Thinking about being in AirBNB?
Many people think renting their home on Airbnb or HomeAway or any other such sites can seem like a great way to earn a little extra money and pay off their mortgage sooner rather than later. But before you list your home for rent, however, it's important to understand the laws that apply to short-term rentals in your area.
States, Counties, Cities, Neighborhood Associations, Landlords, and Insurance Carriers Are Regulating Short-Term Rentals
The increase in short-term rentals on websites like HomeAway, Airbnb and VRBO has caused many communities to pass laws, rules, regulations, and policy provisions restricting the right to rent homes on a short-term basis. You can find out most of the states’ and cities’ laws on the Airbnb site, which provides information on the laws and regulations in 50+ cities , These laws include, but are not limited to:
- A minimum number of rental days per year. In some cities for example, your cannot rent—or even list— an entire apartment for less than 30 days.
- A maximum number of days you can rent out your entire home per year. In some cities, you can rent your entire home for more than 90 days each year, and you must live there for the other 275 days.
- Registration of your rental and/or obtaining a business license from the city. Some cities make you pay a fee for registrations and licenses and pay occupancy or tourist taxes.
- Other regulations related to things like parking, health codes, liability insurance, and building safety.
Some localities with these laws are more aggressive about enforcing them. The penalties you may have to pay for breaking the laws can vary greatly from place to place.
How to Find Out Whether You Can Rent Out Your Property
If you are thinking of listing some or all of your house, condo, or apartment on any rental site, do your research ahead of time. Especially if you are considering buying a home and using the rental income to help you pay your monthly bills. Here are three things to look into:
- City and state laws and regulations.
- Homeowner's association rules.
- Lease restrictions.
- Your insurance policy.
Wise people seek legal counsel before taking most actions. Fools usually call lawyers only have the authorities are causing them trouble.
We can help you out with these and most other things that arise in your lifecycle. All you have to do is ask us.