Short Term Rentals // City of Boulder

Kelly McCallister
Jun 18
3 min read

What you need to know...

Here is the City of Boulder website with all of the official details.

Chautauqua Park and the famous Flatirons of Boulder

🎯 Short-Term Rental Rules in Boulder County: What Buyers & Sellers Need to Know

If you’re considering renting out a property in Boulder County—either as a buyer looking for supplemental income or a seller maximizing value—understanding local rules and smart tax strategies is essential. This guide breaks it all down:

1. License Requirements

Unincorporated Boulder County requires licensing for any short-term rental (STR) or vacation rental under 30 days. Licensing includes:

Short-Term Rental License (owner-occupied or rented <60 days/year) — $350 initial, $250 renewal
Vacation Rental License (non-owner rental >60 days/year) — $500 initial, $300 renewal airdna.co +13bouldercounty.gov +13corvee.com +13

You’ll also complete inspections, affidavit attestations (e.g., principal residence), and obtain safety certificates.

2. City vs. County Rules

Within City of Boulder, STR permissions apply only to primary residences or legal ADUs (Accessory Dwelling Units) and require:

License fee ($190 + $25 business fee)
Annual affidavits
Safety gear: smoke & CO detectors scotthomeinspection.com +6bouldercolorado.gov +6bnbcalc.com +6

Elsewhere in Boulder County, requirements differ slightly, but a license is mandatory for rentals under 30 days. bnbcalc.com +3airbnb.com +3scotthomeinspection.com +3

3. Compliance Rules & Fees

Licenses last 4 years (or 1 year in-city with annual renewals) airdna.co +8bouldercolorado.gov +8bnbcalc.com +8
STR license terminates if you sell the property avalara.com +3dimovtax.com +3rentgowalters.com +3
You’ll need to collect and remit lodging and sales taxes via local portals bnbcalc.com +1avalara.com +1
Rentals must follow Good Neighbor, wildfire, and wildlife guidelines avalara.com +4bouldercounty.gov +4dimovtax.com +4

4. The Augusta Rule: 14 Days of Tax-Free Income

Under IRS Section 280A(g)—known as the Augusta Rule—you can rent your primary home (or vacation home) for up to 14 days per year with zero federal tax on the income, as long as you charge fair market rent bouldercounty.gov +11rentgowalters.com +11markjkohler.com +11.

That means if your house rents for, say, $600 a night, you can pocket up to $8,400 tax-free, with no need to report it to the IRS—just keep good records. the-sun.com

For business owners, renting the home to their own company for meetings or retreats creates a win-win: the business can deduct it, and the homeowner gets tax-free revenue—once again, up to 14 days. markjkohler.com +1dimovtax.com +1

5. Why It Matters for Real Estate Buyers & Sellers

Buyers: Factor in STR or Augusta Rule income when analyzing ROI and financing.
Sellers: Highlighting STR potential or Augusta Rule benefits can make your listing more attractive.
Investors: Ensure you’re following license and tax rules—especially if you plan to exceed the 14-day limit.

6. Quick Compliance Checklist

Compliance Item	County	City of Boulder
License required?	Yes	Yes (owner-occupied only)
License fee	$350 / $250 renewal	$190 + $25 / annual renewal
Safety inspections	Yes	Yes
Tax remittance	Local lodging & sales tax	7.5% lodging + 3.46% sales tax
Augusta Rule usable?	Yes	Yes (if owner-occupied)
Rental >15 days?	Report income & expenses	Report income & expenses

💡 Final Take

The short-term rental landscape in Boulder is layered—but the opportunity is clear. With licensing secured and a solid grasp of your tax options, you can:

Tap into year-round income with licensed STRs
Leverage the Augusta Rule for up to 14 days of tax-free rental income (speak with your tax advisor)
Create attractive investment propositions or value-added listings

Need help exploring STR potential, calculating profitability, or navigating city vs. county rules? Reach out—I’d be honored to help you understand how this fits into your Boulder real estate strategy.

Next Steps:

Visit Boulder County’s STR program page for details and license links
Review IRS Section 280A(g) for Augusta Rule specifics
Talk to your CPA—especially if you’re considering STRs or business-use strategies