Short-Term Rental Agreement: Airbnb / VRBO Host Template, Local STR Rules (2026)
Short-term rentals occupy a different legal universe from residential leases. Under most state landlord-tenant statutes, a stay of less than 30 days is a transient occupancy rather than a tenancy, governed by hotel-style rules rather than the Residential Landlord-Tenant Act. Layered on top of that statutory framework are increasingly strict local ordinances in major cities, federal tax rules that treat short-term hosting differently from long-term rental, occupancy-tax collection responsibilities, and platform-specific terms imposed by Airbnb, VRBO, and similar marketplaces. A short-term rental agreement must navigate all five layers.
Updated 18 May 2026
General legal information, not legal advice. Short-term rental regulation has tightened sharply in major U.S. cities since 2018. Verify local ordinances, registration requirements, HOA / condo bylaws, and master-lease provisions before listing or hosting. Always consult a licensed attorney for any specific situation.
Why a short-term rental is not a lease
State landlord-tenant statutes typically apply to tenancies of 30 days or more. Florida's Chapter 83, Part II, defines tenancies that fall within its coverage, with Part I covering transient public lodging establishments (hotels, motels, vacation rentals operating like hotels). California Civil Code section 1940 applies the Residential Landlord-Tenant Law to occupancies "for residential purposes" with carve-outs for transient occupancies. Texas Property Code Chapter 92 applies to dwellings rented for use as a residence; transient stays fall outside.
The practical implication is that a short-term guest does not have the same statutory protections as a tenant. There is no statutory deposit cap, no eviction-process requirement (in the formal sense), no implied warranty of habitability under landlord-tenant statute (though general consumer-protection law and the hotel-keeper duty of care apply), and no statutory notice requirement for termination. The host can ask the guest to leave at the end of the booking period without filing in court. Disputes about damage or unpaid amounts run through small-claims court or chargeback procedures rather than the landlord-tenant track.
The "30-day rule" is not universal. California's Mobile Home Residency Law and several other state-specific statutes use different thresholds. The 30-day threshold is also the trigger for transient occupancy tax in most jurisdictions: stays of 30 days or less are typically taxable as transient occupancy, while longer stays often qualify as exempt residential tenancies. Stays straddling the 30-day mark create ambiguity; many host agreements address this explicitly.
A guest who occupies the unit for longer than 30 days may begin to acquire tenant-like rights even if the booking was originally for a shorter period. The "tenant by long stay" doctrine, recognised in some states under various names, treats long-staying guests as tenants for procedural purposes once a threshold (often 30 days, sometimes more) is crossed. Hosts who book back-to-back short stays or who allow stays to extend beyond 30 days face the risk that the guest will assert tenancy status, requiring formal eviction rather than a simple check-out. Limiting bookings to less than 30 days and not extending them prevents the issue.
Local STR ordinances: what changed since 2018
Major cities have substantially tightened short-term rental regulation since 2018. The driver has been residential housing-availability concern: in tight rental markets, units pulled out of long-term rental for STR use are seen as reducing housing supply and pushing up rents. The regulatory response has typically combined registration requirements, primary-residency requirements, night caps, and platform-reporting mandates.
New York City's Local Law 18, enacted in 2022 and enforced from September 2023, requires hosts to register with the Mayor's Office of Special Enforcement. Registered hosts may rent only when the host is physically present during the guest's stay, and only the host's primary residence may be used. The host's primary residence may not be rented for more than two guests at a time. The law effectively eliminates non-hosted short-term rentals in NYC, which formerly comprised a significant portion of the Airbnb listings. Listings on platforms must include the registration number; platforms must verify registration before processing bookings. The Mayor's Office investigates and fines violators.
San Francisco's Office of Short-Term Rentals requires hosts to register, pay an annual fee, and comply with the Hosted Rental Rule (no limit on hosted nights) or the Non-Hosted Rental Rule (90-night annual cap on non-hosted rentals of the host's primary residence). Permanent residents are eligible to register; investment properties are not. Los Angeles requires hosts to register with the City and limits non-hosted rentals to 120 nights per year. Boston requires registration and limits short-term rentals to owner-occupied buildings.
Seattle requires a short-term rental operator's licence and limits the number of dwelling units per operator (one or two depending on the licence type). Honolulu's Ordinance 22-7 (2022) limits short-term rentals on Oahu to designated resort zones and imposes a 90-day minimum stay outside those zones. Many smaller cities have followed similar paths. The regulatory landscape is changing rapidly; a city that did not have STR rules in 2022 may have them in 2026.
Occupancy tax collection and remittance
Most U.S. jurisdictions impose a transient occupancy tax (also called hotel occupancy tax, room tax, or in some jurisdictions a portion of sales and use tax) on stays of less than 30 days. Rates range from roughly 3 percent in some smaller jurisdictions to 15 percent or more in major cities (combining state, county, and city components). The tax is collected from the guest and remitted to the taxing authority.
Airbnb collects and remits occupancy tax on the host's behalf in roughly 75 percent of U.S. jurisdictions through pre-arranged agreements with state and local authorities. The list of covered jurisdictions is published in Airbnb's Help Centre and updated periodically. VRBO has a smaller but growing list of covered jurisdictions. In jurisdictions where the platform does not collect, the host is directly responsible: register with the local tax authority, collect tax from guests (often as a line item separately disclosed), and remit on the local schedule (typically monthly or quarterly).
Hosts who fail to collect or remit in non-platform-covered jurisdictions face significant exposure. Most localities can assess back-tax for 3 to 6 years, plus interest and penalties (typically 25 to 50 percent of the unpaid tax). The compounded liability for a multi-year operation can exceed the unpaid tax itself. Best practice is to verify platform coverage for every jurisdiction before listing and to register independently in any jurisdiction where the platform does not collect.
Some jurisdictions impose a separate registration tax or business licence fee on STR hosts in addition to the occupancy tax. New Orleans, for example, requires both an occupancy tax remittance and an annual short-term rental permit. Honolulu requires both. The total compliance load can be significant for hosts with multiple properties across jurisdictions.
Federal tax treatment: Schedule E vs Schedule C
Short-term rental income is reportable income, but the form and the self-employment tax treatment depend on the structure of the activity. Treasury Regulation 1.469-1T(e)(3)(ii) and IRC section 280A together determine whether the activity is treated as a rental for passive-activity loss purposes and whether self-employment tax applies.
The general rule for short-term rentals (average stay of 7 days or less) is that the activity is not a rental activity for passive-activity loss purposes. This means losses can potentially offset other active income, subject to material-participation rules. If the host provides substantial services (cleaning, breakfast, concierge, transportation), the IRS may treat the activity as a trade or business and require Schedule C reporting with self-employment tax. The line between providing only the unit (Schedule E) and providing substantial services (Schedule C) is fact-specific. Standard cleaning between guests and basic linens generally do not cross the line. Breakfast service, daily housekeeping, transportation, and concierge services likely cross the line.
The Augusta Rule under IRC section 280A(g) excludes income entirely from gross income if the home is rented fewer than 15 days during the year and the host uses it as a residence for more than 14 days. The Augusta Rule originated with Augusta, Georgia homeowners renting during the Masters golf tournament and remains a powerful exception for hosts with high-demand homes near major events.
Deductible expenses for short-term rentals include cleaning costs, supplies, platform fees (Airbnb's host fee, VRBO's host fee, payment processing), advertising, utilities (proportional to rental days), depreciation (proportional), insurance, repairs, and a portion of mortgage interest and property taxes. The proportional calculations use either rental-days-divided-by-total-days or a square-footage method depending on the structure. IRS Publication 527 provides the detailed framework.
Sample short-term rental clauses
Transient occupancy designation
House rules
Damage liability and authorisation
Local registration representation
Common host mistakes
The most common host mistake is hosting in violation of the long-term master lease. A renter listing the apartment on Airbnb without landlord consent triggers a chain of consequences: master lease termination, security-deposit forfeiture, potential damages to the landlord, and (in tightly regulated cities like NYC) personal exposure under the local STR ordinance. Hosts who lease must obtain landlord consent in writing and verify that the building permits short-term subletting under any HOA or co-op rules. See the sublease agreement page for the underlying consent framework.
The second most common mistake is failing to register where registration is required. In NYC, San Francisco, Boston, Los Angeles, Seattle, and many other cities, hosting without registration is a per-night violation with cumulative fines that can quickly exceed total revenue. Some platforms have begun de-listing unregistered properties in covered cities (NYC requires registration verification before booking), but enforcement varies. Verify the local ordinance before listing.
The third common mistake is ignoring the 30-day tenancy threshold. Hosts who allow stays to extend beyond 30 days face the risk that the guest will assert tenancy status, requiring formal eviction rather than a check-out. Keeping stays under 30 days, and not back-to-back booking the same guest to evade the threshold, is essential.
The fourth common mistake is failing to collect or remit occupancy tax in non-platform-covered jurisdictions. Hosts assume Airbnb or VRBO handles all tax, but coverage varies by jurisdiction. The back-tax liability accumulates quickly. Best practice is to verify platform coverage and to register and self-remit in any uncovered jurisdiction.
Related pages
For the underlying sublet consent framework for tenants subletting on Airbnb, see the sublease agreement page. For vacation home short-term rental (host owns the property and is not subletting), see the vacation home rental page. For roommate share arrangements, see the room rental agreement page. For general lease rules, see the homepage.
Frequently Asked Questions
Is a short-term rental the same as a lease?
No. A short-term rental (typically defined as less than 30 days) generally does not create a landlord-tenant relationship under most state landlord-tenant statutes. The guest is a transient occupant, similar to a hotel guest, with weaker statutory rights and faster removal procedures. State landlord-tenant statutes typically apply only to tenancies of 30 days or more, though some states use different thresholds.
Do I need a written short-term rental agreement?
Yes. Both Airbnb and VRBO use platform-level terms of service, but those terms do not replace a host-specific rental agreement. A written agreement (whether sent before booking, presented at check-in, or incorporated into the platform listing) protects the host by clearly establishing house rules, damage liability, cancellation terms, and prohibited uses. Many hosts use a combination of platform-level booking and a separate signed agreement for high-value or longer-duration stays.
Do I need to collect occupancy tax on Airbnb bookings?
In most U.S. jurisdictions, yes. Airbnb collects and remits occupancy taxes (transient occupancy tax, hotel occupancy tax, or sales and use tax depending on the jurisdiction) on the host's behalf in roughly 75 percent of U.S. jurisdictions. VRBO does the same in many but not all jurisdictions. In jurisdictions where the platform does not collect, the host is responsible. The host should verify the platform's tax collection coverage and self-remit in any jurisdiction not covered.
Are short-term rentals legal where I live?
It depends on local ordinances. Major cities have imposed significant restrictions in recent years. New York City's Local Law 18 (2022) effectively bans short-term rentals of less than 30 days in most buildings unless the host is present and the host is the primary occupant, requiring registration with the Mayor's Office of Special Enforcement. San Francisco requires registration with the Office of Short-Term Rentals and limits non-hosted rentals to 90 nights per year. Los Angeles, Boston, Seattle, Honolulu, and many other cities have similar restrictions. Always verify the local ordinance before hosting.
What is the federal tax treatment of short-term rental income?
It depends on whether the activity is a rental activity (Schedule E) or a business activity (Schedule C). The general rule under Treas. Reg. 1.469-1T(e)(3)(ii) and IRC 280A: short-term rentals (average stay 7 days or less) are not treated as rental activities for passive-activity loss purposes and may be subject to self-employment tax if the host provides substantial services. The Augusta Rule under IRC 280A(g) excludes income entirely if the home is rented fewer than 15 days per year. For longer stays (more than 7 days average), Schedule E typically applies.
Can my long-term lease prohibit me from listing on Airbnb?
Yes, and most do. Almost every residential lease contains a no-subletting clause that, combined with prohibitions on commercial or business use, prohibits listing on Airbnb without the landlord's written consent. Renters listing on Airbnb without landlord consent face termination of the master lease in addition to any local STR ordinance violations. The intersection of master lease, sublet consent, local STR rules, HOA bylaws, and platform terms is genuinely complex.
What should a short-term rental agreement include?
Identification of the parties, property description, check-in and check-out dates and times, rates and total cost, payment terms, cancellation policy, security deposit handling, house rules (smoking, pets, noise, maximum guests, parking), cleaning fees, damage liability and authorisation to charge for damage, indemnification, governing law and jurisdiction, and signatures. Many hosts also include occupancy-tax handling disclosures and registration-compliance representations.
Sources
- NYC Local Law 18 of 2022 (short-term rental registration): nyc.gov
- San Francisco Office of Short-Term Rentals: shorttermrentals.sfgov.org
- IRS Publication 527 (Residential Rental Property): irs.gov
- IRC section 280A (Augusta Rule and personal-use limits): law.cornell.edu
- Treas. Reg. 1.469-1T(e)(3)(ii) (short-term-rental passive-activity rule): law.cornell.edu
- Airbnb tax collection coverage by jurisdiction: airbnb.com/help
- Honolulu Ordinance 22-7 (short-term rental regulation): honolulu.gov
Looking for related templates? See the sublease agreement, the vacation home rental, the main residential lease, or the addendum library.