Short-term-rental law is a hot, confusing topic. As the industry boomed via Airbnb, Vrbo, and HomeAway, cities responded to concerns about housing affordability, neighborhood character, and safety with a patchwork of regulations — and the approaches differ dramatically.
Different approaches
San Francisco regulates heavily: hosts must register, obtain a permit (with liability insurance, business registration, and code compliance), cap rentals at 90 days a year, and be present during stays — rules in place since 2014 and largely successful on affordability. Las Vegas and Miami Beach are far more hands-off, requiring licenses and lodging taxes but few caps on nights or guests in permitted zones.
Common restrictions
- Day caps — many cities limit nights per year; New York City allows up to 30 days in a calendar year.
- Zoning — NYC bars sub-30-day rentals in 3+ unit buildings without the host present; Nashville confines them to specific districts with a special-use permit.
- Occupancy limits — Los Angeles allows two guests per bedroom (plus two for a sofa bed); Austin caps at 10; New Orleans at six.
- Permitting and registration — Seattle requires an operator’s license; New Orleans a permit and fee, with fines for non-compliance.
- Taxes — hotel/occupancy taxes apply in Austin (6%), Chicago (3.5%), Miami Beach (6%), New Orleans (up to 3%), and Seattle.
- Insurance and safety — Denver requires proof of liability coverage ($1M), a vacation-rental license, and working smoke/CO detectors; Chicago requires a license with a safety inspection.
Much of the case law is still developing, so expect things to be settled case by case for now, with clearer rules likely over time. The bottom line: understand your local regulations thoroughly before you operate.