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Short-Term Rentals in Las Vegas: Everything You Need to Know

Short-Term Rentals in Las Vegas: Everything You Need to Know

Las Vegas, a city synonymous with excitement and entertainment, is a destination for dazzling shows and vibrant nightlife and a thriving hub for short-term rentals.

This burgeoning market in Las Vegas has captivated both property owners and potential guests, creating a dynamic landscape for property management and hospitality. To partake in this endeavor successfully, understanding the regulations, licensing processes and intricacies of short-term rentals is important.

In today's blog, we will delve into the nuances of short-term rentals in Las Vegas, exploring the legal landscape and licensing requirements and offering valuable insights for both aspiring hosts and seasoned property managers.

Is Las Vegas a Good Investment for Short-Term Rentals?

Are you considering short-term rentals in Las Vegas? Let's weigh the pros and cons first.

Let’s take a look at the Pros

Thriving tourism market

Las Vegas is a hotspot for tourists and that's a big win for short-term rentals. The constant influx of visitors looking for unique stays can translate into a steady income stream.

According to recent statistics, the momentum in Southern Nevada's tourism sector through 2022 has continued into 2023 and is poised for further growth. Reports suggest strong numbers with over 600 tourism-related businesses contributing to the city's flourishing economy. As Las Vegas celebrates a record year in tourism, predictions for 2024 are equally optimistic. Vegas is set to welcome the superbowl in February 2024 which is projected to draw in more than 330 000 visitors.

High rental demand

With a bustling city life and events happening year-round, the demand for short-term rentals remains consistently high. This could mean fewer vacancies and a more stable investment.

Profitable ROI

The city's real estate market, coupled with the allure of the Strip, presents an opportunity for lucrative returns on your investment. Short-term rentals, when managed well, can be a cash cow.

Let's flip the coin and

Here are probable cons

It's going to be seasonal income.

Income from short-term rentals in Vegas can be seasonal. Events, conventions and holidays might bring in more guests during certain times but could slow down during quieter periods.

For instance

  • During scorching summer months (June-August) temperatures exceed 100°F (37°C), which deter visitors due to extreme heat waves.
  • Mid-week stays, particularly on Tuesday and Wednesday nights, tend to be quieter due to minimal business-related travel and fewer scheduled events.
  • January post-holiday lulls witness a drop in tourism as visitors return home.
  • There are gaps between major events, such as conventions, which can cause the demand for short-term rentals to decrease.

Upfront investments can be steep

Investing in a short-term rental requires some upfront capital. Furnishing, amenities and regular cleaning can be a chunk of expenses that need to be considered before you get started.

A competitive environment

Vegas is alluring, so you're not the only one eyeing it. It's a tough market. We recommend investing wisely in a technology stack that fits within your budget. Ensure you're considering a reliable property management software and dynamic pricing tool that will help you in the long run.

Regulatory laws

You must stay on top of local regulations – they can change and impact your short-term rental investment.

What does the short-term rental market potential in Vegas look like?

The short-term rental market in Las Vegas, particularly on Airbnb, is dynamic and influenced by various factors. Monthly rentals are popular, providing fully furnished options for extended stays in both the city and the iconic Las Vegas Strip. North Las Vegas is also identified as a noteworthy area for Airbnb rentals.

Rental rates for single-family residences surged nearly 40% from 2019 to 2023, indicating a robust market.

Las Vegas Rental Market Overview - January 2024

According to insights from AirDNA, the Las Vegas vacation rental market exhibits dynamic trends.

The Las Vegas rental market demonstrates exceptional strength in January 2024, boasting an impressive market score of 82 points. This robust score indicates a thriving real estate market, underscoring investment opportunities, rental demand and revenue growth.

Las Vegas' resilient market and positive trajectory highlight the city's appeal as a prime real estate investment destination.

  • Annual Revenue : $15.8K
  • Occupancy Rate : 33%
  • ADR : $181.9
  • RevPAR :$94

Understanding Short-Term Rental Rules and Regulations in Las Vegas

Understanding Short-Term Rental Rules and Regulations in Las Vegas

Hosts and property managers must be well-versed in the following key aspects.

Short-term residential rental requirement

A short-term residential rental is a unit such as a house or condominium rented out to guests for less than 31 consecutive days. To qualify for a short-term residential rental business license in Las Vegas, the residence must meet all regulations for conditional use of the land, which include the following:

  • Be owner-occupied throughout the rental period. i.e., you must reside on the property while renting it to guests
  • Have no more than three bedrooms
  • Be at least 660 ft. from any other short-term residential rental as well as 2500 ft. from a resort hotel.
  • Be in a zoning location that allows short-term residential rentals
  • The property owner must be the license holder.
  • The application must include an affidavit attesting that there are no delinquent room tax liabilities or liens on the property.

Licensing requirements

To legally operate short-term rentals in Las Vegas securing a business license is mandatory. The licensing process involves the following steps:

Application submission

Apply for a Conditional Use Verification and Business License either in person at the Planning Desk at Las Vegas City Hall or conveniently online.

License fees

The operator of a short-term residential rental unit shall pay in advance an annual fee of $500 for each short-term residential rental unit.

Home inspection

A home inspection conducted by a Code Enforcement section member is required as part of the licensing procedure. During the inspection the inspector will assess the number of bedrooms, validate building permits for any alterations to the original structure and ensure compliance with relevant building and fire safety codes.

Documentation requirements

The license application necessitates providing proof of liability insurance coverage amounting to at least $500 000. Additionally, an affidavit confirming adherence to all applicable regulations is required for a comprehensive submission.

Annual renewal

Short-term rental permits must be renewed annually to maintain legal compliance and operational status.

Hosts can avoid legal complications by following these steps diligently to navigate the licensing process and legally operate their short-term rental properties in Las Vegas.

Zoning laws

According to Las Vegas ordinances short-term residential rentals fall under the category of transient lodging.

Zoning regulations play a crucial role in determining where short-term rentals are permitted.

The density of short-term rentals in single and multi-family homes is limited to 660 feet. For example short-term rentals can only be used for overnight accommodations, lodging or dwelling. Short-term rentals are not permitted for other types of commercial events, such as weddings, parties and receptions that are typically held in banquet facilities.

Occupancy tax

The following taxes will be charged to guests who book in the City of Las Vegas, NV.

An occupancy tax of 13-13.38% is applied to all bookings for the first 30 nights of their stay, including any cleaning fees.

Advertising regulations

Las Vegas imposes specific rules regarding how short-term rentals can be advertised. Hosts must adhere to these guidelines to maintain compliance and avoid any legal repercussions related to misleading or improper advertising practices.

Neighborhood notification

Some areas may require hosts to notify neighbors about their intent to operate a short-term rental.

All short-term rentals must prominently display a placard at least 8” x 11” visible to the public when the unit is occupied. The placard must include the maximum allowed occupancy information and a 24-hour contact number. This regulation ensures transparency and public safety regarding short-term rentals.

Additionally hosts should be mindful of any Homeowners Association (HOA) restrictions on transient lodging.

Building standards

Compliance with building standards and safety regulations is paramount. Hosts must ensure that their properties meet the necessary safety requirements to provide a secure environment for guests.

General rules

  • Noise - Outside music or excessive noise that can be heard 50 feet from the property line violates the Las Vegas Municipal Code.
  • Parking - All vehicles associated with the residents of the short-term rental must be parked in the driveway. Vehicles are not to block neighboring properties' driveways or community mailboxes.
  • Trash - Refuse should be included and stored in public view only in proper containers for collection by the requirements of Las Vegas Municipal Code Chapter 9.08.

The Vegas Promise

As you turn the key to your next short-term rental remember you're opening the door to a property and endless possibilities. Given its vibrant tourism and high rental demand, Las Vegas can be a good investment for short-term rentals.

Hosts and property managers need to stay informed and adapt. The journey may seem intricate, from navigating licensing processes to understanding zoning laws and compliance with specific regulations. However, armed with knowledge and the right tools, such as Hostaway property management software, hosts can meet legal requirements and streamline their operations.

Remember to do your homework, stay on top of market trends, and embrace the journey with highs and lows. At the same time, ensure your short-term rentals not only abide by the rules but also provide guests with unforgettable experiences.

So here's to the bright lights, the late nights and the extraordinary memories you'll help forge – after all what happens in Vegas doesn't just stay in Vegas; it stays in the hearts of your guests forever.

Ready to find out how Hostaway can transform your business?

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