Buying a short-term rental? Licensing questions to answer before you close
The worst time to learn a property can't be rented short term is after closing. Work through these questions while you can still walk away.
1. Does zoning allow short-term rentals at this address?
Some cities ban short-term rentals in entire districts. Miami Beach prohibits them in single-family districts, and Boca Raton treats short stays in its single-family districts as not permitted. Check the exact address, not just the city.
2. Are there caps, owner-occupancy rules or spacing limits?
Nashville only issues new non-owner-occupied permits in certain commercial and mixed-use districts, and Austin added spacing rules between rentals at single-family sites. An investor-owned house on a residential street may not qualify even where rentals are legal.
3. Does the seller's permit transfer to you?
Often it doesn't. Nashville permits, for example, are not transferable when a property sells. Plan to apply fresh and budget the time before your first booking.
4. What do the HOA or condo documents say?
Associations can restrict or ban short-term rentals even where the city allows them, and some require a waiting period or minimum lease term. Read the declaration and rules before you commit.
5. Are there open permits or code violations?
Some cities won't license a property with open violations. Unpermitted work can also stall an inspection. A permit and violation search before closing tells you what you'd inherit.
6. How long until you can take bookings?
Tax accounts can be quick, but city permits with inspections take longer, and renewal seasons add backlog. Build the licensing timeline into your financing and furnishing plan.
7. What will licensing cost?
City fees alone range from a few hundred dollars to nearly a thousand. See our licensing cost breakdown.
Under contract? Send us the address. Our Property Check confirms whether it can operate and lists every requirement before you close.
Frequently asked questions
Can I check if a property can be an Airbnb before I buy?
Yes. Check zoning, city permit rules, HOA documents and any open violations for the exact address. Our Property Check does this for you.
Does a short-term rental permit transfer to a new owner?
Often not. Many cities, including Nashville, require the new owner to apply for a new permit.
What is the biggest mistake STR buyers make?
Assuming that because rentals are legal in the city, they are legal at that address or in that building.
General information, not legal or tax advice. Rules and fees change and vary by location; confirm with the relevant agency before acting.