Airbnb Licensing

Following all of the laws and regulations

Airbnb Licensing

As the popularity of Airbnb continues to grow, so does the regulatory landscape surrounding short-term rentals. As an Airbnb host, it's important to understand the licensing and regulatory requirements in your area to avoid penalties and ensure compliance with local laws. Failure to comply with these requirements can result in fines, legal issues, and even the suspension of your Airbnb account.

Navigating the complex world of licensing and regulations can be daunting for hosts, which is why many turn to professional management companies like Awning Airbnb Management for assistance. Awning offers services to help hosts navigate licensing and regulatory requirements, ensuring compliance and minimizing the risk of penalties.

Licensing Requirements for Airbnb Hosts

Licensing requirements for Airbnb hosts refer to the permits or licenses hosts must obtain from local government authorities to legally rent out their property on a short-term basis. These requirements vary by location and may include different types of licenses depending on the city or state in which the property is located.

Some common types of licenses that hosts may need to obtain include short-term rental permits, business licenses, and hotel or lodging licenses. These licenses typically require hosts to meet certain safety and health standards, comply with local zoning laws, and pay applicable taxes and fees.

The specific licensing requirements for Airbnb hosts vary widely by location. Some cities and states have strict licensing requirements, while others have more lenient regulations. For example, in New York City, hosts are required to obtain a special permit, called a Multiple Dwelling Law (MDL) permit, to legally rent out their property on a short-term basis. Similarly, San Francisco requires hosts to register their short-term rental with the city and obtain a business registration certificate. Failure to comply with these licensing requirements can result in steep fines and legal consequences.

Regulatory Requirements for Airbnb Hosts

In addition to licensing requirements, Airbnb hosts must also comply with various regulatory requirements that govern the operation of short-term rentals. These regulations can vary widely by location and may include zoning laws, building codes, occupancy limits, and other requirements related to health and safety.

Zoning laws are a common regulatory requirement that hosts must comply with. These laws dictate where short-term rentals can be located within a city or town, and may restrict rentals in certain residential areas or require hosts to obtain special permits or variances.

Building codes and occupancy limits are also important regulatory requirements for Airbnb hosts. Hosts may be required to meet certain safety and health standards, such as installing smoke detectors and fire extinguishers, and ensuring that the property can safely accommodate the number of guests allowed under local laws.

The specific regulatory requirements for Airbnb hosts vary widely by location. Some cities and states have strict regulatory requirements, while others have more lenient regulations. For example, in Honolulu, Hawaii, short-term rentals are only allowed in certain zoning districts and must be registered with the city. Similarly, in Santa Monica, California, hosts are required to obtain a business license, submit to regular inspections, and comply with strict occupancy limits.

How to Research Licensing and Regulatory Requirements

Researching licensing and regulatory requirements for Airbnb hosts can be a complex and time-consuming process. However, it is essential for hosts to understand these requirements in order to avoid fines, penalties, and legal issues. Here are some tips for hosts on how to research licensing and regulatory requirements in their area:

  • Contact local government agencies: The first step in researching licensing and regulatory requirements is to contact local government agencies, such as the city or county clerk's office, zoning department, or health department. These agencies can provide information on the specific requirements for short-term rentals in the area.
  • Consult with legal experts: Hosts may also want to consult with legal experts, such as real estate attorneys, to gain a deeper understanding of licensing and regulatory requirements. Legal experts can help hosts navigate complex regulations and ensure compliance with local laws.
  • Research online: Hosts can also research licensing and regulatory requirements online by visiting city or county government websites and searching for information related to short-term rentals. Online forums and communities can also provide valuable insights from other Airbnb hosts in the area.
  • Stay up-to-date with changes: Licensing and regulatory requirements can change frequently, so it is important for hosts to stay up-to-date with any changes or updates to local laws and regulations. Hosts can sign up for alerts or newsletters from local government agencies to stay informed.

The Benefits of Professional Airbnb Management

Navigating licensing and regulatory requirements can be a daunting task for Airbnb hosts. Hiring a professional management company like Awning Airbnb Management can provide hosts with numerous benefits for licensing and regulatory compliance. Some of the benefits include:

  • License application assistance: Professional management companies can provide hosts with assistance in the license application process. This can include researching the specific licensing requirements in the area, completing and submitting license applications, and providing guidance throughout the licensing process.
  • Ongoing compliance monitoring: Professional management companies can also monitor ongoing compliance with licensing and regulatory requirements. This can include ensuring that all necessary permits and licenses are up-to-date, monitoring changes to local laws and regulations, and ensuring that hosts are in compliance with all applicable rules and regulations.
  • Legal expertise: Professional management companies often have legal experts on staff who can provide hosts with guidance on complex legal issues related to licensing and regulatory compliance. This can help hosts avoid fines and legal issues associated with non-compliance.
  • Time-saving: Outsourcing licensing and regulatory compliance to a professional management company can save hosts time and effort that can be better spent on managing other aspects of their Airbnb business.

The Consequences of Non-Compliance

Non-compliance with licensing and regulatory requirements can have serious consequences for Airbnb hosts. The penalties for non-compliance can vary by location but may include fines, legal action, and even the forced closure of the Airbnb listing. For example, in New York City, the fines for illegal short-term rentals can range from $1,000 to $7,500, and landlords who violate the law can face up to $25,000 in fines.

Other cities and states have taken similar actions to crack down on non-compliant Airbnb listings. It's important for hosts to understand the specific licensing and regulatory requirements in their area and to take the necessary steps to comply with them to avoid potential legal and financial repercussions.

Best Practices for Licensing and Regulatory Compliance

Here are some best practices for Airbnb hosts to ensure they stay compliant with licensing and regulatory requirements:

  • Research local laws and regulations: Hosts should familiarize themselves with the specific licensing and regulatory requirements in their area to ensure they are compliant with local laws.
  • Keep accurate records: Hosts should keep accurate records of their rental activity, including rental dates, guest information, and rental income. These records can help hosts demonstrate compliance with local laws and regulations if needed.
  • Maintain good relationships with neighbors: Hosts should communicate with their neighbors and ensure that they are not causing any disturbances or violating any noise ordinances. Maintaining good relationships with neighbors can help avoid complaints and potential legal issues.
  • Take a proactive approach: Hosts should take a proactive approach to compliance by staying up-to-date with changes to local laws and regulations, and taking the necessary steps to ensure compliance. This can include applying for licenses and permits, and making necessary changes to the Airbnb listing to comply with local regulations.

By following these best practices, hosts can take a proactive approach to compliance and avoid potential legal and financial repercussions.

Key Takeaway

It is crucial for Airbnb hosts to understand and comply with licensing and regulatory requirements in their area. Hiring a professional management company like Awning Airbnb Management can provide valuable assistance in navigating these requirements and avoiding potential penalties. Hosts should take a proactive approach to compliance and stay up-to-date with any changes to licensing and regulatory requirements. With the right approach, hosts can successfully operate their Airbnb listings while staying compliant with all relevant laws and regulations.

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Airbnb Licensing

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FAQs

How does Awning work?

Awning is a real estate brokerage, short-term rental property management company, and design and furnishing provider. In all things, the team at Awning puts the investor first to foster a long-term portfolio-wide relationship.

Why choose Awning?

It’s simple, at Awning we don’t compromise. That means our property management team is best in the industry and works hard to provide full-service property management, nationwide, at an industry leading low price.

Are there restrictions on how often I can use my home?

There are no restrictions on how often you can use your home. You can manage your calendar to block off days, weeks, months, or entire seasons for personal use at any time.

How much are Awning property management fees?

Awning starts at 15% of revenue, based on your contract term and the annual revenue your property generates.

What is full-service vacation rental management?

Full-service vacation rental management covers everything that a host would do. The only exceptions are mortgage payments and tax payments that are not collected by Airbnb, those must still be handled by the host. 

Awning property management services includes:

  • Hot Tub Maintenance
  • Pool Maintenance Service
  • Cleaning Service
  • Lawn Maintenance Service
  • Check In/Out Management
  • Marketing
  • Supplies & Restocking
  • Licensing
  • Dynamic Pricing
  • Laundry Service
  • Home Automation
  • Messaging Service
  • Calendar Management
  • Linen Service
  • Guidebook
  • Listing Optimization

Additional services guests can purchase include:

  • Design, Furnishing, and Installation
  • Insurance

This is everything that a host needs to simply sit back and manage the finances of the investment and make critical decisions, everything else is handled for you by us.


Does Awning offer property management services near me?

Awning offers property management services nationwide in every market in the United States. Awning services remote areas of the country, difficult to reach retreats, condos, apartments, and units in all of the major cities.

What vacation rental management services does Awning offer?

Awning property management services includes:

  • Hot Tub Maintenance
  • Pool Maintenance Service
  • Cleaning Service
  • Lawn Maintenance Service
  • Check In/Out Management
  • Marketing
  • Supplies & Restocking
  • Licensing
  • Dynamic Pricing
  • Laundry Service
  • Home Automation
  • Messaging Service
  • Calendar Management
  • Linen Service
  • Guidebook
  • Listing Optimization

Additional services guests can purchase include:

  • Design, Furnishing, and Installation
  • Insurance

Does Awning manage Airbnbs?

Awning manages all short-term rentals and vacation rental properties including Airbnb’s. Awning also manages properties listed on VRBO and on other platforms as well as properties that are listed independently.

Does Awning provide condo property management services?

Awning manages condos, single-family rental properties, multi-family properties and a mix of other property types that are being used as short-term rentals. There are rare exceptions and the best way to find out is to connect with a property manager.

How does Awning advertise my home?

Awning optimizes your listing to help it rank on Airbnb and other platforms. This includes optimizing the listing, photography conversions, and of course adjustments to pricing to maximize revenue.

How does Awning compare to Vacasa or Evolve?

Awning takes the best of Vacasa and Evolve and combines it. Full-service property management (like Vacasa) and 15% of revenue (like Evolve).

Vacasa offers full-service property management like Awning, which covers everything. However, Vacasa has high fees and charges additional fees for specific services. So full-service, but high cost.

Evolve offers half-service property management, which takes out many of the essential services like cleaning and maintenance. For the reduced services Evolve charges 15% of revenue.

How are emergencies handled?

Awning has local teams that are available to handle any emergencies at the property. Furthermore, Awning property management provides 24/7 phone support to guests to ensure that they have the best possible experience.

How does Awning avoid bad reviews?

Awning avoids bad reviews by creating a great customer experience. This means: 

  • Ensuring that the property is ready for every guest with amenities, supplies, and cleaning. 
  • Answering phone calls or messages within minutes for all guests, 24 hours per day. 
  • Creating a guidebook to aid guests in local exploration.
  • Working to ensure that guests have a great experience at the property every time they book.
What insurance companies do we recommend?

Awning can connect hosts with multiple different insurance companies depending on the property, location, and other factors. In general, the Awning property management team can work with you to find the best insurance partner for you and your property and portfolio.

Can I use the property myself or for friends and family?

Absolutely! You are welcome to use the property whenever you like. Simply block off some time on the calendar so that guests won’t be able to book it. For more directions on how to use this feature speak directly to the Awning property management team.

How fast can Awning have a team in place?

Awning can have your property fully launched with a team in place in under 7 days.

Are there any hidden or additional fees outside of base management fees?

There are no hidden or additional fees besides the property management charge. Awning doesn’t charge extra for specific services like linens or cleaning and it doesn’t assess additional fees on owners.

Does Awning have a local Property Manager?

Awning has sourced and vetted local maintenance, handymen, and cleaners so that we are able to have boots on the ground in every market.

How does Awning use technology to price my home?

Awning uses a combination of automated dynamic pricing with human review. Dynamic pricing helps us identify opportunities and human review allows us to assess the suggestions and refine it to maximize revenue.

What is the Awning pet policy?

Awning follows the pet policy of the owner. It’s up to you, the owner, to decide if pets will be allowed in the property.

Is Awning legitimate?

Awning is a legitimate national property manager for short-term rentals with 100’s of properties under management and an average rating of 4.9 stars from guests.

Why choose Awning?

It’s simple, at Awning we don’t compromise. That means our property management team is best in the industry and works hard to provide full-service property management, nationwide, at an industry leading low price.

Does Awning provide condo property management services?

Awning manages condos, single-family rental properties, multi-family properties and a mix of other property types that are being used as short-term rentals. There are rare exceptions and the best way to find out is to connect with a property manager.

What vacation rental management services does Awning offer?

Awning property management services includes:

  • Hot Tub Maintenance
  • Pool Maintenance Service
  • Cleaning Service
  • Lawn Maintenance Service
  • Check In/Out Management
  • Marketing
  • Supplies & Restocking
  • Licensing
  • Dynamic Pricing
  • Laundry Service
  • Home Automation
  • Messaging Service
  • Calendar Management
  • Linen Service
  • Guidebook
  • Listing Optimization

Additional services guests can purchase include:

  • Design, Furnishing, and Installation
  • Insurance

Why should I buy in the markets Awning is in?

Awning is in the busiest markets when measured by investor activity and offers the most immediate opportunities for high-quality, high-yielding, and quickly appreciating investment.

The role of an Awning agent is not to convince investors to buy in one market that the company operates in. The Awning team is here to enable investors to transact in the markets that they are most interested in. Awning is expanding into new markets. Connect with an Awning agent and let them know which markets are most enticing right now. 

Awning agents don’t push a location on investors, they explore it together. Awning is a buy-side brokerage, so it is focused on the long-term success of investors that work with us.

Why real estate versus other investments?

A physical asset.

Real estate is a physical, tangible asset that is in scarce supply. The growth in house supply has decreased to record lows over the past 10 years, with no end in sight. Having physical assets in your portfolio is a hedge against economic uncertainty, as they typically (but not always) perform above market average in an economic recession.

Inflation-proof.

In periods of inflation, real estate has a tendency to hold up remarkably well opposed to fiat investments. Real estate prices rise, income generated from rents grows directly in line with CPI, and the debt used to secure the property depreciates in value. For example, a $10,000 mortgage payment during the first year of a mortgage will remain the same nominally but may well only be worth $8,000 in the tenth year, while the property may have appreciated in value 12%.

Major tax incentives.

Earning tax deductions through real estate investing is a powerful benefit that is rarely realized in other investment classes. Deductions include, but are not limited to:

  • Interest on mortgage payments
  • Property management fees
  • Property repairs
  • Property insurance
  • Property taxes
  • Property depreciation

To highlight a basic example, let's assume you purchase a rental property for $200,000 with a down payment of 20% ($40,000). The annual income of the property is $20,000 with $16,000 in expenses, which produces a net income of $3,000. The depreciation deduction allows you to deduct $7,272 ($200,000 / 27.5 years), leaving you with a net loss of $4,272. Because of this loss, you earn the entirety of the net income generated from the property without paying taxes on it.

Let's say you wish to then sell your property in 10 years for $250,000. Using a 1031 exchange, you can avoid having to recapture the depreciation amount and you can roll the $50,000 worth of capital gains into a new, higher-yield investment property without paying taxes on it.

All this together means that you have the possibility of paying little to no taxes, collected $30,000 in passive income, and rolled over the appreciation into a new investment class that yields a higher return.

You can borrow money to invest.

As opposed to other investments, you can borrow money to invest in real estate. Combined with the appreciation of real estate over time, this effectively allows you to leverage and monetize from low interest rates. This is not possible with fractional or market investing.

Why get professional furnishing service for a vacation rental property?

Great furnishing driving revenue and a great team will save you time on coordinating transport and setup. Professional furnishing also means that the furniture is selected for durability and design, which gives you a better return on investment.

How do I figure out how much I’m qualified to borrow and invest?

The best way to determine how much money investors can invest is by receiving a letter of prequalification or speaking with a financial advisor to determine what is comfortable. 

This is the most accurate estimate and beats some back of the napkin math, especially with quick online lenders.

Most customers can qualify for an investment of 5x the amount they saved for a down payment. So if you have $40,000 saved for a down payment, you’re likely to qualify for up to a $200,000 investment property. That being said, we advise you to speak with a lender or financial advisor to get an accurate understanding of what you’re able to invest.

Can I use the property myself or for friends and family?

Absolutely! You are welcome to use the property whenever you like. Simply block off some time on the calendar so that guests won’t be able to book it. For more directions on how to use this feature speak directly to the Awning property management team.

Can Awning connect me with inspectors, financing partners, and other services?

Yes, an Awning agent can work with each investor to coordinate any 3rd party services necessary to find, inspect, purchase, and manage an investment property.

The most common services that Awning helps coordinate include:

  • Lending: Awning can help investors shop for rates and terms for financing and refinancing investment properties. 
  • Inspections: Common inspections include the home, pest, mold, and radon. Awning also sends out roof and foundation experts to get an on-site quote as needed.
  • Property management: Awning selects and partners with local property management companies to ensure that if an investor chooses not to self-manage, the property manager takes care of the property once the purchase is complete. 

Awning also connects investors with attorneys, contractors, title companies, specialist repairmen, and anyone else that’s needed to complete the transaction and get the home leased.

Can the furniture be financed?

There are options to finance the furniture available. For the most up to date information and an assessment of your current borrowing situation, speak to an Awning agent about financing your vacation rental furniture.

Join us for a live property management consultation

We’ll walk you through the services, analyze your property, and answer any questions you have about Awning.

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