There has been a boom in the number of web sites, and private owners, offering their homes for temporary housing. To combat this challenge to traditional rental housing, many cities in the United States and abroad have enacted strict laws governing short-term housing.
It is important to know what laws may affect you when listing a home for temporary stays (length of time varies depending on locations).
Current and Proposed Zoning. Before you begin renting, check with your county and city about the zoning requirements for short-term rental properties. You should check not only on the current zoning status of the area where your home is, but also any proposed changes that may affect your home. To investigate the status of short-term rentals in your city or county, consider contacting other owners who are currently renting in your immediate area.
Homeowners Association Rules. Your homeowners association may also have rules regarding rentals within your complex or subdivision. Typically these rules are found in your CC&Rs (Covenants, Conditions & restrictions).
Business Licenses and Permits. Many areas require “vacation” rental owners to apply for a business license or permit to rent homes on a short-term basis.
Safety Requirements. In some markets, vacation rental homes have to follow the same basic safety requirements as long-term rentals (sprinkler systems, fire extinguishers, deadbolt locks, etc.) and may also be required to complete safety inspections.
Local Health Code Regulations. Some areas also have specific rules and regulations around health codes. The most common areas of regulation involve well water testing, and pool and spa maintenance.
Taxes. Be sure to check with your tax professional as to any applicable tax laws and how it may affect your particular situation.
By doing a bit of homework, you can comply with local rules and regulations affecting short-term rentals and continue to have successful bookings with your home.