What Laws Do Airbnb Hosts Need to Follow?

Short-term rental marketplaces like Airbnb let property owners rent out a private room or entire home when they are away. Property owners looking to use these services must follow company requirements as well as local zoning laws for their rental operation.

Renting out your primary residence can involve federal, state, and local laws. Understand the regulations you need to follow or risk penalties for non-compliance. Talk to a local real estate lawyer before you start hosting Airbnb guests.

Do Landlord-Tenant Laws Apply to Short-Term Rentals?

Generally, short-term rentals are not subject to state landlord-tenant laws and often fall outside traditional hotel and motel lodging regulations. Cities and local municipalities have taken the lead in filling the void of regulation for short-term rentals. Even small cities and towns now regulate home-share rentals.

At the federal level, homeowners must understand their obligations under federal fair housing law. Deciding to rent based on a person’s status in a protected class will violate the law and could result in a federal lawsuit.

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Understanding Local Short-Term Rental Ordinances

Most Airbnb listings are short-term rentals (STRs), which are often regulated differently from long-term apartment rentals. Airbnb hosts need to follow various real estate laws and regulations, including:

• Airbnb regulations
• Local property zoning laws
• Local occupancy taxes
• State rental income tax
• Federal income tax
• Property insurance regulations

Some towns and cities regulate Airbnb and STR properties much more strictly than standard rentals. Property owners and prospective hosts must understand their local zoning and tax regulations before listing their properties for potential guests.

Different property insurance standards may apply to a rental business. Insurance companies generally do not cover properties for damage involving short-term renters. You may need a separate liability insurance policy to cover any damage to your property involving Airbnb guests’ stays.

Do I Have To Collect Sales Taxes on My Short-Term Rental?

Yes. Regulation at the state level primarily involves the state revenue department. In many states, the lodging retailer must collect, report, and remit sales and occupancy taxes on the full lodging price. You may be responsible for state or local tax for lodging if your rental period is less than 30 days or more, depending on your state.

Many jurisdictions have special tax rules for owners of short-term lodging who use an accommodation intermediary. An intermediary is facilitates the sale of short-term residential property rentals. Companies, property managers, or intermediaries facilitating short-term rentals located in the state are responsible for registration as a retailer.

In these states, rental platforms and websites like Airbnb and VRBO are accommodations intermediaries under state law. Using intermediaries makes it easier for property owners. Generally, the rental platform registers and collects taxes, so renters don’t have to.

Local Laws Regulating Short-Term Rentals

Many cities, towns, and local governments have short-term rental laws. Property owners are typically required to obtain a rental license to rent out their property. The requirements to obtain the license vary greatly based on the local laws.

Local rental licenses ensure owners comply with local building and fire codes. Owners must also review local zoning codes to ensure short-term Airbnb rentals are not prohibited in the property location.

Property owners may have additional issues if their property is subject to a homeowner’s association (HOA) agreement. Many HOAs prohibit short-term rentals or require renters to stay for a minimum rental period.

Airbnb Laws and Safety Standards

Short-term rental hosts need to follow Airbnb rules for listing on their app and website. Failing to follow the Airbnb rules can result in the company dropping you from rental listings. According to Airbnb, responsible hosting requires timely communication, accurate listings, cleanliness, and committing to the reservations.

Once you confirm a reservation, you can only make cancellations for certain reasons. Airbnb may stop your listings with too many unexplained cancellations. Hosts must also provide accurate check-in information for when guests arrive.

Hosts must timely communicate with guests before the stay and leading up to check-in. They should also be available to guests with any concerns during the stay. Listings and booking details must be accurate and up-to-date, including location, amenities, and house rules.

Legal Help With Short-Term Rental Properties

When you encounter problems while renting out your Airbnb property, first try to resolve the issues with the guest. Document the issues with photos, videos, and any other evidence. Contact Airbnb for resolution options. If Airbnb cannot resolve your complaints, you can turn to a real estate attorney.

Before a property owner decides to begin renting out their real property for short-term rentals, they should sit down with an experienced attorney. An attorney can review your rental plans and make sure you comply with state and local zoning requirements. Your attorney can help you with insurance coverage to protect your home from unexpected damage.

If something goes wrong with guests or Airbnb fails to protect your property, an attorney can help you get compensation. Contact a local real estate attorney before problems arise with your new property venture.