Key Points
- 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's 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 with 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.
View More Information On City Website
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 by 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.
View More Information On City Website
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 in Denver and Boulder, with a $50.00 license and $40.00 inspection handled by the city rather than third-party inspectors.
View More Information On City Website
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
