Are Vacation Rentals Allowed in Manitou Springs?

Yes, short-term rentals are allowed in Manitou Springs, but the city enforces some of the strictest regulations in Colorado. Ordinance 1416, enacted in 2016, caps STRs at 2% of all residential structures and requires a 500-foot separation between permitted properties. The city defines a vacation rental as the rental of a dwelling or portion of a dwelling for not less than one day and not more than 29 days under Chapter 18.89 of the Municipal Code. This ordinance took effect in spring 2016 after a moratorium that began in 2015.

The moratorium was necessary because an estimated 40% of short-term rental operators in Manitou Springs were running without permits. The city needed time to build a regulatory framework that balanced tourism revenue with neighborhood stability.

What makes Manitou Springs unique among Colorado STR markets is the combination of three strict controls working together. The 2% cap limits total permits to roughly 56 properties based on the 2013 residential baseline of 2,800 structures. The 500-foot separation rule prevents clustering. And the 185-day owner-occupancy requirement means only primary residents can host. These layers make Manitou Springs one of the most tightly regulated mountain town STR markets in the state.

Manitou Springs has effectively created a supply ceiling that most Colorado markets lack. That constraint keeps competition manageable for permitted operators, but it also makes entering the market extremely difficult for investors.

Are Airbnbs Available in Manitou Springs, Colorado?

Yes, Airbnbs are available in Manitou Springs. Current data shows 242 active listings on the platform. The average nightly rate is $206 with 52% occupancy across the market. These properties are all operating under the city’s permit requirements and owner-occupancy rules outlined in Ordinance 1416.

However, availability is constrained by the 2% cap on total permitted properties. New listings cannot be created once the city reaches its regulatory limit. If you are considering converting your property to an Airbnb in Manitou Springs, you should verify permit availability before investing time and resources in the application process.

Are Vacation Rentals Available in Manitou Springs, Colorado?

Yes, vacation rentals are available in Manitou Springs. The market includes both full-property rentals and owner-occupied bed-and-breakfast style operations where guests rent individual rooms. The city tracks approximately 242 active listings generating an average of $206 per night with 52% occupancy rates.

STRProfitMap reports median annual earnings of $37,090 for Manitou Springs vacation rental operators, with top performers reaching $52,033. These earnings are after taxes and operating costs. Availability for new operators depends on whether the city has reached its 2% permit cap.

The Permit Process: Planning Commission Approval Required

Getting permission to operate a vacation rental in Manitou Springs requires Planning Commission approval of a Minor Conditional Use Permit, plus a separate City business license. This is not a simple application. It involves multiple documents, a public hearing, and ongoing compliance requirements.

Step 1: Confirm Eligibility

Before applying, check the city’s Short-Term Rental Web Map to verify that your property is at least 500 feet from any existing permitted STR. You also need to confirm the city has not reached its 2% cap. If the cap is full, the city will not accept new applications.

Step 2: Assemble Your Application

The application packet requires a completed and signed application by the property owner, a signed and notarized compliance checklist, proof of ownership, a scaled site plan showing the north arrow, existing zone district, adjoining property owner names, location of all improvements, and parking areas. You also need a floor plan, a parking plan, and a map proving the 500-foot separation from other STRs. Designate a 24-hour contact person who can respond to emergencies.

Step 3: Planning Commission Review

The Planning Commission evaluates your application for neighborhood compatibility and compliance with LUDC Sections 18.04.5.4 and 18.06.4.5. Be prepared to attend the hearing and demonstrate your property meets all use standards.

Step 4: Obtain Your Business License

After permit approval, secure your City business license before creating any listing on Airbnb, Vrbo, or other platforms. Every listing must include your STR permit number and a statement confirming compliance with all Manitou Springs Municipal Code requirements. Contact the Planning Department at (719) 685-4398 for current application fees and scheduling.

Permits are owner-specific and non-transferable. They expire on sale or transfer of the property. If you sell or transfer ownership, your successor must apply for their own permit and meet all current requirements.

Owner-Occupancy and Minimum Rental Requirements

Manitou Springs requires that your STR property be your primary residence and that you live there at least 185 days per calendar year. This single rule eliminates the investment-property model that works in markets like Pueblo or Castle Rock. You cannot buy a second home in Manitou Springs and operate it as a full-time vacation rental.

The city also sets a minimum rental threshold. Your property must be occupied by paying guests for at least 21 days per calendar year to maintain its STR permit status. This prevents owners from obtaining permits they do not actively use, which would take up a slot under the 2% cap.

Individual rooms can be rented only if the owner lives on the property during the guest stay, according to Ordinance 1416. This effectively allows a bed-and-breakfast style operation within owner-occupied homes.

For owners who meet the residency requirement but want help with guest communication and turnover management, working with a management company is permitted under the ordinance. The permit itself cannot be transferred, but a third party can manage day-to-day operations on the owner’s behalf.

Tax Obligations for Manitou Springs STR Hosts

Vacation rental operators in Manitou Springs must collect and remit taxes at multiple levels. Here is the complete breakdown:

Tax Type	Rate	Authority
City Sales Tax	3.90%	City of Manitou Springs
City Lodging/Camping Tax	2.00%	City of Manitou Springs
El Paso County Tax	1.23%	El Paso County
Colorado State Sales Tax	2.90%	State of Colorado
Combined Minimum Rate	~10.03%	All levels

Lodging and camping taxes are due on the 20th of each month following the period the revenue was generated, filed through the City Finance Department. The city’s combined sales tax rate of 9.03% includes the state, county, and city components, with the 2% lodging tax layered on top for accommodation providers.

Even if booking platforms like Airbnb collect and remit certain sales taxes on short-term rentals, owners remain legally responsible for verifying correct remittance at every level. For tax questions, contact the Finance Department at (719) 685-2565.

Safety and Operational Compliance

Manitou Springs enforces specific safety and posting requirements that go beyond what many Colorado communities require. Non-compliance can result in permit revocation.

Fire safety equipment: Install fire extinguishers on each floor level, clearly marked and accessible. Carbon monoxide alarms must be placed within 15 feet of every bedroom or sleeping room entrance. These must be functional during every guest occupancy.

Beyond fire safety, you must maintain proper insurance for short-term rentals and ensure your property meets all local building codes. Keep documentation of safety inspections and equipment testing available for city review.

Quick Recap

• Manitou Springs allows STRs only under Ordinance 1416 with a 2% cap (roughly 56 permitted properties).
• You must live on the property at least 185 days per year as your primary residence.
• Planning Commission approval and a Minor Conditional Use Permit are required before listing.
• Permits are owner-specific and non-transferable; they expire on sale or property transfer.
• Your property must be rented to paying guests at least 21 days per calendar year.
• Combined taxes total approximately 10%, including city, county, state, and lodging taxes.
• Fire extinguishers and carbon monoxide alarms must be installed and maintained.
• A 24-hour contact person must be designated for emergencies.
• Management companies can handle operations, but you retain permit responsibility.
• The 500-foot separation rule prevents clustering of STRs throughout the city.

Frequently Asked Questions

What happens if I sell my Manitou Springs property with an active STR permit?

Your permit expires automatically upon sale or transfer. The new owner must apply for their own Minor Conditional Use Permit and meet all current requirements. Permits are owner-specific and non-transferable under Manitou Springs ordinance.

Can I rent out just one room in my owner-occupied home?

Yes, but only if you live on the property during each guest stay. This creates a bed-and-breakfast style operation. The owner must be present whenever guests are renting individual rooms. Full-property rentals require owner-occupancy but not necessarily concurrent presence.

How long does the Planning Commission approval process take?

The source does not specify exact timelines. Contact the Planning Department at (719) 685-4398 for current processing timeframes and application fees. The process includes application review, neighborhood compatibility evaluation, and a public hearing.

What if the 2% permit cap is already full?

The city will not accept new applications once it reaches the 2% cap. You should verify availability through the Planning Department before investing time and resources in an application. Check the city’s Short-Term Rental Web Map to understand current permit status.

Do booking platforms like Airbnb handle all my tax payments?

No. Even if Airbnb collects and remits certain sales taxes, you remain legally responsible for verifying correct remittance at every level (city, county, and state). Contact the Finance Department at (719) 685-2565 to confirm all obligations are met.

Can I hire a property manager if I own a Manitou Springs STR?

Yes. Third-party management companies can handle day-to-day operations like guest communication and turnover if you meet the 185-day owner-occupancy requirement. However, the permit itself cannot be transferred. You retain ultimate responsibility for permit compliance.

What earnings can I expect from a Manitou Springs vacation rental?

STRProfitMap reports median annual earnings of $37,090 for Manitou Springs operators, with top performers reaching $52,033. AirDNA data shows 242 active listings averaging $206 per night with 52% occupancy. Your actual earnings depend on location, property quality, and management practices.