5 Easy Tips for Ensuring You Comply with Local STR Laws
Compliance For Vacation Rentals
The landscape of the short-term rental industry has changed dramatically over the last five years, but in no other realm have there been more changes than in the legal sphere. More and more, towns and cities are enacting legislation that limits the way that vacation rentals can operate. In New York City, for instance, a series of regulations came into effect in September of 2023 that prohibits owners from renting out their properties for less than 30 days, among other restrictions.
In order to succeed in today’s short-term rental world, owners have to constantly stay up to date and comply with new laws and regulations as they come into effect. Today, we’ll go over 5 easy ways to ensure you comply with your local laws so you won’t have any legal issues to lose sleep over.
#1: Take the Time to Look into Your Local Laws and Regulations
Although it may seem like getting into the vacation rental industry is easy, there are some barriers to entry that did not exist before the post-pandemic travel boom changed the face of the entire hospitality industry. Before you even purchase property to start your business, it’s a good idea to take a look into local laws and regulations in the area first. If there are heavy restrictions, taxes, or regulations deterring a property’s use for short-term rentals, for example, that area might not be a good place to start your journey.
These regulations and laws can take many different forms, from requiring licenses or permits to operate your business to completely outlawing STRs in specific areas. It’s always smart to look into the legal and bureaucratic landscape before purchasing a property.
#2: Obtain a STR Permit and Other Necessary Legal Documentation
Once you’ve taken a look at what you need to do to comply with local requirements and regulations, you’ll want to obtain all of the necessary documentation needed to legally operate your business.
Whether this is just a license or registration with your local government or a process that involves several steps such as a fire or safety inspection, you’ll want to take care of these important steps towards compliance as soon as you begin to operate your business. Otherwise, you might risk repercussions and be forced to shut down your business, if the restrictions are strict enough.
#3: Stay Up to Date with Local Legislation on STRs and Changes to Regulations
Local legislation is constantly changing, especially with regards to the short-term rental industry. It’s not enough to just comply with local regulations–you must also stay up to date with the evolution of laws as well.
Nearly every month, there is news about a new regulation going into effect, and homeowners have to adapt quickly to new measures or face the consequences of their business being threatened or shut down. Unfortunately, laws restricting how vacation rentals operate are here to stay, but compliance is the easiest way to ensure you don’t have a target on your back. Stay as current as possible with the industry by regularly checking the news and local STR groups and you’ll have a much better chance.
#4: Educate Guests on Why You Take the Measures You Do
In the course of doing business and complying with local STR laws, guests might be curious or even frustrated with the lengthy processes involved, especially if it happens to have an effect on their stay. If you have to schedule a safety or fire inspection during a guest stay, take this opportunity to educate your guests on why these regulations exist. Although some may be to keep guests safe from hazards, other restrictions like licensing and permitting are often used to track the number of STRs in a given area and impose limitations on the number of rentals allowed.
Informing guests about these laws and regulations serves two purposes: one, it’s informational and educational, and two, it’s a good way to let them know your side of the story. Sometimes these restrictions and limitations impose hardship upon short-term rental owners, and letting guests know that these restrictions affect your business can help inform their opinions on the topic.
#5: Keep Detailed Records to Prove Compliance
Our final tip for ensuring compliance with local laws and regulations is to keep meticulous documentation. Whether you’re dealing with permitting or inspections or taxes on short-term rentals in your area, keeping records of every payment made and every email sent can protect your business in the event of an audit or investigation.
Handle all of your official vacation rental documents the same way that you would tax documents–back them up more than once on both a physical and a cloud server, then have a few printed copies on-hand in case of emergency. When things go south, it’s always good to have yourself covered with this type of record-keeping, and this can protect you from legal repercussions.
Let the Experts LocalVR Handle Your Compliance
For those who are managing a vacation rental, handling local compliance with laws and regulations is of the utmost importance, but it can be a burden to keep track of everything. Instead of dealing with everything all on your own, turn to a full-service property management company like LocalVR. Not only can our experts guide you through every step of compliance with these laws, but we also offer many other benefits, including a proprietary smart pricing algorithm that can help you get the bookings you’re looking for.
Interested in learning more about LocalVR? Check out our homepage for more information or send us a message.