By agreeing to the Terms and Conditions on our site, the vacation rental owners and managers who list on our site agree to abide by the laws, rules, and regulations that apply to the advertisement of their rental. It is up to the owners and managers listing on our site to do their due diligence by researching the regulations that may affect their properties and abide by them.
Current and Proposed Regulations
Check with your county, city, state and neighborhood association about regulations related to short-term rentals. Look into the zoning requirements for short-term rentals and any proposed changes that may affect your property in the future.
Business Licenses and Permits
Some areas require vacation rental owners to apply for a business license or permit to rent homes on a short-term basis. These applications are often found online. Consult with your city or county for more information.
In some markets, vacation rental homes must follow the same basic safety requirements as long-term rentals (indoor sprinkler systems, fire extinguishers, deadbolt locks, etc.) and may also be required to complete safety inspections.
Local Health Code Regulations
Some areas enforce health codes. The three most common areas of regulation involve linen sanitation, well water testing and pool and spa maintenance.
Many states in the U.S. and Canadian provinces require rental owners to collect and remit sales tax. The sales tax is paid by your rental guests in addition to your rental rates. The vacation rental owner or property manager is simply the middleman who collects monies and then hands them over to the state at a fixed interval.
If you are looking for assistance with your taxes, we recommend contacting HotSpot Tax Services. HotSpot handles all licenses, tax return filings, payments and recordkeeping for their clients for an average of $10 per month.
A taxable fee is subject to sales tax. Most fees associated with renting, such as pet fees, cleaning fees, etc., are taxable. If you are charging sales tax on these fees, service providers should not charge you sales tax on the same fees. If they do, the service is taxed twice. So, if your guests pay a cleaning fee plus sales tax, your housekeeper should not charge you a sales tax for her services. Refundable fees, on the other hand, are not taxable. This means charges like security and pet deposits should remain separate from the rental rate.