Idaho Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Idaho

Idaho takes a relatively permissive approach to short-term rentals (STRs) like Airbnb and VRBO compared to many other states. In 2017, Idaho passed a law (Idaho Code § 67-6539) that prevents cities and counties from banning or severely restricting STRs. This law classifies STRs as residential land use and limits how much local governments can regulate them.

However, individual cities and counties in Idaho can still implement some reasonable regulations on STRs to protect public health, safety, and neighborhood integrity. As an aspiring STR host in Idaho, here are some key things to know:

State-level regulations are minimal. Idaho does not require a state license or registration for STRs. The main state-level requirement is collecting and remitting Idaho sales tax (6%) and travel and convention tax (2%) on stays of 30 nights or less.

Local regulations vary by city/county. While outright bans are not allowed, some cities have implemented licensing, safety standards, occupancy limits, parking rules, and other requirements. Always check with your local government for specific rules.

Zoning typically allows STRs in residential areas. Thanks to the state law, STRs are generally permitted in any residential zone. However, some cities may have density limits or restrictions in certain neighborhoods.

Business licensing is often required. Many Idaho cities require STR operators to obtain a general business license, even for renting out a single property.

Safety standards may apply. Common requirements include smoke detectors, carbon monoxide detectors, fire extinguishers, and clearly posted emergency information.

Insurance is recommended. While not always legally required, having proper short-term rental insurance is strongly advised to protect your property and business.

Tax collection and remittance is your responsibility. As the STR operator, you must collect and remit all applicable state and local taxes, even if using platforms like Airbnb that may collect some taxes on your behalf.

To start an STR business in Idaho:

• Research local regulations in your specific city/county
• Obtain any required licenses or permits
• Ensure your property meets all safety standards
• Set up proper insurance coverage
• Register to collect and remit required taxes
• Prepare your property for guests
• List your property on desired rental platforms

While Idaho's state-level approach is hands-off, it's crucial to comply with any local regulations to avoid potential fines or legal issues. Many Idaho STR hosts report success by focusing on providing great guest experiences while being respectful of neighbors and community standards.

Short-Term Rental Licensing Requirement in Idaho

Idaho does not have a statewide licensing requirement for short-term rentals. Instead, regulations are primarily handled at the local level, with individual cities and counties implementing their own rules. However, I can provide information on the licensing requirements for Boise, Idaho's capital and largest city, as an example of local regulations:

License Application: All short-term rental operators in Boise must obtain an annual license from the City Clerk's Office.

Required Information: The license application must include:

1. Names, addresses, phone numbers, and email addresses of all property owners
2. Physical address and description of the rental property
3. Listing numbers or URLs for the property on online rental platforms
4. Proof of liability insurance (minimum $1 million coverage)
5. Designation of a local representative within 20 miles of the property
6. Information on available parking
7. Number and location of safety devices (smoke detectors, CO detectors, fire extinguishers)

Fees: The annual license fee is $80, plus a $1.50 processing fee.

Submission: Applications can be submitted online through the City of Boise's website.

Processing Time: While the exact processing time is not specified, the city aims to make the process as streamlined as possible.

Renewal: Licenses must be renewed annually.

Compliance: Licensed properties must comply with city regulations on occupancy limits, parking, trash management, and quiet hours.

Penalties: Operating without a license or violating regulations can result in license suspension, revocation, or misdemeanor charges. Specific fine amounts are not mentioned in the provided sources.

To submit these requirements:

1. Visit the City of Boise's short-term rental webpage
2. Create an account on the city's website (for first-time applicants)
3. Navigate to Apply > License from the menu
4. Complete the online application form
5. Upload required documents
6. Pay the license fee

It's important to note that while Boise's regulations serve as an example, other cities in Idaho may have different requirements. For instance, Ketchum requires a permit with a $527 application fee. Always check with your local city or county government for specific regulations in your area.

Required Documents for Idaho Short-Term Rentals

While Idaho does not have statewide requirements for short-term rentals, individual cities often require specific documents. Here's a list of commonly required documents based on regulations in Boise, which serves as a representative example for many Idaho cities:

1. Short-Term Rental License Application: This is the primary document required to operate a short-term rental legally. It can be obtained and submitted online through the City of Boise's website.
2. Proof of Ownership: A document verifying that the applicant owns the property. This could be a property deed or tax assessment record.
3. Property Description: A detailed description of the rental property, including the type of dwelling, number of bedrooms, and whether it's owner-occupied.
4. Rental Platform Listings: Provide listing numbers or URLs for the property on any online rental platforms like Airbnb or Vrbo.
5. Liability Insurance Certificate: Proof of liability insurance coverage with a minimum limit of $1,000,000. If the rental platform provides equivalent coverage, a notarized affidavit stating this can be submitted instead.
6. Local Representative Designation: For owners living outside a 20-mile radius of Boise, documentation designating a local representative within that area.
7. Parking Information: Details on available parking for the rental property.
8. Safety Equipment Inventory: A list detailing the number and location of smoke detectors, carbon monoxide detectors, and fire extinguishers in the property.
9. Emergency Information for Guests: A document outlining emergency evacuation routes, unit boundaries, trash collection schedules, and quiet hours.
10. Business Registration: Proof of registration with the Idaho Secretary of State if operating as a business entity.
11. Zoning Compliance Verification: While not always a separate document, ensure your property is zoned to allow short-term rentals. This information can be obtained from the local Planning & Development Services Department.

These documents serve to ensure the safety of guests, compliance with local regulations, and proper management of the short-term rental. They also help the city maintain accurate records of rental properties operating within its jurisdiction.

Remember, requirements can vary between cities in Idaho. Always check with your local city clerk's office or planning department for the most up-to-date and specific requirements for your area.

Idaho Short-Term Rental Taxes

Short-term rental operators in Idaho are subject to several taxes. Understanding and complying with these tax obligations is crucial for running a legal and successful rental business. Here's a breakdown of the applicable taxes:

Idaho Sales Tax: Short-term rentals are required to collect and remit a 6% state sales tax on the total rental amount, including any cleaning or service fees. This applies to all rentals of 30 days or less.

Travel and Convention Tax: An additional 2% tax is levied on short-term rentals to fund Idaho's travel and convention promotion efforts. This tax also applies to stays of 30 days or less.

Greater Boise Auditorium District Tax: For properties located within the Greater Boise Auditorium District, an additional 5% tax is collected on short-term rentals. This tax helps fund local convention and visitor facilities.

Local Option Taxes: Some Idaho cities have implemented additional local taxes on short-term rentals. For example, McCall and Sandpoint have local option taxes of up to 3%. Always check with your local city government for any applicable local taxes.

Income Taxes: Rental income is subject to both federal and state income taxes. Be sure to report your rental income on your tax returns.

It's important to note that while platforms like Airbnb may collect and remit some of these taxes on behalf of hosts, it's ultimately the host's responsibility to ensure all required taxes are paid.

Possible Write-offs and Deductions

Short-term rental operators in Idaho may be eligible for several tax deductions to offset their rental income:

1. Mortgage Interest: If you have a mortgage on your rental property, the interest paid is generally deductible.
2. Property Taxes: Taxes paid on the rental property are typically deductible.
3. Insurance: Premiums paid for rental property insurance can be deducted.
4. Maintenance and Repairs: Costs for maintaining and repairing the rental property are usually deductible.
5. Utilities: If you pay for utilities for your rental property, these costs can often be deducted.
6. Depreciation: You may be able to deduct a portion of your property's cost each year through depreciation.
7. Professional Services: Fees paid for property management, legal services, or accounting related to your rental business are typically deductible.
8. Advertising and Marketing: Costs associated with promoting your rental can usually be deducted.

Remember, tax laws can be complex and change frequently. It's advisable to consult with a tax professional familiar with short-term rental regulations to ensure you're taking advantage of all available deductions while remaining compliant with tax laws.

Does Idaho Strictly Enforce STR Rules? Is Idaho Airbnb friendly?

Based on information from Bigger Pockets forums and Reddit discussions, Idaho is generally considered Airbnb-friendly compared to many other states, with relatively lax enforcement of short-term rental (STR) regulations. However, the level of enforcement and Airbnb-friendliness can vary significantly between cities within Idaho.

Boise, the state capital, has a reputation for being particularly lenient when it comes to STR enforcement. Despite implementing a licensing requirement in 2022, city officials estimate that only about 20% of STRs were licensed as of September 2023, with 1,100 to 1,600 operating without a permit. This suggests a very relaxed approach to enforcement, at least in the initial years of the regulation.

On Bigger Pockets forums, several Boise hosts have expressed frustration with the city's licensing process, calling it overly burdensome for small operators. As a result, some have chosen to operate "under the radar" to avoid the hassle. Reddit discussions indicate that many Boise STR owners weren't aware of the licensing requirement until receiving a warning letter from the city. Hosts seem split between complying and risking operation without a license.

In contrast, some other Idaho cities have stricter regulations and enforcement. For example, McCall and Ketchum have implemented more stringent rules on STRs, including higher permit fees and stricter operational requirements. However, even in these cities, enforcement appears to be primarily complaint-driven rather than proactively pursued by city officials.

The general consensus among Idaho STR hosts on online forums is that while regulations exist, enforcement is often lax, and many choose to operate despite not being fully compliant with local rules. One Bigger Pockets user summarized the situation: "Idaho is pretty chill about Airbnbs. As long as you're not causing problems for neighbors, most cities won't bother you much."

It's worth noting that Idaho state law (Idaho Code § 67-6539) prevents cities and counties from banning or severely restricting STRs. This law has contributed to the overall Airbnb-friendly environment in the state, as it limits how much local governments can regulate STRs.

In conclusion, Idaho can be considered Airbnb-friendly compared to many other states, with generally lax enforcement of STR rules, especially in cities like Boise. Many hosts do operate despite not being fully compliant with local regulations, taking advantage of the relatively permissive environment. However, hosts should be aware that this situation could change, as some cities have expressed intentions to step up enforcement efforts in the future.

How to Start a Short-Term Rental Business in Idaho

Starting a short-term rental business in Idaho can be a rewarding venture. Here's a comprehensive guide to get you started:

Research Local Regulations

• Check your city and county websites for specific STR regulations
• Understand zoning laws, licensing requirements, and operational restrictions
• Tip: Contact your local planning department for clarification on any unclear rules

Choose Your Property

• Select a property in a desirable location for tourists or business travelers
• Ensure the property is zoned for short-term rentals
• Consider factors like proximity to attractions, parking availability, and neighborhood safety
• Tip: Analyze successful Airbnb listings in your area to understand what types of properties perform well

Obtain Necessary Licenses and Permits

• Apply for a short-term rental license if required by your city (e.g., Boise's STR license)
• Secure a general business license if needed
• Register with the Idaho State Tax Commission for tax purposes
• Tip: Create a checklist of required documents to streamline the application process

Set Up Your Business Structure

• Decide on a business entity (e.g., LLC, sole proprietorship)
• Register your business with the Idaho Secretary of State if forming an LLC
• Open a separate bank account for your rental business
• Tip: Consult with a business attorney or accountant to choose the best structure for your situation

Prepare Your Property

• Ensure your property meets all safety requirements (smoke detectors, fire extinguishers, etc.)
• Furnish and decorate your rental to appeal to your target guests
• Create a welcome guide with house rules and local recommendations
• Tip: Consider hiring a professional photographer to showcase your property's best features

Set Up Insurance

• Obtain short-term rental insurance to protect your property and business
• Verify that your policy covers commercial use of the property
• Tip: Shop around for policies specifically designed for STRs, as standard homeowners insurance may not provide adequate coverage

Determine Your Pricing Strategy

• Research comparable rentals in your area to set competitive rates
• Consider seasonal pricing and special event rates
• Tip: Use dynamic pricing tools to optimize your rates based on demand

List Your Property

• Create listings on popular platforms like Airbnb, VRBO, and Booking.com
• Write compelling descriptions and use high-quality photos
• Be transparent about house rules and any potential drawbacks
• Tip: Cross-list on multiple platforms to maximize visibility and bookings

Set Up Tax Collection and Remittance

1. Register to collect Idaho sales tax (6%) and travel and convention tax (2%)
2. Set up systems to track and remit these taxes, along with any local taxes
3. Tip: Consider using STR management software to automate tax calculations and reporting

Develop an Operations Plan

1. Create cleaning and maintenance schedules
2. Establish a system for guest communication and support
3. Plan for key exchanges or install a smart lock system
4. Tip: Consider hiring a co-host or property manager if you can't handle all operations yourself

Market Your Rental

1. Encourage guests to leave reviews on your listings
2. Create social media accounts to showcase your property
3. Consider creating a website for direct bookings
4. Tip: Offer special promotions during off-peak seasons to attract more guests

Stay Informed and Adapt

1. Keep up with changes in local regulations and market trends
2. Continuously gather guest feedback and make improvements
3. Join local STR host groups or associations for support and information sharing
4. Tip: Attend local tourism board meetings to stay informed about events and opportunities in your area

By following these steps and staying committed to providing excellent guest experiences, you can build a successful short-term rental business in Idaho. Remember to always prioritize compliance with local regulations and maintain good relationships with your neighbors to ensure long-term success.

Who to Contact in Idaho about Short-Term Rental Regulations and Zoning?

While Idaho doesn't have a statewide authority for short-term rental regulations, various local offices and organizations can provide assistance. Here are some key contacts:

Boise City Clerk's Office

• Address: 150 N Capitol Blvd, Boise, ID 83702
• Phone: (208) 608-7040
• Email: cityclerk@cityofboise.org
• Website: https://www.cityofboise.org/departments/finance-and-administration/city-clerk/

The Boise City Clerk's Office handles STR license applications, renewals, and general inquiries about the program in Boise.

McCall Community Development

1. Phone: 208-634-7142
2. Website: https://www.mccall.id.us/shorttermrental

For information on short-term rental regulations in McCall, including permit applications and compliance.

City of Harrison

1. Phone: 208-689-3212
2. Email: cityclerk@cityofharrison.org

The City of Harrison staff can assist with questions about short-term rental regulations in their jurisdiction.

Idaho State Tax Commission

1. Phone: 800-972-7660
2. Website: https://tax.idaho.gov/

For information on state-level tax requirements for short-term rentals.

Useful Communities and Resources:

Airbnb Community Center - Idaho Forum:

1. https://community.withairbnb.com/t5/Idaho/bd-p/Idaho
2. This forum allows hosts to connect, share experiences, and discuss local regulations.

Idaho REALTORS® - Short-Term Rental Resources:

1. https://www.idahorealtors.com/short-term-rentals/
2. Provides information and resources for property owners interested in short-term rentals.

Bigger Pockets - Idaho Real Estate Forum:

1. https://www.biggerpockets.com/forums/731-idaho-real-estate
2. While not specific to short-term rentals, this forum can be a valuable resource for discussing real estate matters in Idaho, including STRs.

Remember that regulations can vary significantly between cities in Idaho. Always check with your local city or county government for the most up-to-date and specific information regarding short-term rental regulations in your area.

What Do Airbnb Hosts in Idaho on Reddit and Bigger Pockets Think about Local Regulations?

Based on discussions in online forums like Reddit and Bigger Pockets, Airbnb hosts in Idaho have mixed feelings about local short-term rental regulations. Here are some real-life experiences and opinions shared by Idaho hosts:

Boise licensing frustrations (Bigger Pockets):

Several Boise hosts on Bigger Pockets have expressed frustration with the city's licensing process, calling it overly burdensome for small operators. Some have chosen to operate "under the radar" to avoid the hassle of obtaining a license.

Lack of awareness about Boise's rules (Reddit):

Reddit discussions indicate that many Boise STR owners weren't aware of the city's licensing requirement until receiving a warning letter. Hosts seem split between complying and risking operation without a license.

Lax enforcement in Boise (Reddit and Bigger Pockets):

The general consensus among Boise hosts is that while regulations exist, enforcement is often lax. Many choose to operate despite not being fully compliant, taking advantage of the relatively permissive environment. One Bigger Pockets user summarized, "Idaho is pretty chill about Airbnbs. As long as you're not causing problems for neighbors, most cities won't bother you much."

Stricter rules in resort towns (Bigger Pockets):

Hosts note that resort destinations like McCall and Ketchum have implemented more stringent STR regulations compared to larger cities like Boise. These include higher permit fees, zoning restrictions, and operational requirements.

Overall, Idaho Airbnb hosts seem to appreciate the state's relatively permissive stance on short-term rentals compared to other markets. However, experiences and opinions vary between cities, with some hosts frustrated by licensing requirements and others enjoying a lax enforcement environment. Many hosts remain cautiously optimistic about Idaho's STR climate while keeping an eye on potential regulatory changes.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each area and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.