West Durango Short-Term Rental Rules Made Clear

Thinking about turning a West Durango property into a short-term rental? You are not alone. It can help offset costs and create flexibility for second-home use, but local rules vary by location and change over time. In this guide, you will learn how West Durango is regulated, the key differences between City of Durango and La Plata County rules, and the exact steps to verify a property before you buy or list it. Let’s dive in.

Start with jurisdiction

Your first step is simple and critical: confirm whether the property sits inside the City of Durango or in unincorporated La Plata County. Many West Durango addresses fall outside city limits, even if they feel close to town. Different governments oversee the rules, permits, fees, and enforcement.

• Inside city limits: City of Durango ordinances and the City’s planning department apply.
• Outside city limits: La Plata County land use rules and county permitting apply.
• Boundaries can change: Annexations and adjustments happen. Always confirm with current parcel maps or the assessor’s records.

Getting jurisdiction wrong can lead to delays, fines, or a deal that does not meet your goals. Verify first, then proceed.

City vs county differences

You will likely see differences in how the City of Durango and La Plata County regulate short-term rentals.

• Permit structure: Cities often run formal licensing programs with clear annual renewals. Counties may use a land use permit process, sometimes handled across departments.
• Density limits: Cities more often use caps, separation distances, or neighborhood limits. Counties may rely more on zoning and site-specific review.
• Inspections: City permits may require routine inspections. Counties may inspect at application or in response to complaints.
• Transfer rules: City permits are commonly nontransferable on sale. County rules vary. New owners may need to reapply.
• Taxes: City properties are subject to city lodging taxes, and properties in the county are not subject to city taxes unless inside city limits. You must confirm which taxing districts apply to the parcel.

The details shift by jurisdiction and over time, so use these as categories to check rather than assumptions to rely on.

Zoning and overlays

Even once you know jurisdiction, zoning still controls whether a short-term rental is allowed at a specific site. Look up base zoning and any applicable overlay districts.

• Zoning determines if STR use is allowed in a residential district, prohibited, or allowed with limits.
• Overlays can add rules on top of base zoning. Examples include historic or conservation overlays, resort or tourism overlays, rural or forested overlays, floodplain, or hillside development. These may change what is allowed or add safety standards.
• How to check: Use city or county GIS parcel maps to identify zoning and overlays, then read the associated code text. If the mapping is unclear, ask planning staff for a written confirmation.

A property that looks perfect on paper can still sit in a district with caps or separation rules. Confirm the map and the text.

Permits, safety, and operations

Most STR programs address the same core items. Expect to see some or all of the following when you apply or when you review a seller’s file.

• Registration or license: An approved STR registration, license, or permit is typically required before hosting guests. Renewals are often annual and include fee payment.
• Local contact: Many places require a local or in-state contact who can respond to complaints quickly.
• Safety standards: Smoke and carbon monoxide detectors, fire extinguishers, egress, and clear emergency information are common. Some programs require a formal inspection.
• Good neighbor rules: Quiet hours, trash handling, snow storage, and parking plans are typical conditions of operation.
• Occupancy and parking: Maximum guests per bedroom or square footage and vehicle limits are common.
• Density limits: Caps or minimum distances between STRs can apply in certain areas, especially inside cities.

If you plan to self-manage from out of state, confirm whether a local manager is required and what response times are enforced.

Taxes and remittance

Short-term rental income typically triggers tax obligations. Expect to address the following:

• State taxes: Colorado state sales tax on short stays usually applies.
• Local lodging taxes: City lodging taxes apply if the property lies inside city limits. County or special district taxes may also apply in some areas.
• Registration and proof: Permit applications may require tax account numbers, and you may be asked to show recent remittance records.

Make sure accounts are properly registered and current. Outstanding taxes can stall a sale and may create exposure for a buyer.

Pre-offer verification checklist

Use this step-by-step checklist before you write an offer on a West Durango property you hope to operate as a short-term rental.

• Step 1: Confirm jurisdiction. Check parcel maps and assessor records to verify City of Durango vs La Plata County. Do not rely only on the mailing address.
• Step 2: Request seller documents. Ask for the current permit or license number, a copy of the certificate, issuance and expiration dates, and any correspondence with planning or enforcement.
• Step 3: Verify permit status. Confirm the permit with the issuing agency. Ask about transferability on sale and whether any violations or unpaid fines exist.
• Step 4: Confirm zoning and overlays. Identify the parcel’s zoning district and any overlays. Read the applicable code sections to confirm if STR use is allowed and under what conditions.
• Step 5: Validate taxes. Request receipts for sales and lodging tax remittances for the last 12 months. Confirm accounts are active and in good standing.
• Step 6: Review utilities and wastewater. For rural parcels, confirm septic capacity and any occupancy-related limits.
• Step 7: Check HOA rules. Obtain full covenants and any HOA policies on STRs. HOA rules can prohibit or restrict STRs even if local codes allow them.
• Step 8: Safety evidence. Request inspection reports, smoke and CO detector documentation, fire extinguishers, and egress details. Ask for a guest manual and parking plan.
• Step 9: Manager and contact. Confirm the local contact requirement and whether the existing manager will continue. Get response-time expectations in writing.
• Step 10: Complaint history. Ask for records of complaints, warnings, or fines. Confirm this with the city or county when possible.
• Step 11: Occupancy and parking. Clarify the current occupancy limit and permitted number of vehicles based on code and site conditions.
• Step 12: Insurance. Verify a short-term rental insurance policy is in place and confirm coverage details with your carrier.
• Step 13: Pending changes. Ask planning staff if any moratoria, caps, or code amendments are under consideration for the area.
• Step 14: Title and recorded restrictions. Ask title and escrow about recorded covenants, easements, or notices that could affect transient lodging.
• Step 15: Contract contingencies. Add a due diligence contingency specific to STR compliance, including permit validity, transferability, tax status, and complaint history.

Following this sequence helps you spot roadblocks early and avoid expensive surprises after closing.

Questions to ask sellers

When a property is represented as an STR or STR-ready, ask for specifics.

• Is there a current STR permit or license? What is the permit number and expiration date?
• Is the permit transferable on sale? If not, what is required for a new owner and how long does approval take?
• Are there any outstanding complaints, violations, or fines?
• What occupancy and parking limits are currently in place at the property?
• Have sales and lodging taxes been collected and remitted? Request receipts for the last 12 months.
• When was the most recent safety inspection or equipment update?

Clear documentation from the start can save weeks of uncertainty later.

Questions to ask planning staff

A 10-minute conversation with the right staff person can clarify critical details.

• Is STR use allowed at this parcel under current zoning and any overlays?
• Are there neighborhood caps, separation distances, or permit waitlists that could affect this property?
• What are the transfer rules if the home is sold? Do new owners need to reapply?
• Are there any pending rule changes that could affect operations this year?
• What inspections, renewals, or fees are required for compliance?

Ask for written confirmation or a zoning letter when possible.

Common pitfalls to avoid

Short-term rental rules can be nuanced. These are the traps buyers most often encounter.

• Assuming a permit transfers automatically on sale when it does not.
• Overlooking HOA covenants that prohibit or limit STRs.
• Skipping tax verification and inheriting exposure for past remittance gaps.
• Relying on informal assurances instead of written confirmation from the issuing agency.
• Ignoring septic or utility limits that reduce safe occupancy in rural areas.

A disciplined document review protects your investment and your timeline.

Enforcement and penalties

If a listing operates outside the rules, expect enforcement. Typical tools include per-day fines, stop-use orders, civil penalties, and suspension or revocation of permits. Complaint-driven enforcement is common, and repeated issues can jeopardize renewals.

Create strong guest education materials, clear parking and trash instructions, and reliable local response. These steps reduce complaints and protect your permit.

Insurance and operations

Treat your STR as a business unit with clear policies and backups.

• Insurance: Confirm you have short-term rental coverage for liability and property damage. Standard homeowner policies may exclude guest stays.
• Local management: If you are not nearby, establish a local contact who can respond quickly to issues and coordinate maintenance.
• House rules: Provide simple, visible rules for noise, parking, trash, wildfire awareness, and emergency contacts.
• Maintenance: Schedule routine checks for detectors, fire extinguishers, and outdoor conditions like snow and vegetation.

These practices keep neighbors comfortable and operations smooth.

How I can help

You deserve a straightforward path from research to closing. With two decades of local experience across Durango and La Plata County, I help you confirm jurisdiction, zoning, overlays, HOA rules, and permit status before you commit. I also coordinate directly with planning and tax offices, so you get clear answers and a stronger offer strategy.

If you are weighing a West Durango property for STR use, reach out. I will help you confirm the facts, plan contingencies, and move forward with confidence. Connect with Alicia Romero to get started.

FAQs

What is a short-term rental in West Durango?

• Most programs define short-term as stays under 30 days, but definitions vary by jurisdiction, so confirm the exact threshold with the city or county.

How do I know if a home is in the city?

• Use current parcel maps or assessor records to confirm whether the address is inside the City of Durango or in unincorporated La Plata County.

Do STR permits transfer when I buy?

• Many city permits do not transfer on sale and require a new application; county rules vary, so verify transferability with the issuing agency.

Can an HOA block short-term rentals?

• Yes. HOA covenants can prohibit or restrict STRs even when local codes allow them, so review the full CC&Rs before you make an offer.

What taxes apply to STR income?

• Expect Colorado state sales tax and, if inside city limits, city lodging taxes; confirm all applicable local taxes and ensure accounts are registered and current.

What if the seller operated without a permit?

• You may face enforcement risk or back taxes; verify status with the issuing agency and consider contract contingencies tied to compliance and tax clearance.