You can rent out your primary residence in Colorado, but local rules limit short-term rentals (under 30 days) to licensed owner-occupied properties with caps like Denver’s 90 nights/year—long-term rentals face no statewide bans, though HOAs, zoning, and taxes apply, making it viable for supplemental income in the Denver real estate market.
Primary Residence Rental Rules
After 15+ years in Denver real estate and thousands of transactions, I’ve guided homeowners renting rooms, basements, or entire homes long-term without issues—FHA/VA loans allow it post-seasoning if occupancy rules met. Short-term requires city licenses (Denver Type 1: $75/year + fees, safety checks); non-owner-occupied banned. IRS treats room rentals as business income (Schedule E), primary exclusion holds if you live there 183+ days/year. HOAs often restrict; disclose to lenders for refis.
Balance cash flow with compliance.
Denver-Area Specifics
Highlands Ranch real estate covenants typically ban short-term rentals, limiting to long-term family tenants valuing Mountain Vista schools amid $150-$400 HOA fees—stable but rule-bound. Littleton flexes more for basement ADUs or room shares near public schools, pulling $1,500-$2,000 supplemental without Denver’s caps. Core Denver primaries near DTC thrive on mid-term corporate stays. Market cycles boost winter relos; compared to Littleton flexibility, Highlands Ranch prioritizes quiet over income plays. Property taxes rise on rental portions; 1031s ineligible for primaries.
Zoning variances rare—check municipal codes.
Practical Advice for Buyers and Sellers
| Rental Length | Allowed | Key Step |
|---|---|---|
| Long-Term (30+ Days) | Yes | Screen tenants |
| Short-Term <90 Nights | Primary only | Get license |
| Room/ADU | Usually | HOA approval |
Homeowners, start with rooms—use 3x rent screening, landlord insurance; track expenses for taxes.
Buyers planning rentals, confirm primary intent—budget HOA fines.
My hands-on, concierge-level service vets rental feasibility block-by-block, weighs school/HOA fits through market cycles, builds pricing from local sales, and negotiates relentlessly for compliant income. Clients are long-term relationships and friends, not transactions—integrity, honesty, transparency, and relentless work ethic safeguard rules.
If renting your primary residence fits your Denver real estate plans—Littleton, Highlands Ranch options—reach out anytime. I’m here for a no-pressure conversation and honest guidance tailored to the Colorado housing market.
Mile High Home Group - Welcome to Denver 
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