Short-Term Rental Laws in Major U.S. Cities (Updated 11/13/2019)

short-term-rental-laws

This article was updated on Nov. 13, 2019 to add short-term rental laws in multiple small cities in San Francisco Bay Area.

Since Airbnb’s launch back in 2008, the short-term home-sharing model has flipped the hospitality industry on its head. Travel industry experts Skift estimated that the global short-term rental market would reach a market valuation of $169 billion through 2018. Airbnb is one of the most-anticipated upcoming IPOs in 2020.

But the short-term rental industry is not without controversy. Hanging in the balance is the ever-present question: Whether to regulate it more strictly to preserve local culture and keep local residents from being priced out, or allow it to thrive and reap the benefits of booming tourism?

City after city, restrictions on short-term rentals pop up across the country, to keep its rapid growth in healthy check. These laws are very local in nature and vary from state to state, even town to town. Here is a summary of short-term rental restrictions in major U.S. cities:

Quick links to short-term rental laws in each city:

New York City

New York City, the biggest tourism magnet in the world, has some of the strictest short-term rental laws. Back in 2011, even before Airbnb’s widespread popularity, the New York State Multiple Dwelling Law made it illegal in most apartment buildings for an apartment to be rented out for less than 30 days, unless the permanent tenant is present at the same time.

In fact, even advertising such a rental is illegal, as mandated by the state law. Illegal advertising of apartments—defined as a building with three or more units—on is subject to fines up to $7,500.

Technically this rule doesn’t apply to single-family homes—which, granted, are few and far between in New York.

Airbnb hosts can rent out a spare room in their apartments as long as they are also living at home. But there’s a catch: They can’t install any locks at home because guests need to have free access to all rooms.

Last year, the New York City Council went a step further in cracking down short-term rentals by introducing a bill, requiring Airbnb and other home-sharing sites to disclose details about their listings, and the identities and addresses of their hosts every month. The bill was recently blocked by a federal judge in January 2019.

short-term-rental-hosts

San Francisco

San Francisco, where Airbnb’s headquarter is located, was among the first cities to regulate short-term rentals. As early as 2014, the city imposed a limitation on the number of days a property can be rented out for short stays.

Starting from 2015, hosts were required to register as both a business and as a short-term rental, according to the city’s Office of Short Term Rentals legal battle between Airbnb and the city that stretched for over a year, before both parties finally settled in court in May 2017. As a result, the number of Airbnb listings plunged overnight last January, upon the final deadline to ditch unregistered hosts.

Today, San Francisco maintains a list of all registered hosts, who report every quarter on occupancy. If they want to rent out the entire property, they can only do so for up to 90 nights a year. They can rent out a spare room for an unlimited number of nights as long as they are also staying at the property.

Certain types of housing are off-limits for such rentals, which include Income-restricted affordable housing and student housing. Unique homes that add the most fun to vacation rentals—such as treehouses, teepees, and RVs—are also not permitted. Despite the regulation, a search for San Francisco treehouse on Airbnb yields some results.

Los Angeles

After a three-year-long debate in Los Angeles, short-term rental rules were passed in last December. Effective July 2019, property owners can only rent out their primary residence, not a second home or investment property for stays of fewer than 30 days, according to the city ordinance. Violation is subject to a daily fine of at least $500.

Hosts must register with the city, pay hotel taxes, and keep records for city inspection. They can legally rent out for short stays for no more than 120 days a year. Exceeding the limit will result in a daily fine of at least $2,000.

If a property is rent-controlled, it can’t operate as a short-term rental at all.

Washington DC

The nation’s capital recently joined the list of cities that enact strict Airbnb regulations. Starting from October 2019, property owners in Washington DC can only rent out one home—their primary residence—according to a city regulation act.

To legally operate short-term rental, all hosts must register with the city. For those who wish to rent out an entire property, they must obtain an additional “vacation rental” endorsement. The maximum nights they can rent out an entire property is 90 nights a year.

Fines vary, but start at $500 and can go up to as much as $6,000 for a repeat offense.

Chicago

Three years after Chicago enacted its short-term rental regulation, it requires a license for short-term rental platforms as well as hosts.

The city ordinance classifies short-term rental platforms into two categories: 1) “Short-term rental intermediary” refers to platforms that primarily list shared housing units, like Airbnb; 2) “advertising platform” refers to sites that primarily list vacation rental or bed and breakfast, such as VRBO and HomeAway.

Hosts on Airbnb who only has one listing can register with the platform, which then collects data of all hosts and submits them to the city. Hosts on Airbnb with more than one listings need to obtain a license directly from the city for a fee of $250.

A city license is also required for VRBO and HomeAway hosts or vacation rental owners who operate offline.

All hosts are required to provide soap, clean linen, sanitized utensils, and other living necessities.

Chicago imposes steep fines against illegal short-term rentals, from $1,500 to $3,000 per day.

Boston

Starting January 2019, the city of Boston opened registration from hosts who want to rent out their properties for fewer than 28 nights, after a city ordinance was passed last June.

Hosts who want to rent out a spare room while living under the same roof can apply for a license for $25 per year. Those who want to rent out an entire unit can only do so for their primary residence or a secondary unit (such as an in-law unit) in their primary residence. The license fee for renting an entire unit is $200.

Hosts who fail to register face a $100 fine per violation per day. Those who rent out units that are ineligible, like a below-market-rate unit, face $300 fine per violation per day.

Under a new state law signed last December, short-term rental hosts will have to pay the same 5.7 percent state tax as hotels.

Airbnb had been battling with Boston in court over the short-term regulations in the past year.

Latest update on 08/29/2019:

Airbnb and the city of Boston finally reached a settlement. By December 1, 2019, all short-term rental listings will be required to display a city-formatted registration number, or the listings will be removed. Airbnb also agreed to share data about listings with the city, including the listing’s URL, registration number, host ID, information, and zip code.

Previous updates:

In May 2019, just four months after the new law took effect, a federal judge temporarily blocked Boston from imposing parts of the ordinance. The judge declared that the city can’t ban a short-term rental service because it posted listings in violation of the ordinance. He also concluded that the city couldn’t force Airbnb to report how many days a week rental units are occupied.

Seattle

In Seattle, both short-term rental platforms and individual hosts need to obtain licenses from the city. Platforms like Airbnb and VRBO are obligated to report all licensed operators and their listed units every month, according to the city code.

A host must apply for both a business license and a short-term rental license.

With a valid license, a host may rent out up to two units as short-term rentals. It the host has two units, one must be his or her primary residence. Violations are subject to $500 fine for the first offense and $1,000 for a repeat offense.

Short-term rental hosts must pay retail sales tax and applicable lodging taxes on the rental charges. They also owe business and occupation (B&O) tax, but could qualify for the small business B&O tax credit, according to the Washington state department of revenue.

Latest update on 10/18/2019:

The online application portal for short-term rental licenses is now open, after delays due to technical difficulties. Enforcement of short-term rental regulations—including the issuance of penalties—will begin on Dec. 15, 2019, according to the city.

Denver

In Denver, the rules for short-term rentals were established by the Denver City Council in 2016. According to the ordinance, property owners can rent out individual rooms or garage apartments on quiet residential blocks for less than 30 days. The homes can be rented out when the owner is away, but it must be the owner’s primary residence. Short-term rental hosts pay the Denver Lodger’s tax of 10.75% of the entire amount charged for the lodging.

To legally do so, property hosts need to apply for a license from the city, which costs $25 dollars, as of January 1, 2017. If the city has reason to believe the rental property is not the owner’s main residence, it launches investigations into the situation. The enforcement action can range from warnings to fines to felony charges.

Latest update on 09/04/2019:

The Denver Post reported that the city now asks license holders suspected of cheating to sign affidavits—the only city in the country to do so. As a result, hundreds of property owners are shutting down short-term rentals to avoid legal implications.

Miami

The tourist-dense Miami is another battleground between Airbnb and strict short-term rental regulations. According to the Miami-Dade County Code of Ordinances, a vacation home must live in the same unit for more than six months a year.

The maximum overnight occupancy for vacation rentals is up to a maximum of 2 persons per bedroom, plus 2 additional persons per property, up to a maximum of 12 persons.

The unit must be licensed by the State of Florida, including registration with the Florida Department of Revenue for tax purposes. The unit has to pass a property inspection to get the license as a vacation rental, which is valid for one year.

Fines for violation is $100 for the first offense, $1,000 for the second, and $2,500 for the third.

Miami Beach

The city of Miami Beach enforced even stricter regulations on short-term rentals. Rentals for less than six months and one day are prohibited in the city unless the property is in a legally permissible zone, such as most of tourist-dense South Beach.

Miami Beach has the most expensive fines in the country for illegal short-term rentals. The rule was first instituted in March 2016. There’s an escalating fine structure: $20,000 for the first violation, $40,000 for the second, $60,000 for the third, $80,000 for the fourth, with a max of $100,000 for each offense after.

Latest update on 10/08/2019:

On October 7th, A Miami-Dade circuit judge struck down the city’s law that fines homeowners $20,000 for illegally renting their places short term on sites such as Airbnb, reported by the Miami Herald.

Despite the ruling, the city’s spokeswoman, Melissa Berthier, said the fines are still in effect and that the city’s code enforcement would continue to enforce the ordinances.

Santa Monica

Santa Monica passed its first home-sharing ordinance in 2015. According to city regulation, Santa Monica allows residents to rent out rooms in their homes for a period of 30 days or less. Renting out an entire home remains illegal.

In 2016, Airbnb and HomeAway filed a lawsuit against the city to stop the home-sharing ordinance from taking effect, but in 2018 the U.S. District Court for the Central District of California ruled in favor of Santa Monica on the issue.

Anyone operating a home-share must apply for a City business license and pay business tax. Another 14% of the transit occupancy tax also applies, which is paid by the guest.

Latest update on 09/24/2019:

The Santa Monica City Council voted to revise the short-term rental ordinance amendments, which will take effect on October 24, 2019. The new law continues to allow home-sharing, but requires that eligible residents obtain both a home-share permit in addition to the home-share business license that was already required. The initial home-sharing permit application cost will be $100, and the annual renewal fee will be $50. The City is in the process of revising its administrative rules and regulations.

Jersey City

Across the river from Manhattan, Jersey City passed its short-term rental ordinance in June 2019, after nearly nine hours of public comment and council discussion. The new law will take effect on Jan. 1, 2020.

The new law will ban Airbnb and other short-term rentals in buildings with more than four units and phase out existing short-term rental contracts by Jan. 1, 2021.

Meanwhile, owners of buildings with four or fewer units will be permitted to rent out up to two of them. Short-term rentals in condominiums will be allowed the local board permits it.

The ordinance institutes an annual 60-day cap for short-term rental properties if the owner is not on site.

To operate a short-term rental under the ordinance, the host has to be the property owner—the new provision bars renters from operating short-term rentals. All hosts will be required to obtain a permit, which must be renewed annually.

Latest update on 11/5/2019:

Jersey City residents overwhelmingly approved the short-term rental law, with 86 percent of voters in favor of the new law.

Previous updates:

City Clerk Robert Byrne on Aug. 7 certified a referendum petition submitted by opponents of the ordinance, giving the council a chance to repeal the law. Now, the future of the ordinance will be decided by voters on Nov. 5.

San Jose

San Jose started regulation short-term rentals as early as December 2014, when the city ordinance was introduced. To be eligible to operate a short-term rental, the host has to establish primary residence by living in the property for at least 60 consecutive days a year.

For hosts that meet the criteria above, there are some limitations to operating a short-term rental. If the host is not present, bookings are capped at 180 days a year. The maximum number of guests is 2 per studio, 3 per one-bedroom unit, and 2 per bedroom for larger units, up to an absolute max of 10 guests.

If the host is present, there’s no cap on the number of nights the place can be rented out per year. And the host can have up to 3 guests in single-family homes or 2 guests in multifamily dwellings.

A 10% transient occupancy tax is collected for all short-term rental bookings.

Mountain View

Despite the lack of tourism in Silicon Valley, Mountain View has seen a high demand for short-term rentals as businessmen and interns flock in town because of Google. Short-term rental laws were established in Mountain View in December 2018 to fight some of the nation’s highest rents.

Starting from September 1, 2019, hosts need to obtain a business license and submit a short-term rental registration application, which costs between $41.25 and $165 a year. Fine for operating without a registration starts from the second offense at $500.

If hosts want to rent out the entire property, they can only do so for up to 60 nights a year. They can rent out a spare room for an unlimited number of nights as long as they are also staying at the property.

No special events—weddings, parties, corporate gatherings, etc—are allowed at the short-term rental property.

A 10% transient occupancy tax applies to all short-term bookings.

Sunnyvale

Located 10 miles north of San Jose, Sunnyvale adopted the strongest short-term laws in Silicon Valley, in an effort to protect the city’s affordable housing.

The ordinance only allows short-term rentals if the host has a permit from the city and also lives in the same property. A maximum of 4 occupants per night at any given single-family dwelling. In addition, a 12.5% transient occupancy tax is collected for all bookings.

Oakland

Across the bay from San Francisco, Oakland has even stricter laws that ban short-term rentals in most zones. The only exceptions are designated zones in downtown, along the waterfront, near the airport, along the I-880 freeway, and in Specific Plan areas.

In those permitted areas, a Conditional Use Permit is required to operate short-term rentals. A 14% Transient Occupancy Taxes applies to all short-term rental bookings.

Berkeley

In Berkeley, short-term rental law regulates temporary stays that are less than 14 days. Short-term rentals are only permitted in certain zones (see city website for the detailed list).

Short-term rental hosts have to prove that they are the primary resident and provide liability insurance of $1,000,000 for guests. The ordinance institutes an annual 60-day cap for short-term rental properties if the owner is not on site.

Hosts are required to register with the city and obtain a zoning certificate ($220 application fee), collect a 12% transient occupancy tax, and pay an additional 2% enforcement fee.

Emeryville

Short term rentals are only allowed in single-family homes, according to Emeryville city ordinance. Only primary residences are eligible for short term rentals. The ordinance also institutes an annual 90-day cap for short-term rental properties if the owner is not on site.

Hosts are required to obtain a short term rental permit from the Planning Division and collect 14% transient occupancy tax.

Redwood City

Short term rentals in Redwood City are only allowed in primary residences, according to the city website. There’s an annual cap of 120 days per year for short-term rentals if the owner is not on site. There are no annual limits for hosted rentals.

A local contact person is required and hosts must register, obtain a business license, and collect a 12% transient occupancy tax. Special events—weddings and corporate retreats—are prohibited.

Millbrae

Home to the San Francisco International Airport, Millbrae is the major transportation hub in the Bay Area. Hosts who operate short-term rentals in Millbrae must be the primary resident, by proving that they live in the property for at least 265 nights a year.

There’s an annual cap of 100 days of booking per year for short-term rentals if the owner is not on-site, according to the ordinance. There are no annual limits for hosted rentals.

Violation of the law results in a fine of up to $1,000 per violation per day.

18 comments on “Short-Term Rental Laws in Major U.S. Cities (Updated 11/13/2019)

  1. alfonzo mourning

    I’m not an attorney, yet it feels like fundamental constitutional rights have been trampled under some of these municipal ordinances created to regulate short-term residential rentals.
    The regulations passed by the City of Los Angeles now going into effect can almost be heard calling out for someone to challenge their legality in the courts.
    No group of more than 8 adults allowed outdoors at night at a short-term rental property.
    Really? So is this Los Angeles or Saudi Arabia? Is the 4th Amendment void in Los Angeles at night for anyone not renting for at least 30 consecutive days?
    Can anyone explain the reasoning behind instituting a total ban on short-term rentals when a property falls under jurisdiction of the City’s Rent Control ordinance?
    With absolutely no provision of due process review, the City has instituted an arbitrary criteria to determine the membership of a huge group of renters and homeowners who will be denied their fundamental liberty.

    For example, let’s say i own a duplex in the city of l.a. which is subject to the Los Angeles RSO(rent control). I live in one of the units as my primary residence.
    The new ordinance disqualifies my unit from being registered for a short term rental permit. Without a valid registration number, it is illegal for me to engage in any short term rentals of my home.
    I cannot airbnb a room in my home to supplement my income, nor can i airbnb a room as an exercise in social interaction and cultural enrichment. While I’m out of town on vacation for two weeks utilizing airbnb to find affordable and unique accomadations during my travels, my home must remain vacant as I’m prohibited from renting it for a period less than 30 days.
    Meanwhile, the owner of a stand-alone single family residence next to my duplex can airbnb a room in the home to supplement his income and can offer the entire home for rent on airbnb – offsetting the expense of lodging while he is away on his 2 week vacation.

    Now consider that i am renting the 2nd unit in my duplex to a long term month-to-month-tenant. And i have granted my tenant permission to participate in airbnb rental of his unit for up to 120 days of the year.
    Since my property is subject to Los Angeles Rent Control, my tenant is forbidden using airbnb to find short term lodgers for a room in in his unit and he cannot rent his whole unit to anyone while he travels out of town for 1, 2, 3 or 3 1/2 weeks at a time.

    Take note, not all renters of rent controlled units are paying low rent. The tenant of the 2nd unit in my duplex just moved in 2 months ago at full current market rent.
    The tenants of a nearly identical duplex across the street pay the exact same monthly rent as my tenant, but that duplex is a month newer than mine and its not subject to L.A. Rent Control.
    Their landlord has granted them permission to supplement their income by occasionally listing a room on airbnb and they are able to afford a 2 week vacation every six months because they rent out their whole unit via airbnb while they are gone.
    Meanwhile, the city prohibits my tenant from doing any of what the tenants in the duplex across the street may do.
    My tenant gets hit by a drunk driver and is seriously injured.
    While he is in the hospital recovering, he is not allowed to rent his unit through airbnb.
    Due to his injury, he is unable to return to his work for several months.
    Unfortunately, his unemployment benefits fall short of covering his monthly rent and bare living expenses.
    He is desperate for a temporary source of some extra funds, which listing his unit on airbnb would provide.
    But the city of los angeles has already told him “no!”.
    Unfortunately, he falls behind in paying his monthly rent and i’m left with no alternative but proceed to eviction.
    2 months later he is homeless on the streets of Los Angeles – due to the cruel and arbitrary exclusion of los angeles rent control units from participating in airbnb.

  2. Joanna Bailey

    I completely agree with this assessment, and that it’s a very convoluted situation. Much like an HOA, a municipality should not be able to regulate what happens inside a homeowner’s property. Provided it’s not an obvious legal violation {meth lab, human trafficking hub, etc}, which a homeowner chooses to do to maximize their investment should be no one’s business.

    If I own a home and run a small catering company from it, per the local health department I can be permitted provided I follow their parameters. Why is short term rental service different? Airbnb has done a stellar job of ensuring that towns and cities receive the tax revenue they initially feared they’d lose.

    There’s a lot of legal posturing here; it needs to be addressed head on.

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  4. Michael Johnson

    Never in my wildest dreams when I bought my property many years ago did I think that my surrounding neighbors would someday be operating a 24/7 hotel next door. You’re gonna tall me that my neighbor’s property rights trump mine? Their combined actions in my small community is totally changing the character of the community where we live. They’re robbing the community of the greatest attributes that it has… the very reasons why most of us moved here. If you don’t like the HOA agreements in an neighborhood… don’t move there! When people want to move into a new neighborhood and change it… they should move somewhere else! You can take you property rights arguments and shove them.

    • Michael, I completely see your point of view but, may I ask if you are against your neighbors renting their house as a traditional rental? Is that within their rights (and yours) as property owners?
      I’m not sure what the tenants rights laws look like in your state but, in mine if I inadvertently lease my property to drug addicts or people that party all the time, it will take an act if god to get them out of my house.
      If you have specific issues with your neighbor’s guests I encourage you to address them with your neighbor. Unlike a traditional rental your neighbor has the control to regulate the behavior of the guests.
      Just some food for thought.

      • Alina Smith

        No one is against homeowners who list their home for traditional rentals or homeowners listing their primary residence on occasion on Airbnb.

        Most folks confuse two scenarios: traditional landlords who lease their home to a tenant with a 12 month lease versus commercial operators who buy several single family homes with no intent to occupy it themselves, no intent to lease it to a local family and instead operate an Airbnb 360 days in the year. The latter is 100% commercial & should not be allowed in areas zoned for residential.

        Commercial operators rent out their properties for less than 30 days, instead of being a traditional landlord because it is no secret that you can make more rental income in a month by charging per night instead of per month. If a traditional lease on entire home rental is about 2K a month, an Entire home Airbnb can gross close to 10K a month if completely booked with 4-15 turnovers. The neighbors have to deal with transients coming and going.

        What if your Airbnb neighbor lives out of state, you have no idea how to contact them if there is criminal activity going at the Airbnb next door? How would you feel if the guests are filming a porno next door? Or banged on your door because they are so drunk and can’t figure out which house is the Airbnb they booked? Many of the complaints about Airbnb are in homes where the owner does not even live in the area, and shouldn’t have been allowed to operate as a makeshift hotel in the first place!

        Because most of them live out of state, commercial operators have LITTLE oversight in controlling the behavior of the guests. Also because they take up 15 year mortgages, their priority is bookings, so they are not as likely to screen guests carefully and allow parties if they are that desperate for bookings to make their month.

        Entire house listings by homeowners who list their primary residence on occasion have little to none of these problems. Because they live in the area, they have jobs that can handle the mortgage payments or are retired and already paid off their house. In those situations, they can handle the risk of being unbooked, and turning away guests they don’t feel good about. These hosts do not have the need to Airbnb their entire house 360 days in the year, they wouldn’t anyway because they would have to pack and leave their home all the time, it’s too much hassle for them.

  5. Gregory Oaksen

    Cetainly municipalities can regulate short term rentals. They regulate zoning controlling where single family and multi family residences and commercial properties can be located. Building codes regulate minimum standards for dwellings and commercial structures. The first two commenters ignore the negative impacts of too many short term rentals on communities. Negative impacts are why you are seeing protests against overtourism in many locations throughout the world.

    • D*mn Shame...

      Exactly!

      Then You have unscrupulous landlords who try to take properties off the market to turn them into Short Term Rentals (STR)…Mine has made an entire Business out of it!

      Thankfully the Forbiddance of turning Rent Stabilized Properties into STR is in effect now. That is a huge part of the reason there are so many homeless people in Los Angeles Now! Because these Jerk-Offs were taking properties Off the Market!

      While the rents are now insane all of this madness will soon be coming to a head when the next downturn happens …a whole lot of people’s bubbles are going to be busted when that happens…

  6. People should be allowed to rent out a 2nd or vacation property. I think that fines and punishments for irresponsible owners who don’t respect their neighbors are understandable but the entire city is acting line an aggressive over zealous HOA.

  7. The house next door is suddenly a hotel, now that I have complained-they stalk me!! Write FB posts as if I am in the wrong. Luckily, the frequent lies (not a resident, not approved by Building Department and not just friends and relatives) caught them but still, why do I have to spend my day on this??? Nice quiet neighbor and sleeps 7 do not belong in the same sentence. Barked at by different dogs every weekend, all the cars and now harassed by the investor who is trying to shut me up. Every little town has to spend the time to write rules too.

  8. sandra aguilar

    Bottom line people every persons situation is different and in some cases there is no other alternative to stay afloat is to rent out the other room or your entire home just to make ends meet STOP BEING SO FUCKING BITTER ABOUT YOUR NEIGHBOR MAKING ENDS MEET. AND FURTHERMORE HOMELESSNESS HAS BEEN AROUND SINCE I CAN REMEMBER. IF YOU WANT TO LOOK AT HOMELESSNESS CLOSER THERE’S A LOT OF DIFFERENT REASONS WHY PEOPLE ARE HOMELESS NOT JUST BECAUSE YOUR NEIGHBOUR IS SUBLETTING THEIR EXTRA BEDROOM BUT BECAUSE THEY ARE INSANE THEY ARE DRUG ADDICTS THEY ARE PLAIN LAYSEE AND THEY CHOOSE TO BE HOMELESS… BOTTOM LINE THE HOME OWNERS PAID THEIR MONEY AND THE GOVERNMENT SHOULD NOT HAVE A SAY ON WHAT HAPPENS INSIDE A HOME UNLESS ITS ILLEGAL ACTIVITY… BUT BOTTOM LINE UNCLE SAM JUST WANTED MORE MONEY AND TO BE IN CONTROL OF THE HOW THE WHAT THE WHEN AND THE HOW… My question what happened to the 4th amendment of the constitution?

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