Colorado Law
Denver Rental License: The 2026 Guide for Landlords
By Denver Rental Managers · Updated October 16, 2026 · 7 min read
Summary
Yes, you need a license to rent out property in Denver. Any home, condo, apartment or ADU rented for 30 days or more must hold a City and County of Denver residential rental license, which requires a passing inspection by a qualified private inspector, costs a $50 application fee plus a $50–$500 license fee depending on unit count, and lasts four years. The license does not transfer when the property sells.
Key takeaways
- Licenses became mandatory for multi-unit properties on January 1, 2023 and for single-unit rentals on January 1, 2024.
- Fees are a $50 application fee plus a license fee of $50 for one unit, scaling to $500 for 251 or more units.
- A qualified third-party inspector must inspect the unit (or 10% of units in a multi-unit building) and you must apply within 90 days of that inspection.
- Licenses last four years, renewals are penalized once they lapse, and a new owner must get a new license.
- Operating unlicensed can bring fines from $150 up to $5,000.
- You must give tenants Denver’s Tenant Rights and Resources document at lease signing and with any rent demand.
Who needs a Denver rental license
Denver’s residential rental license applies to anyone who offers, provides or operates a residential rental property in the City and County of Denver. The city defines that as any building, structure or accessory dwelling unit rented, or offered for rent, as a residence for 30 days or more at a time.
That covers single-family homes, condos, townhomes, duplexes, apartment buildings and basement apartments or ADUs that have their own entrance, kitchen and full bathroom. It does not cover short-term rentals (those need a separate short-term rental license), hotels, boarding or rooming houses, on-campus college housing, or a room in your own home where the renter has no separate kitchen and bathroom.
The program was adopted by City Council in May 2021 and phased in. Multi-unit properties had to be licensed starting January 1, 2023, and single-unit properties starting January 1, 2024. If you own a Denver rental today, the grace period is over.
What it costs
| Item | Amount |
|---|---|
| Application fee | $50 |
| License fee, 1 unit | $50 |
| License fee, 2–10 units | $100 |
| License fee, 11–50 units | $250 |
| License fee, 51–250 units | $350 |
| License fee, 251+ units | $500 |
| Inspection | Set by the private inspector you hire |
The city does not set inspection prices. Expect to pay a private inspector separately; prices vary by inspector and property size. Nonprofit tax-exempt organizations and state agencies are exempt from the license fee but still pay the application fee.
The inspection requirement
Before you apply, a qualified third-party home inspector must confirm the unit meets Denver’s minimum housing standards. To qualify, the inspector must be certified by ASHI, InterNACHI or the Master Inspector Certification Board and hold an ICC R5, C5 or C8 certification. Denver keeps a registry of qualified inspectors, though the city notes it isn’t exhaustive, so verify credentials yourself.
- Single-unit properties: the unit is inspected.
- Multi-unit properties: at least 10% of units, randomly selected, or one unit if the building has fewer than 10.
- Timing: you must submit your application within 90 days of the initial inspection.
- New construction: a property with a certificate of occupancy issued within the last four years may qualify for an inspection exemption by affidavit.
Inspectors look at the basics that make a home safe and habitable: working heat, hot water, smoke and carbon monoxide alarms, electrical and plumbing safety, egress, and the condition of windows, doors and stairs. Fix known issues before the inspector arrives. A failed item means a re-inspection and a later start date for your lease.
Term, renewal and late penalties
A Denver rental license is valid for four years. Renew before the expiration date. Denver’s renewal FAQ describes a 20% penalty if you renew in the first 30 days after expiration and a 50% penalty from day 31 through day 90. After 90 days, you must apply for a brand-new license, including a new inspection.
Report changes to your contact information within 72 hours. To add units, file a new application. To stop renting, file an affidavit of surrender.
Selling or buying a rental: the license does not transfer
Denver licenses are non-transferable. The city states a license is good for four years unless ownership changes, and a new license is required after a change in ownership. If you are buying a tenant-occupied Denver rental, budget the time and cost of a new inspection and application into your closing plan. Some Denver real estate sources say a new owner should apply within 30 days of closing; confirm the current deadline with Denver Excise and Licenses before you close.
Fines for renting without a license
Under Denver Revised Municipal Code section 27-203, unlicensed rentals can be fined from $150 to $5,000, based on license status and health and safety conditions. A property counts as unlicensed until the license is actually issued, not when you apply. When Denver began enforcement, reporting showed warnings first, then escalating fines up to $999, with daily fines possible at that level. Tenants can also report unlicensed or unsafe rentals through a city complaint form.
Other Denver landlord requirements to pair with the license
- Tenant Rights and Resources document: give it to tenants when the lease is signed and when you serve a demand for rent.
- Colorado statewide rules: security deposit, late fee, screening and eviction laws still apply on top of the city license. See our guides to Colorado security deposit law and tenant screening rules.
- Suburbs are different: Aurora, Lakewood and most other metro cities do not have the same license program. Check the city page for your property, such as Aurora or Lakewood.
Step-by-step: getting licensed
- Confirm the property is inside Denver city limits (some “Denver” mailing addresses are in Aurora, Lakewood or unincorporated county).
- Fix obvious safety items: alarms, GFCIs, handrails, window locks, heat and hot water.
- Hire a qualified inspector and get the completed inspection checklist.
- Apply online within 90 days of the inspection and pay the application and license fees.
- Keep the license number in your records and calendar the four-year renewal.
Common licensing mistakes
- Assuming a Denver mailing address means Denver rules. Check the city on your property tax record.
- Letting the inspection expire. If you miss the 90-day application window, you pay for a second inspection.
- Forgetting the ADU. A basement apartment with its own entrance, kitchen and bathroom needs to be licensed too.
- Selling without a plan. Buyers inherit tenants, not the license, so the new owner’s application should be part of the closing checklist.
- Missing the renewal date. Penalties start the day after expiration, and after 90 days you start over.
How Denver Rental Managers handles this
For full-service clients we schedule the inspection, prepare the application and track the renewal date in your Rentvine owner portal, at no added management fee. If you are buying a Denver rental, we can line up the new-owner license before closing so your rent stream isn’t interrupted. Learn more about our Denver property management.
Sources
This guide is general information for Colorado landlords, not legal advice. Laws change; confirm current requirements with the Colorado Division of Real Estate or a licensed attorney before acting.
