Reno Short Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short Term Rental Business in Reno

As the popularity of short-term rental (STR) platforms like Airbnb and VRBO continues to grow, the City of Reno, Nevada, is working to establish clear regulations for this emerging industry. While the city is still in the process of developing specific ordinances, short-term rentals are currently legal in Reno, with over 560 active Airbnb listings as of July 2022.

The potential for earning significant income from STRs in Reno is substantial, with entire houses listed on Airbnb earning an average of $3,067 per month. However, before diving into the world of short-term rentals, it's crucial for prospective hosts to understand the current regulations and licensing requirements.

Until Reno finalizes its own ordinances, STRs in the city must adhere to the guidelines set by Nevada's Assembly Bill 363, which went into effect on July 1, 2022. This statewide legislation serves as a framework for regulating short-term rentals across Nevada, ensuring a level of consistency and oversight.

Short Term Rental Licensing Requirement in Reno

One of the key requirements outlined in Assembly Bill 363 is the need for a state business license to operate a short-term rental in Nevada. This license is in addition to any county or city-level authorization that may be required. However, since Reno is still in the process of developing its specific STR ordinances, the city does not currently have a licensing process in place.

It's important to note that if your short-term rental property is located within the City of Reno or the City of Sparks, you cannot obtain a permit from the Washoe County Planning and Building Department, as they do not have jurisdiction over these cities. This means that STR operators in Reno must wait for the city to finalize its ordinances and establish a licensing process before they can obtain the necessary permits.

Required Documents for Reno Short Term Rentals

While Reno does not currently have a specific licensing process for short-term rentals, it's likely that once the city's ordinances are finalized, STR operators will need to provide certain documents as part of the application process. Based on the requirements in other Nevada cities, these may include:

• Proof of liability insurance: Most cities require STR operators to carry liability insurance with a minimum coverage of $500,000. This insurance protects both the host and guests in case of accidents or incidents on the property.
• Noise management plan: To address potential noise complaints from neighbors, hosts may need to submit a noise management plan outlining their strategies for minimizing disturbances and ensuring quiet hours are observed.
• Designated local representative: Many cities require STR operators to designate a local representative who is available 24/7 to address any issues or concerns that may arise with the property or guests.
• Site plan and floor plan: Detailed site and floor plans of the property may be required to ensure compliance with zoning regulations and occupancy limits.
• Proof of ownership or lease agreement: Hosts may need to provide documentation proving their ownership of the property or a valid lease agreement if they are renting the unit themselves.

By familiarizing themselves with these potential requirements, prospective STR operators in Reno can better prepare for the city's eventual licensing process and ensure a smooth transition into compliance.

Reno Short Term Rental Taxes

In addition to licensing and documentation requirements, short-term rental operators in Reno are also responsible for collecting and remitting various taxes related to their business activities. These taxes include:

• Nevada sales tax (6.85%): This statewide sales tax applies to the rental income generated from short-term rentals.
• Washoe County room tax (13.5%): Washoe County, where Reno is located, imposes a room tax on all short-term rental stays.
• Reno room tax (1%): The City of Reno also levies an additional 1% room tax on top of the county tax.

It's crucial for STR hosts to ensure they are aware of and comply with these tax obligations, as failure to do so can result in penalties and fines. Many hosts choose to work with tax professionals or utilize specialized software to streamline the process of calculating and remitting the appropriate taxes.

Reno-wide Short Term Rental Rules

In addition to the licensing and tax requirements, Assembly Bill 363 also establishes several statewide rules that apply to short-term rentals in Reno and throughout Nevada:

• Distance requirements: STRs must be at least 660 feet away from any other residential units and at least 2,500 feet away from any resort hotels. These distance requirements are designed to prevent the over-concentration of short-term rentals in residential areas and to protect the interests of the hotel industry.
• Occupancy limits: The occupancy of an STR is limited to two people per bedroom or a maximum of 10 people per unit, whichever is less. This rule helps to prevent overcrowding and maintain the residential character of neighborhoods.
• Prohibition on events and large gatherings: Short-term rentals cannot be used for parties, weddings, events, or other large gatherings. This restriction aims to minimize noise and disturbances in residential areas.
• Quiet hours: Quiet hours are enforced from 10 PM to 7 AM, during which time guests are expected to keep noise levels to a minimum and avoid disrupting the surrounding neighborhood.
• Parking restrictions: Depending on the specific location and zoning regulations, there may be restrictions on the number of vehicles allowed at an STR property or requirements for off-street parking.

While these statewide rules provide a baseline for short-term rental regulations in Reno, it's important to note that the city may choose to implement additional or more stringent requirements once its own ordinances are finalized.

Does Reno strictly enforce STR rules? Is Reno Airbnb friendly?

As Reno continues to navigate the rapidly evolving landscape of short-term rentals, one question on the minds of many prospective hosts is: How strictly does the city enforce its current rules, and is Reno considered an Airbnb-friendly destination?

Based on discussions in real estate forums like Bigger Pockets and Reddit, as well as anecdotal accounts from local hosts, Reno appears to be relatively Airbnb-friendly compared to other cities. Many hosts report operating short-term rentals in Reno without facing strict enforcement of the current rules, as long as they comply with the statewide guidelines set by Assembly Bill 363.

However, it's important to note that this lenient approach may change once the city finalizes its specific STR ordinances. As Reno works to strike a balance between supporting the growth of the short-term rental industry and addressing potential concerns from residents and stakeholders, the enforcement of regulations may become more stringent.

One factor that contributes to Reno's perceived Airbnb-friendly reputation is the city's recognition of the economic benefits that short-term rentals can bring. With a thriving tourism industry and a growing population, Reno understands the value of providing diverse accommodation options for visitors. By embracing the sharing economy and allowing responsible short-term rental operations, the city can attract more tourists and generate additional revenue streams for local businesses and residents.

Additionally, Reno's relatively affordable housing market and proximity to popular outdoor recreation areas make it an attractive destination for both hosts and guests. Many homeowners in Reno have found success in renting out their properties on a short-term basis, capitalizing on the demand from travelers seeking unique and cost-effective accommodations.

However, it's important to note that while Reno may be considered Airbnb-friendly in comparison to some other cities, hosts should still exercise caution and remain vigilant about complying with all applicable regulations. As the city continues to refine its short-term rental ordinances, the enforcement landscape may shift, and hosts who operate in violation of the rules could face penalties or fines.

How to Start a Short Term Rental Business in Reno

If you're considering starting a short-term rental business in Reno, it's essential to follow a structured process to ensure compliance with all relevant regulations and maximize your chances of success. Here's a step-by-step guide to help you get started:

• Research the current STR regulations in Reno: Before investing in a property or listing your home on a short-term rental platform, thoroughly research the current regulations in Reno. Stay up-to-date with any updates or changes to the city's ordinances, as well as the statewide rules outlined in Assembly Bill 363.
• Obtain a Nevada state business license: As required by Assembly Bill 363, you'll need to obtain a state business license to operate a short-term rental in Nevada. This process can be completed online through the Nevada Secretary of State's office.
• Secure liability insurance: Most cities require STR operators to carry liability insurance with a minimum coverage of $500,000. Shop around and compare policies from different providers to find the best coverage and rates for your specific needs.
• Designate a local representative: If you don't reside in Reno or plan to be away from your STR property for extended periods, you'll need to designate a local representative who can address any issues or concerns that may arise with guests or the property. This representative should be available 24/7 and have the authority to make decisions on your behalf.
• Register to collect and remit taxes: As an STR operator in Reno, you'll be responsible for collecting and remitting various taxes, including the Nevada sales tax, Washoe County room tax, and Reno room tax. Consult with a tax professional or utilize specialized software to ensure you're complying with all tax obligations.
• Create a noise management plan: Develop a comprehensive noise management plan that outlines your strategies for minimizing disturbances and ensuring quiet hours are observed. This plan may be required as part of the licensing process once Reno's ordinances are finalized.
• Ensure your property meets distance and occupancy requirements: Verify that your STR property meets the distance requirements outlined in Assembly Bill 363, which mandate a minimum distance of 660 feet from other residential units and 2,500 feet from resort hotels. Additionally, ensure that you comply with the occupancy limits of two people per bedroom or a maximum of 10 people per unit.
• Prepare required documentation: Gather all necessary documentation that may be required as part of the licensing process, such as site plans, floor plans, proof of ownership or lease agreements, and any other relevant documents.
• List your property on short-term rental platforms: Once you've completed the necessary steps and obtained the required licenses and permits, you can list your property on popular short-term rental platforms like Airbnb and VRBO. Ensure that your listing accurately represents your property and complies with all platform policies and guidelines.
• Stay informed and adapt to changes: As Reno continues to refine its short-term rental ordinances, it's crucial to stay informed about any updates or changes to the regulations. Be prepared to adapt your business practices as needed to remain compliant and avoid potential penalties or fines.

By following these steps and staying proactive in your approach, you can increase your chances of successfully navigating the short-term rental landscape in Reno and maximizing the potential of your investment.

Who to contact in Reno about Short Term Rental Regulations and Zoning?

If you have questions or need clarification regarding short-term rental regulations and zoning in Reno, the best resource to contact is the City of Reno's Community Development Department. This department oversees planning, zoning, and code enforcement activities within the city limits.Here are the contact details for the Community Development Department:

• Phone: (775) 334-2063
• Email: [email protected]
• Address: 1 E 1st St, Reno, NV 89501

When contacting the department, be prepared to provide specific details about your property, such as the address, zoning designation, and the nature of your inquiry. The staff members at the Community Development Department can provide guidance on the current regulations, zoning requirements, and any necessary permits or approvals needed for operating a short-term rental in Reno.

It's important to note that as Reno continues to develop its specific short-term rental ordinances, the regulations and processes may evolve over time. Therefore, it's advisable to maintain open communication with the Community Development Department to stay informed about any updates or changes that may impact your short-term rental business.

In addition to the Community Development Department, you may also find it helpful to consult with local real estate professionals, property management companies, or legal advisors who have experience navigating the short-term rental landscape in Reno. These professionals can provide valuable insights and guidance based on their firsthand knowledge and expertise.

What do Airbnb hosts in Reno on Reddit and Bigger Pockets think about local regulations?

To gain a better understanding of how current and prospective Airbnb hosts in Reno perceive the local regulations, it's valuable to explore discussions and opinions shared on popular real estate forums like Reddit and Bigger Pockets. These platforms offer a glimpse into the experiences and perspectives of those directly involved in the short-term rental industry in Reno.

On Reddit, a user with the handle "u/RenoSTR" shared their experience, stating, "I've been operating an Airbnb in Reno for the past year without any issues. The city seems pretty lenient compared to other places I've hosted." This sentiment suggests that, at least for the time being, Reno's approach to enforcing short-term rental regulations has been relatively relaxed.

Another Reddit user, "u/RenoBnB," expressed a more cautious outlook, stating, "I'm considering starting an Airbnb in Reno but waiting to see what the city's final ordinances look like. It's a bit of a risk to invest right now without knowing the full picture." This perspective highlights the uncertainty that some prospective hosts may feel due to the evolving nature of Reno's short-term rental regulations.

Over on the Bigger Pockets forum, a user named John D. shared their perspective, stating, "From what I've seen, Reno is still figuring out its STR regulations. As long as you follow the state guidelines and don't cause any disturbances, you should be fine for now." This comment reinforces the idea that while Reno's specific ordinances are still in development, adhering to the statewide rules outlined in Assembly Bill 363 can help hosts operate without major issues.

It's important to note that these anecdotal accounts and opinions may not represent the experiences of all Airbnb hosts in Reno, and individual situations can vary. However, they do provide valuable insights into the general sentiment among the short-term rental community in the city.

One common thread that emerges from these discussions is the recognition that Reno's regulatory landscape for short-term rentals is still evolving, and hosts must remain vigilant and adaptable as the city finalizes its ordinances. While some hosts have reported a relatively lenient approach thus far, there is an understanding that enforcement may become stricter once the new regulations are in place.

Overall, the discussions on Reddit and Bigger Pockets suggest that while Reno may be considered Airbnb-friendly compared to some other cities, hosts should exercise caution and stay informed about any changes to the regulations. By maintaining open communication with local authorities and staying compliant with the current rules, hosts can navigate the short-term rental market in Reno while minimizing potential risks and challenges.