Thinking about renting your Telluride or Mountain Village home to short-term guests? The rules can feel complex, and the details matter if you want to protect your investment and avoid fines. You want a simple path that shows you what permits to get, how taxes work, and what to expect once guests arrive. This guide covers the essentials for both towns so you can launch with confidence. Let’s dive in.
Why STR rules matter here
Telluride and Mountain Village are separate towns within San Miguel County, and each sets its own short-term rental rules. In resort communities, local officials balance visitor demand with housing, infrastructure, and quality of life. That is why you see requirements for licensing, noise and parking limits, and wildlife-safe trash.
If your property falls outside town limits, county rules may apply. No matter where you are, plan to follow town or county ordinances, state tax registration, and any HOA restrictions.
Telluride vs. Mountain Village
While both towns regulate STRs, the details can differ. Use this quick overview to set expectations and then verify specifics with the municipal code and licensing offices.
- Licensing posture: One or both towns may cap licenses, limit certain zones, or pause new permits while updating ordinances.
- Documentation: Application requirements often include local contacts, proof of tax registration, and safety details. Some towns require inspections.
- Operations: Expect occupancy, parking, trash, and noise standards. Mountain areas often have bear-resistant trash rules and quiet hours.
- Taxes and fees: You will pay licensing fees to the town, then collect and remit state and local lodging taxes from guests. Rates and fee structures differ by town.
Permits and registration
Both Telluride and Mountain Village commonly require you to hold a valid license before advertising or renting short term.
Common license types
- Short-term rental or business license for any STR operator.
- Owner-occupied or primary residence classifications that can be treated differently.
- Non-primary or second-home STR license that may carry additional conditions.
What goes into an application
- Property and owner details, including a local contact able to respond 24/7.
- Proof of liability insurance appropriate for STR use.
- Parking and maximum occupancy information, plus a floor plan if required.
- Proof of state and local tax registration.
- Safety compliance and any required inspections.
Renewals and transfers
- Most licenses renew annually and may require re-inspection.
- If you sell the property, you may need to notify the town, pay a transfer fee, or apply for a new license.
- Plan ahead. Towns vary in how they handle renewals and transfers.
Caps, quotas, and where you can rent
Some resort towns manage STRs with caps or zone-based limits. This can affect whether you can obtain a license in a specific neighborhood.
What to watch for
- Numeric caps on total licenses.
- Limits by zone or building type.
- Temporary moratoria during ordinance updates.
- Minimum stay rules in certain areas.
How to check your address
- Confirm whether your property is inside Town of Telluride, inside Town of Mountain Village, or in unincorporated San Miguel County.
- Identify your zoning and whether STRs are allowed in that zone.
- Review your HOA or condo documents for private restrictions.
- Call the town licensing office for current caps, waitlists, or moratoria.
Taxes and fees
Plan for two buckets: licensing fees paid to the town and taxes collected from guests.
Licensing fees vs. guest taxes
- Licensing and administrative fees: application, annual renewals, inspections, or transfers. Amounts vary by town.
- Guest taxes: You will generally collect state sales tax plus local lodging or resort taxes and remit them to the proper authorities.
State registration
- Hosts are typically required to register with the Colorado Department of Revenue and follow state sales and lodging tax rules.
- Many operators remit both state and local taxes. Make sure your setup matches your property’s location.
Timeline to get permitted
- Intake and completeness review: a few days to a few weeks.
- Processing and issuance: often 2 to 8 weeks depending on inspections and volume.
- High season can slow timelines. Apply before listing and before peak demand.
Operating your STR the right way
Good operations reduce complaints and keep your license in good standing.
Occupancy, parking, and noise
- Follow posted occupancy limits that are often tied to bedrooms and safety code.
- Use designated parking spaces and communicate rules to guests.
- Observe quiet hours and community nuisance standards.
Safety and emergency readiness
- Maintain smoke and carbon monoxide detectors and ensure proper egress.
- Post emergency contact details and evacuation info inside the home.
- Inspect appliances and heating systems as recommended by local rules.
Local responsible agent or manager
- If you are not local, designate a responsible agent available 24/7 to handle complaints and code issues.
- A local partner can also coordinate check-ins, snow removal, trash, and maintenance.
Trash and wildlife
- Use approved containers and follow bear-resistant storage requirements where applicable.
- Set clear instructions for guests on trash pickup and recycling.
Second-home owner essentials
Short-term renting a second home carries additional considerations beyond licensing.
HOA or condo rules
- HOAs can restrict or prohibit STRs regardless of town rules.
- Common private limits include minimum stay lengths, registration with the association, and guest behavior standards.
Insurance
- Standard homeowner policies often do not cover STR use.
- Consider commercial STR or landlord coverage that addresses guest injury and property damage.
Local business partners
- An experienced local manager can help ensure compliance, guest experience, and emergency response.
- Some towns require an on-call contact or manager for non-resident owners.
Seasonality and revenue
- Expect seasonality around winter ski months and summer events.
- Occupancy and rates vary by location and property type, from downtown condos to larger homes. Plan conservative revenue assumptions until you have real data.
Your action checklist
Use this step-by-step plan to move from idea to fully licensed operation.
- Confirm jurisdiction
- Verify whether your property is inside Town of Telluride, inside Town of Mountain Village, or in unincorporated San Miguel County.
- Review rules and eligibility
- Check town licensing pages and municipal code for current permit types, caps, and zone rules.
- Identify your zoning and whether STRs are allowed for your property type.
- Check private restrictions
- Read HOA or condo covenants on short-term rentals and minimum stays.
- Confirm any HOA registration steps before you apply to the town.
- Prepare your application
- Gather ownership info, local responsible agent contact, proof of insurance, occupancy and parking details, and tax registration.
- Complete any required safety items or inspections.
- Register for taxes
- Set up accounts to collect and remit state sales tax and local lodging or resort taxes.
- Align your booking platforms and accounting to collect the right tax rates.
- Submit early and monitor status
- Apply well before peak season and respond quickly to any requests for more information.
- Set up operations
- Post house rules, local contacts, emergency info, and trash instructions in the home.
- Train your manager or cleaners on noise, parking, and wildlife protocols.
Where to find authoritative answers
When you are ready to verify details, go straight to the source.
- Town of Telluride: short-term rental or business license pages and municipal code.
- Town of Mountain Village: short-term rental licensing pages and municipal code.
- San Miguel County: lodging tax and any county-level requirements for properties outside town limits.
- Colorado Department of Revenue: state sales and use tax registration and lodging tax guidance for operators.
- Town clerk, licensing, or code enforcement offices: ask about caps, inspections, and current timelines.
Ready to evaluate rental potential?
If you are exploring a purchase or you own a home you are considering renting, you deserve a clear plan that fits your goals and the local rules. I help buyers and owners understand neighborhood dynamics, likely licensing steps, and the operational approach that protects your investment. Let’s talk through your address, your timeline, and your objectives so you can move forward with confidence.
Request a Private Consultation with Matthew Hintermeister.
FAQs
Do I need a license to run a short-term rental in Telluride or Mountain Village?
- Yes in most cases. Both towns require licensing or registration for STRs, with different rules for owner-occupied and non-owner-occupied properties.
Are there limits on how often I can rent my property in these towns?
- Possibly. Towns may cap licenses, limit certain zones, or set conditions like minimum stays and occupancy limits. Always confirm with the municipal code.
What taxes apply to short-term rentals in Telluride and Mountain Village?
- Expect to collect state sales tax and local lodging or resort taxes from guests, then remit them to the appropriate authorities after registering.
How long does it take to get an STR license in these towns?
- Plan for several weeks. Processing often takes 2 to 8 weeks depending on application completeness, inspections, and seasonal volume.
Can my HOA override town approval and prevent short-term renting?
- Yes. HOA or condo covenants can prohibit or limit STRs even if the town permits them, so review association documents early in the process.
