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Frisco CO Short-Term Rental Rules: Everything You Need to Know Before You Rent

If you are thinking about buying a property in Frisco CO and renting it out on Airbnb or VRBO, the Frisco short-term rental rules are the first thing you need to understand. They are not the same as Keystone's rules. They are not the same as Summit County's rules.

Frisco has its own STR program with a hard cap on licenses, an active waitlist, specific operating requirements, and a tax structure that every owner must know before they list a single night.

And one key thing to know about their rule is that Frisco reached its maximum number of STR licenses in February 2023. So anyone who wants a new license today must join a waitlist and wait for an existing license to become available.

Recent applicants waited 12 to 14 months. Continue reading to uncover every confirmed rule from the official Town of Frisco STR pages. This will help you know exactly what you are getting into before you buy.

What Are the Short-Term Rental Rules in Frisco, CO?

Short-term rental rules in Frisco apply to any rental of a residential property for fewer than 30 consecutive days. It does not matter how you market the property. You can market on Airbnb, VRBO, a property management company, a newspaper ad, or word of mouth. If someone pays to stay in your Frisco property for less than 30 days, you need a Frisco STR license.

These rules apply to every property inside the Town of Frisco boundaries. Not Summit County. Not unincorporated areas around Frisco. If your property is inside the Town of Frisco, these rules apply to you.

The Town of Frisco introduced STR regulations because short-term vacation rentals in residential neighborhoods create specific challenges like parking, trash, noise, and the impact on long-term housing availability.

Frisco has approximately 500 traditional hotel and motel rooms, and short-term rentals have been part of the Frisco economy for over 40 years. The rules introduced in 2022 were designed to manage that growth without shutting it down.

Why Does Frisco Have a Cap on STR Licenses?

According to the Town of Frisco official Short-Term Rental page, on October 11, 2022, the Town of Frisco adopted Ordinance 22-10. Which capped the number of STR licenses at 25% of the town's residential housing stock. The ordinance went into effect on October 17, 2022.

The math is that Frisco has 3,600 residential housing units. 25% of 3,600 is 900. So the maximum number of STR licenses in Frisco is 900. That cap exists to protect the availability of long-term housing for full-time residents and to manage the impact of short-term rentals on residential neighborhoods.

Frisco reached 900 active STR licenses in February 2023. Since then, no new licenses have been issued. Instead, a waitlist is in place for anyone who wants a license when one becomes available.

What Is the Current STR License Situation in Frisco?

As said earlier, the Frisco STR license cap is currently full. The town has issued all 900 licenses it is permitted to issue under Ordinance 22-10. No new licenses are being granted outside the waitlist process.

The only way to get a new Frisco STR license today is to join the waitlist and wait for an existing license holder to let their license expire, sell their property, or voluntarily close their STR account. The Town of Frisco posts an updated waitlist on their website monthly so you can track your position.

There is one category of buyers who are exempt from the cap. If you went under contract to purchase a residential property on or before October 11, 2022. Or if you submitted a building permit application for new construction on or before that date, you are exempt from the cap.

You can request an STR account number directly from the Town by emailing STRSupport@townoffrisco.com. All exempt applications must be submitted within 20 days after the certificate of occupancy is issued or after the closing of the sale.

How Does the Frisco STR Waitlist Work?

The Frisco STR waitlist is a formal process managed by the Town of Frisco. This is exactly how it works, step by step:

Step 1: Submit the waitlist registration form

Go to the Frisco STR waitlist registration page and complete the online registration form. You must provide proof of ownership, which can be a bill of sale, a screenshot of the Summit County Assessor GIS data, a warranty deed, or a property tax statement. You also need to provide a government-issued ID.

Step 2: Pay the $25 fee

A non-refundable $25 waitlist application fee is required when you submit the form. This fee does not go toward the STR license fee. It is a separate registration fee, and it is not refunded under any circumstances.

Step 3: Receive your confirmation

Once submitted, your entry is time-stamped and placed on the waitlist in the order it was received. You will get a confirmation email from STRSupport@townoffrisco.com with your registration number and your waitlist position.

Step 4: Wait

Applicants who submitted in 2023 and 2024 spent 12 to 14 months on the waitlist. The Town cannot tell you exactly how long your wait will be because it depends on how many existing license holders let their licenses expire or sell their properties.

Step 5: Respond within 14 days

When a license becomes available, the Town contacts you by email. You then have 14 days to submit a completed STR license application. If you do not submit within 14 days, the license is denied, you lose your waitlist position, and no refund is issued.

Important: Do not change your registration details

If you change the property owner name or address after submitting the form, you lose your place on the waitlist. You would then need to cancel your registration and start over. The name and address on your registration must match exactly what you put on the STR license application.

What Are the 7 Documents You Need to Apply for a Frisco STR License?

When a license becomes available and the Town of Frisco contacts you, you have 14 days to submit a complete application. Here are the 7 documents that application requires:

1. MUNIRevs/GovOS account number and activation code: The Town will issue this to you when they notify you that a license is available.

2. Government-issued photo ID: A copy of a valid, current ID for the property owner.

3. Proof of property ownership: A bill of sale, real estate deed, title, mortgage statement, or screenshot of the Summit County Assessor GIS parcel data.

4. Parking plan: A photograph or illustration showing the dedicated parking spaces for your property and their locations. Google Maps is an acceptable resource for creating this. The plan must show each parking space clearly.

5. Life safety affidavit: A signed document confirming that the property meets the town's building, technical, and safety codes. It also confirms that smoke detectors, carbon monoxide detectors, and fire extinguishers are properly installed and that all wood-burning fireplaces, stoves, and chimneys are cleaned annually.

6. Emergency contact and rental agent information: You must designate an emergency contact who is available 24 hours a day, 7 days a week to respond to and resolve complaints.

7. Schedule number from the Summit County Assessor: This is the parcel identifier for your property, available through the Summit County Assessor's GIS map.

What Are the Operating Rules for Frisco Short-Term Rentals?

Once you have a Frisco vacation rental license, there are ongoing rules you must follow every time you rent the property. These are:

Occupancy Limits

The maximum occupancy for any short-term rental in Frisco is two people per bedroom plus four additional occupants. This is a breakdown:

• 1-bedroom unit: maximum 6 guests (2 + 4)

• 2-bedroom unit: maximum 8 guests (4 + 4)

• 3-bedroom unit: maximum 10 guests (6 + 4)

• 4-bedroom unit: maximum 12 guests (8 + 4)

Your STR license number and your approved maximum occupancy must appear in every rental advertisement you run, on any platform.

Parking Rules

• No street parking for guests: Guests may not park on public streets, public right-of-ways, or landscaped areas. All guest vehicles must park in the designated spaces shown on your parking plan.

• No overnight sleeping in vehicles: No person is permitted to stay overnight in a parked vehicle on your property.

• Share the parking plan with guests: Every guest must receive a copy of the parking plan before or on arrival so they know where to park.

Good Neighbor Guidelines

The Town of Frisco has a set of Good Neighbor Guidelines that must be posted in a prominent location inside every STR property. The guidelines cover parking, wildfire prevention, respecting neighbors, trash and recycling, and noise. You can download the current version from friscogov.com.

Information Notice Inside the Property

Every Frisco STR must have a visible information notice posted inside the rental at all times. This notice must include all of the following:

• Emergency contacts: 911 for emergencies, 970-668-8600 for non-emergency issues like noise complaints

• The physical address of the property

• The 24/7 emergency contact name and number

• The Town of Frisco STR license

• Location of fire extinguishers and fire escape routes

• Parking location and maximum number of vehicles allowed

• Alternative parking locations if available

• Trash and recycling rules and locations

• Snow removal instructions

• Noise policies

• Pet policies

• Applicable HOA policies for the property

Additional Rules

• No outdoor overnight camping: No person may camp outdoors overnight on the property.

• No overnight use of RVs or trailers: Recreational vehicles and trailers may not be used for overnight stays on the property.

• 24/7 emergency contact required: You must have a designated emergency contact reachable at all times to respond to and resolve any complaints about the property.

What Are the Taxes on Short-Term Rentals in Frisco, CO?

Every Frisco short-term rental is subject to a total tax of 15.725% of gross rental revenue. Gross revenue includes everything the guest pays, like the nightly rate, cleaning fees, booking fees, pet charges, and any other non-optional fees.

This is how the 15.725% breaks down:

• 2.9% State of Colorado sales tax

• 2.0% Summit County sales tax

• 0.75% Summit County mass transit tax (Summit Stage)

• 0.725% Special District (Summit County Housing Authority) sales tax

• 2.0% Town of Frisco sales tax

• 2.35% Town of Frisco lodging tax

• 5.0% Town of Frisco STR excise tax (for stays with a checkout date of June 1, 2022, or later)

The Town of Frisco's total portion of that tax is 9.35%. That is the 2.0% Frisco sales tax, plus the 2.35% lodging tax, plus the 5.0% STR excise tax, all combined.

The good news for most owners is that Airbnb and VRBO collect and remit most of this automatically. Airbnb collects and remits Frisco STR taxes for bookings made on or after February 1, 2023. VRBO does the same for bookings made on or after May 1, 2021.

This means if all your bookings come through these platforms, the tax filing burden is minimal.

However, if you accept any direct bookings from guests without going through Airbnb or VRBO, you are responsible for collecting and remitting that 9.35% Town of Frisco portion yourself.

On the other hand, independent owners with direct bookings file an annual STR tax return due by January 20 of the following year.

What Happens If You Break the STR Rules in Frisco?

According to the Town of Frisco, these are the two things that can happen if you operate outside the STR rules:

License Suspension

Your Frisco STR license can be suspended for up to 150 days for any of the following reasons:

• More than one Municipal Court violation of the Town Code within one year

• Operating in violation of building, fire, health, or safety codes (you are given a 20-day correction period)

• Failure to file or pay applicable sales and lodging taxes

• Failure to pay the annual license fee

License Revocation

Your Frisco STR license can be revoked for up to one full year for any of the following reasons.

• More than one suspension within the past year

• Submitting false or misleading application materials

• Operating the STR during a suspension

• Any conditions that would have warranted a denial of the license at the time you applied

If your license is denied, suspended, or revoked, you can appeal in writing to the Town Manager within five working days. You are entitled to a hearing. If it is a suspension or revocation, you can continue operating during the hearing process until a decision is made.

If you are considering buying a Frisco property with rental income in mind, the STR waitlist changes the math significantly. You could close on a property today and wait 12 or more months before your first legal rental night.

Natalia Bassova of Resort Real Estate Inc. has over 21 years of experience in the Frisco market. She knows which properties have existing STR licenses, how the waitlist affects investment timelines, and how to find properties that work for your specific goals. Call 970-389-8899 or email summitrealty@luckymountainhome.com to talk through your options before you buy.

How Do You File and Pay STR Taxes in Frisco?

Your filing responsibilities depend on how your property is booked. The following 4 things are what matters:

1. Airbnb or VRBO bookings: If all your bookings come through Airbnb (for bookings from February 1, 2023 onward) or VRBO (for bookings from May 1, 2021 onward), those platforms collect and remit the Town's STR taxes on your behalf. You do not need to file or pay separately for those bookings.

2. Property manager bookings: If you use a property management company, they are required to collect and remit the Town's 9.35% STR taxes on your behalf and file monthly tax returns. Confirm with your manager exactly what they cover.

3. Direct bookings: If you accept any bookings directly from guests without a platform or manager, you are responsible for collecting and remitting the 9.35% Town of Frisco STR taxes yourself. You file an annual STR tax return due by January 20 of the following year.

4. State and county taxes: All state, county, and special district taxes (the non-Frisco portions of the 15.725%) are remitted to the State of Colorado using the Frisco jurisdiction code 610007 on a state sales tax return.

For the full tax breakdown and filing instructions, visit the Frisco STR taxes and payments page.

6 Things Buyers Must Know About Frisco STR Licenses Before They Purchase

What buyers should know about Frisco STR licenses before buying really concerns anyone considering buying a property in Frisco with rental income in mind.

STR licenses are NOT transferable

This is the single most important rule for buyers. If you purchase a property that has an active Frisco STR license, that license does not transfer to you. When the property is sold, the seller's license closes. You, as the new owner, must apply for a new license and join the waitlist from scratch. You cannot inherit a license. You cannot buy a property because it has a license and expect to rent it out immediately.

Budget for the waitlist wait time

If you are buying with rental income as a primary goal, plan for the possibility that you will not generate a single dollar of legal STR income for 12 months or more after you close. Your mortgage, HOA fees, property taxes, and maintenance costs will all start the day you close. Your STR income may not start for over a year.

Check the license status before you make an offer

Ask your agent to find out whether the current owner has an active STR license and when it was issued. This can help you understand how much of the waitlist process has already been cleared. But remember, the license still does not transfer to you.

Factor in the full cost of licensing

The STR license itself costs $250 per year. The waitlist registration costs $25. But the bigger cost is the income you will not earn during the waitlist period. Run your numbers based on a 12-month delay before rental income begins and see whether the investment still makes sense.

Confirm your property is inside Frisco town limits

Not every address that uses Frisco, Colorado, is inside the Town of Frisco. Some properties are in unincorporated Summit County, which has different STR rules. Use the Summit County GIS parcel query tool to confirm your property's jurisdiction before assuming any STR rules apply.

Check your HOA

A Frisco STR license gives you government permission to rent. It does not override your HOA. Some condo buildings and communities in Frisco restrict or prohibit short-term rentals in their governing documents. Read the HOA rules for any property you are seriously considering before making an offer.

Still trying to figure out if a Frisco rental property makes financial sense for you?

The STR waitlist changes the math in ways that are easy to underestimate. Your mortgage, HOA fees, and property taxes start on day one. Your rental income may not start for over a year.

Running those numbers correctly before you buy, not after, is exactly where an experienced local agent makes the difference. Natalia Bassova of Resort Real Estate Inc. has over 21 years of experience in the Frisco market.

She knows which properties are worth the wait and which ones do not pencil out once the waitlist delay is factored in. Call 970-389-8899 or email summitrealty@luckymountainhome.com to run the numbers together before you commit.

Frequently Asked Questions About Frisco Short-Term Rental Rules

Does Frisco CO have a cap on short-term rental licenses?

Yes. Frisco adopted Ordinance 22-10 on October 11, 2022, capping STR licenses at 25 percent of the town's residential housing stock. With 3,600 residential units in Frisco, the maximum number of STR licenses allowed is 900. Frisco reached that cap in February 2023. Since then, a waitlist has been in place for anyone who wants a new STR license.

How long is the Frisco STR waitlist?

The Town of Frisco cannot give a guaranteed wait time because it depends on how many existing license holders let their licenses expire or sell their properties. Recent applicants who submitted in 2023 and 2024 spent 12 to 14 months on the waitlist before a license became available. The Town updates the waitlist monthly on their website so you can track your current position after registering.

Are Frisco STR licenses transferable when a property is sold?

No. Frisco STR licenses are not transferable. If you purchase a property that has an active STR license, that license closes when the property is sold. The new owner must apply for a new license and join the waitlist from scratch. This is the most critical fact for any buyer considering a Frisco property for short-term rental income.

What is the total tax rate on short-term rentals in Frisco, CO?

The total tax on gross short-term rental revenue in Frisco is 15.725%. This includes 2.9% of the state of Colorado sales tax. 2.0% Summit County sales tax, 0.75% Summit County mass transit tax, 0.725% Special District sales tax, 2.0% Frisco sales tax, 2.35% Frisco lodging tax and 5.0% Frisco STR excise tax. The Town of Frisco's portion of that total is 9.35%. Airbnb collects and remits the Town's taxes for bookings made on or after February 1, 2023. VRBO does the same for bookings made on or after May 1, 2021. If you take direct bookings without a platform, you are responsible for collecting and remitting the 9.35% Town portion yourself.