Short-Term Rentals

Short-Term Rental License



Short-term rentals serve an important role in Lyons’ tourism and local economy, allowing a mix of lodging options across Town. Article 7 of Chapter 6 of the Lyons Municipal Code (LMC) sets standards for STRs, with the underlying intent that the impacts of STRs do not adversely affect the residents and character of a neighborhood. Interested applicants are encouraged to review the Good Neighbor Guidelines, as a general code of conduct reference.

STR Basics

STRs Basics To use or operate a dwelling unit as a STR within the Town, a Lyons STR license must be obtained. To obtain the required license, STRs must meet the following standards:
  • The proposed STR must be the principal residence of the owner, and the owner must occupy the premise of the STR for at least nine (9) months per calendar year 
  • The owner must self-certify that design and safety standards are met 
  • The owner must obtain a Colorado sales tax license and collect, report, and pay sales tax (or a contract from a third-party agency - e.g. AirBnb - to collect, report, and pay sales tax on the applicant’s behalf) 
  • The owner must submit the required application form, safety certification form, and associated fees 

Required Forms and Fees

Applicants must submit a Lyons STR License Application form, along with the $100 license fee, and a $75 new application fee. Following the STR’s first licensed year, a renewal application fee is decreased to $50. Submitted STR license applications will be reviewed for compliance, in accordance with the Lyons Municipal Code, and a decision on the application’s approval will be made within 45 days.


Recognizing the need for accessible rental units, the Town of Lyons will waive the STR application fee if the applicant’s rental is accessible. Applicants applying for the accessibility fee refund must complete the Accessibility Form (located within the STR License Application) and provide information on the accessibility of their units in all advertising. The form will be reviewed by Town staff for unit accessibility, and if approved, the $75 new application fee or $50 renewal application fee will be refunded.

STR Operations

The following summarizes operating procedures for Lyons STRs; the list should be used as a source of quick reference, not as a comprehensive list. See LMC Sec. 6-7 for all regulations.
  • STRs are permitted in the following zone districts: A-1, A-2, E, EC, R-1, R-2, C, CD, and CEC.  STR Zone District Map
  • Accessory Dwelling Units (ADUs) or other detached accessory structures may not be used for short-term rental
  • RVs, campers, tents, or other temporary structures may not be used as an STR 
  • Short-term rental may not have more than two (2) adults per bedroom or sleeping room, subject to a maximum of eight (8) overnight guests, regardless of age, unless a greater occupancy limit is approved by conditional use review
  • No more than two (2) vehicles may be parked overnight on a public street outside of a licensed short-term rental property 
  • Functional smoke and carbon monoxide detectors should be present in all STR bedrooms and other rooms
  • STRs are to comply with all Town regulations governing the property in which it occurs, including zoning, noise, nuisance, lighting, and building codes 
Prohibited Activities
The following are prohibited while a short-term rental is in use:
  • Outdoor sleeping, or installation of tents, canopies, or other temporary arrangements 
  • Any outdoor activity on the STR premise that draws an attendance of more than twice the number of permitted occupants – STRs may be used for overnight lodging only 
  • Solicitation, advertising, or use of an STR for the purpose of holding a party, special event, social gathering, wedding or similar use 
  • Cooking or kitchen facilities in guest rooms, sleeping rooms, or bedrooms  
  • Owner occupancy of an accessory dwelling unit (ADU) while the principle dwelling unit is in use as an STR
  • Parking of short-term rental occupant vehicles in alleys or in such a manner as to block emergency access; 

Signage and Advertising

  • All signage and advertising must comply with applicable provisions of Article 16-9 of the LMC 
  • Every advertisement for a short-term rental, whether online or in print, shall include the Town of Lyons business license number and the maximum occupancy permitted in the short-term rental

Applicable Sections in the Lyons Municipal Code

Sec. 16-10-80: Short-term Rentals
Sec. 6-7: Short-term Rental Licenses


With questions regarding short-term rentals in Lyons, please contact the Town of Lyons Community Development department, at


Short-term Rental License Application >>