What should Grand Lake hosts know about 15% license cap: once 15%?

15% License Cap: Once 15% of the housing stock has licenses, no new licenses are issued until one expires or is surrendered.

What are the key requirements for Grand Lake hosts?

60-Minute Response: Your local contact must be able to physically arrive at the property within one hour.

What are the key requirements for Grand Lake hosts?

Parking Requirements: Off-street parking is strictly enforced; 1 space per bedroom + 1 additional space is typically required.

Are there rental limits in Grand Lake?

Nightly Rental Tax: A voter-approved 4% tax applies specifically to STRs on top of standard sales tax.

Grand Lake, CO Short-Term Rental Regulations & Licensing Gu…

Summary

The Town of Grand Lake requires an annual Nightly Rental License, enforces a 15% cap on the total number of permits, and mandates a 4% nightly rental tax in addition to sales taxes.

Restriction Level

⚠️

Moderate

Score: 33 (restrictive)

Why this classification:

•High permit fee: $600
•Tenants cannot host
•Permit required
•Reporting required
•No night cap
•No primary residence requirement

In Plain English

Property owners must apply for a Nightly Rental License and pay an annual fee of $600. You must have a local contact person available 24/7 who can respond to the property within 60 minutes. There is a town-wide limit on the number of available permits, so new applicants may be placed on a waitlist.

At a Glance

Permit Required

Yes

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.1%

Permit Fee

$600

Processing Time

3-6 weeks

Max Fine

$1,000

4 Things Hosts Often Miss

1.15% License Cap: Once 15% of the housing stock has licenses, no new licenses are issued until one expires or is surrendered.
2.60-Minute Response: Your local contact must be able to physically arrive at the property within one hour.
3.Parking Requirements: Off-street parking is strictly enforced; 1 space per bedroom + 1 additional space is typically required.
4.Nightly Rental Tax: A voter-approved 4% tax applies specifically to STRs on top of standard sales tax.

Regulation Details

Eligibility(6)

•Grand Lake prohibits STRs in the following property types: Tents, RVs, Yurts.
•Grand Lake does NOT allow tenants to host STRs. Only property owners may operate short-term rentals.
•Grand Lake: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
•Grand Lake: You can have a co-host or property manager help manage your listing.

Requirements(12)

•Grand Lake: You must display your permit/registration number on your Airbnb listing.
•Grand Lake requires STR registration. The permit is called "Nightly Rental License". Apply through Town Clerk. Processing time: 3-6 weeks. Renewal is required.
•Grand Lake: Hosts must report their rental activity quarterly to the city, even if platforms collect taxes.

Application Process(8)

•Step-by-step guide to get an STR permit in Grand Lake: Step 1: Apply for Colorado Sales Tax License - Obtain a standard sales tax license from the Colorado Department of Revenue. Estimated time: 1-2 weeks. Cost: 16. More info: https://tax.colorado.gov/business-tax-registration Step 2: Check Availability Under Cap - Contact the Town Clerk to ensure the 15% permit cap has not been reached. If reached, request to be added to the waitlist. Estimated time: 1 day. More info: https://www.townofgrandlake.com/administration/page/short-term-rentals-str Step 3: Submit Nightly Rental Application - Submit the application through the town's online portal (MuniRevs) or paper form, including the parking and trash plans. Documents needed: Parking plan diagram, Trash removal plan, Local contact info, Sales tax license number. Estimated time: 2-4 weeks. Cost: 600. More info: https://grandlake.munirevs.com/ Step 4: Pass Safety Inspection - Schedule and pass a self-certification or town-led inspection of smoke alarms, CO detectors, and fire extinguishers. Estimated time: 1 week.

Fees & Costs(1)

•Grand Lake charges a registration fee of $600 (annual).

Taxes(2)

•Grand Lake charges a Nightly Rental Tax of 0.04%. This applies to stays under 30 days. Platforms like Airbnb collect and remit this tax. Note: Airbnb and VRBO remit the 4% Nightly Rental Tax and the 5% Town Sales Tax.
•Colorado has a state sales tax of 0.029% that applies to STR rentals.

Limits & Restrictions(5)

•Grand Lake occupancy calculation: 2 persons per bedroom plus 2 additional persons. Count your bedrooms to determine your max guest limit.
•Grand Lake: 15% License Cap: Once 15% of the housing stock has licenses, no new licenses are issued until one expires or is surrendered.
•Grand Lake: Nightly Rental Tax: A voter-approved 4% tax applies specifically to STRs on top of standard sales tax.

Safety Requirements(1)

•Grand Lake requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Parking spaces must be clearly defined, Snow removal plan, Address clearly visible from street.

Penalties(2)

•Grand Lake: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.

Exemptions(2)

•Grand Lake exempts the following from STR regulations: long-term rentals (30+ days), extended stays.
•Grand Lake: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).

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Disclaimer

Regulatory information is AI-researched for educational purposes. Details may be outdated or incomplete. Always verify requirements directly with your city/county planning department before operating a short-term rental.

Grand Lake

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

4 Things Hosts Often Miss

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Regulation Details

Eligibility(6)

Requirements(12)

Application Process(8)

Fees & Costs(1)

Taxes(2)

Limits & Restrictions(5)

Safety Requirements(1)

Penalties(2)

Exemptions(2)

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Step-by-Step Application Guide

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Frequently Asked Questions

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Grand Lake

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

4 Things Hosts Often Miss

Step-by-Step Application Guide

Upgrade to Pro

Frequently Asked Questions

1Do I need a permit for short-term rentals in Grand Lake?

2What is the short-term rental tax rate in Grand Lake?

3What are the local contact requirements for rentals?

4Are there limits on the number of rental permits?

Related Content

Other Colorado Markets

Summit County

Eagle County

La Plata County

Aspen