Get Paid For Your Pad | Airbnb Hosting | Vacation Rentals | STR Revenue Management EP183: Las Vegas Licensing Process for Short Term Rentals Explained
Aug 28, 2017
22:56
What happens in Vegas, stays in Vegas?
The city may have a reputation for forgiving indiscretions, but not-so-much if your misdeed involves Airbnb hosting without the proper permit. In fact, the regulations around short-term rentals are incredibly strict in Las Vegas, and only the serious Airbnb entrepreneur will invest the time and money required to clear all the necessary hurdles.
Dillon is very familiar with the complex process of licensing in Las Vegas. He and his wife found their dream home in the city, but it was a little large for just the two of them. They decided to pursue Airbnb as a way to maintain the home and generate extra income. Unfortunately, Dillon was ‘turned in’ by an anonymous tipster, and forced to cancel upcoming bookings until he received the appropriate permit.
Today Dillon walks us through the process, explaining the different types of available short-term rental permits, the fines associated with illegal hosting in Sin City, and the reason why regulations are so severe. Listen in as he shares the extra steps he took to secure the coveted Special Use Permit.
Topics Covered
Why Dillon chose Airbnb over long-term rental
•Make three to five times more with short-term
•Make money rather than break even
How Dillon got caught doing Airbnb without a permit
•City putting together task force to go after hosts
•Until then, rely on neighbors to turn people in
•Anonymous tip may be from competitors with permits
The financial hit Dillon took pursuing the licensing process
•Seven months lost income (bookings)
•$2,000 in costs associated with obtaining permit
•Approximately $10,000 total
The fines associated with illegal Airbnb hosting in Las Vegas
•Dillon received warning first (cease and desist)
•Given ten days to come into compliance
•Had to cancel future bookings ($50 each)
•Can be fined for noise, lack of business license/permit ($2,000/day)
Why regulations are so severe in Las Vegas
•Scotch Eighties neighborhood (not gated)
•Mansions owned by older, wealthy citizens
•Homes purchased for Airbnb (parties)
•Disruption of quiet area led to legislation
The Conditional Use Verification permit
•Only available to small subset
•Owner-occupied, renting portion of home
•Pay $500 to obtain approval
•Must renew annually
The process of obtaining a special use permit
•Go to Department of Planning, set up process
•Attend pre-application meeting (architectural drawings, plan)
•Appear at Planning Commission hearing (automatic denial)
•Appeal to City Council ($500 fee)
•Once approved, valid permit stays with property forever
How Dillon took extra steps to receive approval
•Wrote letters to City Council members, mayor
•Met with individual members of City Council
•Asked for feedback on improving plan
•Got neighbors on board
The rules around short-term rentals outside the city proper
•Illegal in unincorporated townships and county
•Illegal in North Las Vegas as well
•Anything under 30 days is considered short-term rental
Resources
Audible
Get Paid for Your Pad Audiobook
Connect with Jasper
Email: jasper@getpaidforyourpad.com
Twitter: @GetPaidForUrPad
Instagram: @GetPaidForYourPad
Facebook: www.facebook.com/getpaidforyourpad
This episode is sponsored by Hostfully.com where you can create a custom digital guidebook for your guests!
The city may have a reputation for forgiving indiscretions, but not-so-much if your misdeed involves Airbnb hosting without the proper permit. In fact, the regulations around short-term rentals are incredibly strict in Las Vegas, and only the serious Airbnb entrepreneur will invest the time and money required to clear all the necessary hurdles.
Dillon is very familiar with the complex process of licensing in Las Vegas. He and his wife found their dream home in the city, but it was a little large for just the two of them. They decided to pursue Airbnb as a way to maintain the home and generate extra income. Unfortunately, Dillon was ‘turned in’ by an anonymous tipster, and forced to cancel upcoming bookings until he received the appropriate permit.
Today Dillon walks us through the process, explaining the different types of available short-term rental permits, the fines associated with illegal hosting in Sin City, and the reason why regulations are so severe. Listen in as he shares the extra steps he took to secure the coveted Special Use Permit.
Topics Covered
Why Dillon chose Airbnb over long-term rental
•Make three to five times more with short-term
•Make money rather than break even
How Dillon got caught doing Airbnb without a permit
•City putting together task force to go after hosts
•Until then, rely on neighbors to turn people in
•Anonymous tip may be from competitors with permits
The financial hit Dillon took pursuing the licensing process
•Seven months lost income (bookings)
•$2,000 in costs associated with obtaining permit
•Approximately $10,000 total
The fines associated with illegal Airbnb hosting in Las Vegas
•Dillon received warning first (cease and desist)
•Given ten days to come into compliance
•Had to cancel future bookings ($50 each)
•Can be fined for noise, lack of business license/permit ($2,000/day)
Why regulations are so severe in Las Vegas
•Scotch Eighties neighborhood (not gated)
•Mansions owned by older, wealthy citizens
•Homes purchased for Airbnb (parties)
•Disruption of quiet area led to legislation
The Conditional Use Verification permit
•Only available to small subset
•Owner-occupied, renting portion of home
•Pay $500 to obtain approval
•Must renew annually
The process of obtaining a special use permit
•Go to Department of Planning, set up process
•Attend pre-application meeting (architectural drawings, plan)
•Appear at Planning Commission hearing (automatic denial)
•Appeal to City Council ($500 fee)
•Once approved, valid permit stays with property forever
How Dillon took extra steps to receive approval
•Wrote letters to City Council members, mayor
•Met with individual members of City Council
•Asked for feedback on improving plan
•Got neighbors on board
The rules around short-term rentals outside the city proper
•Illegal in unincorporated townships and county
•Illegal in North Las Vegas as well
•Anything under 30 days is considered short-term rental
Resources
Audible
Get Paid for Your Pad Audiobook
Connect with Jasper
Email: jasper@getpaidforyourpad.com
Twitter: @GetPaidForUrPad
Instagram: @GetPaidForYourPad
Facebook: www.facebook.com/getpaidforyourpad
This episode is sponsored by Hostfully.com where you can create a custom digital guidebook for your guests!
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