Here Are the Rules for Short-Term Rentals in Your City

The promise of home sharing has shifted. Once upon a time, if you had a room to spare, renting it out to a stranger meant you could make a new friend and some spare cash in the process. But after Airbnb caught on in more in more cities since its debut in 2008, acts of bonhomie have given way to a profit-driven short-term rental industry that has created a complex love-hate relationship between city dwellers, property owners, and municipal actors.

In 2020, Forbes published a story on the "Airbnb effect," showing how the opening of new units has ramifications similar to gentrification, wherein existing residents are priced out of their rental market. According to a study cited in the article, a one percent increase in short-term rentals (STRs) leads to seemingly-minor increases in rents and home prices—0.018 percent and 0.026 percent, respectively—that can actually have a "cost creep" for residents hoping to rent in the long-term or purchase a home.

Whether attempting to assure housing stock for their residents—or just prevent overnight partiers from disrupting a neighborhood—more cities are starting to regulate STRs following a landmark 2019 case between Airbnb and the City of Santa Monica. In it, a federal appeals court decision affirmed a city’s right to set rules around listings and hold platforms like Airbnb, Vrbo, and HomeAway accountable for any that don’t comply.

Now, for property owners wanting to rent out their space, there can be a number of hoops to jump through, include registering an address, tenant background checks, and obtaining police permits. Below is a non-exhaustive list of the ones specific to your city. Save this story for regular updates.

Austin

What are the rules?

Hosts of STRs in Austin are required to obtain an operating license, which requires an $864 fee, proof of insurance, and a certificate of occupancy. If a host is not the owner of a rental property, they must receive permission via an agent authorization form. The city defines an STR as the rental of a residential unit or accessory building for fewer than 30 consecutive days.

How did they come about?

 In 2016, Austin adopted new regulations for STRs that banned Airbnbs and other home sharing platforms from non-owner-occupied buildings in specific residential areas. However, in 2023, a federal court ruled these restrictions unconstitutional because, as reported by KUT News Austin, it violates a "dormant Commerce Clause, which basically says a city can’t limit people’s ability to make money off their property even if they don’t reside there."

Chicago

What are the rules?

Chicago has a ban on one-night rentals. For single-family homes and 2-4 flats, hosts can only create a listing if the address is their primary residence. The number of STRs in any given multifamily building is restricted. All STRs must be registered with the city.

How did they come about?

During the pandemic, Chicago saw a wave of bookings for one-night rentals. Guests were throwing raucous parties, and subsequent noise complaints prompted then-mayor Lori Lightfoot to ban one-night stays in STRs. A 2021 ordinance then required property owners to pay $125 for an STR license, which can be revoked after one '"egregious" incident. STRs are also restricted by the total number of units on a given property: A building with one to four units can only have one STR, while larger multifamily buildings can have 25 percent of its units rented as STRs (or six STRs total, whichever is less). Alderpeople are able to restrict or entirely ban Airbnb and other home hosting services from their wards at their discretion.

Denver

What are the rules?

To become a short-term rental, a property must be an owner's primary residence, and they must secure both a lodger’s tax identification number and a short-term rental license before listing their space on platforms like Airbnb. Rentals are restricted to 30 days.

How did they come about?

Denver has long had primary restrictions on STRs. Since 2017, hosts have been required to live in their listed property and use it as their primary residence. In 2021, city council passed an ordinance saying hosts could be fined up to $1,000 for violations, though according to the Denver Post a low number of fines were issued as "compliance rates for short-term rentals is about 90 percent" as of 2022.

Los Angeles

What are the rules?

Hosts can rent out an STR for a maximum of 180 days and homes must be the host’s primary residence. Renting out a property for fewer than 30 days requires a police permit.

How did they come about?

Beginning in 2018, Los Angeles passed regulations around STRs including registration requirements, a four-month-per-year rental restriction, and making RVs, tents, and trailers illegal to rent on STR platforms. Hosts must also occupy their primary property for at least six months a year, a move by the city to make second homes unrentable via STRs. In 2023, L.A. City Council cracked down on Airbnb party houses by requiring STR hosts to acquire police permits for their units.

As of March of 2024, a new ordinance was proposed by the Los Angeles County Board of Supervisors that would restrict STRs in the area’s 88 unincorporated cities (excluding coastal areas). According to the L.A. Times, the ordinance would prohibit hosts from listing their ADUs, guest houses, or second homes—basically any property in which the host doesn’t primarily reside—and require registration.

Miami

What are the rules?

To list an STR, hosts must register their property and use it as a primary residence at least 275 days per year. Rentals for less than six months and one day are illegal, unless they’re located in specific "tourist-dense zones, such as South Beach," reports CNBC. Platforms must list each property’s city-issued tax receipt number and the resort tax registration certificate number.

How did they come about?

Short-term rentals are largely banned in residential parts of the city. A conflict arose primarily between the city and Airbnb, as the platform refused to remove or ban rental listings in those zones where rentals are not allowed. A 2018 law designed to hold companies like Airbnb accountable required the short-term rental platforms to report illegal rentals to the city or face criminal charges. The law is also enforced on the hosts via strict fines. Until 2020, the city could fine property owners $20,000 for a first-offense, according to CNBC; in 2020, the city lowered those fines to $1,000 per day for a first offense and $5,000 per day for repeat offenders.

Nashville

What are the rules?

Short-term rentals are banned from specific residential zones, including single and multifamily areas.

How did they come about?

The bachelorette party capital of America made 30-day-or-fewer rentals legal in 2015, causing an eruption of short-term-only rental properties. Complaints about absentees landlords employing negligent property managers abounded until 2018, when the city began banning STRs from non-owner-occupied properties in single and two-family residential zones. In 2019, a new law expanded the rule into multifamily areas, but the law didn’t take effect until 2022. Those with existing permits were allowed to keep them, and the law exempted single-family homeowners renting out a room.

New Orleans

What are the rules?

To list a unit as a short-term rental, an owner must have a permit, which can be secured through a lottery system. The city holds quarterly lotteries for square city blocks where more than one application has been submitted, as long as there aren’t already bed and breakfasts on that block. Permits are valid for one year and can be renewed as long as owners keep the building up to code and receive city approval, a process that includes paying the permit renewal fee and completing a course on operating an STR.

How did they come about?

New Orleans has long struggled to regulate STRs. According to Wired, in 2023 there was one Airbnb listing per 54 city residents, or nearly 6,800 Airbnbs citywide. (By comparison, Minneapolis, population 400,000 has one sixth the listings per resident.) Last summer, the city began a lottery program where it drew squares around city blocks and granted one short-term rental license per square. A subsequent lawsuit by property owners halted the program for five months, but in February 28 of this year, a federal judge ruled in favor of it. Platforms are likely to appeal the decision, according the Biz New Orleans, but, "in the meantime, the city is free to enforce rules passed in 2023 that limit the number of short-term rentals allowed in residential neighborhoods and bans corporate ownership of rentals."

New York City

What are the rules?

As of September 2023, hosts (whether owners or tenants) cannot rent out an entire apartment or home to visitors for fewer than 30 days, even if the host lives in the building. This applies to all residential buildings regardless of the number of units. Short-term rentals are only permitted if the host is staying in the same unit or apartment as a guest, and there are no more than two guests staying with the host.

How did they come about?

According to the New York Times, the city has, for years, "maintained that existing laws preclude people from renting out homes to guests for less than 30 days, unless the host is present during the stay," and "no more than two guests are allowed to stay at a time, and that they must have ready access to the entire home." The new law, which went into effect in September of last year, puts forth the same parameters but now requires hosts to register their Airbnb with the city or face up to $5,000 in penalties; platforms can face up to $1,500 "for transactions involving illegal rentals," per the Times.

Phoenix

What are the rules?

Phoenix requires owners of short-term or vacation rentals to register with the city, and provide emergency and complaint contact information. An 2019 ordinance prohibits STRs to be used for any event that would normally require a license or permit and allows municipalities to restrict rentals to overnight stays. Penalties for violations are set at $400 for a first offense, $1,000 for a second within 12 months, and $1,500 for a third within 12 months.

How did they come about?

In 2016, Arizona Governor Doug Doucey signed a law that required cities across the state to allow STRs—the first of its kind in the nation—preventing cities from banning the home-sharing economy. Those rules were loosened in 2022, allowing cities to set their own regulations on STRs. In Phoenix, concerns around noise and parties led the city to a crack down on these rentals. An ordinance was passed in September of 2023 that requires hosts to conduct criminal background checks on guests, notify neighbors of their listing, and register it with the city. These new laws took effect in January of this year.

Portland, Oregon

What are the rules?

An STR host must live in the building 270 days per year and register the listing with the city. Two types of permits are available: Type A is for a listing with two or fewer bedrooms and five or fewer guests, and hosts must operate as a business and pay applicable taxes; Type B is for a listing with three to five bedrooms, and must comply with all conditions for Type A permits. It also requires traffic studies, architectural drawings, and hefty fees. All require a neighborhood notice and building inspections.

How did they come about?

Following a 2019 federal court ruling that unraveled Airbnb’s claim that it wasn’t responsible for policing unpermitted or otherwise illegal STRs on their platform, the city of Portland passed an ordinance that cracked down. It essentially gave STR companies two options: Either the city provides them with a list of permitted, legal listings, or the companies share data and remove illegal listings. (Airbnb chose the latter.) Yet, after the ordinance passed, the Oregonian published an investigation into the process’s failures; Oregon Public Broadcasting ran a segment on the city’s inability to regulate these units. It noted that the process of registering units has been chaotic and dysfunctional, pointing to dysfunctional software as the problem. Ultimately, the rules stand for the two types of permits, but enforcement remains low.

San Francisco

What are the rules?

A 2016 bill "required hosts to register with the city, as well as live in the unit at least nine months per year," reports the Frisc. The bill "also levied a 14 percent tax on each booking—paid by guests, not the host or company." Residents occupying their unit can rent out rooms for any number of days per year; the number of "unhosted" days—days when the host is not present in the unit—is capped at 90 per year. Airbnb is also required to post the required license number on each listing, provided by a host after registering their unit.

How did they come about?

San Francisco was one of the first cities to regulate STRs. A 2014 law required hosts to be registered, followed by the 2016 bill that requires residents to live in the units nine months out of the year. After the law went into effect in 2017, the number of Airbnbs dropped significantly, more than halving the number of listings in eight months, says CNBC.

Top photo by Marco Bottigelli

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