Thinking about offsetting your Aspen ski home with short-term rental income? In a resort city with strong demand and strict oversight, the rules can make or break your numbers. You want a clear path from dream property to compliant operation without surprises after closing. In this guide, you will learn how Aspen short-term rental rules work, what to verify before you write an offer, and how to underwrite realistic returns. Let’s dive in.

Who regulates STRs in Aspen

Short-term rentals in the City of Aspen fall under city authority for permits and business licensing. Pitkin County may regulate STRs on unincorporated land outside city limits and also collects county-level lodging or occupancy taxes. The Colorado Department of Revenue oversees state sales tax registration and filings. If you are evaluating a property, plan to contact City of Aspen Business Licensing and the Planning Department early in your process.

If you are looking at homes outside the city boundary, confirm whether Pitkin County rules apply instead. When in doubt, pull the parcel address and verify the jurisdiction before assuming the property is eligible for STR use.

Permit types and what to verify

Aspen distinguishes between different STR situations. The exact categories and terms can change, so use these checkpoints to guide your due diligence.

• Owner-occupied vs non-owner-occupied. Many mountain towns treat primary residences differently. Confirm which category fits the property and whether it changes allowed nights or operating rules.
• Full-time vs conditional or limited permits. Some properties may only rent seasonally or under specific conditions. Ask for the current authorization in writing.
• Transient lodging vs long-term rental classification. This affects taxes and code compliance. Make sure the property’s certificate of occupancy and current use align.

Confirm transferability and status

Your biggest risk is assuming a permit survives the sale. Verify the following before making an offer:

• Is there an active STR permit for the unit today? Get the permit number and expiration date.
• Is the permit tied to the owner or the property. Non-transferable permits can terminate at closing.
• Are there caps, quotas, moratoria, or neighborhood limits that affect new permits.
• Are there any outstanding compliance issues, fines, or administrative actions that could block renewal.

Ask for supporting documents. Request the seller’s STR permit paperwork, business license, and any correspondence with the city.

Operating rules you should expect

Aspen and similar resort cities typically require:

• Registration and a visible permit ID on listings and in the home.
• A designated local contact or manager available 24 hours a day who can respond to complaints and emergencies within set timeframes.
• Compliance with maximum occupancy, noise, trash, and parking rules.
• Posted house rules, emergency contacts, and safety information inside the property.

Enforcement can include fines per violation, administrative hearings, and suspension or revocation for repeated issues. Neighbor complaints often trigger investigations, so consistent operations and a responsive local contact matter.

Zoning, HOA, and deed restrictions

Zoning and neighborhood overlays

Legality and permitting can vary by zoning district. Some zones allow STRs by right, others require conditional approvals, and some prohibit STRs. Historic districts, deed-restricted neighborhoods, or conservation overlays may add limits. Always confirm the property’s zoning designation and any overlays with the city before you rely on rental income.

Condos and HOA rules

Your HOA can be stricter than the city. Many condominium associations limit or ban short-term rentals, enforce minimum stay lengths, or require special registration. Ask for and review:

• CC&Rs, bylaws, and any board resolutions related to rentals.
• Rental registration or owner notification rules, minimum lease terms, guest restrictions, and parking policies.
• Insurance requirements, use of common areas, and quiet hours that affect guest stays.

For condos, confirm the building’s life-safety systems and certificate of occupancy support STR use. Sprinklers, egress routes, and inspection history are relevant. In downtown Aspen, parking constraints and local parking permits can influence your unit’s marketability.

Deed-restricted housing

Aspen and Pitkin County use deed restrictions to preserve workforce housing. These properties typically prohibit or severely limit STRs. Request a title report or seller disclosure to verify whether any deed restrictions apply. Violations can trigger penalties and separate the unit from normal market pricing.

Taxes and compliance you must plan for

Short-term rental income in Aspen generally involves multiple tax streams. Build these into your pro forma and confirm steps during escrow.

• Local lodging or accommodation tax. Municipal and county lodging or occupancy taxes typically apply to short stays. Rates and rules can change, so confirm the current percentages.
• State and local sales tax. The Colorado Department of Revenue administers sales tax registration and filings for accommodations.
• Business license fees. City business licensing is commonly required for STRs.

You usually collect occupancy and sales taxes from guests and remit them on a set schedule. Failure to register or remit can lead to penalties. Practical steps include:

• Confirm current tax rates with the City of Aspen Finance or Revenue Department and the Pitkin County Treasurer or Tax Office.
• Verify whether existing city, county, or state tax accounts transfer or need to be reissued after a sale.
• Request copies of recent tax returns and remittance receipts from the seller to screen for back taxes or audits.
• Ask your CPA how to handle STR gross receipts, expense tracking, and mixed personal use for income tax reporting.

How to underwrite an Aspen STR

Seasonality and demand drivers

Aspen is a highly seasonal resort market. Winter ski season is typically the strongest for occupancy and average daily rate. Summer is also strong due to outdoor recreation and events, though usually below peak winter performance. Shoulder seasons tend to bring lower occupancy, with spikes during select events or holidays. Build your forecast month by month and watch the local event calendar.

Data and comps to gather

Use multiple sources for performance benchmarks. Consider:

• STR data aggregators for occupancy, ADR, RevPAR, and listing counts over the last 12 to 36 months.
• Local property managers for real booking calendars, net income after fees, and practical advice on guest expectations and pricing.
• City or county lodging tax reports to gauge market-level demand trends over time.

Key metrics and cost assumptions

Build your model using conservative inputs:

• Occupancy rate by month and annual average across multiple years.
• ADR and RevPAR by month that reflect seasonality and event spikes.
• Comparable supply in your building or neighborhood, plus any permit caps or moratoria that could limit new competition.
• Average length of stay and booking lead times. These influence turnover and cleaning schedules.
• Management approach and fee structure. Full-service management commonly ranges from 15 to 35 percent of gross revenue. Confirm local pricing for your property type.
• Cleaning and linen costs per turnover, plus utilities, HOA dues, marketing or channel fees, insurance, and maintenance reserves. Include a realistic reserve for wear and furnishings.

Insurance and lender considerations

STR insurance can be higher than a standard homeowner policy. Some HOAs and lenders require landlord or commercial coverage if you rent short-term. Get quotes early and confirm lender and HOA requirements so your debt and operating cost assumptions are accurate.

Due diligence checklist before you write an offer

Use this list to keep your process tight and defensible.

• Permit and legal status

  • Confirm whether the property holds an active STR permit now, gather the permit number, and confirm whether it transfers at closing.
  • Request records of any enforcement actions, fines, or neighbor complaints.
  • If there is no permit, confirm eligibility for a new permit under current zoning and any overlays or quotas.

• Documents to obtain and review

  • Seller’s STR permit, business license, and 24 to 36 months of city, county, and state tax remittance receipts.
  • HOA or condo CC&Rs, bylaws, meeting minutes, and rental policies, including any pending rule changes.
  • Title and deed for deed restrictions or covenants that limit STRs.
  • Building certificate of occupancy and any relevant safety inspection reports.
  • Standard rental agreements, insurance certificates, and historical bookings with monthly gross revenue for 12 to 36 months, ideally supported by manager statements or tax filings.

• Operating and financial questions

  • Average nightly rates, occupancy, average length of stay, and booking channels used.
  • Expense breakdowns for management, cleaning, utilities, HOA dues, insurance, repairs, marketing, supplies, and reserves.
  • Capital expenditure history and any deferred maintenance.
  • Local contact arrangements, response times, and compliance with city rules.
  • Parking allocation and guest limits that could affect ADR or occupancy.

• Practical pre-offer steps

  • Review comps and run a pro forma with a local property manager who knows Aspen seasonality.
  • Pull STR market data for your building or micro-neighborhood for the last 12 to 36 months.
  • Consult a local real estate attorney or title company about permit transferability and deed restrictions.
  • Confirm insurance availability and premiums for STR use on the specific property type.
  • If buying a condo, speak with the HOA manager to verify current rules and any pending changes.

What these rules mean for your strategy

• Plan for permits early. Transferability and eligibility shape value and timing. A non-transferable or expired permit can change your revenue outlook.
• Underwrite conservatively. Use seasonal data, realistic fees, and reserve for higher operating costs typical of resort STRs.
• Let the HOA lead the decision for condos. HOA rules can override city permission, so their documents and meeting minutes are decisive.
• Build a compliant operations plan. A reliable local contact, clear house rules, and guest screening protect your permit and reviews.
• Treat taxes like a monthly bill. Registration, collection, and remittance processes should be in place from day one.

Rules and tax rates can change through council action, ballots, or administrative updates. Always verify current requirements with the City of Aspen, Pitkin County, and the Colorado Department of Revenue during your due diligence.

Ready to evaluate a specific property or build an Aspen-ready pro forma. The investor-agents at Good Neighbor Realty can help you pressure test assumptions, review documents, and connect you with trusted local managers, attorneys, and CPAs so you move from interest to confident ownership.

FAQs

Do you need a permit to run a short-term rental in Aspen city limits

• In most cases you need to register with the City of Aspen and meet operating requirements. Confirm current rules with the Business Licensing and Planning departments.

Are Aspen STR permits transferable to a new owner at closing

• Transfer rules vary by permit type and can change over time. Confirm in writing whether the permit is tied to the owner or the property and include documentation in your contract.

How do HOA rules interact with Aspen’s STR regulations

• HOAs can be stricter than city code and may limit or ban STRs. For condos, treat HOA documents and manager confirmation as decisive for feasibility.

What taxes apply to short-term rentals in Aspen and Pitkin County

• Expect local lodging or occupancy taxes at the city and county level plus state sales tax. You typically collect from guests and remit according to each agency’s rules.

What seasonality should you underwrite for an Aspen STR

• Plan for peak winter occupancy and pricing, strong summer demand, and softer shoulder seasons punctuated by event-driven spikes. Model performance month by month.

What is the local contact requirement for Aspen STRs

• Aspen and similar resort cities often require a designated local contact available 24 hours a day to handle complaints and emergencies. Verify response times and distance rules with the city.

How can Good Neighbor Realty help with an Aspen STR purchase

• We combine investor-focused brokerage, underwriting guidance, and post-close support. We help you pressure test numbers, review docs, and connect with local professionals so you execute with confidence.