- Rental licensing requirements vary by city
- Denver, Boulder, and Westminster have the primary licensing programs investors need to know about
- Property owners risk fines up to $5,000 for noncompliance
If you own a rental property in Colorado you may be required to have it registered with your city
or county.
Many owners are hearing about rental licensing requirements for the first time, and there is
considerable confusion around what is required and where.
It is important to understand and comply with the long-term rental licensing programs currently
in place throughout Colorado and cities vary in their requirements for rental properties.
Colorado does not currently have a statewide rental licensing requirement for long-term rentals.
However, several cities have created their own licensing programs, and enforcement has been
increasing. Recent news has highlighted Denver increasing penalties and issuing larger fines for
properties operating without a license.
Most cities in Colorado do NOT require rental licenses for long-term rentals, but a few important
exceptions exist. The three primary jurisdictions in the Denver metro area are Denver, which
launched its program in 2022; Boulder, which has one of the oldest rental licensing systems in
the country, beginning in 1971; and Westminster, which began regulating certain multifamily
rental properties in 1996.
One interesting aspect of rental licensing is that cities rarely adopt these programs all at once.
They usually start small and expand over time as enforcement increases. Many cities have short-
term licensing, but fewer have created these long-term rental programs. Denver’s program is the
newest and currently affects the most rental owners.
Denver Rental Licensing Program
Denver’s program, launched in 2022, applies to most residential rental properties rented for more
than 30 days at a time. This includes single-family homes, condos, townhomes, small
multifamily buildings, and large apartment complexes.
To obtain a license, a property must first pass a health and safety inspection. Inspections must be
completed by a qualified third-party inspector with certifications through organizations such as the American Society of Home Inspectors or the International Code Council. Only certain
inspectors are allowed to perform these inspections.
The inspection focuses on basic safety and habitability items, such as smoke detectors, handrails,
electrical safety, plumbing functionality, and general housing code compliance. For most single-
family homes, inspections typically cost between $150.00 and $200.00 depending on the
inspector and property size. Once the inspection is complete, the application and inspection
report are submitted to the City of Denver. The application and license cost an additional $50.00
each, increasing by building size and unit count.
Once approved, licenses must be renewed every four years with a new inspection and renewal
application. Because the program began rolling out in 2022, many properties will enter their first
renewal cycle starting in 2026.
Enforcement has drawn significant attention. Originally, the maximum fine for operating without
a license in Denver was $999.00. Denver recently increased the maximum penalty to $5,000.00
per violation. The city has begun issuing these higher fines, including its first $5,000.00 penalty
in 2026. This demonstrates that the program is mandatory and that enforcement is increasing as
the system matures.
The most common issue is not intentional noncompliance. Most property owners are unaware of
the program’s existence.
Boulder Rental Licensing Program
Boulder’s rental licensing program has existed for decades. Most rental properties in the city
must maintain an active license, and inspections verify that properties meet minimum housing
standards. Inspectors must also be certified with the city itself.
Inspection costs for smaller residential properties typically range from $150.00–$200.00. License
application fees are $190.00. Boulder also enforces specific housing regulations, such as exterior
lighting and smart utility use, as part of the licensing process. Licensing enforcement is well
established due to the program’s longevity.
Westminster Rental Licensing Program
Westminster’s program is more limited. Licensing is not required for most single-family homes
but applies to larger multifamily properties with four or more units, which must register with the
city and participate in periodic inspections. Inspection costs and licensing fees vary by property
size but are lower than Denver and Boulder, with a $50.00 license and $40.00 inspection handled
by the city rather than third-party inspectors.
Big Picture for Colorado Owners
1. Know the city the property is located in.
2. Understand whether or not the city where the property is located requires a license.
3. Plan for inspections and renewal timelines, especially as programs like Denver’s mature
and other cities may adopt similar regulations in the future.
Property owners currently working with Grace Property Management do not need to worry.
Licensing and renewal timelines are tracked to ensure properties remain compliant. For those not
currently working with Grace Property Management, assistance is available to navigate rental
regulations in Colorado.
At Grace Property Management, we believe that when property management is performed with
integrity and transparency, both tenants and landlords benefit. Property management is not just
our business - it is a relationship between us, our owner-clients, and our tenant-residents.
If these are important to you, we may be a good fit to provide you, your property, and your
tenant-resident with our full-service property management services.
Feel free to reach out to us for assistance.
Grace Property Management & Real Estate
Serving real estate investors and residents since 1978.
www.RentGrace.com
303-255-1990
