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5 New Short-Term Rental Laws You Need on Your Radar

Feb 23, 2021 by Aly J. Yale
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When it comes to short-term rentals (STRs), every municipality is different. Some require licenses, others have limits on how many days properties can be rented out, and others ban short-term rental hosting entirely. The laws are always changing, too.

Since short-term rentals are still a fairly new type of business, many cities are just now catching up. They're figuring out how to monetize and regulate them, as well as ensure the rentals are operated safely and in the best interests of residents. And even with all that's going on in the world, a number of states and major cities are working on new regulations as we speak.

Curious if yours is one of them? Here's a roundup of what's in the works across the nation.


The Arizona Senate passed Bill 1379 earlier this month, allowing cities to fine hosts who violate local guidelines -- particularly those regarding noise and occupancy limits. According to reports, the move is an effort to reduce the number of short-term rentals-turned-party houses. Penalties would apparently increase for hosts who violate ordinances multiple times. After three violations in a one-year period, hosts could lose their license to operate.


Florida is taking the opposite approach, apparently. Though the state already keeps municipalities from banning short-term and vacation rentals, its senators are hoping to take yet another step to further STR activity across Florida: taxing it.

The measure also aims to put regulation and inspection of STRs in the hands of the state, preventing municipalities from playing much of a role in local STR business at all.


Georgia's capital is currently weighing multiple bills surrounding short-term rental properties -- one that would ban all STRs in single-family residential neighborhoods, and another that would require hosts with three properties or more to get a business license. Those hosts would also owe an 8% tax on earnings. The Atlanta City Council passed a "party house" ban late last year.

Raleigh, North Carolina

Short-term rentals just recently became legal again in Raleigh after several years of waffling on the topic -- as well as how they should be regulated. Under the new rules, properties will need a city-issued permit and cannot be used for gatherings or parties. Hosts can lose their permit if they violate the rules twice in a 12-month period.


The Vermont Senate is considering a bill that would create a registry of all statewide rental properties -- including Airbnbs (NASDAQ: ABNB) and other short-term rentals. Hosts would pay $35 per property to register. The bill would also establish an inspection system to ensure all rental properties are up to local code.

The bottom line

These are just a handful of places considering changes to short-term rental law. If you're an STR investor, make sure you're staying up to date on what your state senate and city council are up to, as it could impact your bottom line.

Want more help boosting that short-term rental income as an investor? Here are some tips.

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