Running any business requires a basic understanding of the rules and regulations that apply. Especially when you are dealing with rental properties, you don’t want to get messed up in the real estate law cases. 

Regulations in Florida

Short-term rental requirements 

The Florida Department of Business and Regulations issues the license for operating the rental business. There are two major types of licenses - A condominium license for condo complexes and a Dwelling license for a wide range of accommodations. 

When do you need a license?

One needs a license if they are renting more than three times throughout the calendar year, for less than 30 days. However, this is if the person is renting an ‘entire unit’. This means that if the person is taking only a single room and not the whole property, then it is not considered public lodging. 

Licensing requirements 

In order to keep the license, the host has to maintain certain predetermined standards. If they fail to do so, their license can be revoked. 

Exceptions 

In Floridian laws, the property is entitled to a tax exemption of $50,000 if it belongs to a permanent resident or a permanent resident who is dependent. This can impact the rental status of the place.

Local laws 

Until now we discussed laws on the state level. But there can be certain local laws that one needs to consider. Until mid-2018, rentals were illegal in Orlando.  However, that has been lifted now. 

Legality 

Floridian laws have set up a special set of rules to make sure the small accommodations and hotels don’t suffer. This is because rentals have been gaining popularity and paired with bigger hotel chains, they might harm small businesses. 

Taxation 

Any renter who stays for less than 185 days will have to pay taxes. When a property is rented to a family or individual for consecutive 6 months, then the host won’t have to collect tax from the renter. It is important to understand the Florida Tax Laws thoroughly.

A guide to collecting taxes 

1. Government agency registration 

You need to register your business and file all the paperwork with the government.

1. Collecting tax from renters

Ensure you don’t collect tax twice in this step. Airbnb already covers sales tax with the payment. So, don’t charge sales tax separately. 

1. Filing sales tax return 

Complete all the filing for submitting the sales tax return.

Regulations in Hawaii 

Short-term rental demand 

They offer cheap local-like places where tourists can experience the culture. Hawaii is seeing a shortage in places still and hence, short-term rentals are gaining pace. 

Oppositions 

Many rentals are in the residential area and some people aren’t comfortable with the same. Hence, there are some oppositions that hosts are working through. 

Rental laws 

You need to register with your local county for operating rentals. The regulations and varying and you need to make sure you follow yours. 

Taxes 

There are talks of tax-raising policies coming the host’s way to make sure the state benefits from the flourishing industry.

Enforcing the laws

As we discussed, some properties in Hawaii are illegal, and hence, enforcing laws on them is becoming increasingly tricky. 

Issue against Airbnb

The government has asked Airbnb to disclose data of various hosts who have their listings on Airbnb. However, this was declared a massive intrusion and was shelved. This is likely to go on. 

Regulations in Seattle, Washington 

Latest regulations 

The latest alterations in the regulations of Airbnb Seattle state that short-term rental hosts need to acquire a license for running the business. The license allows the person to buy one rental place in addition to their primary residence. 

Types of licenses 

Business license 

If someone rents a part of their home for less than 30 days, they will require a license and tax certificate. Hosts will have to get 2 licenses - a short-term rental license and a bed and breakfast license. They take up to 2 weeks. 

Short-term rental license 

Hosts can only have 2 properties at the same time. The addresses should match on all legal documents. Each license will cost $75 on a per-unit basis and will be valid for a year.

Bed and breakfast license 

Some people declare their business as simply offering a bed and breakfast and not as a rental to avoid taxes. However, that needs to be registered as well. 

Taxes 

Hosts in Seattle need to pay lodging tax. Airbnb does it for them if they are listed but homeowners need to do this themselves. 

Other regulations 

Homes that were being rented before 2017 are the ones hosts can rent for the short-term now. They cannot register tree houses, tents, garages, boats, etc as rentals. 

Regulations in Las Vegas, Nevada 

Unincorporated land 

One chief reason behind rentals being not definitively legal in Las Vegas is unincorporated land. The land is split between Las Vegas and paradise but the zip codes still say Vegas. Hence, the regulations can’t be well-defined. 

Existing laws 

Rentals are illegal on unincorporated land. However, one can get away if the property has been rented for 30 days or less. This is because Clark County forbids rentals. 

How to rent your property 

The municipal code allows transient lodging businesses on the grounds that they issue a license. It will cost $300.

Illegal properties

Since the land issue stands, Clark County estimates 4000 illegal properties among 10,000 listed ones. 

Why rentals are cracking down

Government fears that if they allow too many rentals, the loud music and parties will enter calm, residential neighborhoods as well. 

Penalties for rentals 

Any properties found guilty of the charge for no registration will be fined $1000 for each day of their non-compliance. 

Regulations in Texas 

While Texas supported rentals, the locals complained of strangers disrupting their community environment. This led to the government slowing shutting down the rentals. 

Popularity 

Popular locations like Arlington for Six Flags are seeing a major boost in rentals around the area. Predictably, it is because of the tourist attractions. 

Local disruption 

Residents have complaints about rentals in their neighborhoods. Late night parties, loud music, strangers gushing in, parking issues, etc. Hence, rentals are restricted in residential areas. 

Rental ban 

Most Airbnb and rentals are banned except for a small area which is an ‘approved rental area zone’. This zone is near tourist attractions. Homeowners will have to apply for a permit. Applications for this will cost about $500.

Impact on the local short-term business

With the ban being imposed, the business has gone down just as expected. The area is restricted and only a limited number can fit in. 

Nearby cities 

Fort Worth is another place where the residents are divided in 2 groups - ones who want a side income by rentals and the others who feel its a nuisance. 

Regulations in Fort Worth, Texas

Popularity and disruptions 

Being a great tourist destination, there is a soaring demand of rentals. But these ‘party guests’ are disrupting the peace of the neighborhood. 

Extra source of income 

Renting our their homes earns extra income for the locals. This helps them pay off their mortgages and other debts. 

Latest laws 

Rentals are banned from residential area in Fort Worth. However, there are certain residents who have rentals anyway. 

30-day rule 

A short-term rental is a rental under 30 days. 

Enforcement 

The law is quite loosely enforced in Fort Worth. The short-term rentals don’t need to register. Hosts only have to pay proper taxes. 

Densest location

Highest number of rentals can be found in Downtown or on edges of official zones.

Regulations in New York City, New York

30-day rule 

The city laws make it illegal to rent a condo, apartment, etc for less than 30 days. This can be pardoned if the owner is present during the period. It is applicable in multiple dwelling state. 

Clamping down

Many rentals were found to be illegal and were clamped down in one of the largest Airbnb raids. The hosts were fined for violation. Fine was as high as $1000.

Illegal activities

Many homeowners ignore the law for extra profit. But if you are staying there as a tourist, you can be kicked-out mid-way if the property is found to be illegal. 

Popularity 

Everyone is looking for a place to stay in NYC. Here’s your chance to live like a local and get the experience. Most people think like this and opt for rentals thus increasing the popularity of the concept. 

Other options 

You can checkout sites like Booking.com and AllTheRooms.com for exploring the options. They have plenty private places for you.

Stay away from scams

You should stay away from fake sites like Craiglist that show great deals but are actually scams. Use trusted sites to book your rentals. 

Regulations in San Diego, California

Popularity 

Rentals are quite popular on the shores in San Diego. They are much cheaper than hotels. 

Effects on local community 

Hosts are earning a lot from the rental business. This is causing inflation for the long-term market. This is also leading to shortage of housing. 

Strict regulations 

Due to all the above reasons, San diego is planning on tightening the regulations of the short-term rental market. 

Primary residence 

Hosts can only rent a piece of their primary residence. They cannot have a secondary property for rental business. 

Six months rule 

A new rule states that host can rent for a maximum of 6 months or the host has to be present for at least 270 night per year. There are talks going on that if the host is not on the premises, they can give it for rent for less than 30 days. 

Licensing 

The license will cost about $949 regardless how how long they are renting the property.

Local fees 

Hosts will have to pay $3 towards local fees for improving housing. 

Enforcement 

The city is hiring new officials to make sure the laws are enforced. 

Taxes 

Hosts are responsible for filing and collecting taxes for the properties.

Regulations in Kissimmee, Florida

Popularity 

Kissimmee is filled with theme parks other than Walt Disney World. Hence, rentals is a popular thing around here. 

Oppositions 

Like most places, locals here as well feel that their neighborhood is being distrubed with the influx of strangers, music, cars, etc.

The perfect balance 

Officials are confused about what to do. Imposing restriction will harm the industry and result in loss whereas continuation will harm the peace of local public.

Liberal laws 

Kissimmee is one place in the US that doesn’t have very strict rental laws. 

Rental rules 

License 

The host will have to acquire a license for the renting out their property.

Safety and hygiene standards 

Hosts need to make sure that their property is clean and meets the safety and hygiene standards set by the government. 

Short-term rental district 

This place has the most liberal laws for renting and hence, the district is quite friendly with a lot of homeowners. 

Taxes 

While the laws are liberal, hosts have to take care of the taxes. They need to be responsible about it. If the property is listed on Airbnb, hosts need to get the business tax receipt. 

Regulations in San Francisco, California 

History 

SF also restricted renting but Airbnb fought the lawsuit and settled with limited restrictions in 2017.

Market

A lot of illegal hosts paid hefty fines but the market is stabilized. Normal public is believing that Airbnb will cause inflation. 

License

It is compulsory to register with the city and get license for renting.

Taxes

SF has imposed a solid14% occupancy tax for each booking under 30 days. 

Eligibility and requirements 

• Must operate from primary residence. 

• Host shall be present at rentals for minimum 275 days/year.

• Guests shouldn’t stay on property without host for more than 90 days. 

• Hosts must have liability insurance of $500,000.

• Tents and Rvs are not to be rented. 

• Maintain accurate records. 

• Maintain safety measures. 

Regulations in Los Angeles, California 

Market 

With the Los Angeles tourism skyrocketing, the market is gaining pace as well. It is undeniably on everyone’s bucket list. The supportive regulations also aid in the growth of rental market. However, this hinders the affordability of houses.

Latest regulations 

The hosts need to get registered with the city at $89. Also, the rental period is 120 days. However, they cannot host multiple properties. 

To qualify for multiple sharing, one needs to fulfill the following:

• Registered prior with the city for minimum 6 months

• Hosted guests for 60 days 

• Must pay fees of $850

Penalties: $5,600.

Legal battle 

California Coastal Commission says LA is violating coastal laws and hence, they are in an active legal battle. Read the official ordinances here. 

Regulations in Boston, Massachusetts 

Regulatory changes 

There were two ordinances that were passed. The first one stated that the hosts will need to register their business and this was Boston-wide. The second one affected the tourism of the state at large including Cape Cod. 

Everything wrong with Boston’s ordinance 

After the implementation of the ordinance, it was found that only 150 registrations rolled in. This meant that people were not complying with the law. Hence, the government declared $300 fine per night of non-compliance.

Airbnb’s response to non-compliance 

The delay in registration was pointed out to be a result of Airbnb’s lawsuit. Airbnb was restricted from Boston to protect the housing industry. 

Airbnb argues that the laws aren’t really protecting the industry either. They are just restricted free business practices. 

Other state regulations 

Airbnbs have to pay 5.7% state tax. They also allow city taxes. (6.5% in Boston)

Regulations in Tahoe, California

Measure T

This was a ballot and people voted ‘yes’ to restricting rental growth. This dropped the revenue collection of Tahoe.

The results 

It was a disruptive decision for revenue. 80% of the listed properties will no longer be legal. Fines are between $1000 and $2000.

One needs to pay occupancy tax if they get permission to rent.

Regulations in Calgary, Alberta

Popularity 

They have cheap rentals and great cultural places to visit. There are 6000 properties in Calgary. 

Impact on locals 

Undoubtedly, rentals are causing nuisance in the neighborhood and inflation in the market. 

Latest regulations

People opposed that it is unfair to treat small businesses as hotel chains and impose bylaws. 

Rental time cap 

There will soon be a time cap for how long a property can be used for short-term renting. 

Safety 

Hosts have to follow safety regulations like smoke detectors, etc.

Enforcement 

The laws are quite liberal at the moment. 

Regulations in Toronto, Ontario 

Rentals for 28 days 

Toronto defines short-term rentals as 28 days. Also, only for 180 nights at max. 

Registration 

One can register their primary residence only as short-term rental and for $50 CAD. One needs to provide the number of nights their property was rented. 

Home share 

Upto 3 rooms per house can be shared and only for 28 days.

Now you know what rules to follow if you fall into any of these cities. If not, ensure to checkout the regulations of your cities.