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.
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.
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.
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