Why Booking a Short-Term Rental in Aspen for a Full Month Makes More Sense than for Two Weeks | Avant Garde Aspen Luxury Real Estate

Aspen, Colorado, is a world-renowned destination known for its stunning mountain landscapes, outdoor recreation, and vibrant culture. However, when booking a short-term rental in Aspen, there’s a financial consideration that travelers should keep in mind: the short-term rental (STR) tax. If you’re planning to stay in Aspen, booking for a full month instead of just two weeks can help you avoid hefty taxes and fees, making it the more cost-effective option.

Understanding Aspen’s Short-Term Rental Tax

In November 2022, Aspen voters approved a new STR tax that went into effect for nightly stays on or after May 1, 2023. This tax applies to rental stays of less than 30 days and is in addition to existing sales and lodging taxes. Here’s how the tax rates break down:

• "Classic" short-term rentals (investment/second homeowner properties): 21.3% (10% STR tax + 11.3% lodging tax)

• "Lodge-exempt" and "owner-occupied" short-term rentals: 16.3% (5% STR tax + 11.3% lodging tax)

• Traditional lodge properties (hotels and fractional properties): 11.3% (exempt from new STR tax increases)

This means that if you book a rental for two weeks, you will be subject to a tax rate as high as 21.3% on top of the rental cost, making your stay significantly more expensive.

The Advantage of Booking for a Full Month

Short-term rentals are defined as any rental period under 30 days. By booking a property for 30 days or more, your rental is no longer considered short-term, meaning you avoid paying the STR tax entirely. This can lead to substantial savings, particularly for high-end properties where taxes can add tens of thousands of dollars to your total cost, especially for a rental above 6 figures per month. 

Additional Regulations to Consider

Aspen has implemented additional rules for short-term rentals, including:

• Safety requirements

• Noise restrictions

• Wildlife safety measures

• Limits on the maximum number of people per bedroom

Hosts are required to comply with these regulations, collect applicable taxes, and remit them to the city. When booking for a month, you bypass many of these short-term rental restrictions while benefiting from a more cost-effective and streamlined stay.

If you’re planning a trip to Aspen, booking a rental for a full month rather than just two weeks makes financial sense. You’ll avoid the high STR tax, reduce your overall lodging costs, and gain more flexibility in your stay. Whether you’re visiting for the ski season, a summer retreat, or an extended getaway, opting for a long-term rental can help you maximize your budget while enjoying all that Aspen has to offer.

Looking for the perfect month-long rental? We can help you find the best properties in Aspen that fit your needs and budget. Reach out to learn more about available options!