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Short-Term Rental Regulations
in Vail, CO

Last verified: March 2026 · Report an update

Zoning & Conditions

Short-term rentals (STRs) are defined as rentals for less than 30 consecutive days. Operators must appoint a local representative available 24/7 within 60 minutes of the property, maintain $1,000,000 in liability insurance, and include the license number in all advertising.

How to Obtain a Permit

1. Register and apply online via the Vail MuniRevs portal. 2. Submit required documentation including proof of $1M liability insurance and a local representative affidavit. 3. Schedule and pass a fire and life safety inspection. Pay the administrative fee ($260 for most, $50 for on-site managed) and renew annually by February 28.

Regulatory Updates — Vail

Proposed and recent legislation

PassedJune 2023

Tiered STR License System with Investor Cap

Vail's STR ordinance creates a two-tier licensing system. Tier 1 (primary residence) licenses are available without a cap. Tier 2 (investor/non-primary) licenses are capped at a town-wide total, and new Tier 2 licenses are issued via lottery or waitlist when caps are reached. Licenses are non-transferable on property sale.

PassedJanuary 2024

STR License Fees Increased; Revenue to Housing Fund

The Town of Vail substantially increased STR license fees, with proceeds allocated to the Vail Local Housing Authority's workforce housing programs. The fee escalation reflects the town's policy position that vacation rentals contribute to the housing shortage and should bear a portion of the cost of addressing it.

Under ReviewJuly 2025

Eagle County Coordination on Unincorporated Area Rules

Eagle County (governing areas around but outside Vail town limits, including Edwards, Avon, and other communities) is coordinating with the town to develop consistent STR policies that prevent displacement of Vail-restricted operators into surrounding county areas.

Official Resources

Official Vail STR regulation source

Local Resources & Advocacy

Colorado Vacation Rental AllianceStatewide

Statewide advocacy organization representing Colorado STR operators and property managers in Vail and Eagle County regulatory proceedings.

Vail Chamber & Business AssociationLocal

Local business advocacy organization tracking town regulatory developments affecting the vacation rental industry. Balances STR interests with workforce housing concerns in regulatory proceedings.

Vacation Rental Management Association (VRMA)National

National trade association providing regulatory monitoring and advocacy for vacation rental managers in Colorado's highest-end ski resort markets.

Frequently Asked Questions

Are short-term rentals allowed in Vail, CO?
Short-term rentals (STRs) are defined as rentals for less than 30 consecutive days. Operators must appoint a local representative available 24/7 within 60 minutes of the property, maintain $1,000,000 in liability insurance, and include the license number in all advertising.
Is a permit required to operate a short-term rental in Vail?
Yes, a permit is required to operate a short-term rental in Vail. 1. Register and apply online via the Vail MuniRevs portal. 2. Submit required documentation including proof of $1M liability insurance and a local representative affidavit. 3. Schedule and pass a fire and life safety inspection. Pay the administrative fee ($260 for most, $50 for on-site managed) and renew annually by February 28.
How do I get a short-term rental permit in Vail?
1. Register and apply online via the Vail MuniRevs portal. 2. Submit required documentation including proof of $1M liability insurance and a local representative affidavit. 3. Schedule and pass a fire and life safety inspection. Pay the administrative fee ($260 for most, $50 for on-site managed) and renew annually by February 28.
Can investors still get new short-term rental licenses in Vail?
Investor-owned (Tier 2) STR licenses are subject to a town-wide cap. When the cap is reached, new Tier 2 applicants enter a waitlist or lottery. Tier 1 (primary residence) licenses have no cap and are available with a standard application. Critically, licenses do not transfer on property sale — buyers must reapply. A buyer of a Vail property currently operating under a Tier 2 license has no guarantee of receiving a new Tier 2 license if the cap is full at the time of purchase.
What taxes apply to Vail short-term rental income?
Vail STR operators collect Colorado state sales tax (2.9%), Eagle County sales tax (1.5%), Town of Vail sales tax (4%), and Colorado lodging tax. The combined rate on rental income is typically 13–16%. Airbnb and Vrbo collect and remit Colorado state and most local taxes on behalf of Vail hosts. Direct-booking operators must register with the Colorado Department of Revenue and the Town of Vail finance department independently.
How does the non-transferability rule affect Vail real estate investment?
The non-transferability rule is one of the most significant factors for buyers of Vail investment properties. When a Vail property with an active STR license is sold, the license expires. The new owner must apply for a fresh license — and for Tier 2 (investor) licenses, there is no guarantee one will be issued if the cap is full. This means the STR revenue stream that a current owner enjoys may not be available to the buyer under the same terms. Buyers should verify current cap status and obtain legal advice before purchasing any Vail property expecting STR income.
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Disclaimer

This information is for general reference only and may not reflect the most current regulations. STR regulations change frequently. Always verify requirements with official local government sources before operating a short-term rental.

Last verified: March 2026 · Suggest a correction