Legal Restrictions to Renting Your Home on Airbnb or Other Rental Services

Is it legal to rent out your home to vacationers by using online rental services such as Airbnb or VRBO? It depends on several factors, such as where your home is located, what type of home you own, and how long you rent it out. And if you rent (don't own) your home, lease or rental agreement restrictions are also an issue. Unfortunately, legal restrictions on short-term rentals are not uniform and can require a bit of research on your part, which we'll provide guidance on below.

Municipal Restrictions on Short-Term Home Rentals

Many cities, counties, and other municipalities have placed legal restrictions on short-term home rentals. These vary greatly from place to place. The restrictions in some cities are quite severe and make most short-term rentals illegal.

In many cities, short-term hosts are required to register and/or obtain a license or permit before renting their property. To register, the host must often pay various fees, arrange to pay local occupancy taxes, and comply with insurance or other requirements. Additional requirements often address the density of short-term rentals within a geographic area, or the number of people who can occupy one unit (such as "two people per bed plus an additional two people").

In New York City, for example, most hosts must register their property with the Mayor's Office of Special Enforcement. They cannot apply to host more than one property, and it must be a property where they permanently live (meaning it's occupied by the same person or family for 30 or more consecutive days). Violations of the New York City law can result in monetary fines. Moreover, New York City requires that home-sharing platforms like Airbnb share data about listings and host to help it enforce these rules.

The ordinance adopted in Austin, Texas (starting October of 2025) identifies three different types of short-term rentals, each of which has its own rules and restrictions. These include Type 1: rentals of units that are owner-occupied or associated with an owner-occupied principal residential unit; Type 2: rentals of the entire single-family dwelling, which is not owner-occupied or associated with an owner-occupied principal residential unit, and Type 3: rentals that are part of a multi-family or condominium residential unit (in which case, watch out for density caps).

Other cities utilize zoning laws to limit short-term rentals. For example, in San Luis Obispo County, California, a short-term rental home may not be located within 200 feet of a similar rental on the same block.

On the other end of the spectrum, some cities and municipalities have very liberal rules. This is the case, for example, in Palm Desert, California, which adopted an ordinance allowing short-term rentals of up to 27 days provided that an annual permit is obtained and transient occupancy tax is collected (a percentage of gross rent) and paid to the city. San Francisco enacted an ordinance permitting short-term rentals of an entire property for up to 90 days per year, but limited it to owners who live in their property at least 275 days per year.

In the past, these legal restrictions on short-term home rentals described above were haphazardly enforced at best. Typically, due to a lack of manpower, cities and other municipalities didn't spend much time or effort on this issue. Usually, enforcement efforts were undertaken only after neighbors complained. However, this is changing in many areas, as short-term rentals have grown increasingly popular and made it more difficult for residents to find long-term rentals.

Legal Restrictions on Owners of Condos, Coops, and Planned Developments

If you live in a condominium, cooperative, or planned development, your use of your property is governed by deed-like restrictions commonly called covenants, conditions, and restrictions (CC&Rs) or bylaws. These may bar short-term rentals entirely, or subject them to restrictions. Unlike zoning laws or local ordinances, CC&Rs are enforced by the homeowners' association (HOA) or coop board, which may impose fines on violators and place liens on the property to collect them.

Lease Restrictions on Renters

If you are a renter, you need to carefully check your lease before renting your apartment on a short-term basis. Most leases contain provisions restricting or prohibiting short-term rentals and sublets unless the landlord's permission is obtained in advance. If you violate your lease, you could get evicted by the landlord.

How to Find Local Laws and Other Legal Restrictions on Short-Term Rentals

The Airbnb website has a summary of the legal requirements of nearly 200 cities and counties, with links for more information. If your city isn't listed there, the first place to check is your local municipal or administrative code, which might be available online at your local government's website. To find yours, check out State & Local or Municode. A call to your city's zoning board or local housing authority could also prove fruitful.

If you own a condo or coop, ask your homeowners' association or coop board about its short-term rental policies. If you're a renter, check your lease or rental agreement and talk to your landlord before renting out your unit.