Augusta-Richmond County Short Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short Term Rental Business in Augusta-Richmond County

Augusta-Richmond County, Georgia is a popular destination for short-term rentals, especially during the annual Masters golf tournament in April. The city has around 700 active short-term rental properties available on platforms like Airbnb and VRBO. This represents a significant portion of the local lodging market, particularly during peak event periods.

While Augusta has been considering new regulations for short-term rentals in recent years to address concerns about housing affordability, neighborhood quality of life, and lost hotel tax revenue, as of September 2023, the city has not yet adopted any STR-specific rules. This makes Augusta a relatively friendly market for short-term rentals compared to some other major cities that have implemented strict regulations, such as requiring a special permit to operate or limiting the number of rental days per year.

In 2022, the Augusta Planning Department conducted extensive research on potential short-term rental regulations, including looking at ordinances adopted by other Georgia cities like Savannah and Macon. They held public meetings to gather input from residents, neighborhood associations, and the short-term rental industry.

Ultimately, the Planning Department recommended against adopting any new short-term rental rules at this time. They found that the impact of STRs on Augusta's housing market and neighborhoods was not significant enough to justify the cost and complexity of implementing and enforcing new regulations.

However, some Augusta commissioners believe the city should adopt regulations to better manage the growth of short-term rentals and ensure a level playing field with hotels. Commissioner Ben Hasan has been a vocal proponent of STR regulations, arguing the city is missing out on substantial lodging tax revenue.

So while Augusta is currently a welcoming market for short-term rentals, the regulatory environment could change in the future as the industry continues to grow. Hosts should closely monitor any developments and be prepared to adapt to new rules if adopted. It's important to stay engaged with local policymakers and the short-term rental community to have a voice in shaping any future regulations.

Short Term Rental Licensing Requirement in Augusta-Richmond County

As of September 2023, Augusta-Richmond County does not require any special license or permit to operate a short-term rental. Hosts are not required to register their property with the city or obtain approval before listing it on platforms like Airbnb and VRBO.

This sets Augusta apart from some other Georgia cities that have adopted short-term rental specific licensing requirements in recent years. For example, the city of Savannah requires all short-term rental operators to obtain a "Short-Term Vacation Rental Certificate" from the city and renew it annually. The city of Atlanta requires hosts to obtain a business license and a short-term rental permit, with different requirements for properties rented for less than 30 days per year versus more frequently.

However, just because Augusta does not require a special short-term rental permit does not mean hosts can ignore all city regulations. Short-term rentals are still subject to the same zoning requirements, building codes, and tax obligations as other businesses.

All short-term rental operators in Augusta should obtain a general business license from the city and register to collect and remit state and local sales taxes and hotel-motel taxes. Failure to comply with these basic requirements could result in fines and penalties.

Hosts should also carefully review the city's zoning code to confirm their property is in an area where short-term rentals are allowed. In some residential zoning districts, operating a short-term rental may be considered a commercial use and require special approval from the city.

While the lack of a short-term rental specific licensing requirement makes it relatively easy to get started with an STR business in Augusta, hosts should still do their due diligence and ensure they are in compliance with all applicable city, county, and state regulations. When in doubt, hosts should contact the city's Planning & Development Department and License & Inspection Department for guidance.

Required Documents for Augusta-Richmond County Short Term Rentals

Although Augusta-Richmond County does not currently require any special license or permit to operate a short-term rental, hosts still need to obtain several basic documents to run their business legally:

• Business license/occupational tax certificate: All businesses operating in Augusta, including short-term rentals, must obtain a business license (also known as an occupational tax certificate) from the city's License & Inspection Department. This requires filling out an application, paying a fee based on the business's estimated gross revenue, and passing any required inspections.
• State sales tax permit: Short-term rentals in Georgia are required to collect and remit state sales tax of 4% on all rental charges. Hosts must register with the Georgia Department of Revenue to obtain a sales tax permit before starting to rent their property.
• Hotel-motel tax registration: In addition to state sales tax, short-term rentals in Augusta are subject to a 6% local hotel-motel excise tax. Hosts must register with the city's Finance Department and file monthly tax returns reporting their rental income and paying the tax owed.
• Employer Identification Number (EIN): While not strictly required, most short-term rental operators choose to obtain an EIN from the IRS for their business. This is a unique number that identifies your business for tax purposes and can be used instead of your personal Social Security number on tax returns and other business documents.
• Proof of property ownership or landlord approval: If you own the property you plan to rent on a short-term basis, you'll need to provide proof of ownership, such as a deed or property tax bill, when applying for a business license. If you are a renter, you'll need written approval from your landlord to sublet the property as a short-term rental.
• Insurance certificate: While not required by the city, it's highly recommended that all short-term rental operators carry appropriate insurance coverage for their business. This may include a commercial liability policy and/or a specialized vacation rental insurance policy. Hosts should provide a certificate of insurance to the city and their guests upon request.

In addition to these legal documents, hosts will also need to develop several operational documents to run their short-term rental business effectively:

• Rental agreement or lease that outlines the terms and conditions of the rental, including check-in/check-out procedures, house rules, cancellation policy, etc.
• Welcome letter and house manual that provides guests with key information about the property, neighborhood, and local attractions
• Cleaning and maintenance checklists to ensure the property is properly prepared for each new guest
• Emergency contact list and procedures to handle any issues that may arise during a guest's stay
• Accounting and tax records to track income and expenses and prepare required tax filings

By obtaining all required licenses and permits and developing thorough operational documents, Augusta short-term rental hosts can ensure they are running their business legally and efficiently.

Augusta-Richmond County Short Term Rental Taxes

One of the most important responsibilities for short-term rental operators in Augusta-Richmond County is collecting and remitting all required taxes. While the city does not currently have any special taxes that apply only to short-term rentals, hosts are required to collect and remit several state and local taxes on their rental income:

• State sales tax: Short-term rentals in Georgia are subject to the state sales tax rate of 4%. This tax applies to all rental charges, including cleaning fees and any other mandatory charges. Hosts must register with the Georgia Department of Revenue to obtain a sales tax permit and file monthly returns reporting their rental income and paying the tax owed.
• Local hotel-motel excise tax: Augusta-Richmond County imposes a 6% excise tax on all short-term rentals, which is in addition to the state sales tax. This tax is split between the Augusta-Richmond County Coliseum Authority (3%) and the Augusta Convention & Visitors Bureau (3%). Hosts must register with the city's Finance Department and file monthly tax returns reporting their rental income and paying the tax owed.
• State hotel fee: In addition to sales tax, the state of Georgia charges a $5 per night fee on all short-term rentals. This fee is collected by the host and remitted to the state along with their monthly sales tax return. Stays of more than 30 consecutive nights are exempt from this fee.

Collectively, these taxes add up to a significant portion of short-term rental revenue. On a $100 per night rental, the state and local taxes would total $15 ($4 in state sales tax, $6 in local hotel-motel tax, and $5 state hotel fee). Hosts must carefully track and report all taxes collected to avoid penalties and interest.

In 2019, the Augusta Convention & Visitors Bureau estimated the city was losing out on roughly $1 million per year in uncollected hotel-motel taxes from short-term rentals. To address this issue, the CVB was negotiating a voluntary collection agreement (VCA) with Airbnb, similar to agreements the platform has reached with other cities and states.

Under a VCA, Airbnb would automatically collect the 6% local hotel-motel tax from guests and remit it directly to the city on behalf of hosts. This would simplify tax compliance for hosts and help ensure the city is receiving all taxes owed.

However, as of September 2023, it's unclear if Augusta and Airbnb ever finalized a VCA. The city's Finance Department website does not mention any special tax collection arrangement for short-term rentals. Hosts should contact the Finance Department directly to confirm their tax obligations and filing requirements.

It's important for hosts to understand that even if a platform like Airbnb is collecting and remitting taxes on their behalf through a VCA, the host is still ultimately responsible for ensuring all taxes are properly paid. Hosts should carefully review their monthly statements from rental platforms and compare them to their own records to confirm all taxes were collected and remitted correctly.

Failure to comply with short-term rental tax obligations can result in significant penalties, interest, and legal fees. The Georgia Department of Revenue can impose a penalty of up to 50% of the tax owed for failure to file a return or pay taxes, plus interest of 1% per month. The city of Augusta can also assess penalties and interest for delinquent hotel-motel tax payments, and may take legal action to collect unpaid taxes.

To avoid these consequences, Augusta short-term rental hosts should:

• Register for all required tax permits and licenses before starting to rent their property
• Carefully track all rental income and taxes collected, keeping detailed records of each booking and payment
• File all required state and local tax returns on time each month, even if no tax is owed
• Promptly respond to any notices or inquiries from tax authorities and provide requested documentation
• Consider working with a qualified accountant or tax professional who specializes in short-term rental taxation to ensure compliance

By staying on top of their tax obligations, Augusta short-term rental hosts can minimize their risk and keep their business in good standing with state and local authorities.

Augusta-Richmond County wide Short Term Rental Rules

While Augusta-Richmond County does not currently have any ordinances that specifically regulate short-term rentals, hosts must still comply with a variety of general city rules and regulations that apply to all residential properties. These include:

• Zoning requirements: Augusta's zoning code divides the city into different districts, each with its own allowed uses and property standards. In most residential zoning districts, short-term rentals are considered a "lodging" use and may require special approval from the city's Planning & Development Department. Hosts should carefully review the zoning requirements for their property and contact the Planning Department with any questions.
• Building and safety codes: All short-term rentals in Augusta must meet applicable building, fire, health, and safety codes. This includes requirements for smoke detectors, carbon monoxide detectors, fire extinguishers, and emergency exits. Properties may be subject to inspection by the city's Code Enforcement Division to ensure compliance.
• Occupancy limits: Augusta's zoning code and property maintenance code set limits on the number of unrelated people who can live together in a dwelling unit. For most properties, no more than three unrelated adults can occupy a dwelling. Hosts should be aware of these occupancy limits when setting their maximum guest count and ensure their property is not overcrowded.
• Parking requirements: The number of off-street parking spaces required for a short-term rental depends on the zoning district and the number of bedrooms. In most cases, a minimum of one off-street parking space is required for each bedroom rented. Hosts should ensure their property has adequate parking to meet these requirements and avoid creating traffic or parking issues in the neighborhood.
• Noise and nuisance rules: Augusta has general ordinances prohibiting excessive noise, disruptive conduct, and other nuisances that could impact neighbors' quality of life. Short-term rental hosts are responsible for ensuring their guests do not create noise or disturbances that violate these rules. Hosts should set clear house rules and promptly address any complaints from neighbors.
• Trash and recycling: Short-term rentals must follow the city's trash and recycling collection rules, including using approved containers and placing them at the curb on designated pickup days. Hosts are responsible for ensuring their property has adequate trash and recycling service to accommodate their guests.
• Taxes and licenses: As discussed in previous sections, short-term rental operators in Augusta must obtain a business license from the city and register to collect and remit all applicable state and local taxes. Failure to comply with these requirements can result in fines, penalties, and legal action.

In addition to these general city rules, short-term rentals in certain zoning districts may be considered "vacation rentals" or "bed and breakfasts" and subject to additional regulations. For example, vacation rentals in some districts may be required to have a local property manager available 24/7 to respond to issues.

Hosts should also be aware that their property may be subject to private rules and restrictions, such as homeowners association bylaws or covenants. These private rules may prohibit short-term rentals entirely or impose additional requirements beyond what the city mandates.

The best way for Augusta short-term rental hosts to ensure they are in compliance with all applicable rules is to contact the city's Planning & Development Department and License & Inspection Department for guidance. These departments can provide information on zoning requirements, building codes, and other regulations that may apply to a specific property.

Hosts should also carefully review their lease or property ownership documents to identify any private restrictions on short-term rentals. If the property is part of a homeowners association or subject to covenants, hosts should obtain written approval from the HOA board before listing the property for rent.

By taking a proactive approach to understanding and complying with all applicable rules and regulations, Augusta short-term rental hosts can avoid potential legal and financial risks and operate their business with confidence.

Does Augusta-Richmond County strictly enforce STR rules? Is Augusta-Richmond County Airbnb friendly?

Based on discussions among short-term rental hosts on forums like Bigger Pockets and the Augusta subreddit, as well as a review of city policies and public statements, it appears that Augusta-Richmond County is currently relatively friendly to short-term rentals compared to some other major cities.

As previously noted, Augusta does not have any specific ordinances regulating short-term rentals at this time. While the city has studied the issue and considered adopting new rules, policymakers have so far declined to impose restrictions like permit requirements, density limits, or caps on rental days that have been implemented in other cities.

This lack of STR-specific regulation makes Augusta a more welcoming market for short-term rentals than cities like Savannah and Atlanta, which have adopted strict rules in recent years. Hosts in Augusta can list their property on platforms like Airbnb and VRBO without obtaining any special permit or approval from the city.

Additionally, there is little evidence that Augusta is aggressively enforcing the general city rules and regulations that do apply to short-term rentals, such as zoning requirements and occupancy limits.

How to Start a Short Term Rental Business in Augusta-Richmond County

To launch a short-term rental business in Augusta-Richmond County, hosts should follow these key steps:

• Carefully review the city's zoning code to confirm your property is in an area where short-term rentals are allowed. Contact the Planning & Development Department with any questions8.
• Register your business with the state and obtain an Employer Identification Number (EIN) from the IRS.
• Obtain a sales tax permit from the Georgia Department of Revenue and register to collect and remit the state hotel fee of $5 per night9.
• Register your business with the Augusta Finance Department and obtain a business license/occupational tax certificate8.
• Furnish and prepare the property according to industry best practices and all applicable regulations. Ensure the rental is safe, clean, and comfortable for guests.
• Create a listing on popular short-term rental platforms like Airbnb and VRBO. Develop a pricing strategy, booking policies, and welcome materials for guests.
• Implement a system for efficiently managing inquiries, reservations, check-ins, cleaning, and maintenance. Consider hiring a reputable short-term rental property manager if you need assistance.
• Understand your tax collection and reporting obligations. Register to collect and remit the 6% local hotel-motel excise tax and file monthly returns with the city4.

Stay informed of any changes to short-term rental regulations in Augusta-Richmond County and adapt your business as needed to remain in compliance.

Who to contact in Augusta-Richmond County about Short Term Rental Regulations and Zoning?

For questions about zoning regulations and permitting requirements for short-term rentals, contact:

Augusta Planning & Development Department

• Address: 535 Telfair Street, Suite 300, Augusta, GA 30901
• Phone: 706-821-1796
• Email: planning@augustaga.gov
• Website: https://www.augustaga.gov/524/Planning-Development

For questions about business licenses, hotel-motel taxes, and other city tax requirements, contact:

Augusta License & Inspection Department

• Address: 535 Telfair Street, Suite 800, Augusta, GA 30901
• Phone: 706-312-5050
• Email: inspections@augustaga.gov
• Website: https://www.augustaga.gov/2066/Permits-Licensing

What do Airbnb hosts in Augusta-Richmond County on Reddit and Bigger Pockets think about local regulations?

On the Bigger Pockets forums, several Augusta hosts have discussed the lack of strict short-term rental regulations in the city17. One host noted they have operated multiple listings in Augusta for years without any major pushback from the city or issues with neighbors, despite some "gray areas" in the zoning code.

Another Augusta host on Bigger Pockets mentioned the city seems "hands-off" with short-term rentals for now, but they expect that to change in the future as the industry grows. They advised other hosts to stay on top of any new regulations and be proactive about compliance.

In the Augusta subreddit, there have been a few discussions about the growth of Airbnb and its impact on the local housing market11. Some residents expressed concerns about "party houses" and other potential negative impacts of unregulated short-term rentals on residential neighborhoods.

However, there doesn't seem to be a strong push from residents for restrictive new rules, based on these online discussions. Most commenters recognized the important role short-term rentals play in the local tourism economy, especially during the Masters.

The general sentiment from Augusta hosts on these forums seems to be that the city is relatively welcoming to short-term rentals for now, but the "wild west" days may be numbered. With Augusta studying new regulations, hosts should enjoy the friendly environment while it lasts and be prepared to adapt to a more regulated future.