excludes Bed and Breakfast Establishments and other Lodging Establishment uses. Short-Term Rental Unit does not include rental of a dwelling unit for meetings such as luncheons, banquets, parties, weddings, fundraisers, or other similar gatherings for direct or indirect compensation.
Where and how can I operate a Short-Term Rental?
Short-term rentals are governed by both the city’s Land Development Code and Municipal Code. Full regulations can be found here:
Where are STRs Permitted
STRs are only allowed in single-family attached (duplex) and single-family detached dwelling units on property zoned R-1, R-2, R-3, AG, or Planned Unit Development that permits single-family attached or detached units by right.
STRs are not permitted within multi-family units or townhomes. Look up your zoning here.
Accessory Use Only
Short-term rentals are only permitted in a legally established dwelling unit as an accessory use to a long-term residential use. A long-term resident must occupy a dwelling unit for the majority of the year and cannot otherwise be vacant or only used for an STR.
Locational Restriction
There may be no more than one short-term rental within 500 feet of another licensed short-term rental in any residentially zoned district.
Maximum Length of Stay
The length of stay at a short-term rental may not exceed 30 consecutive days for any guest(s).
No simultaneous rentals allowed
STRs can only be rented out to one guest/party at a time. This limitation is intended to prevent more than one short-term rental contract from operating within the same dwelling unit at the same time, or within a dwelling unit and its associated accessory dwelling unit at the same time.
Maximum Number of Guests
The maximum number of guests allowed to occupy a short-term rental shall not exceed two persons per bedroom, plus two persons.
Parking
- Parking must occur on the same lot as the STR and the number of cars allowed is limited to the number of legally established spaces on the lot.
- No additional parking, other than what has been permitted and exists with the dwelling unit on the lot is required.
- If there is no legally established parking on the lot, no more than two vehicles associated with the short-term rental are permitted to park on the street.
Accessory Dwelling Units
- STRs can be operated in a legally permitted Accessory Dwelling Unit (ADU).
- STRs are allowed in both the primary and ADU; however, a long-term resident must occupy the principal dwelling unit. The principal unit cannot otherwise only be utilized as an STR full-time.
- An ADU does not have to be occupied by a long-term resident.
- Rental of ADU as an STR are still subject to the simultaneous rental requirement. An ADU and principal unit may be rented out simultaneously to a guest under one contract, but two separate rentals under two contracts (one for the ADU and one for the principal unit) to two guest parties are not permitted at the same time.
Catering and Food Preparation Services are Not Allowed
The property owner or their representatives may not prepare food for or serve it to STR guests. However, guests may prepare or order food.
Signage
No exterior signage is permitted.
HOA Rules
HOA rules and covenants on short-term rentals that are stricter than city regulations apply. You should check with your HOA on any additional rules.
How to apply for a license:
Licenses for Short-Term Rentals (STRs) are applied through the City’s online licensing system, eTRAKiT.
All licenses are valid for a year from the date of issuance. Annual renewals are required. The cost of a license is $150.
All short-term rental units must designate a responsible agent that satisfies the following requirements:
- The responsible agent must have the access and authority to assume management of the unit.
- Must be located within 30 miles from the short-term rental unit.
- Must be available 24 hours per day, 7 days per week to respond to complaints, issues of concern, and violations related to this program.
- The property owner/licensee may serve as the responsible agent.
All licenses will be processed in the order received upon submittal of a complete application and payment of fee.
All license holders shall be familiar with their responsibilities as outlined in the City’s municipal code. Please review these requirements:
The following information will be required to be uploaded:
Application Materials
- Proof of Address. Documentation showing the short-term rental address. This can be provided by uploading a copy of a utility bill.
- Proof of possession of the short-term rental. Upload evidence of ownership either by valid warranty deed, valid lease, or other verification of the right to possess the premise.
- If the applicant does not own the short-term rental unit, the applicant must also provide written documentation from the property owner allowing the applicant to conduct a short-term rental on the proposed location premises.
- Proof of Responsible Agent and Proof of Notification of Neighbors. Prior to submission of an application for a license, the applicant must notify all owners and residents of properties adjacent to the proposed short-term rental property. This includes properties immediately adjacent to the property (both sides and behind) as well as across the street. Proof of notification includes:
- A list of addresses and persons notified.
- A copy of the notice.
- The notice must include contact information for the licensee and responsible agent.
- Liability Insurance. Proof of liability insurance for the short-term rental unit with a minimum of $500,000 in coverage. The City recommends contacting your insurance provider to determine if adding a short-term rental (STR) rider would be beneficial.
- Self-Inspection Certification. An affirmation that the short-term rental unit meets the following:
- A fully charged fire extinguisher is located in an accessible place within the short-term rental unit.
- All exterior windows are provided with insect screens.
- Each sleeping room/area is provided with a smoke alarm.
- Carbon monoxide detectors are installed within 15 feet of any sleeping area or room.
- All interior and exterior stair handrails are firmly attached and capable of supporting imposed loads and free of defects.
- All outlets are Ground Fault Circuit Interrupter (GCFI) protected. The applicable outlet locations include:
- Bathrooms
- Garages and accessory buildings
- Outdoors
- Crawl spaces
- Basements
- Kitchens
- Areas with sinks and permanent provisions for food or beverage preparation, and/or cooking
- Sinks
- Boathouses
- Bathtubs or shower stalls
- Laundry areas
- Indoor damp and wet locations
- All occupied rooms are provided with working electrical outlets and lighting fixtures without the need for extension cords or extended power strips.
- All plumbing fixtures provide sufficient hot and cold water.
- All sidewalks are free of defects and trip hazards.
- The short-term rental unit’s heating system is in sound working order.
- The short-term rental unit’s water system is in sound working order.
- Final approvals and inspections have passed and supporting documents have been received for any work performed requiring a building permit.
The City Manager, or their designee, may deem a self-inspection of a short-term rental insufficient and require the property owner to successfully pass an inspection performed by an inspector employed by the City or approved by the City Manager or their designee for the following reasons:
- The property has been cited with more than one code violation within the past 12 months.
- The property has been the subject of more than three complaints to the City within the past 12 months.
- If the City Manager or their designee has other good cause to believe a self-inspection of the property may be insufficient to ensure the safety, security, and habitability of the property is sufficient for the property to serve as a short-term rental unit.
- Good Neighbor Guide. Upload a copy of the Good Neighbor Guide(PDF, 992KB) . The guide is required to have the following information:
- Trash and recycling pick-up times and days as well as requirements for the storage of trash collection bins.
- Quiet hours and any other “quality of life” considerations for the neighborhood where the short-term rental is located.
- Designated parking areas and rules.
- Emergency and non-emergency contact information for the police and fire departments that service the neighborhood where the short-term rental is located.
- The contact information for the licensee and the licensee’s responsible agent.
- Rules, hours, and regulations concerning the use of any of the neighborhood common or public spaces.
- Any other rules or restrictions imposed on the short-term rental property by any applicable HOA or other similar community association.
Important operational details:
The following is a summary, and it is not all-inclusive.
Details
- License Required. It shall be unlawful for any person to offer, provide, or operate a short-term rental unit in the city without having first obtained a short-term rental unit license. All short-term rental licenses are valid one year from the date of issuance.
- Responsible Agent Required.
- Property Owner/Licensee Responsibilities:
- The property owner is ultimately liable for compliance with the city’s rules and regulations for STRs.
- Tax Collection and Returns. The property owner/license holder is responsible for the filing of all required tax returns related to the operation of the short-term rental with any required taxing agency, including but not limited to the city, and is ultimately responsible for the payment of any tax, interest, or penalties due as determined by any such taxing agency, including but not limited to the city.
- Display of License. A copy of the license is required to be displayed prominently and conspicuously within each STR.
- Advertisement of STR. The license number shall be included in any short-term rental unit advertisement.
- Posting of Noise Regulations. Each short-term rental unit shall have the city’s noise ordinance, section 6-2011 (Unreasonable Noise), posted in a visible location inside the short-term rental unit.
- Display of Contact Information. All short-term rental units must have a sign that displays the current contact information of the owner and/or the responsible agent, the Commerce City Police Department’s non-emergency number, and any information pertinent to the neighborhood where the short-term rental is located including, but not limited to, parking restrictions, restrictions on noise and amplified sound, trash collection schedules, relevant water restrictions, fire evacuation routes, and any other information required by the City Manager or applicable to the surrounding neighborhood. The sign shall also comply with the following requirements:
- The sign shall be posted on the interior of the front door of the short-term rental unit.
- The contents of the sign must be translated in both English and Spanish.
- The sign must be legible at all times.
- Good Neighbor Guide(PDF, 992KB)
- Annual Renewal Required.
- Records. Each short-term rental license shall maintain the following records for the prior license year, and must include a copy of the records upon application renewal:
- The total number of nights the short-term rental was rented to a guest
- The dates in which the short-term rental was rented by a guest
- If the licensee has received a notice of violation of any law or regulation, including disciplinary action against the license, the renewal application shall include a copy of the notice or disciplinary action, including the final disposition of the violation or disciplinary action.