Americans living in cities hosting this year’s FIFA World Cup games who are thinking of renting out their homes to visitors might be wiser to reconsider—as they could face hefty penalties and even jail time if their local governments do not allow for short-term rentals.
Here is a handy guide to what homeowners in parts of the country that are going to be stormed by World Cup visitors this summer should look out for if they want to turn their units into short-term rentals.
But, if you want to skip to the hosts who risk the most severe consequences should they not follow the rules, scroll down to New Jersey.
Atlanta
Atlanta, which is hosting two World Cup matches, saw a massive surge in demand for short-term rentals after being drawn, with bookings skyrocketing in areas close to the Mercedes-Benz Stadium, according to local news reports.
AirDNA, which provides short-term rental analytics, found that demand had gone up 4,700 percent year-over-year in Chosewood Park as of December. In Buckhead, it had risen 2,335 percent within the same period, and in the Atlanta University Center/Vine City area it had gone up 1,867 percent, as reported by Urbanize Atlanta.
The city allows homeowners to turn their primary residence and one more unit into short-term rentals, but it requires them to have a license which costs $150 a year. Short-term rentals must be registered, and occupancy is capped at two adults per bedroom.
Hosts operating without a valid permit can incur a penalty of up to $500.
Boston
Boston has also seen a massive surge in demand for short-term rentals over the past year, with Travel Agent Central reporting in February that bookings were up 869 percent year-over-year during the World Cup, between June 11 and July 19.
The city requires hosts to register their short-term rentals with the city, pay an annual fee per unit, and prove primary residency. The unit can only be rented out for less than 28 consecutive days, and it must be a homeowner’s primary residence.
The city applies fines of up to $300 per day for violations of its regulations.
Dallas
In Dallas, homeowners face a complex web of rules to turn their properties into short-term rentals, as the issue has become contentious in recent years. The city prohibits short-term rentals in single-family residential neighborhoods, while they are allowed in multifamily, commercial, and mixed-use zones.
Hosts are required to register annually with the city through the MUNIRevs online portal and must pay a $404 registration fee, including mandatory property inspection. Failing to make the mandatory inspection might cause a host to incur hefty fines.
There are also strict occupancy and noise restrictions rules, and hosts must collect and remit hotel occupancy taxes, which are around 9 percent.
Operating a short-term rental without a valid permit can incur into a fine of up to $500 per violation.
Houston
After months of deliberations, Houston adopted its first short-term rental ordinance in February.
The city, the fourth-largest in America, now requires short-term rentals to be registered, with hosts paying a $275 annual fee. City authorities have the power to revoke the registration certificate if the host receives citations for three or more of their properties in a two-year period or if they commit certain crimes, including disorderly conduct, reckless firearm discharge, or repeated noise ordinance violations.
Operating without proper registration can be punished with removal from booking platforms and potential fines.
Kansas City
Kansas City, Missouri, requires short-term rentals hosts to have a valid registration with the city, comply with zoning regulations, and pay a 7.5 percent Transient Boarding and Accommodation Tax. They also have to pay a $3 nightly fee.
Non-residents cannot operate short-term rentals in residential zones. For all eligibility requirements, check this page.
Registering your property as a short-term rental in Kansas City normally has a price tag of $200 in annual fee.
The city has temporarily relaxed its regulations for the period between May 1 and July 31, creating a special $50, non-renewable short-term rental permit to meet heightened demand.
Still, short-term rentals operating without a registration are subject to ordinance violations and fines ranging from $200 to $1,000, according to authorities. Each day a short-term rental operates without approval can be a separate violation.
Los Angeles
In Los Angeles, a host can only use its primary residence as a short-term rental for no more than 120 days a year.
The unit must be registered as such with the Department of City Planning; operating without a valid registration can face significant noncompliance and administrative fines. Hosts also need to collect and pay the 14 percent Transient Occupancy Tax.
The Los Angeles County Treasurer and Tax Collector can also impose fines of up to $1,000 per day on hosting platforms for listing properties that do not have a valid registration.
Miami
Miami has relatively strict zoning rules when it comes to short-term rentals. They are forbidden in all single-family homes and in many multi-family units in certain zoning districts of Miami Beach, for example, and other areas in Miami-Dade county.
Eligible hosts must register their properties and obtain a Business Tax Receipt.
Violations, particularly in Miami Beach, incur massive penalties. In Miami Beach, fines start at $20,000 for the first offense, $40,000 for the second, and up to $100,000 for subsequent offenses.
New Jersey
Transforming their properties into Airbnbs and Vrbos might be especially tempting for New Jersey residents, as a total of eight games are set to be played at MetLife Stadium in East Rutherford, home to the NY Jets and NY Giants. That includes the final match of this year’s FIFA World Cup, tickets for which are going for stellar prices.
FIFA’s resale site currently has four tickets on sale for the final on July 19 going for $2.3 million each, as reported by The Guardian.
The Garden State anticipates massive revenues out of the sports event. More than one million visitors are expected to travel to New Jersey and the surrounding region during the World Cup, according to local reports, putting the state on the global map for roughly a month.
The state is expecting this month of heightened tourism to bring home nearly $2 billion in direct spending to its hotels, restaurants, retail shops, and transportation, reported NJ.comin a recent opinion piece. Another estimate made by the committee in charge of planning New Jersey’s World Cup events put the total regional economic impact at $3.3 billion, with $432 million in tax revenue, as reported by NorthJersey.com.
For New Jersey residents, it might be tempting to consider offering their homes as accommodation for World Cup visitors. But homeowners should consider the legality of doing so case by case, as New Jersey does not have a single statewide law regulating short-term rentals.
According to NJ.com, there are 75 towns that currently do not permit short-term rentals, including some close to the MetLife Stadium such as Carlstadt, Lyndhurst, and East Rutherford.
In East Rutherford, where the matches are going to take place, short-term rentals have “been identified as a community concern due to the potential for increased traffic, noise, high occupant turnover and increased density in residential neighborhoods.”
North Bergen has issued a new ordinance March stating that short-term rentals were permitted only in limited circumstances where property owners live at the locations as their primary residence. Rentals in the town are restricted to 60 nights per year and no one can have more than two short-term rental permits.
Similarly, the city of Kearny, which is less than 10 miles from Metlife Stadium, has tightened its short-term rental regulations before the World Cup, adding a ban on short-term rentals at multifamily homes, whereas they had previously been forbidden only at single-family homes.
The city has the most severe punishments of the New Jersey towns described: a first violation is punishable by a fine of up to $750, a jail term of up to 10 days, or both. A second violation can see a fine up to a maximum of $1,200 and/or up to 20 days in jail. Following offenses can be punished with fines up to $2,000 and/or imprisonment for up to 30 days.
Fort Lee forbids short-term rentals of 30 days or less and imposes a fine of $1,250 to anyone violating the rule. Lodi has the same restriction, but the penalty is a lot higher, for a minimum of $2,000. Each day between 1 and 30 days can be considered a new and separate violation subject to that same fee, Realtor.com reported.
There have also been exceptions in the form of towns that have relaxed their restrictions ahead of the World Cup.
Clifton, which is only a 10-minute drive from the stadium, passed an ordinance in February that would allow homeowners to rent their properties for short terms, but only temporarily. The ordinance will expire on December 31 unless an extension is granted.
New York
New York has quite serious restrictions on short-term rentals, especially New York City, which requires hosts to register their units with the Mayor’s Office of Special Enforcement, be present in the home, and share it with only up to two guests.
Homeowners thinking of putting their property up as short-term rentals need to navigate both state law and city law. Advertising for illegal short stays carry a penalty reaching up to $7,500 for repeat violations.
Philadelphia
Philadelphia homeowners can rent out their property or a room in it for fewer than 30 days at a time, as long as they have obtained the required licenses and zoning permit and are registered to collect and remit the city’s Hotel Tax of 8.5 percent on all rental income.
Airbnb is reportedly encouraging Philadelphia homeowners to become hosts on the platform by offering $750 to those who welcome guests by July 31.
Operating a short-term rentals without the required license can lead to fines of up to $300 per day.
Seattle
Seattle is hosting six World Cup matches, and is expected to see a sharp increase in visitors during the games.
The city requires short-term rentals to obtain a regulatory license and a business license tax certificate. Hosts are limited to two units, one of which must be their primary residence.
Operating without a license can incur fines of $500 per day for the first violation.
San Francisco
San Francisco requires short-term rental shots to pay $450 for the initial permit and apply for renewals every two years. Hosts must also be registered with the San Francisco Treasurer and Tax Collector, with fees ranging from $25 to $500 annually, depending on the host’s rental income.
Non-compliance to the city’s strict rules can incur fines of up to $1,000 per day, per violation, and a host’s property can be removed from booking platforms. Repeat offenders may face lawsuits or restrictions on future short-term rental plans.
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