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Airbnb has become a popular platform for people to rent out their homes or properties for short-term stays.
However, in many locations, hosts are subject to a 90-day limit on the number of days their property can be rented out each year.
This article aims to explain the Airbnb 90-day rule, who it applies to, and the consequences of violating it.
It will also explore exceptions to the rule, provide tips for hosts to comply, and offer insight into how to calculate the number of days rented.
Understanding the 90-Day Rule
The rule limits the number of days a host can rent out their property on Airbnb.
It is intended to regulate the short-term rental market and prevent landlords from taking rental properties off the market.
The rule applies to entire homes or apartments and only to properties that are rented out for less than 30 consecutive days.
The rule also applies to all types of short-term rental platforms and not just Airbnb.
Who Does the 90-Day Rule Apply?
The rule applies to both hosts and guests. Hosts are limited to renting out their entire home or apartment for no more than 90 days per year.
The rule applies to all types of properties that are rented out for less than 30 consecutive days. Guests are subject to the rule if they book a property that has already been rented out for 90 days that year.
It is important for hosts to understand to who the rule applies and ensure they comply to avoid penalties.
Hosts
The rule applies to hosts who rent out their entire home or apartment for less than 30 consecutive days. Hosts must keep track of the number of days their property is rented out.
They must also ensure they do not exceed the 90-day limit. If hosts exceed the 90-day limit, they may be subject to significant fines and other penalties.
Guests
Guests may also be subject to the rule. This happens if they book a property that has already been rented out for 90 days that year.
If a guest books a property that exceeds the 90-day limit, the reservation may be canceled. They may also be subject to penalties.
To avoid issues, guests should ensure they are booking a property that is within the 90-day limit.
The 90-day rule only applies to entire homes or apartments and not to shared spaces or individual rooms within a property.
Exceptions to the 90-Day Rule
Hosts who meet the requirements for these exemptions may be able to rent out their property for more than 90 days per year.
It is important for hosts to understand these exemptions and ensure they comply with any additional requirements.
Home Sharing Exemption
The home-sharing exemption allows hosts to rent out their primary residence for more than 90 days per year.
To qualify for this exemption, hosts must live in the property for at least 275 days per year. They should rent it out for no more than 180 days per year.
Hosts must also obtain any required permits or licenses and follow any applicable regulations.
This exemption does not apply to second homes or investment properties. Hosts who meet the requirements for the exemption should keep detailed records to prove compliance if necessary.
Limited Liability Company (LLC) Exemption
The LLC exemption allows hosts who have formed an LLC to rent out their property for more than 90 days per year.
To qualify, the LLC must be registered with the city or state. Also, the rental property must be listed under the LLC’s name.
Hosts must also obtain any required permits or licenses and follow any applicable regulations.
This exemption provides hosts with additional liability protection, but it can also be more complex to set up and maintain.
Hosts who are considering the LLC exemption should seek legal advice and ensure they comply with all requirements.
Hotel Business License Exemption
This exemption allows hosts who have a valid hotel or bed-and-breakfast license to rent out their property for more than 90 days per year.
To qualify for the exemption, hosts must obtain the required license and follow all applicable regulations.
This exemption is primarily intended for hosts who operate a full-time hospitality business, like a traditional bed-and-breakfast or small hotel.
Hosts who meet the requirements for the exemption should keep detailed records. They must also ensure they comply with all applicable regulations to avoid penalties.
How to Calculate the 90-Day Rule
To comply with the rule, hosts must accurately calculate the number of days their property is rented out. Understanding how to calculate is essential to avoid penalties.
Understanding the 180-Day Period
The 180-day period is a crucial aspect of the Airbnb 90-day rule. Hosts can only rent out their property for a maximum of 90 days within a 180-day period.
This means hosts must keep track of their rental activity over a rolling 180-day period and ensure they do not exceed the 90-day limit during that time.
For example, when a host rents out their property for 30 days in January. They can only rent out the property for a maximum of 60 days for the rest of the 180-day period.
Hosts should keep accurate records of their rental activity. They must review their rental schedule regularly to avoid going over the 90-day limit.
Calculating the Number of Days Rented
To comply with the rule, hosts must accurately calculate the number of days their property is rented out.
This includes any days when the property is fully or partially rented, regardless of the number of guests.
Hosts should review their booking history and keep accurate records to ensure they do not exceed the 90-day limit.
If a guest cancels a reservation, the days that the property would have been rented out still count toward the 90-day limit.
Hosts can use the Airbnb calendar to track their rental activity and ensure they stay within the 90-day limit.
Consequences of Violating Rule
Violating the rule can result in serious consequences, including fines, legal action, and even suspension of a host’s account.
Fines and Penalties
Hosts who violate the rule may be subject to fines and penalties. The exact amount of the fine varies depending on the location. But it can range from a few hundred dollars to thousands of dollars.
Hosts may also be required to pay back taxes and interest on any rental income earned beyond the 90-day limit.
Additionally, hosts who repeatedly violate the rule may face legal action or suspension of their Airbnb account.
Suspension or Removal of Airbnb Listing
In addition to fines and penalties, hosts who violate the rule may also face suspension or removal of their listing. This can be a significant blow to hosts who rely on Airbnb as a source of income.
If the account is suspended or the listing is removed, they may have to seek alternative rental arrangements or risk losing rental income.
If a host is unsure about their compliance with the rule, they should contact Airbnb support for assistance.
Takeaway
The Airbnb 90-day rule is an important regulation that hosts must comply with to avoid fines, penalties, and account suspension. Hosts should keep accurate records of their rental activity.
They must also calculate the number of days their property is rented out to ensure they stay within the 90-day limit.
While there are exceptions, hosts should thoroughly understand and comply with the regulation to avoid any negative consequences.
By following the rule, hosts can continue to enjoy the benefits of hosting on Airbnb while staying within the guidelines of the platform.
