Short-Term Rentals

Applying for a Permit

The Community Development Department is proud to introduce an all electronic permit software program that will allow you to submit and/or renew your Short-Term Rental Permit electronically. 

First time? Visit Cloudpermit to sign up for an account. Cloudpermit is the software solution the City uses to manage permit-related information.

Cloudpermit allows the City to streamline the review process for Short-Term Rental inspections and reviews. You must create an account in Cloudpermit in order to submit a  permit. 

Once you have created your account in Cloudpermit, please make sure to select the Licensing tab.

Background Information 

Short-term rentals in Fruita are accommodations rented for 28 days or less, typically through platforms like VRBO or Airbnb. In the map above, the downtown area is commonly associated with short-term rentals, marked by a triangle. The triangle is outlined by Ottley Avenue, Highway 6 and 50, and Pine Street. Areas outside the triangle are primarily newer developments governed by Homeowners Associations (HOAs), which generally do not permit short-term rentals. Fruita's restriction of 65 short-term rentals within the triangle serves the purpose of preserving the town's small-town atmosphere and ensuring the well-being of its residents. 

If You're Considering Managing a Short-Term Rental 

Applications will be submitted on CloudPermit, a new online software adopted by Fruita for this purpose. 

Individuals are allowed to own multiple short-term rental properties and there is no limit. It is important to note that short-term rentals are businesses and do require a business license for each separate location (unless units are contiguous and operate as a unit), but that license will not transfer as it would with other businesses, such as a coffee shop. Applying for a business license is a separate requirement and is facilitated by the City Clerk. The annual fee for a business license is $30 per year and owners can apply for one through the Business License Application. Business license renewal forms are mailed out every November and are due by January 2nd of the following year.

The lodging tax for short-term rentals is 6%, in addition to the 8.27% retail sales tax. The lodging tax is paid directly to the City of Fruita. Vendors collecting and remitting the tax can deduct 3 1/3% of the lodging tax collected as a collection fee. Returns are due by the 20th day of the month for the preceding calendar month. Payments can be submitted in person at the Fruita Civic Center located at 325 E. Aspen Avenue. We are working towards providing an online payment option.  

Owners of short-term rentals must renew their applications every year through CloudPermit by December 1. In addition, they must update their information in November of every year. 

As mentioned above, there are different rules for short-term rentals based on where they are located. Running a short-term rental inside the triangle allows for flexibility in management, whether it's owner-operated or managed by a property manager. Running a short-term rental outside the triangle may come with unique challenges. If your HOA permits short-term rentals, you'll need to adhere to their neighborhood rules and pay any associated fees. However, Accessory Dwelling Units and units occupied for at least six months of the year by the owner are exceptions. 

Starting at the end of 2023 or beginning of 2024, Fruita will implement a new compliance-checking software. This software will utilize GIS data and information from platforms like VRBO and Airbnb to monitor short-term rentals within city limits. Non-permitted short-term rental owners may face municipal court proceedings and fines of up to $1,000 per day. 

Already Managing a Short-Term Rental in Fruita? Here's What You Need to Know 

Owners of existing short-term rentals in Fruita must renew their information with the City of Fruita every November. To do so, short-term rental operators will need to create an account and submit a renewal application on Cloudpermit.  If you have any questions, please feel free to contact Fruita's Community Development Department by calling 970-858-0763 or email mcarson@fruita.org. Renewals are due by December 1. 

The lodging tax returns for short-term rentals are due by the 20th day of the month for the preceding calendar month, this can be done through the Lodging Tax Return form. Payments can be made in person at the Fruita Civic Center located at 325 E. Aspen Ave. 

If you have any questions concerning your business license(s), please contact the Deputy City Clerk at (970) 858-3663 or dwoods@fruita.org.  

**All Fees (Short-Term Rental Application Fee and Business License Fee) are non-refundable.