Are short-term rentals required to have a city sales and use tax license?  

Answer:  Yes, all local short-term rental hosts are required to apply for and hold a current City of Englewood sales and use tax license. The license fee is $25 and renewal is required every two years.  

Are short-term rentals required to collect and remit City of Englewood sales tax and lodger’s tax on their gross sales? 

Answer:  Yes, in some cases. The sale of lodging services in the city is subject to both city sales tax (3.8%) and city lodger’s tax (2%). Both taxes are calculated and remitted on the city sales and use tax return that all short-term rentals are required to complete.  

If you operate and seek business exclusively on AirBnB, Homeaway/VRBO, or Evolve, you do not have to collect city sales tax and lodger’s tax from your short-term rental guests – those platforms do that for you!   If you operate exclusively on one of those three platforms, you are still required to complete a city sales and use tax return, but you will not remit any taxes on that return. 

If you operate and seek business on other short-term rental platforms, you are required to collect city sales tax and city lodger’s tax from your customers and to remit that tax to the City of Englewood on your city sales and use tax return.  

Additional instructions for filing a city sales and use tax return for short-term rental businesses are located HERE.  Please email RevenueDiv@englewoodco.gov for additional information.

What charges to short-term rental guests are taxable by the city?

Answer:  All gross sales, including any mandatory fees, are subject to city sales tax and city lodger’s tax.  Examples include cleaning fees, guest services fees (reservation fees), etc. If the fee is mandatory, then it is part of the taxable price of lodging services and subject to city lodger’s tax and sales tax.  

What is a short-term rental? 

Answer:  A short-term rental is the nightly or weekly rental of a residential dwelling unit, or a portion of it, for less than thirty days. 

What is the definition of primary residence? 

Answer:  The primary residence is the owner’s usual place of return for housing, actually occupied by that owner for not less than 185 days each year and is designated as the owner’s home address on their U.S. Individual Income Tax Return.  An owner can only have one primary residence. 

What is an accessory dwelling unit?  Can it be used as a short-term rental? 

Answer:  Accessory dwelling units, or ADUs, are self-contained, smaller living spaces on an existing property. They are often called mother-in-law suites, granny flats, backyard cottages, garage apartments or basement apartments. An ADU has its own kitchen, bath and sleeping area, but is not considered a separate property that could be sold on its own.  

A short-term rental license can only be issued for the accessory dwelling unit or the primary structure, but not both.

Where are short-term rentals permitted in Englewood? 

Answer:  Either a primary home or an accessory dwelling unit (ADU) may be used as a short-term rental; and it must be the primary residence of one or more owners in zones R-1-A, R-1-B, R-1-C, R-2-A, R-2-B, MU-R-3-A, MU-R-3-B, or MU-R-3-C.   

The following cannot be a short-term rental:  

1,  Properties owned by a corporation or real estate investment trust;
  
2.  Properties zoned I-1, I-2, or Planned Unit Development (PUD);
  
3.  An apartment in a rental complex; or 

4.  A recreational vehicle (RV) or temporary structure.   

Englewood does allow for some exceptions to the primary residence requirement, such as for housing to support healthcare.  These exceptions are granted by the city’s board of adjustment and appeals.  Email the Community Development Department on how to apply for a waiver.

How many guests can stay at a short-term rental? 

Answer:  No more than two persons per bedroom plus two persons but shall not exceed a maximum occupancy of eight persons.

Can I rent out multiple bedrooms in my home? 

Answer:  Yes, but the short-term rental cannot be under more than two simultaneous rental contracts. 

Is an in-person inspection required? 

Answer:  Yes, an annual inspection of the property is required before a short-term license is issued.  The inspection verifies the location of fire extinguishers, CO2 detectors, smoke detectors, exits, and other necessary items to ensure code compliance and safety for the public.  If the inspection is refused, the license will be denied. 

Why is a license number required on advertisements? 

Answer:  All short-term rentals are required to list their short-term license number in all advertisements so the city can monitor the various hosting platforms for both licensed and unlicensed short-term rentals being advertised. No personal licensee information will be included in the license number. It is unlawful to post an advertisement for a short-term rental without displaying your short-term rental license number (not your sales and use tax license number) on all online listings.  Further, a copy of your short-term rental license must be posted inside the short-term rental. 

NOTE:  If you use AirBnB, the number should be listed in the "Registration/License Number" field so the number is not blocked by the website.