Dreaming of powder mornings and late-summer hikes in Aspen, but wondering what it really takes to own a second home there? You’re not alone. Between travel logistics, short-term rental (STR) rules, wildfire insurance, and a remote closing, there are a lot of moving pieces. This guide breaks down what day-to-day ownership looks like, how local permits and taxes affect your bottom line, and how to close smoothly from wherever you live. Let’s dive in.
Daily life and recurring costs
Travel and seasonal access
If you plan to visit often, build your calendar around seasonal flight schedules and winter road conditions. Some owners fly into Aspen/Pitkin County Airport and others choose Eagle or Denver for more options. Storms can affect both flights and passes, so plan deliveries and service calls with winter in mind and budget for snow removal.
Local care and property management
Many second-home owners hire a local property manager to handle snow removal, trash service, seasonal maintenance, and on-call emergencies. If you intend to rent short term, a manager can also serve as your local emergency contact, which the City of Aspen’s STR program requires for many permits. Review service scopes and fees in detail so you know what’s included and what’s billed as needed.
What to budget for each year
- HOA dues if you buy a condo or in a planned community. Get the current budget and reserve study before you buy, and review how Colorado’s HOA rules allocate responsibilities. You can read more about owner and association obligations under the state’s CCIOA framework on the Colorado legal overview at HOA Pulse.
- Utilities, winterization, and seasonal heating or electricity. Costs run higher in winter. Plan for routine snow removal and system checks.
- Property management, especially if you STR. Management often ranges around 10–30 percent of gross STR revenue, depending on the service level.
- Insurance. Wildfire and hail exposure can raise premiums in mountain areas. Ask about mitigation credits and Colorado’s FAIR Plan backstop through the Division of Insurance if private coverage is limited.
STR rules that shape your plan
City of Aspen: permit types and taxes
Rentals of fewer than 30 days in the City of Aspen require an STR permit. The city defines several permit types, including STR-Classic (often used for second homes), STR-Owner-Occupied, and STR-Lodge-Exempt. Aspen collects sales and lodging taxes and an additional STR excise tax. The excise tax commonly differs by permit type, with owner-occupied or lodge-exempt at 5 percent and second-home or classic permits at 10 percent. Caps may apply by zone, and owners must meet compliance rules like having a local contact. Review current requirements on the City of Aspen STR page.
Unincorporated Pitkin County: licensing and fee tiers
Outside city limits, Pitkin County requires an STR license. The county uses a tiered fee model based on the number of nights rented per year, applies operational standards, and has eligibility rules tied to prior STR history. If you plan to rent, first confirm whether a property is inside Aspen or in unincorporated Pitkin County, because the rules and fees differ. Start with the county’s STR overview.
What this means for rental income
STRs can offset some ownership costs, but you should model taxes, permit fees, and compliance costs carefully. Eligibility windows and permit caps mean some properties that rented freely in the past may not qualify for new licenses today. Occupancy limits and the need for a local representative also affect operations. The headline nightly rate rarely equals net yield, so build conservative estimates based on current city or county rules and your intended permit type.
Property taxes and recent assessment changes
Colorado’s assessment framework changed for the 2025 tax year, with separate residential assessment rates used to calculate school and local government assessed values. Your annual taxes depend on assessed value, the applicable assessment rate, and local mill levies. Because mill levies vary by taxing district and rates can shift, ask the Pitkin County Assessor for a parcel-specific estimate and planning guidance. Start with the Assessor’s page.
For federal income tax basics, mortgage interest is generally deductible on a qualified second home if you itemize and remain within the standard mortgage caps, while the primary residence capital gains exclusion applies only to your principal residence under the two-out-of-five-year rules. For details, see the IRS overview in Publication 530. Always confirm your situation with a qualified tax advisor.
Insurance, wildfire risk, and mitigation
Mountain properties can face higher insurance costs and stricter underwriting due to wildfire and hail risk. You can often improve insurability by creating defensible space, choosing Class A roofing, and documenting mitigation work. Ask carriers about any credits for completed mitigation and learn how Colorado’s FAIR Plan functions as an insurer of last resort within the state at the Division of Insurance.
How closings work for Aspen second homes
Title, escrow, and what to expect
In Colorado, a title company usually serves as the neutral closing agent, coordinating title search, the title commitment, escrowed funds, document signing, and the issuance of owner’s and lender’s title insurance policies. Review your title commitment early, understand any requirements or exceptions, and ask how the closer handles wiring, recording, and delivering final policies. For a quick overview, see this primer on what a Colorado closing involves.
Remote notarization and recording
Colorado permits remote online notarization (RON) when performed by registered notaries using approved platforms, and many title companies now support digital workflows. That said, acceptance of RON and e-recording can vary by county and by title company practice. Confirm your closer’s process and whether Pitkin County will accept e-recording for your documents. For RON guidelines, review the Colorado RON rules summary and speak with your closer about what they support.
Funding and wire-fraud protection
Remote buyers should plan for a wire transfer of funds to the title company and build in time buffers for lender funding and recording. Wire-fraud attempts still target real estate closings. Require secure portal delivery of wire instructions, call a known phone number to verify instructions before sending funds, and use two-factor authentication on your email and portal accounts. For context on current risks, see this note from the American Land Title Association on wire-fraud trends.
A simple remote-buyer checklist
- Ask your agent to open title promptly and confirm the closer’s remote options and e-recording plan.
- Review your title commitment early and clarify any schedule B requirements with your closer.
- Decide on notarization: RON, mobile notary, or a local bank notary near you.
- Use the title company’s secure portal for wiring instructions and verify by phone before sending funds.
- Plan for a short gap between signing and final recording/policy delivery.
HOA and condo fine print to review
If your Aspen home is in an HOA, review CC&Rs, the budget, reserve study, special assessment history, and the insurance master policy. Clarify what the master policy covers and what your walls-in policy must insure. Colorado’s CCIOA sets rules for collections, notices, and required association policies, so build your questions list from the association’s documents and the state rules summarized on HOA Pulse.
Financing notes for second homes
Lenders underwrite second-home mortgages more conservatively than primary residences. Expect occupancy rules, potentially lower maximum loan-to-value, and stronger reserve requirements. If you plan to rent short term, disclose your intent early because STR activity can affect loan eligibility and product options. For a consumer-friendly overview, see this guide to second-home mortgage requirements, then confirm specifics with your lender.
How to get started
- Confirm whether your target property is inside Aspen city limits or in unincorporated Pitkin County, then map the applicable STR rules and taxes.
- Request a parcel-specific tax estimate from the Pitkin County Assessor and build your budget with current mill levies.
- Get insurance quotes early and ask about wildfire mitigation credits or FAIR Plan options.
- If you will rent, model net income with permit fees, excise and lodging taxes, and management costs.
- Engage your title company early, verify remote-closing steps, and set up secure communication habits for wiring.
When you are ready to move from research to action, choose a title partner that prioritizes secure, smooth closings and clear communication. As a Colorado-based firm offering mobile and digital closing options, First Alliance Title makes remote Aspen purchases straightforward and secure. Connect with our team to talk through your timeline and next steps.
FAQs
Can I rent my Aspen second home short term right after I buy?
- Possibly. It depends on whether the property is in the City of Aspen or unincorporated Pitkin County, the permit type it qualifies for, any zone caps, and your ability to meet compliance requirements. Confirm permit eligibility and taxes before counting on STR income.
Who handles the closing on an Aspen purchase and can I sign remotely?
- A Colorado title company typically runs the closing and escrow. Many support remote online notarization or mobile notary options, but acceptance can vary. Confirm your closer’s workflow and Pitkin County recording steps early.
How do I estimate annual property taxes on an Aspen home?
- Property taxes depend on assessed value, assessment rates, and local mill levies. Ask the Pitkin County Assessor for a parcel-specific estimate and use their guidance for budgeting.
Is homeowners insurance hard to get because of wildfire risk?
- It can be more complex in wildfire-prone areas. Get quotes early, ask about mitigation credits, and learn how Colorado’s FAIR Plan works in case private options are limited.
How are second-home mortgages different from primary-home loans?
- Lenders often require higher reserves, may allow lower maximum LTVs, and apply strict occupancy rules. If you plan any STR activity, disclose it up front so your lender can place you in the right loan product.
