STR License Question - Need help with the definition of "primary residence"

STR License Question - Need help with the definition of "primary residence"

Austin, TX · Member since 2023 · 2 posts · 2 votes

Hoping someone might be in a similar situation and can shed light on this.

My wife and I live in Texas, and are interested in a property in Denver as an STR, but we are worried we may not qualify under their licensing rules. It states that the property must be your primary residence, and defines it as, "Primary residence means the place in which a person's habitation is fixed for the term of the license and is the person's usual place of return. A person can have only one (1) primary residence." Section 33-46

We plan to use the property in Denver at least twice a year.  It will be our only property in Denver, and in Colorado, and therefore it is our "primary residence" there, so I'm wondering if that fits their definition of primary residence .

I'm hoping there are some of you with an STR in Denver that is not your main home and can shed some light in how this section of the code is applied? Or anyone with experience that can definitively state that our scenario is not allowed? I'm 80% that we do not qualify, but hopeful that I'm wrong.

We considered adding a contingency to the offer tied to us getting approved for the STR license, but you cannot apply until you own the property...

Thanks in advance for your insight and help,

-Tyler

P.S.  Just joined the community here.  First post!

2Reply
59 views

Most Popular Reply

Flipper/Rehabber · Louisville, KY · Member since 2008 · 1k+ posts · 1k+ votes
2y

Primary means PRIMARY. You can only have 1 primary residence and you state that is in Texas. You can't have a different primary residence for each state.

Every home you own that is not your primary (ie the one you file Federal taxes under and primarily live in) is a second home.

See this reply in the discussion

5 Replies

Jump to latestLatest
  • Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    2y

    Welcome to BP! Denver rules are very clear that you must live in the property to STR the property. The jurisdictions nearby that allow non-owner occ STRs are unincorporated Adams County, Gilpin County, Arvada, Wheat Ridge (with some restrictions, last time I checked there was a waiting list), Westminster (owners can only have one STR property there as of last year), and Larimer County. Also my understanding is that both Louisville and Lafayette don't have regulations in place, which means they are technically not approved, but there are quite a few STRs operating there openly if you look on Airbnb/VRBO, and there isn't any enforcement that I know of (yet). Longmont is interesting because you can have one non-owner occ STR, but only if you are also a resident of Longmont. Boulder County (not in the city or towns) also allows non-owner-occ STR, but with a cap on the number of nights per year it can be rented.

  • Flipper/Rehabber · Louisville, KY · Member since 2008 · 1k+ posts · 1k+ votes
    2y

    Primary means PRIMARY. You can only have 1 primary residence and you state that is in Texas. You can't have a different primary residence for each state.

    Every home you own that is not your primary (ie the one you file Federal taxes under and primarily live in) is a second home.

  • Stacy RozanskyPro Member
    Realtor · Denver, CO · Member since 2016 · 31 posts · 18 votes
    2y

    @Tyler Hedegard Welcome to BP, you will find a it to be a great resource on your investing journey. As the others have stated, the rules in Denver are very strict and from what you are describing this would not qualify as a primary residence, so I would not advice going the STR route with this property. It would definitely be worth it to look into the thorough list @Steve K. provided of areas nearby where STR is allowed!

  • Tanner PileBusiness Member
    Real Estate Broker · Colorado Springs, CO · Member since 2019 · 389 posts · 326 votes
    2y

    @Tyler Hedegard

    Colorado Springs is better for STR laws. Non-owner occupied permits need multi-family zoning and must be 500ft away from another non-owner occupied STR. They take a bit of time to find the right ones but they are out there! Let's talk more if that interests you.

    Tanner Pile4.931 Reviews
  • Austin, TX · Member since 2023 · 2 posts · 2 votes
    2y

    Thanks for the answers.  This is what I suspected, but was hoping someone had a counter example.

    The hunt continues!

Join the conversationCreate a free account to reply, vote on answers and follow this thread.