Can you run an Airbnb or do rental arbitrage here? What the city requires: permits, taxes, safety rules and enforcement.

Littleton issues short-term rental licenses only for a primary residence, and the applicant must be the owner who lives there.[1, 2] Licenses for homes the owner doesn't live in are no longer issued, and the city says all of them terminate on Oct 28, 2026.[1] The license costs $200 a year.[3]
Our verdict, based on the sources at the end of this guide.
Littleton's short-term rental license is for owners who live at the property: the applicant must be the owner, and the home must be their primary residence.[1, 2] The city no longer issues licenses for homes the owner doesn't live in, and it says every one of those licenses terminates on Oct 28, 2026.[1] If you lease from a landlord, you can't hold a license here. A license costs $200 a year,[3] and the city adds a 5% lodger's tax.[1, 4]
The city requires a license to offer a short-term rental in your primary residence, and the applicant must be the property owner who lives there.[1, 2] The only license now available is the owner-occupied one.[1]
Licenses for homes where the owner doesn't live are no longer issued.[1] Holders may renew until Oct 28, 2026, and the city says all non-primary licenses terminate on that date.[1]
Because the applicant must be the owner who lives at the property, a tenant can't hold a license, and an owner who lives elsewhere can't get one either.[1] The city says a license is needed for rentals of 1 to 28 days and none for 29 or more days at a time.[1]
Check the property is inside Littleton city limits with the Address Wizard, then apply through the city's eTRAKiT portal.[1] You'll send a Colorado ID, proof of ownership with at least two documents showing primary residence, a liability insurance certificate, the property inspection checklist and the Good Neighbor documents.[1] The city says processing takes up to four weeks.[1]
The STR business license costs $200 when you apply and each year after that.[3] The code says a license covers a single dwelling unit, can't be transferred and ends when ownership of the property transfers.[2]
A Littleton mailing address doesn't always mean the property is inside the city, and then the local jurisdiction's licensing process applies.[1] A news report says Arapahoe County approved rules for its unincorporated areas in May 2026, including a primary-residence requirement, a 500-foot separation rule and a 100-license cap for multifamily buildings.[5] Check the county's rules before you rely on an address outside the city.[1]
The city page says you may rent to one party at a time, for less than 28 consecutive days, while the code allows no more than two simultaneous rental contracts.[1, 2] The limit is 2 adults per bedroom and 8 people in all.[2]
Provide 2 off-street parking spaces.[1] A recreational vehicle or temporary structure can't be used as a short-term rental, and only attached ADUs qualify, not detached ones.[1, 2]
Carry at least $500,000 in liability insurance.[1] The code requires an initial premises check and a certificate of inspection, and the Director may inspect, so refusing an inspection is grounds for denial.[2]
The code requires smoke and carbon monoxide detectors and a fire extinguisher.[2] You also need a contact who can respond within two hours.[2]
Show your license number in every ad and keep a copy of the license posted.[1, 2] Post the Good Neighbor documents inside the property and send the Good Neighbor Owner Handout to adjoining neighbors and those across the street or alley.[1] The code sets a two-week deadline for the handout and letter.[2]
Littleton's sales tax rate is 3.75%.[4] For questions about sales and use tax or a Littleton Sales and Use Tax ID, the city page points you to the Finance Department.[1]
A 5% lodger's tax applies from Jan 1, 2023, on stays of less than 28 consecutive days in a short-term rental, on top of the 3.75% sales tax.[1, 4]
The city's rate table lists total sales tax of 8.00% in the Arapahoe County part of Littleton, 8.68% in the Jefferson County part and 8.75% in the Douglas County part, before the lodger's tax.[4] Those totals include the state rate, the RTD and cultural facilities taxes, the county rate and the city 3.75%, and some small areas add more.[4]
The city says all short-term rentals must be licensed.[1] The code says violations are punishable by fine or imprisonment under city code section 1-4-1.[2]
The code lets the city suspend or revoke a license after a Notice to Show Cause hearing.[2]
The city runs a 24/7 STR compliance hotline at 720-310-2171 and an online tips form.[1] It says to contact the owner first, using the Good Neighbor Owner Handout.[1]
Skip Littleton for short stays: you can't get a license as a tenant, or for a home the owner doesn't live in.
Step 1 is the hard part. We find landlords who already said yes →
Tell us your market. Our team calls landlords and sends you properties already approved for Airbnb.
STR Exchange members get landlord-approved rentals, new deals every week and a team that searches their market.