A recent draft city ordinance may tighten short-term rental regulations for hosts like yourself in Santa Fe. The City currently requires hosts to register their property as a business and obtain an annual short-term rental permit. If the new draft passes, the following measures will apply:
- A new permit would be issued only to a “natural person” rather than a limited liability company or trust.
- Each vacation rental owner would be able to hold only one permit in Santa Fe.
- The owner or operator of a rental unit would have to live in the city and be available at all times.
- Rentals would be limited to one guest or group in a seven-day period.
These changes won’t apply to current short-term rentals which would be grandfathered into the new ordinance.
A news report last week for Santa Fe describes the number of current short-term rentals,
“As of May 28, Santa Fe had 830 permitted vacation rentals – 743 in residential areas and 87 in areas zoned nonresidential, according to city data.
While the city’s short-term rental ordinance limits vacation rental permits to 1,000, Denver-based data company AirDNA estimates Santa Fe actually has 1,825 active short-term rentals, with half operating without permits.”
Update: A new short-term rental ordinance was approved on December 9, 2020 that took effect on January 1, 2021. For more details visit the Santa Fe government website. As part of the new ordinance, short-term rental hosts must pay all “local, state, and federal taxes, including lodgers’ tax, gross receipts tax, and income tax.”
Hosts in Santa Fe can also visit Santa Fe Short-Term Rental Alliance for details on regulations, taxes, and upcoming events designed to strengthen your business through responsible hosting.
What to do with summer regulations
As summer kicks into gear and short-term rentals are able to accommodate vacationers across the US, cities are seizing the opportunity to review regulations, as we see with Santa Fe. What’s important to keep in mind during this time is how your business is protected. With City’s seeking to get a handle on short-term rentals in their communities, how can you continue to run a successful business?
It starts with the basics of making sure you have proper insurance coverage. Now that you’re reviewing regulations in your area, take the time to review your insurance. Insurance such as Proper meets and exceeds local regulations, providing protection for you and your business as you bring in summer guests.
Proper Insurance policy highlights include coverage for building, contents, liability, and income. With property coverage enhancements for theft and damage caused by a renter, you’ll be set for the summer with the best coverage you can ask for.
Call Proper Insurance today at (888) 631-6680 or submit a quote request online in five minutes!