Albuquerque, New Mexico Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Albuquerque, New Mexico?

Albuquerque's short-term rental market operates under specific regulations designed to balance tourism benefits with community needs. As the Duke City continues to attract visitors, understanding these rules is essential for anyone looking to enter the STR business. Let's dive into what you need to know to operate legally in Albuquerque.

Starting a Short-Term Rental Business in Albuquerque, New Mexico

Starting an Airbnb or VRBO in Albuquerque requires careful navigation of local regulations. The city implemented comprehensive short-term rental ordinances in April 2021 through Ordinance O-20-30, establishing a structured framework for hosts.

First, you'll need to obtain a business registration with the City of Albuquerque. This requires getting a New Mexico Combined Reporting System (CRS) tax ID from the state's Taxation & Revenue Department. Each property you intend to rent requires its own separate registration, even if they're at the same location.

Next, apply for a Short-Term Rental permit through the city. The initial application fee is $120, with annual renewals costing $90. Your application must include:

• A detailed floor plan of the rental unit
• Proof of short-term rental insurance coverage
• A signed acknowledgment that you'll comply with city ordinances
• A "Good Neighbor Agreement" to be posted inside the unit

This agreement informs guests about local rules regarding noise, parking, trash disposal, and other regulations. You'll also need to designate a local property manager who must be available within 20 miles of city limits to respond to maintenance and security concerns.

Be aware of Albuquerque's occupancy restrictions. The maximum overnight occupancy is limited to 2 people per bedroom plus a general allowance of 2 additional people. For example, a 3-bedroom house could accommodate up to 8 overnight guests. Gatherings are capped at twice the maximum overnight occupancy but cannot exceed 20 people, and must disperse by 10:00 PM.

Albuquerque has also implemented a city-wide cap of 1,200 short-term rental permits. Additionally, individuals are limited to owning no more than three short-term rental properties in the city.

For tax obligations, you must collect and remit a 5% Lodgers' Tax and a 1% Hospitality Fee from guests for stays of 29 nights or fewer. These are in addition to the state's Gross Receipts Tax.

Enforcement of these regulations appears somewhat inconsistent based on local discussions. While penalties for non-compliance can reach $500 per day with potential permit revocation for repeat offenders, some forum discussions suggest that many properties operate without proper permits. On platforms like Bigger Pockets, some Albuquerque hosts have expressed frustration with what they perceive as restrictive rules, while others acknowledge the importance of balancing tourism with community needs.

The city's approach aims to protect housing availability for residents while still supporting tourism. By limiting the proliferation of short-term rentals and establishing clear operational guidelines, Albuquerque seeks to maintain neighborhood character while allowing property owners to participate in the sharing economy.

For prospective hosts, understanding and following these regulations from the start will help ensure a smooth and legal operation in Albuquerque's growing short-term rental market.

Short-Term Rental Licensing Requirement in Albuquerque, New Mexico

Albuquerque implemented its comprehensive short-term rental ordinance (O-20-30) in April 2021, establishing clear licensing requirements for all STR operators. If you're planning to list your property on platforms like Airbnb or VRBO, you'll need to navigate the following licensing process:

Required Documentation

Before operating a short-term rental in Albuquerque, you must obtain:

1. A New Mexico Combined Reporting System (CRS) tax ID number from the state's Taxation & Revenue Department
2. A City of Albuquerque business registration (business license)
3. A Short-Term Rental permit for each individual property you intend to rent

Your STR permit application must include:

1. A detailed floor plan of the rental unit (can be hand-drawn)
2. Proof of short-term rental insurance coverage (minimum $250,000 coverage)
3. A signed acknowledgment that you'll comply with city ordinances
4. A "Good Neighbor Agreement" to be posted inside the rental unit
5. Designation of a 24/7 local contact person who can address issues promptly

Application Process

All permit applications are submitted through Albuquerque's STR website at https://albuquerque.munirevs.com/ using the LodgingRevs/MuniRevs portal. The city works with LodgingRevs for permit processing, tax collection, compliance enforcement, and to provide a 24/7 emergency hotline for complaints.

Fees and Timeline

1. Initial STR permit application fee: $120
2. Annual renewal fee: $90
3. Business license fee: $35 (in addition to permit fee)

Once you've submitted a complete application with all required documentation, the typical processing time is approximately 5-7 business days. If your permit lapses, you'll need to reapply and pay the initial fee again rather than the renewal fee.

Operational Requirements

After receiving your permit, you must:

1. Display a copy of the permit within the rental unit
2. Include your permit number in all advertising and promotional materials
3. Post the Good Neighbor Agreement in a visible location within the rental
4. Collect and remit the required 5% Lodgers' Tax and 1% Hospitality Fee from guests
5. Comply with occupancy limitations (2 adults per bedroom plus 2 additional adults)
6. Ensure gatherings don't exceed twice the maximum overnight occupancy (maximum 20 people) and disperse by 10:00 PM

Penalties for Non-Compliance

Operating without a valid STR permit in Albuquerque can result in:

1. Fines of up to $500 per day for violations
2. Potential revocation of your permit after three violations within a 12-month period
3. Removal of your listing from platforms like Airbnb and VRBO, as these companies will deactivate non-compliant listings when notified by the city

The city actively monitors listings through compliance software and maintains a complaint hotline (505-465-7710) for neighbors to report issues with short-term rentals. While enforcement has been somewhat inconsistent according to local discussions, the city has the authority to issue significant penalties for operating without proper permits.

For questions about the STR permitting process, you can contact the City of Albuquerque's Short-Term Rental Task Force at (505) 768-3556 or via email at str@cabq.gov.

Required Documents for Albuquerque, New Mexico Short-Term Rentals

Successfully operating a legal short-term rental in Albuquerque requires several essential documents. Each serves a specific purpose in ensuring your rental meets city regulations and operates legitimately. Here's a comprehensive breakdown of what you'll need:

Business Registration

1. Purpose: Establishes your STR as a legitimate business entity in Albuquerque
2. Where to obtain: City of Albuquerque Treasury Division
3. Notes: Required before applying for an STR permit

New Mexico CRS Tax ID Number

1. Purpose: Allows you to report and remit state gross receipts taxes and local lodgers' taxes
2. Where to obtain: New Mexico Taxation & Revenue Department
3. Notes: Essential for tax compliance and business registration

Short-Term Rental Permit

1. Purpose: Official authorization to operate an STR in Albuquerque
2. Where to obtain: City's online portal (https://albuquerque.munirevs.com/)
3. Notes: Costs $120 initially, with $90 annual renewals

Floor Plan

• Purpose: Documents the layout of your rental property
• Notes: Can be hand-drawn; must show all rooms in the dwelling unit

Proof of STR Insurance

• Purpose: Demonstrates adequate liability coverage for rental activities
• Where to obtain: Your insurance provider
• Notes: Minimum coverage of $250,000 required

Good Neighbor Agreement

• Purpose: Informs guests about local rules regarding noise, parking, and other regulations
• Where to obtain: Template provided during permit application
• Notes: Must be visibly posted inside the rental unit

24/7 Local Contact Designation

• Purpose: Provides a responsive point of contact for addressing issues
• Notes: Must be someone who can respond promptly to complaints or emergencies

Acknowledgment of Compliance

• Purpose: Your signed commitment to follow all applicable city ordinances
• Where to obtain: Included in permit application
• Notes: Legally binds you to operating within city regulations

All documentation must be submitted through the city's online portal as part of your STR permit application. The city uses LodgingRevs/MuniRevs for processing permits and managing compliance. Once approved, you must display your permit within the rental unit and include the permit number in all advertising materials.

Remember that each property requires its own separate permit, even if you own multiple units in the same building. Failure to maintain proper documentation can result in penalties of up to $500 per day and potential revocation of your permit after repeated violations.

Albuquerque, New Mexico Short-Term Rental Taxes

Operating a short-term rental in Albuquerque comes with specific tax obligations that every host must understand and comply with. The city has implemented a multi-layered tax structure that applies to all short-term rental properties.

Lodgers' Tax (5%)
The City of Albuquerque collects a 5% Lodgers' Tax on all room revenue generated from short-term rentals. This tax applies to the total listing price, including any cleaning fees, for reservations of 29 nights or shorter. The revenue from this tax is allocated with at least 50% going toward promoting tourist-related attractions, facilities, and events. The remaining funds support various city services including payment of bonds, tax administration, police and fire protection, and sanitation services. This tax has no sunset provision, meaning it will continue indefinitely unless changed by ordinance.

Hospitality Fee (1%)
In addition to the Lodgers' Tax, Albuquerque imposes a 1% Hospitality Fee on all room revenue for stays of 29 nights or less. This fee is split evenly, with 50% directed toward promoting tourist-related attractions and events, while the other 50% is used to equip and furnish the Albuquerque Convention Center. Unlike the Lodgers' Tax, the Hospitality Fee has a sunset provision and is currently set to expire on July 1, 2028.

New Mexico Gross Receipts Tax (GRT)
Beyond the city-specific taxes, short-term rental operators must also collect and remit the New Mexico Gross Receipts Tax. In Albuquerque, the combined state and local GRT rate totals 7.875% of your rental revenue. This tax applies to the entire rental amount, including any fees charged to guests.

Tax Filing Requirements
All short-term rental operators registered with the New Mexico Taxation and Revenue Department must file tax returns for each assigned filing period, regardless of whether you had rental income or collected lodging taxes during that period. These "zero dollar returns" are mandatory, and failure to file on time may result in late fees, interest payments, and potentially legal action.

Tax Deductions for Short-Term Rental Operators

As a short-term rental operator in Albuquerque, you may qualify for several tax deductions that can help reduce your taxable income:

• Property Taxes: Unlike personal residences which have a $10,000 deduction limit, rental property owners can deduct the full amount of property taxes as a business expense.
• Repairs and Maintenance: All costs associated with keeping your rental property in good condition are deductible, including plumbing repairs, appliance maintenance, and general upkeep.
• Property Improvements: Major improvements such as remodeling, painting, or roof replacement can be deducted. Section 179 of the tax code allows operators to write off expenses up to $1,050,000 for specific property improvements including fire systems, security systems, roofs, and HVAC systems, provided the property is used for business purposes more than 50% of the time.
• Mixed-Use Deductions: If you use your property for both personal and rental purposes, you can deduct a portion of expenses based on the ratio of rental days to total days used. For example, if you rent your property for 50 days out of 150 total days used, you can deduct 33% of eligible expenses.
• 14-Day Rule: If you rent your personal residence for less than 14 days per year, you don't need to report the income, but you also cannot deduct rental expenses.

Understanding these tax obligations and potential deductions is crucial for operating a profitable and compliant short-term rental business in Albuquerque. Consider consulting with a tax professional familiar with local regulations to maximize your deductions while ensuring full compliance with all tax requirements.

New Mexico Wide Short-Term Rental Rules

While New Mexico doesn't have a comprehensive statewide short-term rental law, several state-level requirements impact all STR operators, including those in Albuquerque. Understanding these broader regulations is essential for legal compliance across the state.

State Tax Requirements

All short-term rental operators in New Mexico must collect and remit two primary taxes:

Gross Receipts Tax (GRT): This tax applies to the total gross sales from rentals for stays of 30 nights or fewer. The rate varies by location, but all STR operators must register with the New Mexico Taxation and Revenue Department and obtain a Combined Reporting System (CRS) tax ID number before starting operations. There are no deductions for business expenses when calculating this tax.

Lodgers' Tax: New Mexico state law empowers cities and counties to levy a local Lodgers' Tax on short-term accommodations. While not directly imposed at the state level, this tax is authorized by state legislation, allowing municipalities like Albuquerque to collect it. The tax typically ranges from 5-6% of the rental amount.

Property Rights and Ownership

State property laws affect who can legally operate an STR. Before establishing a short-term rental business anywhere in New Mexico:

• Property owners must verify that their deed or property title doesn't contain restrictions against rental activities
• Renters must obtain written permission from property owners
• All operators must comply with any applicable HOA or condo association rules

Advertising Requirements

New Mexico requires transparency in STR advertising. Hosts must include their permit or registration numbers in all advertisements across platforms like Airbnb and VRBO. This requirement applies statewide, though enforcement primarily occurs at the local level.

Categorization of Short-Term Rentals

Throughout New Mexico, short-term rentals are consistently defined as accommodations rented for 30 consecutive days or less. This uniform definition applies to tax collection, permit requirements, and regulatory compliance across all municipalities, including Albuquerque.

Local Authority Framework

Perhaps most importantly, New Mexico operates under a framework that grants significant regulatory authority to local governments. State law empowers cities and counties to establish their own STR ordinances, resulting in the patchwork of regulations seen across municipalities like Albuquerque, Santa Fe, Taos, and Ruidoso. This means Albuquerque hosts must comply with both state tax requirements and the city's specific STR ordinance.

While New Mexico lacks a unified statewide STR law, these overarching requirements create a basic framework that all operators must follow, regardless of location. For Albuquerque hosts specifically, these state-level obligations form the foundation upon which the city's more detailed regulations are built.

Does Albuquerque Strictly Enforce STR Rules?

Albuquerque takes a notably relaxed approach to enforcing its short-term rental regulations compared to other New Mexico cities. Despite having a comprehensive regulatory framework on paper, the city's enforcement efforts are inconsistent at best, creating an environment that many hosts have found relatively accommodating for STR operations.

The financial consequences for non-compliance also reflect this lenient approach. While Albuquerque's ordinance allows for fines of up to $500 per day for violations, the actual penalties imposed are typically around $300 per infraction. Many hosts simply factor these occasional fines into their operating costs, viewing them as a manageable business expense rather than a deterrent.

This enforcement gap has created a situation where many hosts deliberately operate outside the regulatory framework. The city's STR ordinance caps permits at 1,200 citywide and limits individuals to owning no more than three STR properties, yet the actual number of active listings significantly exceeds these limits. The disconnect between written regulations and practical enforcement has emboldened many property owners to enter the market without proper permits.

For prospective STR operators, Albuquerque presents a lower-risk environment to test the waters of short-term rental ownership, though operating within the rules remains the legally sound approach for long-term business stability.

How to Start a Short-Term Rental Business in Albuquerque, New Mexico

Starting a short-term rental business in Albuquerque requires careful planning and adherence to local regulations. Follow these steps to establish your STR operation legally and efficiently:

1. Research Albuquerque's STR Regulations
Begin by thoroughly understanding Ordinance O-20-30, which governs short-term rentals in Albuquerque. Familiarize yourself with occupancy limits (2 people per bedroom plus 2 additional people), gathering restrictions (maximum 20 people, dispersing by 10:00 PM), and the citywide cap of 1,200 STR permits. This knowledge will help you determine if your property is eligible and what modifications might be necessary.

2. Obtain a New Mexico CRS Tax ID
Apply for a Combined Reporting System (CRS) tax ID from the New Mexico Taxation & Revenue Department. This identification number is essential for reporting and remitting state Gross Receipts Tax (7.875%) and local lodging taxes. This step must be completed before finalizing your business registration with the city.

3. Register Your Business with the City
Complete a business registration with the City of Albuquerque, which requires a $35 fee. This registration establishes your STR as a legitimate business entity. You can start this process concurrently with your STR permit application, though final approval will depend on securing your state tax ID.

4. Prepare Required Documentation
Gather all necessary documents for your permit application:

• A detailed floor plan of your rental unit (can be hand-drawn)
• Proof of short-term rental insurance (minimum $250,000 coverage)
• A signed acknowledgment that you'll comply with city ordinances
• A "Good Neighbor Agreement" to be posted inside the rental unit

5. Apply for an STR Permit
Submit your application through Albuquerque's online portal (albuquerque.munirevs.com) along with the $120 initial application fee. Each property requires its own separate permit, even if you own multiple units in the same building. Processing typically takes 5-7 business days once all documentation is submitted.

6. Designate a Local Contact Person
Identify a responsible individual who will serve as your 24/7 local contact. This person must be available to respond to issues promptly and be located within 20 miles of Albuquerque city limits. Include their contact information in your permit application and ensure they understand their responsibilities.

7. Set Up Tax Collection Systems
Implement systems to collect the required 5% Lodgers' Tax and 1% Hospitality Fee from guests, in addition to the state's Gross Receipts Tax. Consider using property management software that automatically calculates and adds these taxes to guest bookings.

8. Prepare Your Property
Ensure your property meets all safety requirements and is guest-ready. Install smoke detectors, carbon monoxide alarms, and fire extinguishers. Create a welcome book that includes your permit number, the Good Neighbor Agreement, emergency contacts, and local information.

9. List Your Property and Market Responsibly
Create listings on platforms like Airbnb and VRBO, being sure to include your permit number in all advertising materials as required by law. Take high-quality photos and write compelling descriptions that accurately represent your property.

10. Maintain Compliance and Renew Annually
Mark your calendar for annual permit renewal, which costs $90. Stay informed about any changes to local regulations and ensure ongoing compliance with tax filings, even during months with no rental activity.

Remember that while Albuquerque's enforcement may be inconsistent, operating legally from the start will protect your investment and prevent potential penalties of up to $500 per day for non-compliance. The entire process from research to receiving your permit typically takes 2-3 weeks, so plan accordingly before accepting your first booking.

Who to Contact in Albuquerque, New Mexico about Short-Term Rental Regulations and Zoning?

Navigating Albuquerque's short-term rental regulations often requires direct communication with city officials and departments. Here's a comprehensive list of contacts to help you get the information and assistance you need:

STR Permit and Application Questions

STR Permit Website Support: blt.str.support@govos.com or 888-751-1911

Business Registration Questions: businessregistration@cabq.gov or 505-924-3890

Tax Reporting and Remittance: CAglialoro@cabq.gov or 505-768-3309

Enforcement and Complaints

24-Hour STR Complaint Hotline: 505-465-7710

This hotline verifies registration status and handles neighbor complaints about noise, parking, and other issues

Planning Department

• Main Reception: 505-924-3860
• Zoning Division: 505-924-3850

This department handles zoning questions and can clarify if your property is eligible for STR use

General City Information

• 311 Community Contact Center: Dial 311 or 505-768-2000
• Email: 311@cabq.gov

For non-emergency inquiries about city services and regulations

When contacting any of these resources, have your property address, permit number (if applicable), and specific questions ready to ensure efficient assistance. Most departments are available during regular business hours (Monday-Friday, 8:00 AM to 5:00 PM), though the STR complaint hotline operates 24/7 for emergency situations.

Remember that the city works with LodgingRevs for permit processing, tax collection, and compliance enforcement, so many of your questions about the technical aspects of permitting will be directed to their support team.