Las Vegas, Nevada Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations Las Vegas, Nevada?

Las Vegas, with its vibrant tourism industry, has established comprehensive regulations for short-term rentals. If you’re considering entering this market, understanding the current regulatory landscape is essential for success.

Starting a Short-Term Rental Business in Las Vegas, Nevada

Starting a short-term rental business in Las Vegas requires navigating a complex set of regulations designed to balance tourism needs with residential neighborhood preservation.

Owner Occupancy Requirement: Perhaps the most significant regulation is that properties must be owner-occupied throughout the rental period. This means you must live on the property while renting it to guests. This rule has been a major point of contention among hosts, with many questioning how so many listings exist despite this requirement.

Bedroom Limitations: Short-term rentals in Las Vegas cannot have more than three bedrooms, as determined by Clark County Assessor’s records. This restriction limits the size and capacity of potential rental properties.

Distance Requirements: Your property must be at least 660 feet from any other short-term rental and 2,500 feet from resort hotels. This spacing requirement prevents oversaturation in neighborhoods and protects the hotel industry.

Licensing Process: The approval process involves three key steps:

• Planning Land Use Approval - Apply for a conditional use verification (CUV)
• Pass a property inspection
• Obtain a business license with an annual fee of $1,000

Zoning Restrictions: Your property must be in a location that allows short-term rentals, which requires reviewing the city’s zoning code.

HOA Permission: If your property is part of an HOA, you’ll need written permission from them to operate a short-term rental.

Prohibited Activities: Large gatherings, parties, weddings, and special events are strictly prohibited in short-term rentals.

Local Representative: You must have a designated local representative available 24/7 to respond to any issues.

Insurance Requirements: Minimum liability insurance coverage is mandatory for all short-term rental properties.

For those determined to enter this market, neighboring jurisdictions like Henderson or North Las Vegas might offer slightly different regulations. North Las Vegas, for example, adopted Ordinance 3127 in June 2022 to allow short-term rentals with a Conditional Use Permit.

The short-term rental landscape in Las Vegas continues to evolve, with enforcement becoming more stringent. Before investing, thoroughly research current regulations and consider consulting with local real estate professionals who specialize in short-term rentals to navigate this challenging but potentially rewarding market.

Short-Term Rental Licensing Requirement in Las Vegas, Nevada

Obtaining a short-term rental license in Las Vegas involves a rigorous process designed to ensure compliance with city regulations. The requirements are comprehensive and must be followed precisely to avoid delays or rejection.

Property Eligibility Requirements

Before applying, ensure your property meets these fundamental criteria:

1. Must be owner-occupied throughout the rental period (you must live on the property while renting to guests)
2. Cannot have more than three bedrooms
3. Must be located at least 660 feet from any other short-term rental
4. Must be at least 2,500 feet from resort hotels
5. Must be in a zoning location that permits short-term rentals
6. Written permission from your HOA is required, if applicable
7. Short-term rentals are prohibited in certain master-planned areas including Summerlin, Sun City Summerlin, Town Center, Skye Canyon, Cliff’s Edge, Symphony Park, Grand Canyon Village, and properties subject to Form-Based Code

Application Process

The licensing process involves three critical steps:

Planning Land Use Approval:

1. Apply for a conditional use verification (CUV) through the city’s online Citizen Portal
2. Submit required documentation including:
3. Justification letter explaining property use and confirming owner occupancy
4. Site plan showing property location, existing structures, and parking spaces
5. Floor plan detailing room layouts, access points, owner’s bedroom, and safety features

Property Inspection:

1. Schedule and pass a home inspection conducted by Code Enforcement
2. Must have properly placed fire extinguishers and egress markings
3. Smoke detectors must be interconnected in each sleeping room
4. Carbon monoxide detectors are required in residences with fuel-fired appliances

Business License Review:

1. Final review of minimum standards when business license application is submitted
2. Note that approval is not guaranteed until the business license is issued

Documentation and Fees

Applicants must provide:

1. Government-issued photo ID
2. Proof of property ownership
3. Floor plans identifying bedrooms and living spaces
4. Liability insurance with minimum coverage of $500,000
5. Annual permit fee of $500 plus a non-refundable application fee of $50
6. The city of Las Vegas charges a $1,000 annual business license fee for short-term rentals

Application Submission

Submit your application to the Department of Community Development through the city’s online portal. For additional questions, you can contact the department at 702-229-6281.

While specific timeframes vary, the process involves multiple reviews and inspections. An initial review verifies location requirements, followed by the property inspection, and then a second review to confirm continued compliance. The entire process can take several weeks to months depending on inspection scheduling and application volume.

Penalties for Non-Compliance

Operating an illegal short-term rental in Las Vegas can result in severe penalties:

1. Fines can reach tens of thousands of dollars (one property owner recently faced $55,000 in penalties)
2. Continued violations may result in daily fines
3. The city can place liens on non-compliant properties
4. Interest may be added to unpaid fines
5. Foreclosure is possible for those unable to pay accumulated fines

The city has established a 24-hour hotline (702-229-3500) for neighbors to report violations related to noise, excessive occupants, parties, trash, and parking issues.

Remember that weddings, birthday parties, bachelor/bachelorette parties, and other special events are strictly prohibited in short-term rentals. Compliance with all regulations is essential to avoid the substantial financial penalties that can quickly accumulate for violators.

Required Documents for Las Vegas City, Nevada Short-Term Rentals

When applying for a short-term rental license in Las Vegas, you’ll need to prepare several essential documents. Each serves a specific purpose in ensuring your property meets all legal requirements.

1. Justification Letter: A detailed explanation of how you’ll use the property, confirmation that it’s owner-occupied, and any additional details that help city officials evaluate your application. This must be written by you, the property owner.
2. Site Plan: This document must show your residence’s location relative to the nearest street intersection, all existing structures and signage on the property, and a minimum of two standard parking spaces. This helps verify spacing requirements and adequate parking.
3. Floor Plan: A comprehensive layout of all rooms on all floors with clear labeling of each room’s purpose. It must show doorways demonstrating internal access throughout the residence, identify which bedroom the owner will occupy during rental periods, and mark the placement of fire extinguishers and egress markings.
4. Proof of Property Ownership: Documentation confirming you own the property, typically obtained through the Clark County Assessor’s office. This verifies your legal right to operate a rental business at the location.
5. Government-Issued Photo ID: Your Nevada state ID with an address matching the short-term rental property address. This confirms your identity and residence at the property.
6. Liability Insurance Documentation: Proof of liability insurance with minimum coverage of $500,000. This protects both you and your guests in case of accidents or injuries on the property. This process goes through a third-party vendor called myCOI.
7. HOA Permission Letter: If your property is part of a Homeowners Association, you must provide a notarized letter on HOA letterhead authorizing the short-term rental operation. This confirms you’re not violating any HOA restrictions.
8. List of Hosting Platforms: Documentation of all websites or services (like Airbnb, VRBO) where you’ll advertise your rental unit. This helps the city monitor compliance across different platforms.
9. Local Representative Contact Information: Name, address, and phone number for a 24-hour contact person who can respond to any issues. This ensures someone is always available to address problems that may arise.
10. Short-Term Rental Affidavit: A signed statement confirming your understanding of and commitment to following all short-term rental regulations.
11. Corporation/LLC/Trust Documentation: If your property is owned by a business entity rather than an individual, you must provide all relevant ownership documents. This clarifies the legal structure of your rental business.
12. Noise Monitoring Agreement: Confirmation that you’ll install noise monitoring devices on the property to ensure compliance with noise regulations. This helps prevent disturbances to neighbors.

These documents must be submitted through the city’s online Citizen Portal as part of your application process. The Conditional Use Verification (CUV) application has no associated fees, but the business license application requires a $500 annual fee plus additional costs for inspections and permits.

Ensuring all documentation is complete and accurate will help streamline your application process and demonstrate your commitment to operating a compliant short-term rental in Las Vegas.

Las Vegas, Nevada Short-Term Rental Taxes

Operating a short-term rental in Las Vegas involves navigating several tax obligations. Understanding these taxes is crucial for maintaining compliance and properly managing your rental business finances.

Transient Lodging Tax: This is the primary tax affecting short-term rentals in Las Vegas. The rate is 13% in the City of Las Vegas, while Clark County collects an additional 0.5% room tax, bringing the total to 13.5% for properties in unincorporated Clark County. This tax must be collected from guests and shown as a separate charge on their bill – it cannot be included in the room price.

Sales Tax: In addition to the lodging tax, short-term rental owners must collect and remit state and local sales taxes. The current sales tax rate in Clark County is 8.375%. This applies to the overall rental price, including any additional fees or charges you may assess.

Property Taxes: While not directly related to rental income, property taxes are a significant expense for short-term rental owners. These vary based on the property’s location and assessed value, and they must be paid regardless of occupancy rates.

Registration Requirements: Short-term rental operators must register with the City’s Department of Taxation to ensure proper collection and remittance of these taxes. Typically, these taxes must be filed and paid monthly or quarterly, depending on your rental volume.

Tax Exemptions: Guests who stay for 30 consecutive days or more qualify as “permanent residents” and are exempt from the transient lodging tax. Additionally, if you rent your property for 14 days or less per year, you may qualify for the IRS “14-day rule,” which allows you to exclude that rental income from your federal tax return.

Potential Tax Deductions for Short-Term Rental Owners

Short-term rental owners can significantly reduce their tax liability through various deductions:

1. Depreciation: You can depreciate the cost of residential rental property over 27.5 years. Furnishings, appliances, and other items can often be depreciated over shorter periods, providing larger annual deductions.
2. Property Taxes: The property taxes you pay on your rental property are fully deductible as a business expense.
3. Cleaning and Supplies: The frequent turnover in short-term rentals means regular cleaning is necessary. These costs, along with restocking essentials like toiletries and kitchen supplies, are fully deductible.
4. Repairs and Maintenance: Costs to keep your property in good working order are fully deductible in the year they occur. This includes plumbing repairs, appliance maintenance, and general upkeep.
5. Mortgage Interest: Interest paid on loans used to acquire or improve your rental property is deductible.
6. Utilities and Services: Internet, cable TV, electricity, water, gas, and trash service are all deductible expenses for your rental property.
7. Insurance Premiums: Both standard homeowner’s insurance and any additional short-term rental insurance policies are deductible.
8. Professional Services: Fees paid to property managers, accountants, attorneys, and other professionals related to your rental business are deductible.
9. Marketing Expenses: Costs associated with listing your property on platforms like Airbnb and VRBO, including service fees and professional photography, are deductible.

Remember that if you use the property personally in addition to renting it out, you’ll need to allocate expenses proportionally between personal and rental use. Maintaining detailed records of all rental periods, income, and expenses is essential for maximizing your deductions while ensuring compliance with tax regulations.

Nevada Wide Short-Term Rental Rules

Nevada takes a decentralized approach to short-term rental regulation, with no comprehensive statewide licensing system. Instead, the state legislature has established a framework that empowers local governments to create and enforce their own short-term rental ordinances, resulting in a patchwork of regulations across different jurisdictions.

Local Authority Framework: Nevada state law grants counties and cities the authority to regulate short-term rentals within their boundaries. This means that while Las Vegas has its specific set of rules, other nearby jurisdictions like Henderson, North Las Vegas, and unincorporated Clark County may have substantially different requirements.

Range of Regulatory Options: The state allows local governments to implement various regulatory approaches, including:

• Permitting processes with associated fees and fines
• Fire and guest safety requirements
• Occupancy limits
• Parking regulations
• Trash management rules
• Noise restrictions
• Limitations on the number and density of STRs
• Owner occupation requirements

Taxation Requirements: While specific regulations vary by locality, Nevada does require the collection of transient lodging taxes for all short-term rentals. These taxes must be properly collected, reported, and remitted to the appropriate tax authorities regardless of which Nevada jurisdiction your property is located in.

Enforcement Mechanisms: State law enables local governments to establish enforcement procedures and penalties for non-compliance with short-term rental regulations. These can include fines, license revocation, and other punitive measures.

Insurance Requirements: Across Nevada, short-term rental operators are generally required to maintain liability insurance, though the specific coverage amounts may vary by jurisdiction.

The absence of uniform statewide regulations means that Las Vegas hosts must pay particular attention to both city-specific rules and any applicable county or state-level requirements. This regulatory environment requires hosts to conduct thorough research and potentially consult with legal professionals to ensure full compliance across all levels of government.

Does Las Vegas Strictly Enforce STR Rules?

Las Vegas has emerged as one of the strictest enforcers of short-term rental regulations in the United States. The city’s approach to enforcement is notably rigorous, with authorities actively cracking down on non-compliant hosts throughout the metropolitan area.

Las Vegas takes short-term rental regulations very seriously, with recent court rulings upholding the constitutionality of the city’s ordinances. This legal backing has emboldened authorities to pursue violations aggressively. The city has established a dedicated 24-hour hotline (702-229-3500) specifically for neighbors to report short-term rental violations, demonstrating their commitment to enforcement.

Compared to other major tourist destinations, Las Vegas is decidedly unfriendly to Airbnb and similar platforms. The stringent requirements-such as owner occupancy, the 660-foot distance rule between rentals, and the prohibition of STRs within 2,500 feet of resort hotels-create significant barriers to entry. These regulations are widely viewed as more restrictive than those in other popular tourist cities.

Many hosts believe these regulations are primarily designed to protect Las Vegas's powerful hotel industry rather than address genuine concerns about housing affordability or neighborhood disruption. This perception has created resentment among property owners who feel the playing field is intentionally tilted against them.

The reality is that Las Vegas has created one of the most hostile regulatory environments for short-term rentals in the country. While many hosts continue to operate-some legally, many illegally-they do so under constant threat of enforcement action and substantial penalties. For those considering entering the Las Vegas short-term rental market, the combination of strict rules, active enforcement, and the influence of the hotel industry presents significant challenges that are unlikely to ease in the foreseeable future.

How to Start a Short-Term Rental Business in Las Vegas, Nevada

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

Research Zoning Requirements

Before purchasing a property or converting an existing one, verify that short-term rentals are permitted in your area. Contact the Las Vegas Planning Department at (702) 229-6301 to confirm zoning compliance. Remember that properties must be at least 660 feet from other short-term rentals and 2,500 feet from resort hotels. Certain master-planned communities like Summerlin and Sun City Summerlin prohibit STRs entirely.

Purchase or Prepare a Suitable Property

Select a property that meets all regulatory requirements, including the three-bedroom maximum limit. The property must be your primary residence as Las Vegas requires owner occupancy throughout the rental period. Ensure the property has adequate parking (minimum two spaces) and meets all safety requirements for future inspections.

Obtain Planning Department Approval

Contact the Planning Department to begin the approval process. This is the first critical step in the three-part licensing process. Be prepared to discuss your property's location, size, and intended use as a short-term rental.

Apply for a Conditional Use Verification (CUV)

Submit your CUV application through the city's online Citizen Portal. This application requires:

• A detailed justification letter explaining your rental plans and confirming owner occupancy
• A site plan showing property location, structures, and parking
• Floor plans identifying room layouts, access points, and safety features

Prepare for and Pass Property Inspection

Schedule an inspection with Code Enforcement. Ensure your property meets all safety requirements including:

• Properly placed fire extinguishers
• Interconnected smoke detectors in each sleeping room
• Carbon monoxide detectors if you have fuel-fired appliances
• Clear egress markings and emergency exit plans

Obtain Required Insurance Coverage

Secure liability insurance with minimum coverage of $500,000. This is mandatory for all short-term rental properties in Las Vegas and protects both you and your guests in case of accidents or injuries.

Apply for Business License

Once your CUV is approved and inspection passed, apply for your business license through the Business Licensing Department. Be prepared to pay the $1,000 annual fee plus application costs. The business license application undergoes a final review of all minimum standards.

Register for Tax Collection

Register with the City's Department of Taxation to ensure proper collection and remittance of the 13% transient lodging tax and 8.375% sales tax. Set up a system to track these taxes separately from your rental rates.

Prepare Your Property for Guests

Furnish your property appropriately, install noise monitoring devices as required, and create house rules that comply with Las Vegas regulations (particularly the prohibition on parties and events).

Market Your Property Legally

List your property on short-term rental platforms, being careful to include your license number and accurately represent your property. Remember to document all platforms where your property is listed, as this information must be provided to the city.

The entire process from initial planning approval to receiving your business license can take several weeks to months. Starting early and ensuring all documentation is complete and accurate will help streamline the process. Remember that operating without proper licensing can result in substantial fines, so it's essential to complete all steps before accepting your first guest.

Who to Contact in Las Vegas, Nevada about Short-Term Rental Regulations and Zoning?

Navigating the complex regulations for short-term rentals in Las Vegas requires connecting with the right government departments and community resources. Here are the key contacts and resources for current and prospective STR operators:

City of Las Vegas Contacts

Planning & Zoning Department: For questions about zoning requirements, conditional use verifications, and whether your property qualifies for a short-term rental license.

• Phone: (702) 229-6301
• Address: Las Vegas City Hall, 495 S. Main St., Las Vegas, NV 89101
• Monday-Thursday 7 a.m. to 4:30 p.m.

Short-Term Rental Complaint Hotline: For reporting violations or disturbances related to short-term rentals.

• Phone: (702) 229-3500 (24-hour hotline)
• Note: Calls should be placed while the disturbance is occurring for proper documentation

Business Licensing Department: For questions about business license applications and fees.

• Phone: (702) 229-6011
• Address: Las Vegas City Hall, 495 S. Main St., Las Vegas, NV 89101

Clark County Contacts

Short-Term Rental Education Enforcement Team (STREET): For questions about regulations in unincorporated Clark County areas.

• Phone: (702) 455-0000
• Address: 500 S. Grand Central Pkwy., Las Vegas, NV 89155

Clark County Short-Term Rental Division: For specific questions about STR applications in Clark County.

• Phone: (702) 455-4252
• Fax: (702) 386-2168
• Email: STR@ClarkCountyNV.gov
• Address: 500 S. Grand Central Pkwy, 3rd Floor, Las Vegas, NV 89155

When contacting these departments, be prepared with specific questions about your property's location, zoning designation, and intended use. Officials can provide guidance on whether your property meets the basic eligibility requirements before you invest time and money in the application process. Remember that regulations can change, so it's advisable to verify current requirements directly with these official sources before making any business decisions.