Home Luxury RE Short-Term Rental Rules Keystone STR Rules

Keystone Short-Term Rental Rules & Regulations

The short-term rental rules in Keystone, CO, are some of the most buyer-friendly in all of Summit County. If you are thinking about purchasing a property here and renting it out when you are not using it, Keystone has a clear, straightforward licensing system. 

There is also no cap on the number of licenses available. That is a big deal, and it is one of the reasons so many buyers are paying attention to the Keystone market.

Before we get into the rules, what is a short-term rental in its real sense? A short-term rental, or STR, is when you rent out your home, condo, townhome, or any other dwelling to guests for a period of less than 30 consecutive days. 

Think of it like listing your property on Airbnb or VRBO for a ski week or a long weekend. That is a short-term rental.

What Is a Short-Term Rental in Keystone, CO?

In Keystone, a short-term rental is officially defined as the rental of any dwelling unit for a period of less than 30 consecutive days. This definition covers homes, condos, townhomes, duplexes, and any other residential dwelling.

Now, here is an important distinction. Hotels, motels, lodges, and units within buildings that operate like a hotel with a central check-in area are not covered by these STR regulations. Those businesses have their own licensing. The STR rules apply specifically to privately owned residential properties being rented out directly to guests.

Keystone became an official town on February 8, 2024. Before that, it was an unincorporated community governed by Summit County. Now that Keystone has its own government, it sets its own STR rules.

When Did Keystone Start Regulating Short-Term Rentals?

According to the official Keystone STR website, the Town of Keystone began regulating and administering short-term rental licensing on September 30, 2024.

Before now, properties inside what would become Keystone town limits were regulated under Summit County's STR rules for unincorporated areas. As of October 1, 2024, those Summit County rules no longer apply to properties within Keystone town limits. Keystone handles its own licensing completely.

This is important because it means you need to check whether a specific property is inside Keystone town limits before assuming which rules apply to it. Properties just outside the town boundary are still under Summit County's jurisdiction, not Keystone's. The town's website directs buyers to use the Summit County GIS parcel query tool to check any specific address.

Does Keystone, CO, Have a Cap on Short-Term Rental Licenses?

The answer is no. There is no cap on the number of STR licenses in Keystone. And this is one of the most important questions any buyer will ask.

Here is why that is a good catch. Some Colorado mountain towns have restricted the total number of STR licenses available. Which means even if you buy a property, you might not be able to get a license to rent it out. In those markets, buyers sometimes wait on a lottery or waitlist just to get permission to operate a short-term rental.

Keystone works differently. According to the official Keystone STR FAQ, all properties within the town limits of Keystone fall within the Resort Overlay Zone. Under the Summit County regulations that previously governed this area, there was no cap on licenses in the Resort Overlay Zone. 

Keystone carried that same policy forward when it took over regulation. Every property inside Keystone town limits that meets the requirements can get an STR license.

How Do You Get a Short-Term Rental License in Keystone, CO?

Getting a Keystone STR license is done entirely online. The town's licensing system is available at keystoneco.gov/short-term-rentals. 

The application process is straightforward and typically takes around 10 minutes to complete.

Here are the key things to know about the application process:

• You must apply for a new license before you can list any property as a short-term rental. You cannot use a previous owner's license when you purchase a property.

• The license number you receive must be listed in all property advertisements, including listings on Airbnb, VRBO, and any other platform where you promote the rental.

• The full regulations are detailed in two places: the Town's Land Use and Development Code in Section 3821 and Ordinance 2025-O-14.

• If you are not sure whether your property falls within Keystone town limits, use the Summit County GIS parcel query tool before applying.

If you have questions about the application, the Town Clerk's Office can help. You can reach them at 970-450-3500 extension 1 or visit the Town of Keystone contact page at keystoneco.gov/contact-us.

How Much Does a Keystone STR License Cost?

A short-term rental license in the Town of Keystone costs $285 per year. This fee applies to both new license applications and annual renewals. That amount is confirmed directly on the official Keystone STR FAQ page.

Compared to other Summit County towns, $285 per year is a reasonable cost for operating a rental property. Now that you know the license fee, keep in mind that this is the town's fee only. You will also need to factor in the lodging tax, which we cover in the next section.

What Is the Lodging Tax on Short-Term Rentals in Keystone?

The Town of Keystone has a 2% lodging tax on short-term rentals as of 2026. Keystone voters approved this tax on November 5, 2024, and it went into effect on January 1, 2025. 

This 2% town lodging tax is collected on top of other applicable state and county taxes. For the most current and complete information about all tax obligations for STR operators in Keystone, visit the Keystone Lodging Tax Information page. 

Tax rates and collection requirements can change, so always check the official source before filing.

How Long Is a Keystone STR License Valid?

A Keystone STR license is valid until September 30 of the year following the year it was issued. That means if you receive your license in January 2026, it is valid until September 30, 2027.

The renewal period opens every September. If you miss the renewal window, your license expires. And you will need to apply for a brand-new license rather than a renewal. This is something to put on your calendar every year as a property owner in Keystone.

One important thing to remember is STR licenses in Keystone are non-transferable and non-refundable. This means when you buy a property in Keystone, you cannot use the previous owner's license. You must apply for and receive your own new license before listing the property for any short-term rental.

Do HOA Rules Override the Town STR License?

Before answering the question, in Keystone, CO, HOA stands for Homeowners Association. Now, to the question: Do HOA rules override the town STR license? The answer is no. A town STR license does not override your homeowner's association rules. 

The Keystone STR guidelines are very clear on this point. When you apply for a Keystone STR license, you are required to confirm that you have reviewed your HOA's policies on short-term rentals.

This means two things for buyers. First, before you purchase any property in Keystone with the intention of renting it short-term, you must read that specific property's HOA rules. Some HOAs in Keystone allow short-term rentals. Others restrict or prohibit them entirely. The town license only gives you permission from the town government. It does not give you permission to override an HOA restriction.

Second, if you buy a property and your HOA restricts short-term rentals, getting a town license will not help you. You would still be in violation of your HOA agreement. 

This is why working with an experienced local real estate agent matters so much. If you need help, Natalia Bassova of Resort Real Estate Inc. knows which buildings and communities in Keystone allow short-term rentals and which ones do not. Call 970-389-8899 or email summitrealty@luckymountainhome.com before you buy.

What Happens If You Rent Without a License in Keystone?

Operating a short-term rental without a valid license in Keystone is a violation of the town's regulations. Remember, the town began enforcing STR regulations on October 1, 2024. According to the official guidelines page, the license number must be listed in all property advertisements, which gives the town a clear way to identify unlicensed rentals.

If you have a complaint about a short-term rental property in Keystone, there are two ways to report it. 

You can submit an online complaint form through the Keystone STR complaints page, or you can call the STR complaint hotline directly at 970-486-3010. The town took over enforcement of STR complaints for properties within town limits on October 1, 2024.

Does a Short-Term Rental License Transfer When You Sell?

This is a detail that surprises a lot of buyers. STR licenses in Keystone are non-transferable and non-refundable. When a property is sold, the license does not transfer to the new owner.

This means if you purchase a Keystone property that was previously operating as a successful short-term rental with an existing license, that license belongs to the previous owner. You cannot take over their license. 

You need to apply for your own new license before you list the property. The process is straightforward and takes about 10 minutes online, but you need to complete it before your first guest checks in.

What Properties Fall Outside Keystone Town Limits?

Not every address with Keystone in its name is actually inside the Town of Keystone. Some properties in the Keystone area are still in unincorporated Summit County, which means they fall under Summit County's STR rules rather than Keystone's.

The best way to check is to use the Summit County GIS parcel query tool that the Town of Keystone recommends on their official website. You enter the property address, and the tool shows you exactly which jurisdiction the parcel falls under.

This distinction matters because the rules can be different. Before now, all of the Keystone area was governed by Summit County STR rules. Now that Keystone is its own town, properties inside the boundary follow Keystone rules and properties outside follow Summit County rules. Always confirm which jurisdiction applies before you buy.

Now that you understand the STR rules in Keystone, you can see why this market is so attractive for buyers who want rental income flexibility. A straightforward license process, no cap on licenses, and a $285 annual fee. Plus, a resort community that draws millions of visitors every year adds up to one of the best short-term rental environments in Summit County.

If you are thinking about purchasing a Keystone property as a vacation rental investment, Natalia Bassova of Resort Real Estate Inc. has over 21 years of experience navigating this market. She knows which buildings allow STRs, which HOAs are rental-friendly, and which properties have the strongest rental history. Call 970-389-8899 or email summitrealty@luckymountainhome.com.

How Do Short-Term Rental Rules Affect Buying in Keystone?

Understanding the STR rules before you buy an investment property is one of the smartest things you can do as a buyer in Keystone. Here is how these rules shape the buying decision.

The No-Cap Policy Gives Buyers More Flexibility

First, the no-cap policy means you are not competing against a limited license pool. As long as your property is inside Keystone town limits and your HOA permits short-term rentals, you can get a license and start renting. This makes Keystone more flexible than some other Summit County markets where STR licenses are restricted or limited by zone.

HOA Rules Can Affect Your Rental Plans

Second, the HOA question is the most important one to answer before you close on any property. Recall that a town license does not override HOA rules. If an HOA restricts rentals, you cannot use the property as an STR regardless of the town's policy. This is why due diligence on HOA rules is critical for any Keystone buyer who wants rental income.

STR Licenses Must Be Obtained After Closing

Third, the non-transferable license means you need to budget a few days after closing to complete the license application before your first rental. The process takes about 10 minutes online, but you cannot list the property until the license is issued and the number is included in your advertisement.

Now that you know the rules, the next step is finding the right property… 

Browse Keystone condos, Keystone townhomes, Keystone homes, and Keystone duplexes to see what is currently available.

Keystone's short-term rental rules are clear, fair, and designed to work for property owners who want to rent their homes when they are not using them. 

The combination of no license cap, a straightforward application, and a resort market that draws year-round visitors makes Keystone one of the most practical STR markets in Summit County.

Natalia Bassova of Resort Real Estate Inc. has over 21 years of experience helping buyers find the right property across Keystone, Breckenridge, Frisco, Dillon, Silverthorne, and Copper Mountain. 

If you want to find a Keystone property that works for both personal use and rental income, reach out at 970-389-8899 or email summitrealty@luckymountainhome.com. Or browse current Keystone listings to see what is on the market right now.

All of the information in this article comes directly from the Town of Keystone's official STR page and the Keystone STR guidelines page. Every fact here has been verified from those official sources.

Frequently Asked Questions About Keystone CO Short-Term Rental Rules

Do I need a license to rent my Keystone, CO property short term?

Yes. All properties within the Town of Keystone that are rented for less than 30 consecutive days require a short-term rental license from the town. The Town of Keystone began administering STR licenses on September 30, 2024. You must obtain your license and include the license number in all property advertisements before your first guest stays. You can apply at keystoneco.gov/short-term-rentals. The application takes approximately 10 minutes to complete online.

How much does a Keystone STR license cost?

A Keystone short-term rental license costs $285 per year. This fee applies to both new license applications and annual renewals. Licenses are valid until September 30 of the year following issuance. The renewal period opens each September. If you miss the renewal window, you will need to apply for a new license rather than renewing your existing one.

Is there a cap on short-term rental licenses in Keystone, CO?

There is no cap on the number of short-term rental licenses in Keystone. All properties within the town limits of Keystone fall under the Resort Overlay Zone, which carries no limit on the number of licenses that can be issued. This policy was confirmed by the Town of Keystone when it took over STR regulation from Summit County on October 1, 2024, and is documented on the official Keystone STR FAQ page.

Do Keystone HOA rules override the town STR license?

A town STR license does not override your homeowner's association rules. When you apply for a Keystone STR license, you are required to confirm that you have reviewed your HOA's policies on short-term rentals. If your HOA restricts or prohibits short-term rentals, the town license does not give you permission to ignore those restrictions. Before purchasing any Keystone property with plans to rent it short-term, always read the specific HOA rules for that property and community.