Investing Without STRs in Castle Pines

If you invested in Castle Pines with short-term rental income in mind, the city’s 28‑day minimum can feel like a curveball. You’re not alone. Many owners are rethinking strategy to stay compliant while keeping returns on track. In this guide, you’ll learn practical, legal paths to rent successfully without short stays, how to complete smart due diligence, and a step‑by‑step plan to pivot fast. Let’s dive in.

What the 28‑day rule means

Inside Castle Pines city limits, stays shorter than 28 days are not allowed. Your strategy needs to align with that minimum and any added rules that apply to your specific property. If your parcel sits in unincorporated Douglas County, county rules control instead of city code. Most properties in Castle Pines also belong to homeowners associations, and HOA covenants can be stricter than local laws.

The safest approach is to follow the strictest rule that applies to your property. That usually means city or county code plus your HOA’s covenants and rules.

Where to confirm your property’s rules

• City of Castle Pines: Verify the ordinance that restricts stays under 28 days, plus any rental registration and enforcement details.
• Douglas County: If the property is in an unincorporated area, confirm zoning, permitted use, and any rental regulations.
• HOA documents: Read recorded Covenants, Conditions & Restrictions (CCRs), bylaws, and rules for leasing minimums, rental caps, and approval steps.
• Colorado landlord–tenant law: Understand deposits, notices, habitability, and required disclosures.
• Taxes and licensing: Ask city or county offices what taxes and licenses apply to 28‑day‑plus rentals.

Rental strategies that comply

There are several ways to rent legally and profitably in Castle Pines without short stays. Choosing the right fit comes down to your property, HOA rules, and your desired workload.

Long‑term rentals (12 months or more)

A classic lease provides stability and lower turnover. Tenants often include local professionals and relocating households. You can offer unfurnished or furnished options depending on demand and HOA rules.

Key points to set up well:

• Use a detailed lease that covers pets, subletting, maintenance responsibilities, and insurance.
• Clarify who pays utilities.
• Add an HOA compliance clause and outline fines for violations.
• Follow fair housing and Colorado screening standards.

Mid‑term rentals (28 days to about 6 months)

Mid‑term stays are popular with traveling professionals, consultants, and people between homes. They typically command higher monthly rent than a 12‑month lease, with more active management.

To compete in the mid‑term segment:

• Offer furnished, turnkey spaces with reliable Wi‑Fi and clear utility terms.
• Use fixed start and end dates with simple renewal options.
• Budget for cleaning and touch‑ups between stays.

Corporate and employer‑sponsored leasing

Leasing directly to companies that relocate staff can provide reliable occupancy. Expect requests for furnished homes, quick response times, and straightforward contracts.

Owner‑occupied options

Depending on local and HOA rules, you may be able to rent a room or lower‑level suite while you live on site. Confirm definitions, minimum terms, and whether your HOA requires owner occupancy.

Avoiding common traps

• Do not advertise by the night or week. Market by the month with a posted 28‑day minimum.
• Confirm your HOA’s leasing rules before you list. Some communities cap rentals or require approvals.
• If you use national listing platforms, choose monthly categories and set your minimum stay to 28 days or more.

Mid‑term vs long‑term: choose your product

You can succeed with either approach. Think about your priorities.

• If you want steadier cash flow and less turnover: choose a 12‑month lease.
• If you want higher gross rent and can handle more coordination: try furnished mid‑term stays.
• If your HOA limits rentals or requires longer minimums: follow the HOA’s stricter rule.
• If you prefer guaranteed occupancy over top dollar: consider a corporate lease.

Due‑diligence checklist before you buy or pivot

Use this checklist to reduce surprises and protect your investment.

Title and HOA records

• Get recorded CCRs, bylaws, rules, and amendments.
• Look for minimum lease terms, rental caps, owner‑occupancy requirements, and any application fees.
• Confirm disclosure requirements for tenant names and contact information.

Local government and zoning

• Verify whether the property is inside Castle Pines or in unincorporated Douglas County.
• Confirm zoning and permitted residential rental use.
• Ask about rental registrations, inspections, and safety standards.

Taxes and licensing

• Clarify whether any lodging or sales taxes apply to your intended lease length.
• Confirm business license needs with the city or county.

Insurance and liability

• Update your policy for landlord coverage and loss‑of‑rent protection.
• If furnished, add coverage for contents and higher liability limits.
• Ask whether the HOA needs to be listed as additional insured.

Physical condition and safety

• Service HVAC, plumbing, electrical, roof, and appliances.
• Install and test smoke and carbon monoxide detectors and confirm safe egress.
• Consider radon testing and disclosure common to Colorado properties.
• If the home uses a septic system, verify capacity and maintenance history.

Operational constraints

• Review HOA rules for parking, pets, landscaping, and snow removal.
• Check HOA enforcement history to avoid recurring issues.

Lease provisions that matter

• Include a covenant compliance clause and an indemnity for fines tied to tenant actions.
• Limit occupancy to the legal maximum and prohibit subletting without your written approval.

Financial planning without STR income

Run the numbers with realistic rents, vacancy, and expenses for 28‑day‑plus models.

Revenue expectations

• Mid‑term monthly rents often sit between converted STR revenue and standard 12‑month rents.
• Use local rent comps and consider seasonal demand for relocations and project work.
• Expect steadier occupancy with long‑term leases and more churn with mid‑term.

Expense adjustments

• Management: Mid‑term rentals may require higher management fees due to coordination and turnover.
• Furnishings: Budget for initial setup and periodic replacements.
• Utilities and services: If you include them, account for higher average costs.
• Taxes: Understand how rental income, depreciation, and any local filings apply to your situation.

Insurance and liability

• Premiums can vary for long‑term vs furnished mid‑term use. Tell your insurer exactly how you’ll rent.
• Corporate tenants may require higher liability limits or special endorsements.

Financing and underwriting

• Lenders treat owner‑occupied homes and investment properties differently. Loan terms and rates vary.
• If converting from owner‑occupied to a rental, confirm your loan’s occupancy rules and timelines.

Step‑by‑step plan to pivot now

Follow this action plan to move from STR expectations to a compliant 28‑day‑plus strategy.

1. Confirm the legal baseline

• Map the property location to city or county rules.
• Read the ordinance or county code that applies and your HOA’s leasing section.

2. Choose your product type

• Decide between 12‑month leases, mid‑term furnished stays, corporate leasing, or a hybrid approach.

3. Reconfigure the home

• For long‑term: remove fragile items, focus on durability, and add storage.
• For mid‑term: fully furnish, add linens and kitchen essentials, and set up fast Wi‑Fi.

4. Update legal and insurance documents

• Use a lease tailored for your selected term length and include HOA compliance language.
• Update your insurance for landlord use and furnished contents if applicable.

5. Reprice and re‑underwrite

• Pull rent comps for Castle Pines and nearby Douglas County communities.
• Recalculate cash flow with vacancy, replacements, and management costs.

6. Operationalize tenant placement

• Set a fair, consistent screening process aligned with Colorado law.
• Create move‑in/move‑out checklists and a cleaning plan for mid‑term turns.

7. Communicate with your HOA and neighbors

• File any required landlord registration with the HOA and provide tenant contact info if requested.
• Share expectations for parking and community standards with incoming tenants.

8. Monitor and adjust

• Track occupancy, maintenance, and tenant feedback for at least one or two cycles.
• If mid‑term churn costs are high, consider switching to a 12‑month lease.

Local investor tips for Castle Pines

• Expect HOAs. Many Castle Pines neighborhoods are covenant‑controlled, so plan for added rules and approval timelines.
• Focus on quality and reliability. Long‑stay tenants value working systems, storage, and a clean, safe setup.
• Market what matters to longer‑term renters. Highlight functional layouts, dedicated workspaces, parking clarity, and easy maintenance.

Your next move, simplified

You can invest confidently in Castle Pines without short stays by aligning with the 28‑day rule, choosing the right rental model, and dialing in operations. If you want help evaluating options, running comps, or positioning a property for long‑stay demand, our team is ready to support you with local insight, staging resources, and smooth leasing handoffs.

Connect with The Denver Trio to discuss your goals or to get started with pricing and positioning. Get your free home valuation and a clear plan for your next step.

FAQs

Are short‑term rentals allowed in Castle Pines?

• Inside city limits, stays shorter than 28 days are not allowed. Always verify your specific address and HOA rules before you list a rental.

What counts as a compliant rental term in Castle Pines?

• Stays of 28 days or longer meet the city’s minimum. Your HOA may require longer terms, so follow the strictest rule that applies.

How do mid‑term rentals differ from traditional leases?

• Mid‑term stays run 28 days to about 6 months, are usually furnished, and can earn higher monthly rent with more turnover than a 12‑month lease.

Do I need to collect lodging taxes for 28‑day‑plus stays?

• Many lodging taxes target short stays, but rules vary. Confirm with the city or county whether any taxes or licenses apply to your 28‑day‑plus model.

Can I use platforms like Airbnb for monthly rentals?

• You may if the platform supports 28‑day minimums and you set your listing accordingly. Make sure your HOA permits leasing and your lease matches local rules.

What lease clauses are essential for HOA communities?

• Include an HOA compliance clause, outline fines for violations, prohibit unauthorized subletting, and state occupancy limits that follow local law.