Short-term rentals in Crested Butte

Crested Butte is a remote, independent-minded mountain town at the end of the road north of Gunnison, with a colorful historic main street and a ski resort three miles uphill in Mt. Crested Butte. Summer counts as much as winter: the valley is famous for wildflowers and mountain biking, and July fills early. Housing for local workers is scarce, which explains why the town regulates rentals so closely.

Town of Crested Butte: two licenses, one hard number

The town offers two short-term rental licenses:

• Primary occupancy license, for owners who live in the home at least six months a year, with a ceiling on rented nights.
• Unlimited license, for second homes, allowed only in listed residential and business zones, capped at 30 percent of the eligible free-market homes in those zones, about 198 licenses today, no more than two per block face, and conditional on renting at least 29 nights a year.

That ceiling is reached, so an applicant now waits for an existing license to be released before one can be issued. Unlimited licenses are not transferable, so a buyer starts from scratch. Pre-approval inspections, a 24/7 local contact and a three-strike policy, which can end in revocation and a two-year ban, complete the framework. Operators collect the town's vacation rental excise tax along with sales and lodging taxes.

Mt. Crested Butte and Gunnison County

Mt. Crested Butte, the resort town at the base of the ski area, is a separate municipality. According to a local broker's guide, it applies no concentration or zoning limits, although every stay of 29 nights or fewer requires a license. Unincorporated Gunnison County has its own rules. Base-area condominium associations often set their own policies, and some local associations forbid short-term renting altogether.

Insurance and operations

A standard homeowner's policy rarely covers nightly rentals, so plan for a vacation rental policy with liability cover. Snow removal, frozen pipes and long drives for repair crews are part of owning here; water leak detection and a responsive local contact pay for themselves.

Our advice

For a second home in town, treat an unlimited license as something you wait for, not an asset you can buy with the house. If rental income is essential to your plan, look at the resort side and ask each association for its current rules and how its rental program works. We study every request and tell you honestly whether and how we can help.