A look at the short-term rental rules for local authorities

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With all of the recent news regarding short term rentals, I felt it was important to provide specific information on city and county regulations as follows:

City of Las Vegas, Chapter 6.75

The city defines short-term holiday letting as letting for commercial use or the provision of a residential unit for commercial use for living, lodging or sleeping purposes, whereby each individual guest rents or lives in the apartment for a shorter period than 31 consecutive calendar days. The definition does not include bed and breakfasts, dormitories or temporary accommodation facilities for released offenders.

The ordinance also lists certain communities where short term vacation rentals are prohibited in the following master plan communities: Summerlin / Sun City Summerlin, Town Center, Skye Canyon, Cliff’s Edge, DCP (Arts District, Symphony Park), Grand Canyon Village, Las Vegas Medical District and Providence Square.

A person or company that has a short-term license must adhere to the association’s applicable documents. For a short-term vacation rental license, if the apartment is in a gated community or controlled access building managed by an association, the applicant must obtain a letter from the association stating the rental unit as part of their application to the city.

City of Henderson

An ordinance was passed in 2019 that requires property owners to register with the city if they intend to operate short-term vacation rentals annually. Henderson’s regulations were a major improvement over the City of Las Vegas in controlling short-term vacation rentals.

The city defines short-term vacation rentals as permanent housing units or part of such housing units that are rented for occupancy for a period of less than 30 consecutive days or less than 28 consecutive days in February, parts of days being counted as whole days regardless of whether A permanent resident is also present during the occupancy period.

Henderson’s rules include condominiums, but no condos may be used for short term vacation rentals and owner registration who must be at least 18 years of age. If the property owner is a legal entity such as an LLC or a corporation, an officer or manager of the legal entity can register, provided the individual has proof of eligibility. If the registered property owner is a trust company, only the trustee can register the short-term holiday home.

The City of Henderson has included some very specific requirements that have raised many association matters and would allow an association to file a complaint if the requirement (s) are not met, as follows:

â–  Motorhomes, mobile homes, caravans, vehicles and other non-permanent facilities cannot be registered as short-term holiday rentals.

â–  The short-term rental cannot be used for overnight stays or for events or parties.

â–  Short term vacation rentals must meet all residential property maintenance requirements under Henderson Municipal Act.

â–  The short-term vacation rental must not generate more or different types of traffic than the typical apartment of a permanent resident.

â–  A notarized declaration is required from the registrant confirming that he is not violating an association’s agreement; Statutes and agreements, terms and conditions and restrictions; or any other private agreement that regulates and restricts the use of the property within the association’s community.

â–  The number of short-term vacation rentals within apartment buildings is limited and is one unit or 25 percent of the total number of units, whichever is higher. Applicants are selected on a first-come basis. A short-term professional rental must not be within 1,000 feet of any other registered home.

In the event of disputes between a homeowner and his homeowners association about whether short-term vacation rentals are permitted, the homeowners association would have to obtain a court order to prove the prohibition. Henderson would not allow a homeowner in that community to register after receiving a copy of the order.

Clark County

The short-term rental law comes into force on July 1, 2022. Before Assembly Bill 363 was passed, forcing the county to regulate the industry, Clark County was the only major jurisdiction in southern Nevada with a complete ban on short-term rentals.

It should be noted that prior to the pandemic, Clark County set up a working committee to investigate this issue and review laws and regulations in other cities in Nevada and outside of Nevada that allow short-term rentals.

With the new law, Clark County must draft an ordinance that regulates short-term rentals and contains the minimum standards set by law. According to the law, the county must collect an annual registration fee, collect temporary lodging taxes, ban party rentals, set requirements for noise, safety and garbage, and impose civil penalties for violations.

It should be noted that under the new law, investors are not allowed to hold more than five short-term rents per state business license. A state business license and a district license must be displayed in the rental unit and in any online advertising. The county may require a hosting platform like Airbnb and Vrbo to verify that a rental unit is eligible to serve as a short-term rental before advertising.

Hopefully, Clark County will give the associations an opportunity to help develop regulations that are closer to Henderson’s actions than Las Vegas’ actions.

For now it’s time to wait and see.

Barbara Holland is a certified property manager and holds the Nevada State Supervisory Community Manager Certificate. She is an author and lecturer in real estate management. Questions can be sent to [email protected]



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