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

Starting a Short-Term Rental Business in Nevada

Starting a short-term rental business in Nevada requires careful navigation of state and local regulations. In 2022, Nevada passed Assembly Bill 363 (AB363), which established a statewide framework for short-term rental regulations while allowing local jurisdictions to implement their own specific rules.

To begin operating a short-term rental in Nevada, hosts must first obtain the necessary permits and licenses. In Las Vegas, for example, the approval process involves three main steps:

• Obtaining planning department approval
• Passing a property inspection for safety compliance
• Applying for a business license with various conditions

One of the key requirements in Las Vegas is that the property must be owner-occupied throughout the rental period. This means the owner must reside on the property while renting it to guests. Additionally, the property can have no more than three bedrooms and must be at least 660 feet from any other short-term residential rental, as well as 2,500 feet from a resort hotel.

In Clark County, which includes the Las Vegas Strip area, a permit lottery system was implemented to manage the influx of short-term rentals. This lottery concluded on August 21, 2023, signaling a measured approach to vacation rental authorizations in the county.

It's important to note that short-term rentals are prohibited in some master-planned areas of Las Vegas, including Summerlin, Sun City Summerlin, Town Center, Skye Canyon, Cliff's Edge, Symphony Park, Grand Canyon Village, and any property subject to the Form-Based Code.

For those looking to start a short-term rental business in other parts of Nevada, such as Washoe County, different regulations apply. In unincorporated areas of Washoe County, permits are required, and the application process includes providing a site plan, floor plan, and insurance certificate.

Short-Term Rental Licensing Requirements in Nevada

To legally operate a short-term rental in Nevada, property owners must obtain the necessary permits and licenses from their local jurisdiction. While the specific requirements can vary between cities and counties, here's an overview of the licensing process based on information from official state and local websites.

In unincorporated Clark County, which includes the Las Vegas Strip area, short-term rental owners must:

1. Confirm property ownership and number of bedrooms through the Clark County Assessor's office
2. Complete a pre-application process, which includes:
3. Providing contact information for the property owner and a designated local representative available 24/7
4. Submitting proof of liability insurance coverage
5. Agreeing to install noise monitoring devices on the property
6. Paying pre-application fees ($45 for 3 bedrooms or less, $90 for more than 3 bedrooms)

If selected through the license lottery, complete the full application process within 60 days, which includes:

1. Passing a safety inspection
2. Paying annual license fees ($750 for 3 bedrooms or less, $1,500 for more than 3 bedrooms)
3. Providing a copy of the state business license
4. Collect and remit transient lodging taxes from guests

The pre-application process in Clark County is open from approximately September 1, 2022, to March 1, 2023. Once a full application is submitted, the approval process typically takes around 30 days.

In the City of Las Vegas, short-term rental hosts must:

1. Obtain planning department approval
2. Pass a property inspection for safety compliance
3. Apply for a business license with various conditions, including:
4. The property must be owner-occupied throughout the rental period
5. The rental can have no more than three bedrooms
6. The property must be at least 660 feet from any other short-term rental and 2,500 feet from a resort hotel
7. Pay an annual fee of $500 to legally rent out their space on a short-term basis

For those looking to operate a short-term rental in Washoe County, which includes Reno, permits are required for properties in unincorporated areas. The application process involves:

Preparing required documents as noted in the STR Application Guide, including:

1. A site plan showing all existing structures and signage on the property
2. A floor plan detailing the layout of rooms
3. An insurance certificate
4. Reviewing step-by-step instructions for online submittal
5. Creating a user account on OneNV.us to submit the application electronically

Penalties for operating an unlicensed short-term rental in Nevada can be severe. In Clark County, fines for unlicensed rentals can reach up to $10,000, while licensed STRs that violate regulations may face fines of up to $1,0004. In North Las Vegas, the city has a 24/7 hotline for complaints about potential violations, and non-compliant operators may face significant fines.

It's crucial for short-term rental owners in Nevada to carefully review and follow all licensing requirements and regulations in their specific jurisdiction to avoid penalties and ensure compliance with local ordinances. This may involve submitting applications and required documents to the relevant city or county planning department, business licensing office, or online portal.

By obtaining the necessary permits and licenses, maintaining proper insurance coverage, and adhering to all local regulations, short-term rental operators in Nevada can legally run their business and provide a safe and compliant experience for their guests.

Required Documents for Nevada Short-Term Rentals

The specific documents required for short-term rentals in Nevada vary by jurisdiction. However, there are some common documents that most cities and counties require as part of the licensing process.

In Clark County, which includes unincorporated areas like the Las Vegas Strip, key required documents for the short-term rental application include:

1. Proof of property ownership: Applicants must provide documentation confirming they own the property, such as a deed or property tax record. This information can be obtained through the Clark County Assessor's office.
2. Liability insurance coverage: Short-term rental owners must submit proof of liability insurance coverage. The policy should cover potential damages or injuries that may occur on the property during guest stays.
3. State business license: A copy of the owner's Nevada state business license is required as part of the application process. This license can be obtained through the Nevada Secretary of State's office.
4. Local representative contact information: Owners must designate a local representative who is available 24/7 to respond to any issues or complaints related to the short-term rental. The representative's contact information must be provided in the application.
5. Noise monitoring device agreement: As part of the pre-application process, owners must agree to install noise monitoring devices on the property to ensure compliance with noise regulations.
6. Safety inspection report: Once selected through the license lottery, properties must pass a safety inspection. The inspection report verifying compliance with building and fire safety codes must be submitted with the full application.

In the City of Las Vegas, required documents for obtaining a short-term rental business license include:

1. Conditional Use Verification: Before applying for a business license, owners must obtain a Conditional Use Verification (CUV) from the Planning Department. This involves submitting a site plan, floor plan identifying bedrooms and living spaces, and other property details.
2. Proof of liability insurance: Similar to Clark County, the City of Las Vegas requires short-term rental owners to provide proof of liability insurance coverage with a minimum amount of $500,000.
3. Property owner identification: The business license application must include a copy of the property owner's photo identification.
4. Corporation/LLC/Trust documentation: If applicable, any corporation, LLC, or trust documents related to the property ownership must be provided.
5. Room tax affidavit: Applicants must include an affidavit attesting that there are no delinquent room tax liabilities or liens on the property.

For short-term rentals in unincorporated areas of Washoe County, which includes Reno, the application process involves submitting:

1. STR permit application: Owners must complete and submit the appropriate STR permit application form, either for a standard permit or an administrative review permit (Tier II).
2. Site plan: A detailed site plan showing all structures, parking spaces, and other property features is required.
3. Floor plan: Applicants must provide a floor plan of the residence, clearly identifying bedrooms and living spaces.
4. Proof of insurance: Documentation of appropriate insurance coverage for the short-term rental is necessary.

By gathering and submitting these required documents, short-term rental owners in Nevada can ensure a smoother licensing process and demonstrate compliance with local regulations. It's essential to check with the specific city or county where the rental is located for any additional documentation requirements or updates to the application process.

Nevada Short-Term Rental Taxes

Short-term rental owners in Nevada must collect and remit various taxes on their rental income. Understanding these taxes and potential deductions is crucial for operating a compliant and profitable rental business.

The primary taxes that apply to short-term rentals in Nevada include:

Transient Lodging Tax: The transient lodging tax rate varies by jurisdiction in Nevada. In Las Vegas, the rate is 13%, while Clark County collects an additional 0.5% room tax, bringing the total transient lodging tax for short-term rentals in unincorporated Clark County to 13.5%. In Washoe County, Sparks, and Reno, the transient lodging tax rate is 13.5%. Owners must collect this tax from guests and remit it to the appropriate authorities.

State and Local Sales Taxes: In addition to the transient lodging tax, short-term rental owners may be required to collect and remit state and local sales taxes on their rental income. The current sales tax rate in Clark County is 8.375%.

Hosts are responsible for registering with the Department of Taxation and remitting these taxes on a regular basis, typically monthly or quarterly. Failure to pay the required taxes can result in significant penalties and even the revocation of the host's business license.

Deductions and Write-Offs

Short-term rental owners can potentially deduct various expenses related to their rental business to reduce their tax liability. Some common deductible expenses include:

1. Rent or mortgage payments
2. Cleaning fees
3. Rental commissions (e.g., Airbnb or VRBO service fees)
4. Insurance premiums
5. Maintenance and repair costs
6. Utilities
7. Depreciation of rental property and furnishings

To claim these deductions, owners must keep detailed records of their expenses and consult with a tax professional to ensure they are following all applicable tax laws and regulations.

By understanding the tax obligations and potential deductions associated with their short-term rental business, owners in Nevada can better manage their finances and maintain compliance with local regulations.

Does Nevada Strictly Enforce STR Rules? Is Nevada Airbnb Friendly?

Nevada, particularly in popular tourist destinations like Las Vegas and Clark County, takes a relatively strict approach to enforcing short-term rental regulations compared to other major cities. Authorities have been cracking down on non-compliant hosts, and recent court rulings have upheld the constitutionality of the city's ordinances, indicating a firm stance on STR rules.

Based on discussions among Airbnb hosts on platforms like Reddit and BiggerPockets, Nevada seems to be less Airbnb-friendly overall compared to some other destinations with more relaxed enforcement. Hosts have expressed frustration with the stringent requirements, such as the 660-foot distance between rentals in Las Vegas and the prohibition of STRs within 2,500 feet of resort hotels in Clark County.

Some Reddit users argue that these rules are primarily designed to appease the powerful hotel industry rather than address genuine concerns about housing affordability or neighborhood disruption. The strict enforcement efforts have led to challenges for hosts looking to expand their STR businesses in Nevada.

Despite the strict regulations and enforcement, many hosts continue to operate short-term rentals in Nevada, both legally and illegally. The allure of profits in popular tourist areas appears to outweigh the risks for these owners, even with the threat of penalties for non-compliance.

As one Reddit user noted, their Airbnb host in Las Vegas openly admitted to having 30 STR properties in the Summerlin area alone, despite the local restrictions. This suggests that while Nevada may not be the most Airbnb-friendly destination, the demand for short-term rentals remains strong, and hosts are finding ways to navigate the complex regulatory landscape.

In conclusion, Nevada's approach to short-term rental regulations is relatively strict compared to other cities, with active enforcement efforts that can make it challenging for hosts to operate legally. However, the state's popularity as a tourist destination means that many hosts continue to offer STRs, even in the face of these obstacles. While Nevada may not be the most Airbnb-friendly location, the market remains viable for hosts willing to comply with the rules and manage the inherent risks.

How to Start a Short-Term Rental Business in Nevada

Starting a short-term rental business in Nevada requires careful planning and adherence to local regulations. Here's a step-by-step guide to help you get started:

Research local regulations

1. Thoroughly investigate the short-term rental laws in your specific Nevada location. Regulations can vary significantly between cities and counties. For example, Las Vegas has different rules than unincorporated Clark County or Reno. Check with your local planning department or city council for the most up-to-date information.
2. Tip: Join local real estate investment groups or online forums to connect with experienced STR operators in your area. They can provide valuable insights into navigating local regulations.

Choose the right property

1. Select a property that meets all local zoning requirements for short-term rentals. Consider factors such as proximity to tourist attractions, distance from other STRs, and any restrictions on the number of bedrooms.
2. Tip: Use online mapping tools to ensure your property meets distance requirements from other STRs and resort hotels, especially in areas like Las Vegas and Clark County.

Obtain necessary permits and licenses

• Apply for all required permits and licenses, which may include a business license, short-term rental permit, and conditional use permit. In Clark County, this process involves a pre-application and potentially a lottery system for license allocation.
• Tip: Create a checklist of all required documents and fees to ensure a smooth application process. Consider hiring a local real estate attorney to help navigate complex regulations.

Secure proper insurance

• Obtain appropriate insurance coverage for your short-term rental. This typically includes liability insurance and may require additional coverage beyond a standard homeowner's policy.
• Tip: Shop around for insurance policies specifically designed for short-term rentals, as these often provide more comprehensive coverage tailored to the unique risks of STRs.

Prepare your property

• Ensure your property meets all safety requirements, including fire safety measures, proper egress, and any mandated noise monitoring devices. Furnish and equip your rental to provide a comfortable stay for guests.
• Tip: Consider hiring a professional interior designer or property stager to make your rental stand out in a competitive market.

Set up your business structure

• Decide on a business structure (e.g., LLC, sole proprietorship) and register your business with the Nevada Secretary of State. Consult with a tax professional to understand the implications of different business structures.
• Tip: An LLC can provide personal liability protection and may offer tax benefits for your STR business.

Develop a pricing strategy

• Research the local market to determine competitive pricing for your rental. Consider factors such as seasonality, local events, and your property's unique features.
• Tip: Use dynamic pricing tools offered by platforms like Airbnb or third-party services to optimize your rates based on demand.

Create listings on booking platforms

• Set up attractive listings on popular booking platforms like Airbnb, VRBO, and Booking.com. Include high-quality photos, detailed descriptions, and clear house rules.
• Tip: Invest in professional photography to make your listing stand out. Clearly communicate any local regulations that guests need to be aware of, such as noise restrictions or occupancy limits.

Implement a management system

• Develop a system for managing bookings, cleaning, maintenance, and guest communication. Consider using property management software to streamline operations.
• Tip: Build relationships with reliable local cleaning and maintenance services to ensure your property is always guest-ready.

Understand and comply with tax obligations

• Register to collect and remit all applicable taxes, including transient lodging taxes and sales taxes. Set up a system for tracking income and expenses for tax reporting purposes.
• Tip: Consider working with a local accountant who specializes in short-term rental businesses to ensure compliance with all tax obligations.

Market your rental

• Develop a marketing strategy to promote your rental beyond listing sites. This could include creating a website, using social media, or partnering with local tourism boards.
• Tip: Highlight unique features of your property and the local area to differentiate your rental from competitors.

Monitor and adapt

• Regularly review your business performance, guest feedback, and any changes in local regulations. Be prepared to adapt your strategy as needed.
• Tip: Stay active in local STR owner communities to stay informed about regulatory changes and industry best practices.

By following these steps and staying informed about local regulations, you can establish a successful and compliant short-term rental business in Nevada. Remember that the process can be complex and time-consuming, but careful planning and attention to detail will set you up for long-term success in this competitive market.

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

Given that short-term rental regulations in Nevada can vary significantly by jurisdiction, it's important to contact the appropriate local authorities for the most accurate and up-to-date information. Here are some key contacts for major areas in Nevada:

Clark County (Unincorporated Areas including Las Vegas Strip)

1. Clark County Department of Business License - General Business

1. Phone: (702) 455-4252
2. Address: 500 S Grand Central Pkwy, 3rd Floor, PO Box 551810, Las Vegas, NV 89155-1810

2. Clark County Comprehensive Planning Department - Zoning Information

1. Phone: (702) 455-4314
2. Fax: (702) 455-3271

City of Las Vegas

1. Planning Department

1. Phone: (702) 229-6301
2. Email: planningdept@lasvegasnevada.gov

Business Licensing Division

Phone: (702) 229-6281

North Las Vegas

1. Planning and Zoning Department

1. Phone: (702) 633-1537
2. Email: PlanningAndZoning@cityofnorthlasvegas.com

2. Business Licensing Division

1. Phone: (702) 633-1520
2. Website: https://www.cityofnorthlasvegas.com/business/business_license

Washoe County (Including Reno)

1. Short-Term Rentals Program

1. Email: str@washoecounty.gov
2. Phone: 775-328-6100

For hosts looking to connect with others and stay informed about short-term rental regulations and best practices in Nevada, consider joining these communities:

Nevada Short Term Rental Alliance (NVSTRA): A non-profit organization advocating for fair short-term rental regulations in Nevada.

Airbnb Host Community Center - Las Vegas: An online forum for Airbnb hosts in the Las Vegas area to share experiences and advice.

BiggerPockets Real Estate Forum - Las Vegas: While not exclusively for short-term rentals, this forum has discussions about real estate investing in Las Vegas, including STRs.

Reddit r/LasVegas: This subreddit occasionally has discussions about short-term rentals and local regulations.

By reaching out to these official contacts and joining relevant communities, hosts can stay informed about the latest regulations and connect with other STR operators in Nevada.

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

Airbnb hosts in Nevada, particularly in Las Vegas and Clark County, have been vocal about their experiences with local short-term rental regulations on platforms like Reddit and BiggerPockets. Here are some insights from real hosts:

On Reddit's r/AirBnBHosts, a user expressed frustration with Las Vegas regulations, stating: "Looking to buy a place to AirBnB in Las Vegas and in my research, it seems like every AirBnb in Las Vegas is illegal?" They pointed out the strict rules, including owner occupancy requirements and bedroom limits, questioning how so many listings still exist.

In the same thread, a Las Vegas host shared their experience: "I'm a host in Vegas and idk how there are so many listing. They pulled mine off the site." This comment highlights the inconsistent enforcement of regulations and the challenges faced by hosts trying to operate legally.

On BiggerPockets, a discussion about restrictive STR ordinances mentioned the Greater Las Vegas Short Term Rental Association's lawsuit against Clark County. The poster noted: "The district court has granted a preliminary injunction and this will likely go to the Nevada Supreme Court. Time will tell on the outcome but all signs are positive for more fair regulation to be mandated."

In a Reddit thread on r/vegaslocals, a user discussed the process of reporting illegal Airbnbs, indicating that some residents are actively working to enforce regulations: "The city did a great job removing two from my neighborhood." This shows the tension between hosts and some local residents.

These experiences and comments reveal a complex landscape for Airbnb hosts in Nevada. Many struggle with strict regulations, inconsistent enforcement, and the risk of operating illegally. Some are hopeful for changes through legal challenges, while others are finding ways to operate within the current regulatory framework. The discussions also highlight the ongoing tension between short-term rental operators and local residents concerned about neighborhood impacts.

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.