What Is The 90-Day Short-Term Rental Property Rule?

The 90-day rule for short-term rental properties, widely adopted in cities around the globe, primarily addresses the rental of properties through platforms like Airbnb. It sets a limit on how long a property can be offered for short-term stays, usually defined as rentals shorter than 30 days within a single calendar year — capping it at 90 days.

This regulatory approach is a key tool for urban planners and local governments in maintaining a balance between the thriving short-term rental market and the needs of permanent residents and community stability and you can find out everything about it in our extensive guide below.

Explanation of the 90-day short-term rental property rule

The 90-day rule for short-term rental properties is a regulation primarily aimed at managing the effects of these rentals in urban neighborhoods. This regulation restricts properties from being rented out on a short-term basis (less than 30 consecutive days) for more than 90 days within a calendar year. It's designed to balance the needs of short-term rentals with broader community and housing market concerns.

Limitation on rental days

Homeowners or landlords can offer their properties for short-term stays up to a cumulative total of 90 days per year. Once this limit is reached, the property cannot be listed again for short-term rental until the following year.

Legal and enforcement framework

• Authority implementation: Local governments, such as city councils, are typically responsible for implementing this rule.
• Monitoring compliance: Enforcement is often carried out through the cooperation of rental platforms, which may be required to report data to local authorities or through specific enforcement teams.
• Consequences of non-compliance: Exceeding the 90-day limit can result in substantial fines or legal repercussions for property owners. Rental platforms facilitating non-compliant listings might also face penalties.
• Registration requirements: Owners often must register their property with local authorities and secure a permit for short-term rentals.

Objectives of the regulation

• Protecting the housing market: By limiting short-term rentals, the rule aims to prevent the loss of long-term rental housing, which can lead to increased rents and housing shortages.
• Preserving neighborhood quality: The rule also addresses concerns about the transient nature of short-term rentals, which can disrupt the residential feel of neighborhoods with issues like noise and safety concerns.
• Ensuring fair business practices: It helps maintain a level playing field for traditional hospitality providers like hotels, which are subject to more stringent regulations than private rental properties.

Implications for property owners

The 90-day short-term rental rule significantly impacts property owners looking to rent out their space, especially in urban areas where such rentals are popular. Here are the key implications and strategies for property owners:

Effect on Property Owners

Income dynamics

• Property owners will see a ceiling on their short-term rental income due to the 90-day limitation.
• To optimize earnings, strategically choosing peak seasons for short-term rentals becomes essential.

Operational changes

• Owners must diligently track rental days to avoid surpassing the limit.
• Keeping abreast of local rental laws is crucial to avoid penalties.

Market adjustments

• The rule may prompt a shift from short-term to long-term rentals for some owners.
• This regulation could also influence the value of properties in areas heavily reliant on short-term rentals.

Strategies for Effective Management

Booking strategies

• Focusing on renting out during high-demand periods can maximize returns within the 90-day constraint.
• Mixing short-term rentals during peak times with long-term rentals for the rest of the year can balance income.

Platform diversification

• Using a variety of rental platforms can help reach a wider audience and make the most of the 90-day allowance.

Efficiency in operations

• Implementing tracking tools for rental days can streamline operations.
• Hiring a property management firm might ease the burden of compliance and maximize rental potential.

Regulatory compliance

• Regularly updating oneself on the local rental laws ensures ongoing compliance.
• Proactive engagement with local authorities or consultation with legal experts can provide clarity on rule specifics.

Impacts on the rental market and local communities

The 90-day limit on short-term rentals, a regulation adopted in several cities, significantly influences both the rental market and local communities. This rule, mainly aimed at services like Airbnb, seeks to harmonize the benefits of short-term rentals with the wider needs of residents. Here's a breakdown of its impact:

Rental Market Changes

Short-term rental availability

• The supply of short-term rentals is curtailed, as properties are only rentable for up to 90 days annually.
• This leads to a concentration of short-term rentals during peak tourist times, and a shortage in quieter periods.

Pricing effects

• With fewer available rentals, prices might spike during high-demand seasons.
• Over time, this rule could contribute to a more stable short-term rental market in terms of pricing.

Community and Resident Impacts

Local housing market

• By limiting short-term rentals, the rule helps address housing shortages, freeing up more properties for long-term living.
• It also aids in controlling rental price surges that are often fueled by the lucrative short-term rental market.

Neighborhood quality

• Restricting these rentals preserves the character of residential areas, which can be disrupted by frequent short-term leasing.
• It also reduces problems like noise and congestion, commonly linked to short-term rental properties.

Observed Outcomes and Data

• Market observations: In locales where this rule is in place, there's often an uptick in long-term rental availability and more stable rent costs.
• Community response: Many residents report enhanced living quality and a resurgence of community-focused neighborhood environments.
• Economic shifts: Some landlords see reduced rental income, while others adapt by focusing on long-term leases or optimizing their short-term rental periods.
• Enforcement issues: The rule's effectiveness is sometimes hindered by challenges in policing it, with some landlords finding loopholes.

Consequences of violating the rules

If property owners fail to comply with the 90-day limit on short-term rentals, they face a range of serious consequences. These repercussions vary depending on the specific laws of the area and the extent of the violation:

Monetary fines

• Owners can be hit with significant fines for breaching the 90-day rule. The exact amount varies by location but is generally substantial to deter non-compliance.
• Further income loss is possible if the property is barred from future short-term rentals.

Legal consequences

• Repeat or severe infractions might lead to legal proceedings, with the potential for additional fines or legal costs.
• In some cases, particularly egregious or fraudulent violations could result in criminal charges.

Permit and licensing repercussions

• In areas where licenses or permits are required for short-term rentals, these can be revoked following rule violations, preventing future short-term rental activities.
• A history of rule-breaking can also make obtaining such permits more challenging in the future.

Reputation and relationship impact

• Rental platforms like Airbnb may remove listings that consistently violate local laws, damaging the owner's reputation and rental prospects.
• Violating the rule can also harm relationships with local community members, as short-term rentals can affect neighborhood living conditions.

Operational impact

• Local authorities may intervene to stop rental operations, leading to disruptions and potential loss of future bookings.

How Hospiria Can Help 

To comply with the 90-day limit imposed on short-term rentals in many cities, property owners often face the challenge of meticulously tracking and managing their rental periods. Hospiria's software emerges as a crucial tool in this context. It simplifies the process by enabling owners to quickly activate or deactivate their listings and efficiently update their rental calendars. This feature not only aids in adhering to the regulatory requirements but also streamlines the overall management of rental properties. 

Consequently, property owners can optimize their rental opportunities with ease, ensuring they remain within the legal limits of short-term rentals.