Short-term rental regulation operates in layers, and the most restrictive rule always wins. At the top sits federal or national law — typically setting data-sharing obligations that require Airbnb to report host earnings to tax authorities. Below that, state, province, or regional governments set baseline licensing and tax frameworks. At the city or municipality level you'll find the most varied and impactful rules: night caps, primary residence requirements, zoning restrictions, and density caps. Finally, your building or HOA can add an additional layer that even a fully compliant city licence cannot override.
Because municipalities set their own rules, two properties in the same state can operate under entirely different regimes. San Francisco requires a registration number and a primary residence declaration; neighbouring Oakland has no STR registration requirement at all. Always look at city and county level, not just state-wide guidance.
Platforms like Airbnb are increasingly sharing host data directly with local governments under platform compliance agreements. Cities including Amsterdam, Barcelona, New York, and Edinburgh now receive booking data automatically. This means operating informally is becoming far harder — and the penalty risk for non-compliance is rising every year. The safest approach is to check your requirements, register proactively, and keep your documentation up to date.
The definitive source for any jurisdiction is always the local council or municipal government website. Search for “short-term rental licence”, “holiday let registration”, or “Airbnb permit” on your local authority's website and bookmark the official page — because rules change, and so do the URLs.
Primary residence requirementA rule requiring hosts to live in the property they rent for a minimum number of days per year — typically 183+ days. It effectively bans investment properties or second homes from operating as short-term rentals. New York City, San Francisco, and Edinburgh all impose this requirement for certain licence categories.Night capA maximum number of nights per year a property may be rented as a short-term let. London's 90-night cap, Amsterdam's 30-night cap, and Paris's 120-night cap are the most widely cited examples. Night caps typically apply to the entire calendar year and create hard ceilings even for fully licensed hosts. Exceeding the cap — even by one night — is a compliance violation.Transient occupancy tax (TOT)A hotel-style tax levied on guests paying for accommodation of less than 30 days (the threshold varies). TOT is the US terminology; the UK equivalent is business rates or VAT; Australia uses GST. Rates range from 2% to 17%+ and are typically collected by platforms in larger markets, but may need to be self-filed in smaller jurisdictions.ZoningLand-use rules that designate which areas are permitted for short-term rental activity. Many cities restrict STRs to residential zones only, prohibit them in historic districts, or require commercial zoning for whole-property rentals. Operating in a non-permitted zone exposes you to enforcement action regardless of whether you hold a licence.Density capA limit on the number or percentage of STR properties allowed in a given area — for example, no more than one STR per residential block or no more than 5% of apartments in a building. Density caps are becoming increasingly common in European cities and some US resort towns as a tool to protect housing supply. Once the cap is reached, new licences are paused until existing ones lapse.Registration numberA unique identifier issued by a local authority to a licensed STR. Hosts are typically required to display this number prominently in all listings on every platform. Airbnb, Vrbo, and Booking.com have systems to collect and verify registration numbers in markets where they are mandatory. Failure to display a valid number is an enforcement trigger in many jurisdictions.Change of usePlanning permission to convert a property from one legal use class to another — for example, from standard residential (Class C3 in England) to a new short-term let use class (Class C5, introduced 2024). Required in Scotland for most STR operators and possible in some EU cities if your property is no longer used as a primary residence. Without it, you risk enforcement even if you hold a valid licence. Fines are maximums and may vary by number of violations and jurisdiction interpretation. Data current as of March 2026.