PropertyShort-Term Rentals
Short-Term Rentals: Local Regulation, HOA Restrictions, Taxes, and Liability
Short-term rentals sit at the intersection of four bodies of law that were not written with them in mind, and the operator who understands only one of them is exposed on the other three. This article explains the local regulatory layer — permits, primary residence requirements, density caps, occupancy limits, and the enforcement mechanisms cities actually use — and then the private restrictions that frequently matter more, including HOA covenants, lease prohibitions, mortgage occupancy clauses, and the homeowner's policy exclusion that leaves many hosts effectively uninsured. It covers the tax layer, from transient occupancy taxes collected at the local level to the federal treatment of rental income including the fourteen-day rule and the passive activity limits. It closes with liability: guest injuries, neighbor nuisance claims, fair housing obligations, and the platform immunity that determines who a wronged guest or neighbor can actually sue.