Thinking about a short term rental near Ridgway and not sure what changed this year? You are not alone. Between town caps, new county permits, and state tax rules, the details can affect both your plans and your bottom line. In this guide, you will see what is shifting, what it means for you as a buyer or owner, and the simple steps to stay compliant. Let’s dive in.
Ridgway vs nearby rules
Town of Ridgway
If your property sits inside town limits, you need a town STR license. Ridgway runs a capped licensing program, posts current availability, and provides applications and waitlist forms on its administrative page. You can review forms and current guidance on the town’s site at the Administrative Information and Forms hub.
- See town licensing info and forms on the Ridgway site: administrative information and forms
Ouray County areas
If the home is outside town limits in unincorporated Ouray County, the county’s 2024 ordinance created a separate STR permit system, with limits by permit type. The county page outlines the cap structure, permit categories, and a “good neighbor” guide.
- County program details: Ouray County STR permitting
City of Ouray
Nearby Ouray is its own jurisdiction with stand‑alone rules. The city code shows typical requirements you should expect in small mountain towns, like occupancy limits, a local contact, and posting the license in the unit and online listings.
- Example municipal standards: City of Ouray STR code
License caps and availability
Ridgway caps total STR licenses at 50. The town page has shown availability snapshots, for example “8 out of 50 permitted,” which illustrates how the cap is actively managed. Availability can change quickly, so plan around the town’s waitlist and timing.
- Ridgway’s ordinance updates and fee resolutions are listed here: ordinances and resolutions
- Ouray County’s 2024 ordinance set countywide caps across permit types. The county’s STR permitting page outlines how those caps work: Ouray County STR permitting
Fees, inspections, and renewals
Expect an application fee, renewal fee, and possible inspection or reinspection fees. In early 2025, local reporting highlighted Ridgway fee and process changes, so budget for updated costs when you model returns. Many Colorado programs also make licenses non‑transferable at sale, which means a buyer must reapply or join the waitlist. Always confirm current transfer and renewal rules with the town clerk before you write an offer.
- Local reporting on recent changes: Ouray News coverage
- Ridgway forms and guidance for the latest process: administrative information and forms
Operating standards you should expect
Most nearby jurisdictions require clear posting of the STR license number, occupancy and parking limits, life‑safety items like smoke and CO detectors, and a local contact who can respond quickly. Expect nuisance rules around noise, trash, and snow removal, plus visible posting of house rules in the unit.
- See a common framework in the City of Ouray STR code
Taxes and marketplaces
Short stays under 30 days are generally subject to Colorado sales tax, plus any state‑administered local taxes. Towns or the county may also have separate lodging or marketing taxes. Marketplace facilitators like Airbnb or VRBO may collect some taxes for you, but you are still responsible for proper registration and any separate local filings if required. Verify what is collected on your behalf and what you must remit.
- State guidance on rooms and accommodations: Colorado Department of Revenue
- Example of local registration tools in nearby markets: City of Montrose licensing
Enforcement to expect
Mountain towns use complaint‑driven enforcement, fines, and the power to suspend or revoke licenses for repeated or serious violations. Some communities use third‑party tools to find unlicensed listings. Operating without a license or failing to post your number can lead to penalties and retroactive tax collection.
- Enforcement patterns and compliance themes have been reported regionally: Colorado Sun coverage
What this means for value
Caps, waitlists, and non‑transferable licenses affect pricing and negotiation. A property with a clear compliance history can command a premium. If a license cannot transfer, a buyer planning STR use should account for time on a waitlist and carry costs without rental income. In a capped market like Ridgway, license availability can be a key term during due diligence.
Buyer and seller checklist
Use this quick list to reduce surprises:
- Confirm jurisdiction. Is the address inside Ridgway or in unincorporated Ouray County? Rules differ. Check the town’s administrative info and the county’s STR permitting page.
- Verify license status. Ask the town clerk for a written status letter and whether licenses transfer on sale or require reapplication. Review the Ridgway ordinances list for recent amendments.
- Confirm operational rules. Identify occupancy limits, required postings, and the responsible local contact. See the Ouray municipal code example.
- Review taxes. Confirm sales and lodging tax registration, who is collecting on marketplaces, and your filing duties using state guidance on rooms and accommodations.
- Inspect safety items. Check smoke and CO detectors, egress, parking, snow removal plans, and any septic or tap capacity where applicable.
- Audit listings. Make sure the license number is posted on online listings if required. Missing numbers are a red flag.
State policy to watch
Colorado legislation in 2024 added new reporting and classification rules that can affect property taxes on STRs. Owners may need to file annual affidavits about STR use, and properties that are rented short term over certain thresholds may be classified as lodging property for valuation starting with the 2026 tax year. Build these potential tax changes into your pro formas and hold periods.
- Learn more from the General Assembly bill page: HB24‑1299
Deal strategy tips
- Write STR‑specific contingencies. Require confirmation of license transferability or a clear path to reapply and join any waitlist before you release deadlines.
- Tie price to compliance. Ask for proof of tax registration and remittance. A clean operating history is valuable in a capped market.
- Budget for fees and inspections. Recent updates increased some fees. Include license, renewal, and inspection costs in your carry plan.
- Confirm insurance. Ensure your policy covers STR use or add the required endorsement. Some jurisdictions require proof at licensing.
If you want a clear read on how these rules affect a specific property in Ridgway or down valley from Telluride, reach out to Hilbert Homes. Our local insight helps you align lifestyle goals with compliant, long‑term value.
FAQs
How do Ridgway and Ouray County STR rules differ?
- Ridgway has a town license with a cap and its own process, while unincorporated areas use Ouray County’s permit system with county caps by permit type. Check the town’s forms page and the county’s STR permitting.
Is there a cap on STR licenses in Ridgway?
- Yes. Ridgway caps total STR licenses at 50 and posts current availability on its administrative page. See Ridgway administrative information.
Do STR licenses transfer to a new owner in Ridgway?
- Many Colorado towns require a new owner to apply, and some licenses do not transfer. Confirm Ridgway’s current policy with the town clerk and review the town’s applications and guidance.
What taxes apply to short stays near Ridgway?
- Colorado sales tax applies to stays under 30 days, plus any local lodging or marketing taxes. Marketplaces may collect some taxes, but owners must verify registration and filing. See state guidance on rooms and accommodations.
What happens if I operate without a license or do not post it?
- Authorities can pursue fines, suspend or revoke privileges, and seek retroactive tax collection. Regional reporting highlights active compliance efforts. See coverage from the Colorado Sun.
What state law changes could affect my STR’s property taxes?
- 2024 legislation added reporting duties and set conditions for possible reclassification of STRs as lodging property beginning with the 2026 tax year. Review the General Assembly’s bill page for details: HB24‑1299.
