Aurora, Colorado Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations Aurora, Colorado?

Aurora, Colorado has established specific regulations for short-term rentals (STRs) that hosts must navigate to operate legally. These rules balance the growing popularity of platforms like Airbnb and VRBO with the need to maintain neighborhood character and housing availability. If you're considering starting a short-term rental in Aurora, understanding these regulations is essential for compliance and avoiding penalties.

Starting a Short-Term Rental Business in Aurora, Colorado

The first and most important requirement for operating a short-term rental in Aurora is that the property must be your primary residence. This means you must live in the property for at least 185 days of the year. Investment properties that are not your main home are prohibited from being used as short-term rentals in most residential zones.

To legally operate an STR in Aurora, you'll need to:

• Obtain a business license: All STR operators must secure a general business license from the city. This costs $43 for the initial two-year license, with a $26 renewal fee every two years thereafter.
• Display your license number: Your business license number must be included in all online STR listings.
• Collect and remit lodger's tax: Aurora requires hosts to collect and remit an 8% lodger's tax on a quarterly or monthly basis. Note that while some platforms might collect state lodger's tax, they may not collect the city's tax, making it your responsibility.
• Follow occupancy restrictions: The city limits the number of guests based on the number and size of bedrooms in your property.
• Limit rental days: Entire-home STRs are capped at 180 days per year.
• Maintain safety standards: Your property must meet building code and safety standards, including having working smoke and carbon monoxide detectors in each bedroom.
• Check HOA rules: Even if the city allows STRs, your homeowners association may have its own restrictions or prohibitions.
• One booking at a time: Only one booking is permitted at a time, though it can be for multiple rooms.

The city of Aurora actively enforces these regulations through inspections, fines, and potential license revocation for non-compliant properties. Penalties can be significant - platforms that facilitate bookings for unlicensed units can face fines of $1,000 per day.

The short-term rental market in Aurora primarily serves visitors looking to stay near Denver International Airport, students interviewing at the University of Colorado Anschutz Medical Campus, and professionals coming for job interviews in Downtown Denver.

For the most current information on Aurora's STR regulations, prospective hosts should contact the Aurora Finance Department, Tax and Licensing Division.

Short-Term Rental Licensing Requirement in Aurora, Colorado

Operating a short-term rental in Aurora requires proper licensing to ensure compliance with city regulations. The licensing process is straightforward but must be completed before you begin hosting guests on platforms like Airbnb or VRBO.

To legally operate a short-term rental in Aurora, you must obtain a general business license from the city. This license serves as your authorization to conduct short-term rental activities and establishes your tax filing obligations. Here's what you need to know about the licensing requirements:

Application Process:

1. Complete a Business License Application through the city's Licensing Portal
2. The online application will guide you through the process step by step
3. You can pay for the license online via ACH or credit card, or print a voucher to mail a check

Required Documentation:

1. Proof that the property is your primary residence (you must live there at least 185 days per year)
2. Acceptable proof includes driver's license, voter registration card, tax documents, or utility bills
3. If your property is part of an HOA, you may need to provide documentation that short-term rentals are permitted

License Fees:

1. Initial license fee: $43
2. Renewal fee: $26 (every two years)
3. The license is valid for two years from the date of issuance

Where to Submit:

1. Applications can be submitted online through Aurora's Licensing Portal
2. For in-person assistance, visit the Aurora Finance Department, Tax and Licensing Division at 15151 E. Alameda Parkway, Suite 5700, Aurora, CO 80012
3. For questions, call 303-739-7800

Processing Time:

1. Most applications are processed within 2-3 weeks, though this can vary depending on volume
2. Once approved, you'll receive your business license number, which must be displayed on all online listings

Operational Requirements:

1. Your business license number must be prominently displayed in all online rental listings
2. You must collect and remit the city's 8% lodger's tax (unless the booking platform does this for you)
3. You can only have one booking at a time (though it can include multiple rooms)
4. Whole-home rentals cannot exceed 180 days in any 365-day period
5. You must ensure the property complies with safety requirements, including having working smoke and carbon monoxide detectors

Penalties for Non-Compliance:

1. Operating without a license can result in fines and penalties according to the municipal fine schedule
2. Booking service providers that facilitate unlicensed rentals can face civil penalties of $1,000 per violation per day
3. Continued non-compliance may result in a municipal summons
4. The city actively monitors compliance through inspections and responding to complaints

The City of Aurora takes short-term rental regulations seriously and conducts regular enforcement. While the city doesn't require in-person inspections of STR properties as part of the licensing process, code enforcement officers respond to complaints and may request documentation to verify compliance with the primary residence requirement and other regulations.

Remember that even if your booking platform collects state lodger's tax, they may not collect the city's 8% tax, making it your responsibility to ensure proper tax collection and remittance. Tax returns can be filed monthly or quarterly, depending on your filing schedule established during the business license application process.

Required Documents for Aurora, Colorado Short-Term Rentals

When establishing a short-term rental in Aurora, Colorado, you'll need to prepare several key documents to ensure your operation is fully compliant with city regulations. Each document serves a specific purpose in the licensing and compliance process.

Business License Application

This is the primary document required to legally operate a short-term rental in Aurora. The application collects your personal information, property details, and rental operation specifics. You can access this form through Aurora's Licensing Portal or obtain it in person at the Tax and Licensing Division office.

Proof of Primary Residence

Since Aurora requires that short-term rentals be operated only in your primary residence (where you live at least 185 days per year), you must provide documentation proving this status. Acceptable forms include:

1. Driver's license showing the rental property address
2. Voter registration card with the property address
3. Utility bills in your name for the property
4. Tax documents showing the property as your primary residence

Landlord-Tenant Lease Addendum

If you're renting the property yourself and subletting it as a short-term rental, you'll need to provide this form detailing information about the rental property and showing permission from your landlord to operate a short-term rental.

Insurance Documentation

You must provide proof of liability insurance coverage for your short-term rental activities. This can be either a homeowner's insurance policy that explicitly covers short-term rental use or a separate short-term rental insurance policy. The insurance should provide adequate coverage for both property damage and potential liability claims from guests.

Lodger's Tax Registration

While this is typically part of your business license application, you'll need to specifically register to collect and remit the city's 8% lodger's tax. This registration establishes your tax filing schedule (monthly or quarterly) and provides you with the necessary information to properly collect and remit taxes.

Safety Certification Documents

Though not always required at the time of application, you should maintain documentation showing your property meets safety requirements, including:

• Certification that smoke detectors are installed and functional in all bedrooms
• Certification that carbon monoxide detectors are installed and functional on each level
• Documentation that the property meets building code requirements

HOA Approval (If Applicable)

If your property is part of a homeowners association, you may need to provide documentation showing that short-term rentals are permitted under your HOA's rules and regulations. This could be in the form of written approval from your HOA board or relevant sections of the HOA bylaws.

Background Check Affidavits

For properties with multiple adult occupants (age 18+), you may need to provide background check affidavits for all adults residing in the home.

All these documents should be submitted either through Aurora's online Licensing Portal or in person at the Aurora Finance Department, Tax and Licensing Division. Maintaining copies of these documents is important not only for the initial application but also for renewal purposes and in case of any compliance checks by city officials.

Remember that incomplete documentation can delay your application process, so it's advisable to gather all required paperwork before beginning the application process. The city may request additional documentation if they determine it's necessary to verify your compliance with short-term rental regulations.

Aurora Short-Term Rental Taxes

Operating a short-term rental in Aurora comes with specific tax obligations that hosts must understand and fulfill. Proper tax compliance is not only a legal requirement but also essential for maintaining your business license and avoiding penalties. Here's a comprehensive breakdown of the taxes you'll need to collect and remit as an Aurora short-term rental operator.

Lodger's Tax

Aurora imposes an 8% lodger's tax on all short-term rental transactions. This tax applies to the furnishing of any room or accommodation by any person who, for consideration, allows others to use or possess any room in a hotel, apartment, lodging house, guest house, bed and breakfast residence, or similar accommodation in the city. The tax is calculated based on the full price charged to the guest, excluding any goods or services that are otherwise subject to city sales tax. As a host, you're responsible for collecting this tax from your guests and remitting it to the city on either a monthly or quarterly basis, depending on your filing schedule.

Sales Tax

In addition to the lodger's tax, Aurora short-term rentals are subject to sales tax. The minimum combined sales tax rate in Aurora is 8.0%, which includes:

• State of Colorado sales tax: 2.9%
• Adams County sales tax: 0.25%
• City of Aurora sales tax: 3.75%
• RTD Greater Denver tax: 1.0%
• Scientific & Cultural Facilities tax: 0.1%

It's important to note that sales tax in Colorado is assessed only on the net amount for the rent payment and not on supplementary services like cleaning fees, provided these are shown as separate line items on the invoice. Even if additional fees are mandatory, they remain exempt from sales tax when listed separately.

Tax Filing Requirements

As an Aurora short-term rental host, you'll need to register for both lodger's tax and sales tax accounts. Tax returns must be filed regularly according to your established schedule, typically either monthly or quarterly. The city provides online filing options through their tax portal, making it easier to stay compliant with these obligations.

Potential Tax Deductions for Aurora STR Hosts

Short-term rental hosts in Aurora can benefit from various tax deductions that can significantly reduce their taxable income. Here are some essential deductions to consider:

Property-Related Deductions:

• Mortgage interest (apportioned based on rental usage)
• Property taxes (apportioned based on rental usage)
• Insurance premiums
• Depreciation of the property and furnishings
• Utilities (electricity, water, gas, internet, cable TV)

Operational Expenses:

• Cleaning and maintenance costs
• Guest amenities and supplies
• Booking platform fees (like Airbnb or VRBO service fees)
• Professional services (accounting, legal, property management)
• Marketing and advertising expenses

Additional Deductible Expenses:

• Travel expenses related to property management
• Home office expenses (if you manage your rental from home)
• Educational expenses related to rental management
• Professional membership fees
• Security system costs and monitoring

Remember that if you only rent your property for 14 days or less per year and use it personally for more than 14 days, you may qualify for the 14-day rule exception. Under this rule, you don't need to report rental income, but you also cannot claim rental expense deductions.

For mixed-use properties where you live in part of the home and rent another part, expenses must be apportioned based on the percentage of the property used for rental purposes. Keeping detailed records of all expenses and rental periods is crucial for maximizing your deductions while ensuring compliance with tax regulations.

Consulting with a tax professional who specializes in short-term rentals can help you navigate these complex tax matters and ensure you're taking advantage of all available deductions while remaining compliant with Aurora's tax requirements.

Colorado Wide Short-Term Rental Rules

While Colorado doesn't have comprehensive statewide short-term rental regulations, there are certain state-level rules and recent legislative developments that Aurora hosts should be aware of as they operate their rental properties.

As of 2025, Colorado still largely delegates short-term rental regulation to local jurisdictions, allowing counties and municipalities to establish their own rules. This creates a patchwork of regulations across the state, with Aurora's rules being just one set among many different local approaches.

One significant statewide development was House Bill 23-1287, which was approved by the Governor on June 5, 2023, and went into effect on August 7, 2023. This bill clarified the authority of county commissioners to regulate lodging units available for short-term rentals (defined as rentals for less than 30 days) while excluding hotel units from this regulatory scope.

The bill also introduced the concept of "vacation rental services" (replacing the previous term "internet hospitality service") and provided county commissioners with limited authority to regulate these platforms. Under this legislation, counties can require:

• Owners or their agents to include rental license or permit numbers in any listing on vacation rental platforms
• Vacation rental services to remove listings when properly notified that the owner has had their license suspended or revoked, or is operating without a required license

For Aurora hosts, this means that even though your primary compliance concerns are with Aurora's city regulations, you should understand that Adams County (where Aurora is partially located) has certain authorities granted by state law to enforce licensing requirements through vacation rental platforms.

Colorado state tax laws also impact short-term rental operators throughout the state, including those in Aurora. All short-term rental hosts in Colorado must collect and remit:

• Colorado state sales tax (2.9%)
• Any applicable special district taxes
• State-administered local taxes

It's worth noting that Colorado's approach to short-term rentals has generally been trending toward stricter regulation, with many jurisdictions implementing primary residence requirements similar to Aurora's. This reflects growing concerns across the state about the impact of short-term rentals on housing availability and neighborhood character.

The Colorado Department of Revenue provides guidance for short-term rental operators regarding their tax obligations, and hosts should ensure they're properly registered with both state and local tax authorities.

While Aurora's specific regulations take precedence for properties within city limits, understanding these broader state-level frameworks helps hosts navigate the complex regulatory environment and anticipate potential future changes as the state continues to address short-term rental impacts.

Does Aurora, Colorado Strictly Enforce STR Rules?

Aurora takes a moderate but firm approach to enforcing its short-term rental regulations. The city actively monitors compliance through inspections, violation notices, and potential license revocation for properties that fail to meet requirements. While not draconian in its enforcement, Aurora has demonstrated a commitment to maintaining order in the short-term rental market.

The city's enforcement actions primarily focus on ensuring hosts obtain proper business licenses, comply with the primary residence requirement, and adhere to safety standards. Aurora can request proof of primary residence from STR operators at any time, and booking platforms that facilitate reservations for unlicensed units can face penalties of $1,000 per day.

One notable enforcement mechanism is Aurora's complaint-driven system. Properties that generate neighbor complaints about noise, parking issues, or overcrowding are more likely to face scrutiny from city officials. This has created what some local hosts describe as a "two-tier" system where properties operating quietly may receive less attention even if not fully compliant with all regulations.

Aurora is also moderately Airbnb-friendly compared to other Colorado cities. The city allows short-term rentals in residential zones but with significant restrictions that balance tourism needs with community character preservation. The primary residence requirement is the most substantial limitation, effectively preventing investors from purchasing properties solely for Airbnb use.

When compared to other cities, Aurora falls somewhere in the middle of the regulatory spectrum. It's more permissive than Denver, which has implemented stricter controls on non-owner occupied rentals, but more restrictive than some smaller Colorado municipalities with minimal oversight. The requirement that hosts live in the property for at least 185 days per year is a significant barrier for investors but still allows homeowners to generate supplemental income.

How to Start a Short-Term Rental Business in Aurora, Colorado

Starting a short-term rental business in Aurora requires careful planning and adherence to local regulations. The city has established clear guidelines that hosts must follow to operate legally. Here's a comprehensive step-by-step guide to launching your STR business in Aurora:

Verify Primary Residence Status

Aurora requires that your short-term rental property must be your primary residence, meaning you must live there for at least 185 days per year. This is a fundamental requirement that cannot be circumvented. Gather documentation to prove this status, such as your driver's license, voter registration card, utility bills, or tax documents showing the property as your primary residence. This regulation effectively prevents investors from purchasing properties solely for STR use, as the city aims to maintain the residential character of neighborhoods.

Check Zoning and HOA Restrictions

Before proceeding, verify that short-term rentals are permitted in your specific zone. Aurora allows STRs in residential zones as a home occupation, but there may be specific limitations depending on your neighborhood. Additionally, if your property is part of a Homeowners Association, review the HOA bylaws or contact your HOA board to confirm that short-term rentals are permitted. Some HOAs have strict prohibitions against STRs, which would supersede city permissions.

Obtain a General Business License

Apply for a General Business License through Aurora's Licensing Division. The application will require detailed information about your property and personal details. The initial license fee is $43 and is valid for two years, with a renewal fee of $26 thereafter. This license establishes your STR as a legitimate business operation within the city. Be prepared to submit documentation proving your primary residence status during this application process.

Register for Tax Collection

Register to collect and remit the city's 8% lodger's tax. This registration is typically part of your business license application but requires specific attention to tax obligations. You'll need to establish a tax filing schedule (either monthly or quarterly) and understand how to properly calculate and remit these taxes. Remember that even if platforms like Airbnb collect some taxes automatically, they may not collect Aurora's specific lodger's tax, making it your responsibility.

Ensure Safety Compliance

Install and maintain safety equipment including smoke detectors in all bedrooms and carbon monoxide detectors on each level of your property. Document these installations and keep records of regular testing and battery replacements. Consider having a professional safety inspection to identify any potential hazards that should be addressed before hosting guests.

Obtain Proper Insurance Coverage

Secure appropriate insurance coverage for your short-term rental activities. Standard homeowner's insurance typically doesn't cover commercial activities like STRs, so you'll need either a specific short-term rental policy or an endorsement to your existing policy. Ensure your coverage addresses property damage, liability claims, and potential loss of income.

Create Listing with License Number

When creating your listing on platforms like Airbnb or VRBO, prominently display your business license number in the listing description. This is not only a legal requirement but also signals to potential guests that you're operating a legitimate, compliant rental. Aurora actively monitors listings and can issue violations for those without proper license numbers displayed.

Establish House Rules and Guest Communication

Develop clear house rules that align with Aurora's regulations, particularly regarding noise ordinances, parking restrictions, and occupancy limits. Create a comprehensive guest guidebook that includes emergency contact information, property instructions, and neighborhood guidelines. Effective communication with guests helps prevent issues that could lead to neighbor complaints and potential enforcement actions.

Implement a Record-Keeping System

Establish a robust system for tracking rental income, expenses, occupancy dates, and tax payments. Maintain digital or physical copies of all guest communications, booking confirmations, and tax filings. Good record-keeping is essential for tax compliance and will be invaluable if your STR operation faces any regulatory scrutiny.

Monitor Regulatory Changes

Stay informed about changes to Aurora's short-term rental regulations, as the regulatory landscape continues to evolve. Join local host groups or associations, subscribe to city newsletters, and periodically check the city's website for updates. Being proactive about compliance will help you avoid potential penalties and business disruptions.

By following these steps carefully and maintaining ongoing compliance with Aurora's regulations, you can establish a successful and legally sound short-term rental business. Remember that the city takes enforcement seriously, with potential fines of up to $1,000 per day for non-compliant operations, making proper licensing and adherence to regulations essential for long-term success.

Who to Contact in Aurora, Colorado about Short-Term Rental Regulations and Zoning?

Navigating short-term rental regulations in Aurora requires communication with the right city departments. Whether you're just starting your STR business or need clarification on existing rules, these are the official contacts who can provide authoritative information:

Licensing Division

The Licensing Division handles all business licensing matters, including short-term rental permits and renewals. This should be your first point of contact when starting an STR business.

• General Questions: 303-739-7057
• Email: businesslic@auroragov.org
• Trevor Vaughn, Licensing Manager: 303-739-7171
• Email: tvaughn@auroragov.org

Tax Division

For questions about lodger's tax collection, filing requirements, and payment schedules, contact the Tax Division.

• General Questions: 303-739-7800
• Email: tax@auroragov.org

Jeff Edwards, Tax Manager: 303-739-7764

Email: jedwards@auroragov.org

Finance Department

The Finance Department oversees both the Licensing and Tax divisions and can help with broader financial compliance questions.

• Main Office: 303-739-7055
• Email: finance@auroragov.org
• Location: 15151 E. Alameda Parkway, Fifth Floor, Aurora, CO 80012

When contacting these departments, be prepared with specific questions about your property and intended rental operation. Having your property address, current zoning information, and details about your planned STR business will help officials provide the most accurate guidance.

Online Communities for Aurora STR Hosts

Beyond official city contacts, connecting with other hosts can provide valuable insights and support. While there aren't Aurora-specific host groups, these broader communities include many Colorado hosts facing similar regulatory challenges:

1. Reddit communities:r/airbnb_hosts, r/AirBNBHosts, and r/Airbnb all feature discussions among hosts about regulatory compliance and business strategies. The r/airbnb_hosts subreddit is particularly active with experienced hosts willing to share advice.
2. Facebook Groups: Several large STR host communities exist on Facebook, including the"Airbnb Superhosts" group with tens of thousands of members. This group often include regional discussions where you might connect with other Aurora or Colorado hosts.
3. Bigger Pockets: This real estate investing forum has dedicated threads about short-term rental regulations in various cities, including occasional discussions about Aurora's rules and enforcement practices.

These communities can provide practical insights about working within Aurora's regulatory framework, though always verify any advice against official city sources, as regulations change and community advice may not always reflect current requirements.