Starting as a home-sharing initiative, Airbnb has gradually grown into the leading platform for short-term rentals. The success stories of property owners have inspired many to buy an apartment or two and host people. In 2024, there were 45,595 Airbnb listings in Los Angeles, 39,719 in New York, and thousands of STR options in other US cities*.
Yet the rapid growth of Airbnb rentals couldn’t last forever. Its impact on housing availability and prices was too noticeable, which made city councils adopt Airbnb local regulations. These regulations introduce permits, licensing, zoning, rental duration, number of people allowed, and other rules.
Learn what limitations may apply in your case and the US cities that allow short-term rentals vs. partially ban them in our post.
What Airbnb city regulations may apply?
Lately, dozens of STR regulations have appeared globally and in the US, changing the established rental practices. These laws have lots in common and follow a similar logic. Airbnb turns from a way to make money to a home-sharing solution. Investing in several properties for short-term rentals becomes more challenging.
These are the main kinds of laws and requirements that may apply:
- Business license. Even STR-friendly cities may require business owners to get a license before starting a business. You may need to officially register your short-term rental as a business and pay a fee.
- Short-term rental permissions. Property owners who want to rent their place short term must get permission. Such permissions are usually granted for a specific period (e.g., 120 rental days/ year), and you must renew them annually.
- Building standards. Local governments often specify what buildings are suitable for rentals and what don’t. Learn the requirements regarding residential and non-residential uses, habitability, safety, design, and maintenance to make sure your property is suitable for Airbnb.
- Zoning rules. Airbnb zoning laws are common in tourist cities and locations with severe housing shortages to limit where properties can be rented on a short-term basis.
- Taxes. Cities that allow Airbnb often require hosts to collect overnight taxes and pay taxes for running a rental business. In some jurisdictions, Airbnb automatically gathers and remits certain taxes.
- Limited duration of stay. Every city with Airbnb local regulations has its own limits on the number of days you can rent your property during a calendar year. The nightcap may also vary depending on the permission type.
- Primary residence requirement. Many recent STR regulations require a rental property to be the host’s primary residence. You cannot rent an apartment where you don’t live.
- Insurance. You may need a special damage protection service adapted to short-term rentals to rent out your property by the law. Such insurance also makes you much better protected from guest damage and force majeure events.
Airbnb-banning cities and cities where Airbnb is legal but regulated will have some of these limitations. Your goal is to clarify the Airbnb local regulations and calculate whether the return on investment is worth renting there.
US cities with Airbnb restrictions and bans
Before investing in short-term rentals, you must know where is Airbnb legal. You must also understand what limitations apply and how it will affect your income. No one would want to buy an apartment and learn they cannot rent it as planned.
This section covers the cities where Airbnb restrictions are harsh. You still can rent a property here, but you must be extra careful with local regulations.
Airbnb regulations in Denver, CO
In 2016, the Denver City Council enacted an ordinance that regulates the use of platforms like Airbnb. Since then, you can rent your primary residence only and follow the 180-day rule, which means you must live there for over 180 days annually.
Besides, all hosts must have a Lodger’s Tax ID, business license, and registration with Denver’s Permitting and Licensing Center. The license application fee is $150, while annual renewal costs $100. You must also be ready to pay local taxes, including a 10.75% lodger’s tax and sales tax. Read a detailed guide to Denver Airbnb rules for more information on mandatory insurance, safety standards, and other details.
Airbnb regulations in Las Vegas, NV
Las Vegas, known for its bustling nightlife, is one of the cities where starting an Airbnb business may be challenging. It has zoning laws that introduce a 660-foot density limit, regulating the number of short-term rentals in certain residential areas. Hosts must also obtain a rental license and explain how the property will be used. The annual fee is $500, and you must go through a property inspection. Speaking of taxes, hosts do not have to report income from rentals that don’t exceed 14 days. The Transient Lodging Tax applies to rentals over 14 days and other rules detailed in our Airbnb law guide for Las Vegas.
Airbnb regulations in New York, NY
People often call the New York STR restrictions an Airbnb ban. They are not. New York City allows short-term rentals but with a bunch of requirements based on Local Law 18. You must register your place and get a unique verification number to include in every listing. Short-term rentals must not exceed 30 days, and the host must be present during a rental. The primary residence requirement also applies to NYC, requiring you to live in the rented property for at least 183 days per year. Learn more about STR regulations in NYC in our blog post.
Airbnb regulations in Los Angeles, CA
The Home-Sharing Ordinance that came into force on November 1, 2019, is the primary legislation LA hosts must follow. Similarly to other Airbnb rules and regulations, the local ones require you to register with the city planning department, get a registration number, and rent your primary residence only. You can register one rental unit at a time.
In Los Angeles, the registration fee is $199, and there are two categories of rental permits. The standard permit allows sharing a property for up to 120 days annually. The extended one waives the nightcap, but you must meet additional requirements like hosting guests for at least 60 days. Read more about what it takes to get an SRT permit in LA and other Airbnb local regulations.
Airbnb regulations in San Diego, CA
San Diego cuts the share of short-term rentals to 1% of available housing stock, considerably limiting Airbnb hosts. San Diego’s Short-Term Residential Occupancy and Hosting Platforms Law, enacted on August 10, 2022, also brought many other restrictions. The host license requirement is the main one. Hosts who rent their properties short-term (from 1 to 30 days at a time) must get a Transient Occupancy Tax (TOT) number and a short-term residential occupancy license (STRO). The license has four tiers for different types of properties, with the costs ranging from $125 to $1070, depending on the cap and area.
We have interviewed Paul Becker, a member of the San Diego Short-Term Rental Alliance, about the current STR regulations in the city.
[iframe src=”https://youtu.be/mx4DHk6M9bk” width=”600″ height=”400″]
Airbnb regulations in Chicago, IL
Chicago adopted the Shared Housing Ordinance on June 22, 2016, to make hosts register their properties and start tracking STR units. It also introduced the Prohibited Building list, which includes properties banned from short-term rentals.
Since then, people who rent property for 1 to 31 days at a time must obtain a short-term rental registration number and include it in their listings. The shared housing registration fee is $125, and $25 for an annual renewal if you rent your primary residence. In Chicago, you are allowed to rent a non-primary residence. Just make sure to get a separate non-owner-occupied license.
Airbnb regulations in San Francisco, CA
Local STR regulations are strict. Be ready to obtain a business registration certificate from the Office of the Treasurer & Tax Collector and then get a certificate from the Office of Short-Term Rentals. The city also has the primary residency requirement, requiring hosts to live in a property for at least 275 days per year. Like in many other cities, you can only have one primary residence.
The nightcap limitations are pretty lenient. You can share your space without limitations if you are there or up to 90 days annually if you are absent. Also, make sure you have at least $500,000 of liability insurance. If you use Airbnb for hosting, it provides the necessary insurance coverage, yet if you consider other platforms, you’d better buy additional insurance. Truvi has several protection plans to choose from.
Short-term rental-friendly cities
Even though the list of cities with no Airbnb regulations gets shorter year by year, some cities have more lenient regulations. These are usually the places with lower demand for property and fewer tourists compared to places like NYC or Las Vegas. It does reduce the popularity of short-term rentals but, on the flip side, you can start an Airbnb business more easily here.
Airbnb regulations in Fort Collins, CO
The Short-Term Rental Ordinance with Land Use Code Amendment is the core regulation to comply with when renting in Fort Collins. It’s relatively easy to follow compared to other Airbnb regulations by city.
You can rent a room or an entire house as long as you have a short-term rental license. Short-term rentals are stays of up to 30 days. The application costs $150, with $100 for annual renewal. There are two types of licenses: non-primary and primary. Non-primary means the rented property is not your primary residence, while the primary one is for renting your primary residence.
Airbnb regulations in Nashville, TN
In Nashville, hosts must receive a permit from the Metro Codes Department before listing their properties. You can choose between an owner-occupied and non-owner occupied permit depending on whether you live in the rental property or not. The application process happens online, which is very convenient for hosts. The permit is valid for 365 days. Nashville also has zoning restrictions, which mainly apply to non-owner occupied short-term rentals. Overall, the STR rules here are easy to follow.
Airbnb regulations in Austin, TX
All STRs in Austin must be licensed under section 25-2-791 of the City Code. There are three types of short-term rental properties with varying licensing requirements. You can rent an owner-occupied unit, an entire dwelling, or part of a multi-family or condominium residential unit. The only drawback of short-term rentals in Austin is the cost of the license — $779.14 for the first time and $437 for renewal.
Airbnb regulations in Seattle, WA
Starting a rental business in Seattle is quite painless. It only requires you to get a business license tax certificate, a Rental Regulation & Inspection Ordinance, and the correct type of STR license — a short-term rental operator’s license or a bed and breakfast operator’s license.
With the short-term rental operator’s license, you can rent up to two dwelling units for 30 days or less. The bed and breakfast operator’s license is for hosts who operate a bed-and-breakfast. The license costs $75 and requires annual renewal. You can apply online and get your license in two weeks.
Final thoughts
Is Airbnb legal in my neighborhood? – this is one of the first questions you must ask before choosing a location for a short-term rental business. Regulations have become tougher lately and can significantly affect rental opportunities and profit. Usually, cities with housing issues and high property prices, like NYC, Los Angeles, Las Vegas, or San Francisco, have stricter regulations. Places with fewer tourists and more residential units available for long-term rentals do not limit Airbnb and alternative platforms that much.
So, be sure to analyze your local rules and requirements before investing. Truvi has a series of articles on short-term rental regulations in our blog to help you with that.
