Buy a Short-Term Rental in Durango & La Plata County
Short-term rules inside Durango city limits are tight, only a handful of zones allow them at all. Widening the search to La Plata County opens up more options and different rules to navigate. Here's what you need to know about both before you start looking at properties.
Not Every Neighborhood Qualifies
Durango only permits vacation rentals in specific zones: the Central Business District, Mixed-Use zones, a handful of Planned Developments, and two Established Neighborhood zones (EN-1 and EN-2). Those two residential zones carry hard caps, 22 total in EN-1 and 17 in EN-2, and most other eligible zones are development-specific with their own caps, many already full with waitlists. Some neighborhoods, including Twin Buttes, Three Springs, Rockridge, and Skyridge, don't allow vacation rentals at all, regardless of zoning. I'll confirm a property's zone and permit availability before you get attached to it.
Permits Don't Transfer With the Sale
Vacation rental permits in Durango are non-transferable, so if you buy a property that currently operates as one, the sale automatically invalidates its permit. You'd need to reapply through the city's Limited Use Permit process, and in a capped zone, that could mean landing on a waitlist with no guarantee of approval. This is one of the most important things to verify before assuming a listed "active STR" comes with a permit you can keep.
A Small, In-Demand Market
Because permits are capped and several zones are already full, Durango's supply of legal vacation rentals stays limited while tourist demand, driven by downtown, the ski season, and river access, remains strong. That scarcity tends to work in favor of existing permitted properties, but it also means you're often competing for a small pool of eligible listings rather than shopping freely across the whole city.
No Permit Required, But Real Requirements Still Apply
Unlike Durango, La Plata County doesn't run a permit or licensing program for short-term rentals, there's no zone caps or application process to navigate. That said, "unregulated" doesn't mean "no rules." The county requires a state sales tax license, and you'll need to collect and remit Colorado's lodging and sales tax. The county also expects a written good-neighbor policy covering things like occupancy limits, parking, noise, and a manager reachable within 30 minutes of any issue.
Easier Today, Not Guaranteed to Stay That Way
This more open approach has made the county an appealing alternative to Durango's capped system. Worth knowing going in: county commissioners have discussed adding formal STR regulations in the past, so what's true today isn't necessarily permanent. I keep an eye on this for any active listing, since a property bought under today's rules could face different ones down the road.
Confirm Which Government Actually Applies
This is the single most important thing to check first, plenty of addresses that feel like Durango actually sit in unincorporated La Plata County, not the city. Different rules, different taxes, different everything, depending on which one governs a specific parcel. I also check the subdivision and HOA CC&Rs on any property we're considering, since an HOA can restrict or ban short-term rentals even where the county allows them. I verify all of this before we look seriously at any property outside the clear city core.
Why This Requires the Right Agent
A short-term rental isn't valued the same way a regular home is. An agent who treats it like a standard purchase will focus on comparable sale prices and miss the things that actually determine whether it works as a rental, what it could realistically earn, and whether it can legally operate at all. That's the lens I bring to every property we look at.
Getting Clear on the Numbers
Beyond permits and zoning, the real question is whether a property actually makes sense as a rental. That means pulling comps on similar properties already operating nearby and running the numbers through my pro forma to see what a property could realistically produce after expenses, including whether you plan to self-manage or bring on a property manager, since that decision alone can shift your bottom line significantly. If it makes sense to bring in outside expertise, I can also point you toward lenders who understand investment property financing and STR-focused design and furnishing teams, so you're not figuring that part out alone either.
After You Close
Getting the keys is not the finish line for a short-term rental. If the property needs a new Durango permit or you're setting up compliance in La Plata County, that work often starts right after closing, not before. I can help you understand what's left to do so you can get the property earning as soon as possible.
For informational purposes only. Always check for any recent changes to rules and regulations before proceeding with any real estate transaction.