{"id":1576,"date":"2021-08-02T10:00:25","date_gmt":"2021-08-02T14:00:25","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=1576"},"modified":"2024-04-25T23:19:59","modified_gmt":"2024-04-26T03:19:59","slug":"homeowners-find-the-perfect-time-to-rent-out-vacation-homes","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/homeowners-find-the-perfect-time-to-rent-out-vacation-homes\/","title":{"rendered":"Homeowners Find the Perfect Time to Rent Out Vacation Homes."},"content":{"rendered":"\n

Here Come the Rules and Taxes  <\/em><\/h1>\n\n\n\n
\"Letter<\/figure><\/div>\n\n\n\n

Resort towns across the United States are now very\nattractive to home buyers and vacationers alike. Investors and second\nhomeowners have never had such great opportunities to sell their second homes \u2014\nor obtain new income by using these homes as rental properties. <\/p>\n\n\n\n

In 2021, groups of friends and families are looking for new\nroad-trip destinations. Avoiding air travel, they\u2019re seeking out alternatives fairly\nclose to home. These local adventurers want clean rooms, expansive,\nindoor-outdoor spaces, and versatile accommodations. Bonus points for proximity\nto water activities, ski slopes or hiking trails, and strong internet\nconnections. The trends are drawing a new set of homeowners to Airbnb, HomeAway,\nVrbo, and other online hosting platforms.<\/p>\n\n\n\n

At the same time, major tourist cities and surrounding\ncounties are honing their regulations to manage the trend. They\u2019re passing laws\nto head off noise complaints, to hold room-rental platforms accountable, and to\ntap into a new source of taxes. <\/p>\n\n\n\n\n\n\n\n

Can\u2019t Beat \u2018Em? Tax \u2018Em!<\/h2>\n\n\n\n

Nevada is currently testing a new legal framework to regulate\nonline home rental platforms. This is after Clark County, Nevada (home of the\nLas Vegas Strip) tried in vain to simply ban short-term rentals. Thousands of\nLas Vegas short-term listings could be found online, even with the ban. It was\npatently obvious that an Airbnb ban was never going to work in Las Vegas.<\/p>\n\n\n\n

Nevada\u2019s lawmakers have now turned away from bans. They\u2019ve come\nup with a new regulatory framework. <\/p>\n\n\n\n

Under Assembly Bill 363, effective since July 1, 2021, short-term\nrental houses in Clark County and throughout the Las Vegas area are taxed as\nhotels. This could fetch some $45 million in annual room taxes \u2014 money that\ncould help pay for Nevada schools and infrastructure. On the other side of the\ncoin, the law could use close to $4 million in expenses during its initial two\nyears, as it equips the permitting agencies to deal with a booming business in home\nrentals.<\/p>\n\n\n\n

The Nevada Resort Association and Culinary Union are\nsupporters. They lose money when do-it-yourself tourism flourishes.  <\/p>\n\n\n\n

As for Airbnb, it supports taxation of short-term rentals,\nbut doesn\u2019t care for buffer requirements and two-night minimum stays for guests.\nThe platform also claims that special limits on hosts near casinos will impede a\npost-pandemic rebound for Las Vegas. (As of July 1, no short-term rentals are being approved for properties\nlocated less than 2,500 feet from resorts.) As a general matter, Airbnb\nargues that the Nevada law appeases the big resorts at ordinary homeowners\u2019\nexpense.<\/p>\n\n\n\n

\u261b Buying a condo\nto rent out? Understand the association\u2019s short- and long-term rental rules.\nHomeowners\u2019 associations (HOAs) can simply prohibit vacation rentals, in Nevada\nand elsewhere. Learn more about an HOA board\u2019s authority over condo\nownership here<\/a>.<\/em><\/strong><\/p>\n\n\n\n

What Happens in Vegas<\/h2>\n\n\n\n

For now, Nevada\u2019s law covers only a few highly populated counties and cities: Clark County, Las Vegas \/ North Las Vegas and Henderson. Meanwhile, in the Reno area, a separate set of rules, restrictions, and inspection processes will be effective in Reno on August 1<\/a>. As it bars applications for new rentals inside the Reno city limits, it is drawing inevitable controversy.<\/p>\n\n\n\n

A number of other Nevada cities have rules already in place.\nMost focus on numerical limits to rentals per owner, noise abatement, attention\nto local zoning ordinances, and advance notification to owners in the\nsurrounding buildings. <\/p>\n\n\n\n

The Las Vegas area\u2019s new law adopts much of what\u2019s already\nin place throughout the Las Vegas Valley. Highlights of the Las Vegas area law\ninclude:<\/p>\n\n\n\n