Around 40% of Americans take at least one vacation per year.
Short-term rentals, also known as vacation rentals, refer to the practice of renting out a property for a short period of time, typically a few days or weeks. These rentals are often managed through online platforms such as Airbnb or VRBO. According to a report by the National Multifamily Housing Council and Kingsley Associates, in 2020, around 36% of U.S. renters used short-term rentals for a vacation or short-term stay.
Short-term vacation rental compliance can have a significant impact on local governments. One of the main concerns is the potential loss of revenue from hotel and sales taxes, as short-term rentals are often not subject to the same regulations and taxes as traditional hotels.
Additionally, local governments may also have to deal with issues such as zoning violations and increased strain on public services, such as emergency services and trash collection. Some local governments have responded by enacting regulations on short-term rentals, such as requiring operators to obtain licenses or pay taxes. However, the implementation and enforcement of these regulations can be challenging.
This article highlights more about short-term vacation rental compliance, but before diving into the importance of compliance, I want to share some of the most visited places in the United States.
The most popular travel destinations in the United States
New York City
As everyone knows, New York City is a popular travel destination; known for its iconic landmarks, diverse cultural experiences, and bustling city life. It’s home to famous attractions such as the Statue of Liberty, Central Park, and Broadway. In 2020, the city welcomed 13.7 million international visitors, making it the third most visited city in the United States.
Visitors can find a wide range of activities to do, from touring world-class museums, taking a stroll in Central Park, enjoying the nightlife scene, or shopping in the city’s many neighborhoods. New York City also offers a diverse culinary scene, with options ranging from street food to Michelin-starred restaurants.
Orlando, Florida
Orlando is also a popular travel destination known for its theme parks, warm weather, and family-friendly activities. You may be familiar with world-renowned theme parks such as Walt Disney World and Universal Studios, as well as other attractions like SeaWorld and LEGOLAND. In 2019, Orlando was the most visited city in the United States, welcoming over 75 million visitors.
Visitors can also find other activities to do like visiting the Kennedy Space Center, playing golf on one of the many golf courses around the area, or enjoying the nightlife. The culinary scene in this city is also rather diverse, with the same type of options ranging from street food to upscale restaurants.
Las Vegas, Nevada
Las Vegas is known for its vibrant nightlife, casinos, and luxury hotels. It’s a city that offers a wide range of experiences, from high-end dining and shopping to world-class entertainment, and of course, gambling.
The Las Vegas Strip, which is a 4.2-mile stretch of Las Vegas Boulevard, is home to some of the world’s most famous hotels, casinos, and entertainment venues, such as the Bellagio, the Venetian, and the Mirage. In 2020, Las Vegas welcomed around 42 million visitors and is known as the entertainment capital of the world with its many shows, concerts, and events.
Miami, Florida
Miami is popular because of its beaches, lively culture, and year-round warm weather. It hosts famous beaches such as South Beach and Key Biscayne, as well as a vibrant nightlife scene and diverse cuisines. The city also offers a variety of cultural experiences, from the Perez Art Museum Miami to the Little Havana neighborhood, which is known for its Cuban culture.
In 2019, Miami welcomed over 15.9 million visitors, making it one of the most visited cities in the United States. Visitors can also find other activities to do like visiting the Vizcaya Museum and Gardens, the Wynwood neighborhood, known for its street art and galleries, or the Miami Seaquarium.
Los Angeles, California
Los Angeles is known for its beautiful beaches, entertainment industry, and diverse neighborhoods. You’ll find famous attractions such as the Hollywood Walk of Fame, Griffith Park, and the Santa Monica Pier. Los Angeles is also known for its theme parks like Universal Studios Hollywood and Disneyland.
The city offers visitors a wide variety of experiences, from visiting world-class museums, such as the Getty Center, to shopping on Rodeo Drive, to hiking in the Hollywood Hills. In 2020, Los Angeles welcomed around 47 million visitors, making it the second most visited city in the United States after New York City.
The importance of short-term vacation rental compliance
Legal compliance
Legal compliance is crucial for short-term rentals as it ensures the property is being used in a way that’s in line with local laws and regulations. Failure to comply with these laws can result in fines, penalties, and even the revocation of the property’s rental license. Additionally, legal compliance makes sure of the safety and well-being of guests, as well as protects the rights and interests of the property owner and the surrounding community. Compliance with zoning laws, building codes, and health and safety regulations is crucial for short-term rentals and must be considered when operating a short-term rental property.
Professionalism
Short-term vacation rental compliance showcases professionalism by demonstrating a commitment to following the rules and regulations set forth by local authorities. By ensuring the property is being used in a legal and responsible manner, the property owner or manager is displaying a level of care and diligence that’s expected of a professional in the industry. Additionally, compliance with laws and regulations helps establish trust and credibility with guests; they can be assured that the property is safe and meets certain standards.
Safety
Short-term vacation rental compliance ensures safety by adhering to building codes, health, and safety regulations, along with zoning laws put in place to protect the well-being of guests and the surrounding community. Compliance with these laws makes sure the property is equipped with necessary fire safety measures, such as smoke detectors and fire extinguishers, and meets health and sanitation standards. Additionally, compliance with zoning laws helps prevent overcrowding and overuse of the property, which can lead to potential hazards. By complying with short-term rental regulations, the owner or manager of the property is taking the necessary steps for the safety of guests and the community.
Community relations
Short-term vacation rental compliance improves community relations by ensuring that the property is being used in a manner that is respectful to the surrounding neighbors and community. Compliance with zoning laws, noise ordinances, and parking regulations helps minimize disruptions and nuisances caused by short-term rentals. On top of that, compliance with building codes, health and safety regulations, and sanitation standards makes sure the property is well-maintained and doesn’t pose any health or safety risks to the community. By demonstrating a commitment to following the rules and regulations set forth by local authorities, the property owner or manager is showing a level of respect and responsibility towards the community.
Financial benefits
Short-term vacation rental compliance can bring financial benefits by avoiding fines and penalties for non-compliance with local laws and regulations. Compliance with zoning laws, building codes, and health and safety regulations can help maintain the property and keep it in a good condition, which attracts more guests and increases revenue. I’ll remind you that by complying with short-term rental regulations, property owners or managers can protect themselves from legal liability and potential lawsuits. Compliance with regulations also can increase the reputation of the property and the property owner, which also attracts more guests and increases demand for the property, leading to higher occupancy rates and rental income. Compliance helps ensure the property is being used in a way that’s consistent with local zoning and land use regulations, which helps prevent disputes with neighbors or community members.
Tips for your short-term vacation rental compliance
Here are 7 tips for short-term rental compliance:
- Research and understand the local laws and regulations that apply to your rental property. Each city or town will have its own specific rules and regulations that you need to follow.
- Obtain any necessary licenses or permits. You may need to obtain a business license or a special permit to operate a short-term vacation rental in your area.
- Follow all zoning laws and ordinances. Make sure your rental property is located in a zone where short-term rentals are allowed.
- Adhere to any rules or regulations set by your homeowners association or condominium complex.
- Comply with any safety or health regulations that apply to your rental property. This may include installing smoke detectors, maintaining cleanliness, and providing guests with information about emergency exits and procedures.
- Be a good neighbor. Be mindful of the impact your rental property has on the community, and try to be a good neighbor by being respectful of your neighbors and their property.
- Keep good records. Maintain accurate and complete records of your rental income and expenses, as well as any repairs or maintenance you perform on the property. This will help you stay organized and be able to demonstrate compliance if needed.