The local policy changes
As the Sundance Film Festival approaches its first Boulder-area edition, Erie and Lafayette have adopted different short-term rental approaches, according to the October 20 Denver Post. These are local rules, not a single Boulder County-wide permit. Short-term rentals generally involve stays shorter than 30 days, but the precise definitions and requirements depend on each municipality.
Erie's ordinance
Erie's Town Council approved changes allowing and regulating short-term rentals. Reported provisions include an owner-eligibility requirement except for special event permits, occupancy limits, accessory dwelling unit rules and additional review for certain properties within 250 feet of the Old Town Residential zoning district. Voters are also scheduled to consider a separate proposed 3.5% lodging tax. That tax is not yet an enacted charge simply because it appears on the ballot.
Lafayette's temporary festival license
Lafayette has approved a pilot festival-license option for specified event periods. The reported fee is $100, compared with $200 for its usual two-year license. The festival option relies on self-certification of specified safety and compliance measures, while occupancy, insurance, signage and parking rules remain relevant. The pilot is scheduled to expire in June 2027. Homeowners should verify current application details directly with the city before advertising a property.
Eric Hyatt's real estate analysis
A major event can create temporary rental demand, but an estimated visitor influx is not a reliable projection of an individual home's income. Prospective hosts need to consider local licensing, HOA or condominium restrictions, mortgage and insurance terms, taxes, cleaning and management costs, and the risk of cancellations or low occupancy. A legal short-term rental in one jurisdiction may be prohibited or differently regulated across the street in another.
For buyers and sellers
A seller should not market a home as a turnkey short-term rental investment unless permits, transferability and association rules have been confirmed. A buyer should underwrite the property based on ordinary ownership costs, not a one-time festival windfall. For Colorado property due diligence, visit https://www.erichyattrealestate.com/ . Source: The Denver Post, October 20, 2026, reporting from the Daily Camera on Erie and Lafayette regulations.