Short-term rentals in Colorado Springs

Colorado Springs is a large city with a broad demand base: Pikes Peak, Garden of the Gods and Manitou Springs for leisure travelers, the Air Force Academy and several military installations, the Olympic and Paralympic Training Center and a steady flow of business and family visits. That mix spreads demand across the year, with summer and graduation or event weeks the busiest. Typical rentals are single-family homes and condos in older central neighborhoods and on the west side near the foothills.

Two permits, very different rules

The city issues short-term rental permits in two categories:

• Owner-occupied: the owner lives in the property at least 185 days a year. These are allowed in residential zones where dwellings are permitted.
• Non-owner-occupied: since December 26, 2019, new permits are barred in single-family zones, and in other zones a new unit must sit at least 500 feet from any other non-owner-occupied rental.

The number of listings per property depends on zoning, and a condominium owner is limited to two. Permits last one year with no grace period for renewal, and require liability insurance of at least $500,000, a contact reachable 24 hours a day and occupancy of no more than two guests per bedroom plus two. Stays are subject to sales taxes and the city's lodgers and automobile rental tax (LART), as for hotels; platforms collect on their bookings, while independent operators need a city sales tax license.

Around the city

Manitou Springs, the historic town at the foot of Pikes Peak, is a separate municipality, as are the unincorporated parts of El Paso County; each applies its own rules. A Colorado Springs mailing address does not mean city permits apply.

Our advice

For an investor, the 500-foot rule outside single-family zones is the real filter: check the existing permits on the street before an offer. For a house in a single-family zone, the realistic models are owner-occupied renting or furnished stays of 30 days or more for military, medical and corporate guests, which fall outside short-term rental rules. We study every request and tell you honestly whether and how we can help.

Summits, races and space

Events on and around Pikes Peak shape the calendar. The Pikes Peak International Hill Climb in June and the Pikes Peak Ascent and Marathon in August bring racers and crews for several days. The cog railway to the summit reopened in 2021, and the toll highway offers the drive. Downtown, the U.S. Olympic and Paralympic Museum opened in 2020, and Cheyenne Mountain Zoo and Seven Falls pull families to the southwest side.

The city is a centre for the military space industry. Several Space Force installations operate here, and the annual Space Symposium each spring fills hotels and rentals with executives and engineers. The Air Force Academy's graduation week in late spring and its football games at Falcon Stadium draw families. Colorado College downtown and the University of Colorado Colorado Springs add academic visitors. Old Colorado City and the Old North End are the favoured neighbourhoods for guests who like character.

Owner checklist

• Wildfires, notably Waldo Canyon in 2012 and Black Forest in 2013, burned homes at the edge of the city; check wildfire exposure and insurance terms.
• Hailstorms are frequent in summer; roof and car cover questions come up.
• For the Symposium, a home office and fast internet are selling points.