How Laws and Regulations Could Affect Your Monthly Rental

How Laws and Regulations Could Affect Your Monthly Rental

There’s a lot of information investors need to know before deciding to buy a property for monthly rentals. We’ve gathered the most up to date (12/27/21) information in regards to the most popular cities for monthly rentals, landlord or tenant friendly states and what regulations apply. Please note that landlord or tenant friendly is based on the cumulation of laws and regulations in the state rather than a black and white answer. This information will be continually updated and is not recommended as legal advice.

Interestingly enough, the top two cities with the highest percentage of monthly rentals are in San Francisco and Seattle which are actually very tenant friendly states with NYC tailing behind as both landlord and tenant friendly. This may also correlate with the fact that many of these states also have bans on short-term rentals (less than 30 day rentals).

Below is a list of the top STR cities. You’ll find what percentage of the cities’ rentals are listed as monthly as well as whether it’s a landlord or tenant friendly state.

San Francisco — 48% — tenant > type 2 units can only rent up to 90 days max a year.

Seattle — 39% — tenant > STR only 2 units

New York City — 36% — landlord/tenant> restrictions on STR

Boston — 29% — landlord

Denver — 27% — landlord

Santa Fe — 20% — landlord

Austin — 20% — landlord

Nola — 20% — landlord

Portland — 19% — tenant

Little Rock — 14% — landlord

Nashville — 13% — landlord

Chicago — 12% — tenant

Oklahoma — 9% — landlord

Newport — 8% — tenant

Reno — 8% — landlord/tenant

Tucson — 8% — landlord

Tampa — 5% — landlord

Burlington — 4% — tenant

Wichita — 3% — landlord

Wilmington — 3% — tenant

Park City — 1% — landlord

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Best States To Have A Monthly Rental Property?

The best place to invest in a monthly rental would be a state that has a balance in demand and landlord friendliness. You’ll want to make sure regulations allow for monthly rentals and that you’re not treading into landlord/tenant laws. You can read more about how laws and regulations in Texas affected a guest turned squatter here.

Monthly Rental Laws and Regulations By State

In order to understand the laws and regulations for monthly rentals, we’ll need to understand what laws exist for short-term rentals. As of right now, monthly rentals tend to live in the gray area between short-term rental regulations and landlord and tenant rights. Therefore, please use this just as further information in your research rather than actual legal advice.

You can use the list below to navigate how long to list your property to avoid any unintended laws or regulations.

Alabama — 30 days or less is considered STR. Homewood and Mountain Brook have banned STRs. Areas around university campuses tend to have stricter regulations.

Alaska — Does not differentiate between STR or monthly rentals. They state that “ if you are collecting rental income then you are engaged in business activity and an Alaska Business License is required.”

Arizona — Anything less than 30 days is considered STR. One of the few states that has banned regulations on anything considered STR.

Arkansas— Anything less than 30 days is considered STR.

California — Anything that is 30 days or less is considered STR. Majority of the state bans STRs.

Colorado — Anything less than 30 days is considered STR. Must have a license if you do STR.

Connecticut —Anything less than 30 days is considered STR. You must pay occupancy taxes. Specific cities such has Hartford have outright banned STRs.

Delaware — Anything less than 30 days is considered STR. You must pay occupancy taxes.

Florida — Anything less than 30 days is considered STR. Could lose your homestead if you lease for more than 30 days for your entire home.

Georgia — Anything less than 30 days is considered STR.

Hawaii — Anything less than 30 days is considered STR.

Idaho — Anything less than 30 days is considered STR.

Illinois — Anything less than 30 days is considered STR.

Indiana — Unable to find information on duration for STR vs MTR. They are one of the states that have made laws to protect STR and are one of the top performing STR states.

Iowa — Anything less than 31 days is considered STR.

Kansas — STR is defined as less than a month although it does not explicitly say less than 31 or 30 days.

Kentucky — Anything less than 30 days is considered STR.

Louisiana — Anything less than 30 days is considered STR and has been banned since 2019.

Maine — Anything less than 30 days is considered STR

Maryland — Anything less than 30 days is considered STR

Massachusetts — Anything less than 31 days is considered STR

Michigan — Anything less than 30 days is considered STR

Minnesota — Anything less than 30 days is considered STR

Mississippi — Anything less than 30 days is considered STR

Missouri — Anything less than 30 days is considered STR

Montana — Anything less than 30 days is considered STR and are banned.

Nebraska — Anything less than 30 days is considered STR

Nevada — Anything less than 30 days is considered STR

New Hampshire — Anything less than 30 days is considered STR

New Jersey — Anything less than 30 days is considered STR

New Mexico — Anything less than 29 days is considered STR

New York — Anything less than 30 days is considered STR and is illegal unless the homeowner lives within the same unit.

North Carolina — Anything less than 30 days is considered STR

North Dakota — Anything less than 30 days is considered STR

Ohio — Anything less than 30 days is considered STR

Oklahoma — Anything less than 30 days is considered STR

Oregon — Anything less than 30 days is considered STR

Pennsylvania — Anything less than 29days is considered STR

Rhode Island — Anything less than 30 days is considered STR

South Carolina — Anything less than 30 days is considered STR with bans in beach towns like Sullivan’s Island.

South Dakota — Anything less than 30 days is considered STR.

Tennessee — Anything less than 30 days is considered STR.

Texas — Anything less than 30 days is considered STR.

Utah — Anything less than 30 days is considered STR.

Vermont — Anything less than 30 days is considered STR.

Virginia — Anything less than 30 days is considered STR.

Washington — Anything less than 30 days is considered STR.

West Virginia — Anything less than 30 days is considered STR.

Wisconsin — Anything less than 30 days is considered STR.

Wyoming — Anything less than 31 days is considered STR.

Continual Edits

We hope this article helps you decide where you want to purchase your next or first investment property. Please reach out to team@homads.com or comment in the article if there’s any additions or edits that need to be made to this list.

List your MTR today on Homads.com or join Hostfully.com if you’re on multiple platforms.