Short-Term Rental Regulations: What Airbnb Hosts Need to Know
Short-term rental (STR) regulations have become one of the fastest-moving areas of local land use law. Cities across the country have implemented registration requirements, owner-occupancy rules, night limits, and in some cases outright bans in response to concerns about housing availability and neighborhood character. The rules change frequently, and what was allowed last year may not be allowed today.
Registration and Licensing
Most major cities now require short-term rental hosts to register with the city and obtain a license or permit. Registration fees typically range from $50 to $500 per year. Many cities also require hosts to collect and remit local transient occupancy tax (TOT), the same tax hotels charge.
Owner-Occupancy Requirements
Many cities require the host to live in the property (either in the home being rented or a separate unit on the same property) as a condition of operating a short-term rental. This effectively bans investor-owned short-term rentals. Cities with owner-occupancy requirements include San Francisco, New York, and many others.
Some cities go further and require the host to be present during guest stays.
Night Limits and Density Caps
Some cities limit the number of nights per year a property can be rented short-term (often 90, 120, or 180 nights). Others cap the number of STR permits issued per block or neighborhood to prevent concentration.
Cities That Have Banned Short-Term Rentals
A small but growing number of cities have effectively banned non-owner-occupied short-term rentals entirely through strict owner-occupancy requirements combined with no permit exceptions. Before listing a property, verify your city's current rules — enforcement has increased significantly since 2020.
How Major Cities Regulate Short-Term Rentals
The rules below were current as of early 2025. STR ordinances change frequently — always verify with your city before listing.
New York City — Local Law 18 (effective September 2023) is the strictest major-city STR law in the US. Hosts must register with the city, be present during all guest stays, and cannot have more than 2 guests at a time. This effectively eliminates whole-unit short-term rentals. Penalties reach $5,000 per violation. Airbnb listings in NYC dropped approximately 80% in the months after enforcement began. Registration fee: $145 every 2 years.
Los Angeles — The Home Sharing Ordinance requires the rental to be the host's primary residence (must reside there 6+ months/year). Unhosted whole-unit rentals (host not present) are capped at 120 nights per year. Annual registration required ($89). Non-primary-residence rentals are prohibited. Enforcement is complaint-driven but the city actively monitors Airbnb and VRBO listings.
San Francisco — The primary residence requirement is strict: hosts must live in the unit for at least 275 nights per year. Unhosted rentals are capped at 90 nights/year. Registration with the Office of Short-Term Rentals is required ($250 initial, $250 renewal). The city cross-references booking platform data to flag violations.
Austin — Two permit types. Type 1 (owner-occupied): host lives on property, unlimited nights, $613 fee. Type 2 (non-owner-occupied whole-unit): historically allowed in most zones, but the city has restricted new Type 2 permits in residential zones since 2023 and is phasing down the total cap. An inspection is required before permit issuance for Type 2.
Nashville — Non-owner-occupied STRs in residential zones have been banned since 2021 except for a limited set of grandfathered permits. Owner-occupied STRs (Residential Owner-Occupied) require registration and an inspection. The city actively sends cease-and-desist letters based on platform listing data. Fines start at $500/day.
Miami / Miami Beach — Miami Beach banned non-hotel short-term rentals in residential zones entirely and enforces heavily ($20,000+ fines for repeat violations). The City of Miami (separate from Miami Beach) has a registration program and enforces a 30-day minimum rental period in some residential zones. Rules differ street by street depending on zoning designation — check the specific parcel.
Denver — Short-term rental license required ($100/yr). Must be primary residence. No night cap. Guests limited to 2 per bedroom. Denver actively enforces via platform data; unlicensed hosts face $999/day fines.
- Most restrictive: New York City (owner-present required, 2-guest cap, no whole-unit rentals)
- Primary-residence required: Los Angeles, San Francisco, Nashville, Denver
- Night caps on unhosted rentals: LA (120 nights), SF (90 nights)
- Effectively banned non-owner STRs in residential: Nashville, Miami Beach
- All cities: check current rules before listing — ordinances updated frequently
Frequently Asked Questions
Do I need to collect taxes for my Airbnb?
Yes. Most cities with STR regulations require hosts to collect local transient occupancy tax (hotel tax) from guests. In many cities, Airbnb and VRBO collect and remit this tax automatically. In others, the host is responsible. Check your city's requirements.
What are the penalties for operating an unlicensed STR?
Penalties vary from $250 to $5,000+ per day in cities with strict enforcement. Some cities send notices based on Airbnb listing data. If you're operating without a permit in a city that requires one, the risk is significant.
Can my HOA ban short-term rentals even if the city allows them?
Yes. HOA rules can be more restrictive than city rules. If your CC&Rs prohibit rentals under 30 days, your HOA can enforce that regardless of city STR regulations.