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Huntsville Short Term Rental Regulation: A Guide For Airbnb Hosts

Huntsville, Alabama

What are Short Term Rental (Airbnb, VRBO) Regulations in Huntsville, Alabama?

Short term rentals, including those listed on platforms like Airbnb and VRBO, are subject to specific regulations in Huntsville, Alabama. These regulations are primarily found in the city's zoning ordinances and licensing requirements.

Understanding and complying with these regulations is crucial for individuals or entities looking to operate short term rentals in the area.In Huntsville, the zoning ordinances dictate that short term rentals are generally not permitted in most residential zoning districts.

Instead, they are treated as motels under the city's zoning logs. However, they can be operated in zones where hotels and motels are allowed, such as Residence 2-B and General Business C-35. To start a short term rental business in Huntsville, the following steps need to be taken:

Apply for a Business License: After verification and approval by the Zoning Administration, apply for a Business License with the City of Huntsville Finance5.

To operate a short term rental in Huntsville, a business license must be obtained from the city5. The operation of a short term rental without appropriate licensing is against the law, including listings within Huntsville City limits on rental websites such as Airbnb, VRBO, and HomeAway5.When applying for a business license, the applicant is required to submit various pieces of information, including the taxpayer name, business trade name, address, email address, business description, and contact person information, including name and phone number5.

Short term rentals in Huntsville are also subject to city-level lodging tax, which is 4% to 5% payable to the State of Alabama and 9% plus $2 per room per night payable to Madison County1. Alabama does not have a specific definition of short term rentals or vacation rentals, but state and local lodging tax is levied on such accommodations for periods of less than 180 days of continuous occupation1.

The City of Huntsville is taking steps to enforce regulations related to short term rentals, with the city attorney stating that notices have been sent to more than 50 property owners who are operating short-term rentals illegally within city limits4. Despite these regulations, some hosts in Huntsville continue to operate their short term rentals, and the city is working on stricter enforcement4.

While the regulations and enforcement efforts are in place, some hosts in Huntsville continue to operate their short term rentals despite the rules. It is important for potential hosts to be aware of and comply with the existing regulations to avoid potential legal issues and penalties.

Starting a Short Term Rental Business in Huntsville

Starting a short term rental business in Huntsville, Alabama, involves several steps and considerations. Here's a straightforward guide to help you get started:

Apply for a Business License: After verification and approval by the Zoning Administration, apply for a Business License with the City of Huntsville Finance1.

Obtain Necessary Permits and Licenses: Ensure that your short term rental complies with all local building and housing standards, as well as any additional permits or licenses required by the City of Huntsville5.

Register for Taxes: Register for the required taxes, including city-level lodging tax (4% to 5% payable to the State of Alabama and 9% plus $2 per room per night payable to Madison County)1.

Advertise Your Short Term Rental: List your short term rental on platforms like Airbnb, VRBO, and HomeAway to attract guests1.

Remember that short term rentals are generally not permitted in most residential zoning districts and are treated as motels under the City's zoning logs1. They can be operated in zones where hotels and motels are allowed, such as Residence 2-B and General Business C-32.

Short Term Rental Licensing Requirement in Huntsville

Short term rentals in Huntsville, Alabama are subject to licensing requirements. Residents and property owners who wish to rent out rooms or entire units for a period of 30 days or less are required to obtain a license from the City of Huntsville1. The operation of a short term rental without appropriate licensing is against the law, including listings within Huntsville City limits on rental websites such as Airbnb, VRBO, and HomeAway1.

To obtain a short term rental license in Huntsville, you must first confirm zoning with the City of Huntsville Zoning Administration at 256-564-80083. Short term rentals are generally not permitted in most residential zoning districts and are treated as motels under the City's zoning logs1. However, they can be operated in zones where hotels and motels are allowed, such as Residence 2-B and General Business C-31. After verification and approval by the Zoning Administration, you can apply for a Business License with the City of Huntsville Finance1.

The application/license is routed to all appropriate departments for approval, which may take up to 10 business days3. Once the City has completed its review, applicants will be notified of approval or disapproval, along with any license fee due3. Renewal fees for 2024 are set at $259 for principal residence and $518 for secondary residence1. All licenses expire on December 31st of the year issued and cannot be assigned or transferred from1.In addition to licensing requirements, short term rentals in Huntsville are subject to city-level lodging tax, which is 4% to 5% payable to the State of Alabama and 9% plus $2 per room per night payable to Madison County3.While Huntsville is generally friendly to short term rentals, the city is stepping up its enforcement of regulations, sending notices to more than 50 property owners who are operating short-term rentals illegally within city limits2. However, some hosts in Huntsville operate their short term rentals despite the rules, as seen in Bigger Pockets and Reddit discussions5.

To summarize, to start a short term rental business in Huntsville, you need to confirm zoning, apply for a business license, obtain necessary permits and licenses, register for the required taxes, and advertise your short term rental on platforms like Airbnb, VRBO, and HomeAway.

Required Documents for Huntsville Short Term Rentals

If you're planning to rent out your property on a short-term basis in Huntsville, Alabama, you must obtain a business license from the City of Huntsville13. To apply for a license, you need to provide the following information: taxpayer name, business trade name, address and email address, business description, and contact person information, including name and phone number3.

You also need to confirm zoning with the City of Huntsville Zoning Administration at 256-564-800813. Generally, short term rentals are not permitted in most residential zoning districts, and they are treated as motels under the City's zoning logs13. However, they can be operated in zones where hotels and motels are allowed, such as Residence 2-B and General Business C-313.After verification and approval by the Zoning Administration, you will be required to apply for a Business License with the City of Huntsville Finance13. The application/license is routed to all appropriate Departments for approval, which may take up to 10 business days3.

Once the City has completed its review, applicants will be notified of approval or disapproval, along with any license fee due3.Short term rentals in Huntsville are subject to city-level lodging tax, which is 4% to 5% payable to the State of Alabama and 9% plus $2 per room per night payable to Madison County3.

If you're planning to start a short term rental business in Huntsville, you can follow these steps: confirm zoning, apply for a business license, obtain necessary permits and licenses, register for the required taxes, and advertise your short term rental on platforms like Airbnb, VRBO, and HomeAway1.

Huntsville Short Term Rental Taxes

Short term rentals in Huntsville, Alabama are subject to various taxes, including state and local lodging taxes, and the Municipal Accommodation Tax (MAT). The state lodging tax rate in Alabama is 4% to 5% and can be filed and remitted on a monthly, quarterly, semiannual, or annual basis2.

The city-level lodging tax for Huntsville short term rentals is 9% plus $2 per room per night payable to Madison County14. The MAT is a four percent (4%) mandatory tax applicable on all accommodations sold for a continuous period of less than 30 days in a hotel, motel, lodge, inn, short term rental (STR), or bed and breakfast34. Any providers offering rentals of less than 30 days are required to charge and collect the MAT3.

The tax generates funding to promote and develop tourism within Huntsville, with at least 50% of the net MAT revenues directed towards the Huntsville Municipal Accommodation Tax Association to fund tourism promotion and development3.It is important to note that Airbnb is very specific about the jurisdictions that the MAT is collected in, and hosts should contact Airbnb directly for instructions on how to set up the MAT pricing on their listing3. Lodging tax must be collected for the operation of short term rentals, and the tax amount is calculated based on the charge for room(s), lodging, or accommodation for a period of less than 180 consecutive days, including charges for use or rental of personal property and services in connection with the room4.

Overall, short term rental regulations in Huntsville are being enforced more strictly, with notices being sent to more than 50 property owners who are operating short-term rentals illegally within city limits1. However, some hosts still operate their short term rentals despite the rules, as seen in Bigger Pockets and Reddit discussions5. It is important for hosts to follow the regulations and obtain the necessary licenses and permits to avoid penalties and fines.

Alabama wide Short Term Rental Rules

In Alabama, short term rentals are stays of 30 days or less, and non-owner occupied rentals are typically limited to renting 240 days per year2. The state lacks a specific definition of short term rentals or vacation rentals, except for tax purposes, where state and local lodging tax is levied on accommodations rented for periods of less than 180 days of continuous occupation45. While Alabama does not require a state-level license or permit to operate a short term rental business, local regulations and taxes still apply45.

The City of Tuscaloosa, for example, designates three areas eligible to operate short term rentals within the city limits and imposes specific restrictions on multi-family buildings and properties in different districts3. Similarly, other cities in Alabama, such as Auburn, Birmingham, Gulf Shores, and Mobile, have their own sets of regulations and restrictions on short term rentals, including licensing, taxation, and rental limits245.

Overall, Alabama's short term rental regulations are a patchwork of local ordinances and tax requirements, with each city having its own specific rules. While the state does not impose a comprehensive set of regulations, hosts and investors must navigate the varying requirements of different localities when operating short term rentals in Alabama.

Does Huntsville strictly enforce STR rules?

Short term rentals, such as those found on platforms like Airbnb and VRBO, are subject to various regulations in Huntsville, Alabama. While short term rentals can be operated in zones where hotels and motels are allowed, they are generally not permitted in most residential zoning districts and are treated as motels under the City's zoning logs1. The city is stepping up its enforcement of regulations, sending notices to more than 50 property owners who are operating short-term rentals illegally within city limits2. However, some hosts in Huntsville operate their short term rentals despite the rules, as seen in Bigger Pockets and Reddit discussions5.

To start a short term rental business in Huntsville, you need to confirm zoning and location with the City of Huntsville Zoning Administration, apply for a business license with the City of Huntsville Finance, obtain necessary permits and licenses, register for the required taxes, and advertise your short term rental on platforms like Airbnb, VRBO, and HomeAway1.To operate a short term rental in Huntsville, you must obtain a business license from the City of Huntsville1.

The operation of a short term rental without appropriate licensing is against the law, including listings within Huntsville City limits on rental websites such as Airbnb, VRBO, and HomeAway1. To submit a business license approval application, you need to provide taxpayer name, business trade name, address and email address, business description, and contact person information including name and phone number3.Short term rentals in Huntsville are subject to city-level lodging tax, which is 4% to 5% payable to the State of Alabama and 9% plus $2 per room per night payable to Madison County3.

Alabama does not have a definition of short term rentals or vacation rentals, but state and local lodging tax is levied on persons, firms, and corporations in the renting or furnishing of rooms, lodgings, or other accommodations to transients for periods of less than 180 days of continuous occupation3.
In conclusion, while Huntsville is taking steps to enforce short term rental regulations, some hosts still operate their short term rentals despite the rules.

To start a short term rental business in Huntsville, you need to confirm zoning and location, apply for a business license, obtain necessary permits and licenses, register for the required taxes, and advertise your short term rental on platforms like Airbnb, VRBO, and HomeAway. The City of Huntsville Zoning Administration can be contacted for information on zoning and short term rental regulations, and the Town of Huntsville By-law Department can help deal with community concerns.

How to Start a Short Term Rental Business in Huntsville

Starting a short term rental business in Huntsville, Alabama, involves several steps to ensure compliance with local regulations and zoning requirements. Follow these straightforward steps to get started:

  • Confirm Zoning: Contact the City of Huntsville Zoning Administration at 256-564-8008 to verify the use and location of your proposed short term rental1.
  • Apply for a Business License: After verification and approval by the Zoning Administration, apply for a Business License with the City of Huntsville Finance1.
  • Obtain Necessary Permits and Licenses: Ensure that your short term rental complies with all local building codes and safety regulations2.
  • Register for Taxes: Register for the required taxes, including city-level lodging tax (4% to 5% payable to the State of Alabama and 9% plus $2 per room per night payable to Madison County)3.
  • Advertise Your Short Term Rental: List your property on platforms like Airbnb, VRBO, and HomeAway to attract guests1.

By following these steps, you can successfully start a short term rental business in Huntsville, Alabama, while ensuring compliance with local regulations and zoning requirements.

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

If you are seeking to operate a short term rental in Huntsville, it is important to understand the regulations and zoning requirements. The City of Huntsville Zoning Administration is the first point of contact for information on zoning and short term rental regulations. You can reach them at 256-564-8008. After verifying the use and location of your proposed short term rental, you will need to apply for a business license with the City of Huntsville Finance. The application process requires you to submit the following information: taxpayer name, business trade name, address and email address, business description, and contact person information including name and phone number.

If you have any concerns or complaints about short term rentals in your neighborhood, you can contact the Town of Huntsville By-law Department during business hours at bylaw@huntsville.ca or phone at 705-789-1751. If there are concerns after hours, please contact the Ontario Provincial Police (OPP) at 1-888-310-1122.

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

Airbnb hosts in Huntsville have expressed varied opinions about the local regulations on platforms like Reddit and Bigger Pockets. While some hosts have shared positive experiences, others have highlighted the challenges posed by the city's regulations on short-term rentals.One host mentioned on Reddit that Huntsville's regulations are relatively straightforward, indicating that hosts may only need to apply and obtain a business registration to comply with the local rules2.

However, a different perspective was shared on Bigger Pockets, where a host emphasized the need for thorough understanding of the zoning and licensing requirements, suggesting that the process may not be as simple as it seems1.These discussions reflect the diverse experiences and interpretations of the regulatory framework among Airbnb hosts in Huntsville. It is evident that while some hosts find the regulations manageable, others emphasize the importance of carefully navigating the legal aspects of operating short-term rentals in the city.

This expanded section provides a balanced overview of the opinions shared by Airbnb hosts in Huntsville on different platforms, reflecting the varying perspectives on the local regulations.

⚡️
Reveal your property’s rental profitability

Buy this property and list it on Airbnb.