How to Find Out If You Can Airbnb Your Home in a Specific City

Co-owning a property with friends and listing it on Airbnb can certainly be a profitable endeavor—or it can be a costly endeavor if you don’t do adequate research upfront. We’re here to make sure you experience the former and not the latter; but before getting visions of dollar signs or early retirement in your head, be sure to take some time to understand your city’s short-term rental requirements.

Airbnb rules and regulations are vastly different from city to city and are typically based on each local jurisdiction’s laws for short-term rentals. What is allowed in San Francisco may not be in Los Angeles and vice versa.  Before cobuying a vacation home or second property, we’ll share several pointers on what to confirm and where to look, to ensure your property would comply with your local city’s Airbnb rules.

Quick link to our growing list of city STR regulations.

Determine What Airbnb Regulations Apply to Your City

Although we all love Airbnb, some cities aren’t as welcoming. Not all cities allow Airbnb or home-sharing, and some cities regulate the activity through zoning regulations, business licensing, and hotel ordinances.

The first place to check what regulations apply to your city is Airbnb. The company has developed extensive guides to provide you with preliminary guidance:

• What regulations apply to my city
• Responsible hosting in the United States

While most major cities are listed, if your city is not, visit your local city’s website or reach out to your city or town’s government office directly. Knowing this information upfront will help prevent any financial or legal obstacles later.

Are Business Licenses and Permits Necessary?

Many jurisdictions require property owners or operators to apply for and obtain a business license or special permit to rent out their homes. Many local governments dedicate sections of their websites to explain the business licensing process and provide the necessary forms and information.

Let’s use San Francisco as an example. The city of San Francisco operates an Office of Short-Term Rentals (OSTR). The OTSR website outlines how you can register as a host and stay compliant. They also answer some of the most frequently asked questions. The city of San Francisco requires that you obtain a Business Registration Certificate for your property from the San Francisco Office of the Treasurer & Tax Collector. Then you must receive a certificate from the OSTR.

Know Your City’s Tax Rules

In some cities, Airbnb collects the local occupancy taxes on the host’s behalf. In other cities, the Airbnb hosts are solely responsible for making sure that necessary taxes are paid from their Airbnb earnings. Be sure to find out upfront if your city or town requires you to collect a tax for each overnight stay, or if Airbnb covers it on your behalf. Continuing with the San Francisco example, on Airbnb’s city-specific page for San Francisco, they outline information about taxation.

If your city is not listed, contact your local government to see if you need to collect any taxes. The last thing you want is a surprise tax bill from Uncle Sam.

Consult the Experts

A wealth of information on short-term rentals can be found online, including from Airbnb, to help you navigate your city’s laws and regulations. Be sure to stay up to date on new requirements and regulations that may be introduced by Airbnb or your city throughout your rental property journey. If you’re ever in doubt, contact your local government, or consult with an attorney or tax professional.  

If you’re contemplating cobuying a property for short-term rental on Airbnb, find out your city-specific requirements upfront. Once you’ve crossed your t’s and dotted your i’s, it’s time to create your listing and start turning your second property or vacation home into a profitable investment.

You can also look at our growing list of city STR regulations we are tracking.

Nestment, Inc. does not guarantee and is in no way responsible for the accuracy of information provided in this blog post. All information is provided “AS IS” and with all faults. Data presented here may not reflect all real estate activity in the market.  While the information on this site is about legal and tax issues, it is not intended as legal or tax advice or as a substitute for the particularized advice of your own attorney and tax professional.