Arvada, Colorado

Short-term rentals are legal in Arvada, which legalized them in August 2020. Operators need both a Short-Term Rental Permit and a City of Arvada Business License. The permit costs $350 per year and renews annually, up from $175 in 2025. Stays are capped at 240 days per year with a 2-night minimum, and occupancy is limited to two guests per bedroom plus two additional guests. Owner occupancy and primary residence are not required, and non-owner-occupants may operate with written owner consent.

Applications require $1 million in liability insurance, a pre-permit inspection by a certified home inspector, a floor plan, a property maintenance plan covering trash, snow, and lawn, notarized notification of adjacent property owners within 14 days, and a 24/7 local contact who can reach the property within one hour. The permit must be posted visibly at the rental.

STRs are allowed in all residential zones, including detached homes, townhomes, condos, and ADUs, but not in deed-restricted affordable housing or buildings whose HOA restrictions prohibit STR use. One permit per lot is allowed, for either the primary residence or an ADU but not both.

Major changes took effect May 1, 2026. Each individual may hold one permit instead of three, LLCs cannot hold new permits (an LLC may still own the property, and existing LLC permits may continue), and a third-party 24/7 complaint monitoring platform was added. Unlicensed operation carries a mandatory minimum fine of $2,000 per violation under Ordinance No. 4917, with each continuing day counted separately. Three substantiated complaints within a year trigger license proceedings, starting with up to a 90-day suspension, then up to 180 days, then revocation. A city workshop in February 2025 found about 500 of 800 operating STRs, or 62%, were unlicensed.

Guests pay a 2% city lodging tax plus city sales tax of 3.46%, Jefferson County sales tax of 0.5%, and Colorado sales tax of 2.9% on stays under 30 nights. Enforcement severity is rated moderate.