Short‑Term Rental Licensing for Highlands Ranch Homes

Thinking about listing your Highlands Ranch home on a short-term platform? You are not alone, but the rules here are different from many nearby areas. Most Highlands Ranch properties sit inside a Planned Development with HOA covenants that limit or prohibit short stays. In a few minutes, you will know what is allowed, how licensing works in Douglas County, and how to check your address before you invest a dollar. Let’s dive in.

The short answer for Highlands Ranch

Most Highlands Ranch homes are in a Planned Development. Under Douglas County’s ordinance, the county will not issue a Short-Term Rental License for homes in a PD unless that PD expressly allows STRs. The county also defers to HOA rules, which often set minimum lease terms. You can review the county’s program on the official Douglas County Short-Term Rentals page.

Local reporting confirms the policy framework and timing. The Board of County Commissioners approved STR regulations on July 11, 2023, with PD areas like Highlands Ranch treated differently from other unincorporated zones. For context, see the county coverage from Colorado Community Media on the adoption of STR regulations.

What this means for you

• If your property is in Highlands Ranch, a county license likely is not available unless your PD documents clearly allow STRs.
• Even where a county license might be possible, your HOA rules can prohibit short-term stays on their own.
• Always verify both zoning and HOA covenants before planning any rental activity.

How to confirm eligibility

Start with a simple three-part check. This protects you from fines, complaints, and insurance issues later.

1. County zoning and PD status

• Contact Douglas County Zoning Compliance to confirm if your parcel is within a PD and whether that PD allows STRs. The county lists contacts and guidance on the official STR page.

2. HOA and sub-association rules

• Read your recorded CC&Rs, bylaws, and rules for minimum lease terms, business-use limits, or rental caps. In Highlands Ranch, these documents often decide the question.

3. If eligible, outline your licensing plan

• If your parcel is not excluded, build your application timeline, budget for fees, and prepare safety and compliance items well before listing.

County rules if you are eligible

If your property is eligible outside PD exclusions, Douglas County requires a license for rentals of fewer than 30 consecutive days. The application package is detailed and focuses on safety, responsiveness, and neighborhood fit.

Key requirements include:

• A completed application and a notarized Local Responsible Agent declaration.
• Renter information signage, written guest instructions, and a parking plan.
• A life-safety affidavit confirming working smoke and CO detectors, fire extinguisher, and proper egress.
• Building or health approvals if applicable.

Fees to plan for:

• First-year application review: $500
• Renewal review: $270
• License fee: $130 per year

You will find the current checklist and contact details on the Douglas County Short-Term Rentals page.

Taxes you still need to handle

Licensing is separate from taxes. If you legally operate an STR, you must register with the Colorado Department of Revenue for a sales tax account and collect applicable state and local taxes. Registration guidance is outlined in the Colorado business resource guide.

Some platforms collect and remit certain taxes, but that does not remove your duty to register and file where required. State law also allows counties to require permit numbers on listings and to ask platforms to remove unlicensed listings. You can read more about this authority in a summary of Colorado’s law clarifying county powers over STR listings.

Insurance and lending checks

Standard homeowners policies often exclude or limit coverage during short-term rentals. Before hosting, confirm coverage in writing with your insurer or secure a short-term rental policy or endorsement. The NAIC explains why you need specific coverage in its guidance on insurance for home-sharing and STRs.

Also review your mortgage documents. Some loans restrict rental activity or require notice. Align your insurance, lender, and licensing steps before you accept bookings.

Risks of operating without approval

Operating in violation of county or HOA rules can lead to fines, injunctions, and delisting of your online listings. Douglas County can inspect properties, issue penalties, and coordinate with platforms to remove noncompliant listings under state law. HOA enforcement can be decisive and may include fines and court action, as seen in Colorado case law on covenant enforcement, such as this Colorado Court of Appeals decision.

Buying or selling with STR in mind

If you are buying a Highlands Ranch home hoping to run an STR, do rigorous due diligence first. Confirm PD status, read the HOA’s rental rules, and get written clarification on any gray areas before you close. If you are selling, disclose any known rental use, violations, or approvals. A good overview of Colorado seller disclosure duties is available in this resource on home seller obligations in Colorado.

Talk with a local expert

If you want to understand how these rules affect your plans or value, let’s talk. Whether you are exploring a move, weighing rental options, or prepping a sale, you will get clear next steps and market-savvy guidance. Connect with Ryan Haarer for a quick strategy call.

FAQs

Can you run an STR in Highlands Ranch?

• Most Highlands Ranch homes are in a Planned Development where the county will not issue an STR license unless the PD expressly allows it, and HOA rules may also restrict short stays.

What does Douglas County require for eligible homes?

• You need a county STR license for stays under 30 days, safety and parking plans, a local responsible agent, and you must pay application and annual license fees per the county checklist.

Do you still need to register for taxes if a platform collects them?

• Yes, you generally must register with the Colorado Department of Revenue and file returns even if a platform collects some taxes on your behalf.

How can the county enforce STR rules on listings?

• Counties can require permit numbers on listings and coordinate with platforms to remove unlicensed listings under Colorado law.

What insurance should owners consider before hosting?

• Confirm with your insurer that your policy covers short-term rental use, or obtain an STR-specific policy or endorsement to avoid gaps in coverage.