Key takeaways
- Yes, an investor can apply in both towns. Neither town's pages show a cap or a primary-residence rule for short-term rentals.
- Granby charges $100 to apply and $728 per bedroom a year, with no town lodging tax. The permit can't be transferred, but with no cap a buyer just applies.
- Grand Lake charges $165 once plus an annual fee set by occupancy, from $700 to $2,000. Its on-site parking rule is the one that knocks out the most houses.
- Parking and septic decide how many guests a house can legally take in this area, and guest count decides what it earns.
Granby
Granby requires a short-term rental permit for each unit under Chapter 5.20 of its municipal code. The code sets no cap on permits and no primary-residence requirement. Since January 26, 2026, applications and renewals run through the town's Rentalscape portal.
- Cost: a one-time $100 application fee, then an annual permit fee of $728 per bedroom (as of January 1, 2024). The town has no lodging tax and says this impact fee is its version of one.
- Rules: occupancy of two per bedroom plus four, a parking site plan, a local contact who responds within an hour, $500,000 in liability coverage and an annual fire inspection with the fire district.
- On a sale: the permit doesn't run with the property and can't be transferred (Sec. 5.20.030). Since there's no cap, the buyer just applies.
- Watch the boundary: the town says Silversage, Legacy Park, Innsbruck and Val-Moritz have Granby addresses but aren't in the town. Those follow Grand County's rules.
Grand Lake
Grand Lake requires a nightly rental license for each unit. The town's STR page and FAQs show no cap. The license runs one year from issue.
- Cost: $165 once, plus an annual fee set by occupancy: $700 for 1 to 3 guests, $900 for 4 to 6, $1,100 for 7 to 10 and $2,000 for 11 or more. Fire inspections run $150 to $350 depending on size.
- Parking: on site only, from one space for a studio or one-bedroom up to two and a half for four bedrooms or more, plus snow storage equal to a third of the paved area. In a lake town full of small lots, this is the rule that knocks out the most houses.
- Renewal: needs a fire inspection report, insurance, a site plan and, where there is one, an HOA letter. The local contact has to be within 45 minutes.
- Enforcement: $1,500 per violation. Three in a year means a six-month suspension.
- On a sale: the town's pages don't say. Plan on licensing in your own name.
Taxes
Grand Lake doesn't collect its own taxes; everything is filed with the state. The town lists sales tax of 9.2% (2.9% state, 1.3% Grand County, 5% town) and says the county lodging tax rose from 1.8% to 2.0% on January 1, 2025. Granby's town sales tax rate wasn't on the pages I could read, so check it with the town.
Just outside town limits
Unincorporated Grand County needs its own permit: $100 per guest of maximum occupancy, capped at 16 guests, with two full-time county residents as 24/7 contacts. No cap appears on the county page. More on the county in our Grand County market page.
What I'd check first: the parking and the septic. In the Grand Lake and Granby area, those two decide how many guests a house can legally take, and guest count decides what it earns.
Related: Colorado mountain towns still issuing STR licenses, does an STR license transfer when you buy, and STR lodging taxes by town.
Questions investors ask
Do you need a license for an Airbnb in Grand Lake, Colorado?
Yes. Grand Lake requires a nightly rental license for each unit: $165 once, plus an annual fee from $700 to $2,000 based on occupancy. The town's pages show no cap on licenses.
Is there a cap on short-term rentals in Granby?
No cap appears in Granby's code (Chapter 5.20) or on its STR page, and there's no primary-residence requirement. Each unit needs a permit, which costs $100 to apply and $728 per bedroom a year.
Does a Granby STR permit transfer to a new owner?
No. The code says the permit doesn't run with the property and can't be transferred, so a buyer applies in their own name. With no cap, that's usually a paperwork step rather than a waitlist.
What taxes apply to a Grand Lake short-term rental?
Grand Lake lists 9.2% sales tax (2.9% state, 1.3% Grand County, 5% town), all filed with the state, plus Grand County's lodging tax, which rose to 2.0% on January 1, 2025.
Sources
- Town of Granby, Short-Term Rentals (read Oct 24, 2026)
- Town of Granby, Municipal Code Chapter 5.20
- Town of Grand Lake, Nightly Rental Licenses
- Town of Grand Lake, Fee Schedule (updated Apr 14, 2025)
- Town of Grand Lake, Finance and sales tax
- Grand County, Short-Term Rentals
Looking at a house near the lake? Send it to Covest.
Send me the address. I'll check whether it's in town or county, what the parking allows, and what that does to the guest count.
Talk to ShalomCovest LLC is a licensed Colorado real estate brokerage. This guide is general information, not legal or tax advice, and rules change. Confirm current requirements with the town or county before you buy.