What Happened
On August 25, 2026, the Board of Trustees of the Town of Buena Vista, Colorado, officially adopted Ordinance No. 14 (Series of 2026), establishing a sweeping new regulatory framework for short-term rentals (STRs). The ordinance amends Article VII of Chapter 6 of the Buena Vista Municipal Code and takes effect 30 days post-publication.
The new rules follow an extensive review by the advisory Buena Vista Short-Term Rental Committee across five public meetings. The resulting policy establishes strict zoning district license caps, carves out exemptions for live-in representatives and specific commercial districts, codifies nonconforming grandfather rights, and enforces a mandatory annual renewal window between October 1 and October 31.
Key Provisions & License Caps
Ordinance No. 14 introduces explicit percentage caps on short-term rental licenses across residential and mixed-use zoning districts. Caps are calculated annually by the Town Clerk on January 1 based on the total definable residential housing stock (excluding deed-restricted affordable/workforce units) and rounded down to the nearest whole number.
STR License Cap Percentage by Zoning District (Table 6-125)
| Zoning District | Cap Percentage |
|---|---|
| R-1 (Single-Family Residential) | 1% |
| R-1 OT (Old Town Residential) | 1% |
| R-1.5 (Single/Two-Family Residential) | 3% |
| R-2 (Multi-Family Residential) | 3% |
| R-2 OT (Old Town Multi-Family) | 3% |
| R-3 (High-Density Residential) | 3% |
| MU-1 (Mixed Use 1) | 7% |
| MU-2 (Mixed Use 2) | 11% |
Key Exemptions & Excluded Areas
While all STR operators must hold a valid license, the following categories do not count toward the zoning district license cap percentage:
- Onsite / Live-In Representative: Properties where a natural person (owner or authorized tenant) resides full-time on the same property as their primary residence and maintains ongoing operational responsibility. (Changes in representatives must be reported within 30 days).
- MU-MS Zoning District: Properties within the Mixed Use Main Street district.
- South Main PUD: Properties within the South Main Planned Unit Development.
Grandfathering & Nonconforming Licenses
Existing STR licenses that were lawfully issued and in good standing prior to the adoption of Ordinance No. 14 may continue to operate and renew as nonconforming licensed STRs.
Important Warning for Existing License Holders: Nonconforming licenses do count toward the zoning cap totals. However, if a nonconforming license is revoked, surrendered, expires, or terminates upon a change of property ownership, the grandfathered status is permanently lost. Any future owner or re-applicant will be forced onto the waiting list if the zoning district cap has been reached.
Operational & Financial Impact on Hosts
Ordinance No. 14 imposes several strict operational obligations and financial prerequisites for hosts in Buena Vista:
| Requirement | Summary & Impact |
|---|---|
| Non-Transferable Licenses | STR licenses are personal to the owner and property. Sale of property voids the license. |
| $1,000,000 Insurance Requirement | Hosts must maintain continuous $1M liability insurance (commercial, property, or STR policy endorsement). |
| Mandatory License # Disclosure | All STR listings and advertisements must display the Town-issued license number. |
| 7-Day Platform Removal | Hosting platforms (Airbnb, Vrbo) must remove invalid/unlicensed listings within 7 days of Town notice. |
| ADU Treatment | Accessory Dwelling Units (ADUs) are evaluated as separate dwelling units under the ordinance. |
| Strict Renewal Window | Applications for annual renewal must be filed between Oct 1 and Oct 31. |
| Waiting List Mechanics | When capped out, applications enter a waiting list in complete-order. If a cap slot opens, applicants have 30 days to complete requirements before forfeiture. |
Annual Renewal Standards & Appeals
Licenses expire on December 31 each year. Renewal applications submitted during the October window will be approved only if the property: - Has no more than one sustained enforcement action in the current calendar year. - Has no convictions or pleas (guilty / nolo contendere) for nuisance violations.
Denied applicants may file a written appeal to the Board of Trustees within 10 days. If a renewal is denied, no new license application for the property will be accepted until January 1 of the following year.
How LawfulStay Helps Buena Vista STR Operators
With tight cap percentages (1% in R-1, 3% in R-2) and non-transferable grandfathering provisions, operating an STR in Buena Vista requires real-time compliance monitoring:
- Tracking District Cap Thresholds: LawfulStay monitors housing stock metrics and zoning cap availability so prospective buyers know whether a neighborhood is capped out before purchasing.
- Preserving Nonconforming Rights: Current owners can track critical renewal windows (Oct 1–Oct 31) and compliance records to ensure they don't inadvertently forfeit grandfathered licenses.
- Verifying Live-In Rep Compliance: LawfulStay provides clear guidelines on documentation required (utility bills, lease agreements, IDs) to secure the live-in representative cap exemption.
- Monitoring Platform Enforcement: Stay ahead of platform takedown notices by keeping required $1M insurance documentation and license numbers updated on all channels.
Key Takeaways for Buena Vista Hosts
- Mark October 1–31 on Your Calendar: Do not miss the renewal submission window. Missing the deadline risks license expiration and loss of nonconforming status.
- Protect Your Grandfathered License: Because licenses do not transfer upon property sale, structured transfers or entity sales must be carefully evaluated against Town municipal rules.
- Explore the Live-In Representative Option: If your zoning district cap is full, adding an onsite primary-resident representative creates a legal path to licensure that bypasses cap limits.
- Ensure $1M Insurance & Advertised License #s: Audit your Airbnb/Vrbo listings to ensure your Town-issued license number is clearly listed to prevent 7-day platform removal notices.
Stay Compliant with LawfulStay
LawfulStay continuously monitors short-term rental regulations, ordinance amendments, and zoning cap changes across Colorado and nationwide. Log in to your LawfulStay account to verify your property's compliance status or track upcoming regulatory updates in Chaffee County.