Nevada Short-Term Rental Laws: Las Vegas & Beyond

Nevada has established a statewide framework for short-term rentals through Assembly Bill 363 (AB363), while allowing local governments to implement additional regulations. This creates a unique regulatory landscape that requires property owners to navigate both state and local rules, which can vary significantly across cities or counties.

This guide covers short-term rental laws in Nevada, from the state's baseline requirements to specific regulations in major cities.

Understanding Short-Term Rental Laws in Nevada

Nevada uses a hybrid approach to short-term rental regulation through Assembly Bill 363 (AB363), passed in 2021. This legislation mandates local governments establish regulations, setting baseline requirements statewide and allowing cities and counties to implement additional tailored rules.

City and county variations can be substantial, from owner-occupancy requirements in Las Vegas to distance requirements between rentals. These local differences determine whether a property can operate legally as a short-term rental and under what conditions.

This multi-layered regulatory approach means property owners must comply with both state and local requirements, which can vary dramatically by location. A rental property management strategy that worksin one Nevada city might be prohibited just miles away in a neighboring community.

The regulatory landscape hasbecome more dynamic recently. Following AB363, many Nevada communities are developing or updating their short-term rental regulations to align with state requirements while addressing local concerns. Regulations that existed when you purchased a property may change, affecting your operational model and return on investment.

For property owners and investors, this evolving landscape makes thorough research and ongoing monitoring of state and local regulationsessential. Understanding the specific rules for your property's location is the foundation of legal compliance and successful operation in Nevada's short-term rental market.

Definition of a Short-Term Rental

In Nevada, the definition of a short-term rental is consistent statewide, though there may be slight local variations.

At the state level, a short-term rental refers to renting out a residential unit for 30 consecutive days or less. This timeframe distinguishes short-term or vacation rentals from longer-term residential leases, which fall under different regulatory frameworks.

However, there are local variations in this definition:

Las Vegas defines a short-term residential rental as a unit rented for less than 31 consecutive days.
Reno and Washoe County consider short-term rentals to be properties rented for less than 28 consecutive days.

Types of properties for short-term rentalsinclude:

Single-family homes
Condos and apartments
Townhouses
Other residential units

Traditional accommodations like hotels, motels, and resorts generally fall under separate regulatory frameworks with specific licensing and operational requirements. The distinction between these commercial lodging establishments and short-term rentals isimportant in Nevada, where the hospitality industry has a significant presence, particularly in Las Vegas and Reno.

Some Nevada municipalities mayrefine these definitions with additional criteria. For example:

Distinctions between owner-occupied and non-owner-occupied properties
Different classifications based on rental frequency.
Separate categories for properties in different zoning districts.
Special designations for properties near resort hotels

Understanding the specific definition in your jurisdiction is crucial, as it determines the regulations governing your property and the requirements for legal operation. This requires consultation with state authorities and local planning departments or municipal officials to understand how your property is classified under applicable ordinances.

Starting a Short-Term Rental Business in Nevada

Launching a short-term rental business in Nevada requires navigating state and local regulations, with requirements varying by location. Success depends on thorough research and adherence to evolving rules as communitiesrefine their vacation rental approach.

1. Research local regulations

Before purchasing a property or converting an existing one to a short-term rental, investigate the state requirements under AB363 and the specific regulations in your city and county. Nevada's hybrid approach means that state compliance alone is insufficient if local regulations impose additional restrictions.

This preliminary research is crucial in Nevada, where jurisdictions have implemented specific restrictions on short-term rentals. For example:

Las Vegas requires owner-occupancy during rentalsperiods, with exceptions for work or errands.
Henderson mandates new STRs be 1,000 feet from other licensed STRs.
Reno requires STRs to be 660 feet from other residential units and 2,500 feet from resort hotels.
North Las Vegas prohibits STRs in apartment buildings and limits them to 10% of units in multifamily buildings.

Start your research with the Nevada state website to understand AB363 requirements, then the local government website for your city and county, focusing on planning departments, zoning offices, and business licensing divisions. Look for ordinances on short-term or vacation rentals in municipal codes related to housing, business licensing, or zoning regulations.

2. Obtain Necessary Licenses and Permits

Nevada requires a state business license for all short-term rentals, and most cities and counties require additional local authorizations. These licenses and permits are essential for legal compliance and typically involve:

Application forms with detailed property information.
Proof of ownership and property details
Safety certifications or inspection reports
Payment of licensing fees
Noise management plans
Proof of insurance

For example:

Business license from the Nevada Secretary of State
Las Vegas: Business license and Conditional Use Verification (CUV), with an annual $500 fee.
Reno: Short Term Rental Permit
Henderson: Short-term rental permit with an annual registration fee of $820.
North Las Vegas: Conditional Use Permit and business license with an annual fee of $900

Application processes vary by location, with some cities offering online systems and others requiring in-person submissions and inspections. Processing times range from days to weeks, so plan ahead, especially for peak tourism seasons.

3. Understand Zoning Restrictions

Zoning regulations are a significant barrier to operating a short-term rental in Nevada. Many cities and counties restrict them to specific zoning districts or impose density limitations.

For example:

Las Vegas requires STRs to be in transient lodging zones, 1,000 feet from other licensed STRs, and 2,500 feet from resort hotels.
Reno mandates STRs be 660 feet from other residential units and 2,500 feet from resort hotels.
Henderson requires new STRs to be 1,000 feet from other licensed STRs and restricts them in multifamily buildings (max 25% STR units).
North Las Vegas requires a 660-foot separation from other STRs and a 2,500-foot separation from resort hotels, with multifamily buildings limited to 10% STR units.

Before purchasing or converting a property, verify that short-term rentals are permitted in your zone and if there are additional criteria like distance, parking, or property type restrictions. This information is available through city planning departments or zoning offices.

4. Comply with Safety Standards

Safety requirements for Nevada short-term rentals typically include:

Working smoke detectors
Carbon monoxide alarms
Fire extinguishers
Emergency exit plans
Compliance with building codes
Maximum occupancy limitations (usually two people per bedroom or 10-16 per unit)
Proper electrical and plumbing systems

Many jurisdictions require initial safety inspections for the permit application process, and some mandate periodic re-inspections to ensure compliance. These standards satisfy regulatory requirements and help protect guests while minimizing liability for property owners.

5. Register for Tax Collection

Short-term rental operators in Nevada have significant tax obligations:

Transient Lodging Tax: Various local hotel occupancy or room taxes
- Henderson: 13%
- North Las Vegas: 13%
- Washoe County (including Reno and Sparks): 13.5%
- Las Vegas: 13% a 13.38%

To collect these taxes, register with your local tax authority. Platforms like Airbnb and Vrbo collect and remit some taxes in certain Nevada jurisdictions, but operators are ultimately responsible for fulfilling all tax obligations.

Clear record-keeping is essential for accurate tax reporting, including documentation of rental income, occupancy periods, and collected taxes. Many professional hosts use specialized software to track these obligations and ensure compliance with local requirements.

6. Secure Insurance

Standard homeowners insurance typically doesn't cover commercial short-term rental activities, creating a potential coverage gap for unprepared operators. Adequate insurance for Nevada short-term rentals includes:

Property coverage for the dwelling and contents
Liability protection for guest injuries
Business interruption coverage
Coverage for theft or damage by guests

Nevada's AB363 and most local jurisdictions require proof of liability insurance for the permit application process, typically with minimum coverage thresholds. For example:

Las Vegas requires at least $500,000 in liability coverage.
Hendersonrequires $500,000 in liability insurance.
Other areas require $1,000,000 or more in coverage.

Many major insurers now offer specialized short-term rental policies or endorsements to standard homeowners policies. Platforms like Airbnb and Vrbo provide limited host protection programs, but thesehave significant limitations and exclusions, making dedicated insurance advisable.

7. Establish Local Management

Nevada's AB363 and local regulations require short-term rental operators to designate a local contact person for prompt issue response. This is crucial for out-of-state owners who cannot personally address emergencies or complaints.

The local contact must:

Be available 24/7 by phone.
Respond to issues within a specified timeframe (30 minutes to one hour).
Have property.
Be authorized to address problems.

For non-local owners, this requirement necessitates hiring a professional property manager or establishing a relationship with a reliable local contact. The contact information must be provided to the permitting authority and displayed within the rental unit or provided to neighboring properties.

Licensing Requirements

Nevada has a multi-tiered licensing system for short-term rentals, with requirements at both the state and local levels. This creates a more complex regulatory framework than in states that delegate licensing entirely to local jurisdictions.

All short-term rental operators in Nevada must obtain a business license from the Nevada Secretary of State. This state license establishes a baseline of requirements that apply consistently throughout Nevada, regardless of local regulations.

Besides this state requirement, local licensing varies across cities and counties:

Las Vegas Short-term Rental Laws

Las Vegas has established a short-term rental licensing system:

Business license and Conditional Use Verification (CUV) required.
Application, home inspection, liability insurance ($500,000 minimum)
Affidavit of compliance
Annual $500 license fee
Must be in zones allowing transient lodging.
1,000 feet from other licensed STRs
2,500 feet from resort hotels
Owner-occupancy required during rental period (owner must reside on-site, with exceptions for work or errands).
A placard with occupancy limits and 24-hour contact must be displayed.
Noise and parking rules apply.
Max occupancy of 16

Reno Short-term Rental Laws

Reno's licensing system includes:

Short Term Rental Administrative Permit required.
Application submission on the 8th of each month.
Proof of insurance required.
STRs must be 660 feet from other residential units and 2,500 feet from resort hotels.
Occupancy limited to two per bedroom or 10 per unit.
No events or large gatherings.
Quiet hours: 10 PM - 7 AM.
Must adhere to safety standards and inspections.

Henderson Short-term Rental Laws

Henderson's licensing system includes:

Short-term rental permit required.
Annual registration fee of $820
Must complete a city-approved certification program.
$500,000 liability insurance required
New STRs must be 1,000 feet from other licensed STRs.
Restrictions in multifamily buildings (max 25% STR units)
Minimum 2-night stay, max 30-day stay.
No parties or large gatherings.
Quiet hours: are from 10 PM to 7 AM.
Occupancy limits (2 per bedroom, max 10 per unit)
Noise management plan required.
Local contact must be available 24/7.

North Las Vegas Short-term Rental Laws

North Las Vegas's licensing system includes:

Conditional Use Permit needed before applying for a business license.
Annual business license fee of $900.
Self-inspection checklist, noise monitoring affidavit, and neighbor notification are required.
660-foot separation from other STRs and 2,500-foot from resort hotels
Multifamily buildings limited to 10% STR units
Apartment buildings are prohibited.
24/7 complaints
State business license required.
Need noise monitoring equipment.

Application processes typically involve submitting detailed information about the property and owner, including:

Property address and specifications
Owner identification and contact information
Floor and site plans
Local contact details
Proof of insurance with minimum coverage)
Certification of compliance with safety standards
Noise management plans

License and permit fees vary by jurisdiction and can be substantial. For example:

Las Vegas: $500 annual fee
Henderson: $820 annual fee
North Las Vegas: $900 annual fee
Clark County: fees vary by bedroom count.

Licenses and permits typically have defined validity periods, usually one year, after which renewal is required. The renewal process involves confirming compliance with regulations, updating property information if needed, and paying fees.

License Renewals

Maintaining valid licenses and permits for Nevada short-term rentals requires attention to renewal processes and deadlines at the state and local levels. The timing and procedures vary between the state business license and local jurisdictions.

The renewal process involves:

Submitting a renewal application before the expiration date
Paying renewal fees, usually similar to initial application fees.
Updating property and contact information as needed.
Confirming continued regulatory compliance
In some cases, undergoing re-inspection to verify ongoing safety compliance.

Property owners and managers must track renewal deadlines, as operating with an expired license can result in penalties. Many jurisdictions impose fines for continued operation without valid licenses, and some impose additional penalties for repeat violations, including potential license revocation or disqualification from future permits.

Failure to renew licenses on time can lead to substantial penalties. In some Nevada jurisdictions, fines for unlicensed operations can reach $10,000 per day, making timely renewals critically important.

Most local authorities send renewal notices as a courtesy, but the ultimate responsibility for timely renewal rests with the property owner. Changes in contact information or mail delivery issues could result in missed notifications, making proactive tracking of renewal deadlines essential.

The renewal process allows local authorities to verify continued compliance and implement any regulatory changes since the initial license. Staying informed about evolving short-term rental regulations in state law and your local jurisdiction is crucial.

Required Documents

Operating a short-term rental in Nevada requires maintaining documents to demonstrate compliance withstate and local regulations. These materials support the initial license applications, facilitate ongoing operations, and may be requested during inspections or in response to complaints.

Essential documentation includes:

Proof of property ownership, like a deed or tax record, establishes your legal right to operate a short-term rental and is important in jurisdictions with owner-occupancy requirements or restrictions on non-owner rentals.
Property information including address, number of bedrooms, and possibly floor plans. Many jurisdictions use this to determine occupancy limits and ensure the property meets basic guest accommodation requirements.
Owner and operator information, including photo IDs, contact details, and state business license number. This ensures authorities can reach the responsible party and verifies operators meetresidency requirements for specific permits.
Local contact information for a designated representative available 24/7. This representative must address issues promptly, which is particularly for absentee owners who can’t respond to emergencies.
Proof of liability insurance coverage often requires $500,000 to $1,000,000. Many Nevada municipalities explicitly require insurance documentation with minimum coverage thresholds.
Tax identification numbers, including EIN or SSN for tax reporting, facilitate proper tax collection and reporting to authorities.
Compliance certifications, like a city-approved short-term rental certification program (e.g., in Henderson) and self-inspection checklists, verify that the property meets established standards for guest safety and neighborhood compatibility.

Beyond these regulatory documents, responsible operators maintain additional records to support their business operations, including:

Guest agreements and house rules
Cleaning and maintenance logs
Tax payment records and receipts
Communications with local authorities or neighbors.
Noise management plans
Guest logs or registers

Organizing materials in physical and digital formats ensures quick access. Many professional hosts create comprehensive digital filing systems with backup copies of critical documents, protecting against loss and enabling remote access.

Short-Term Rental Taxes

Nevada imposes significant tax obligations on short-term rental operators at both state and local levels. Understanding and fulfilling these tax responsibilities is essential for legal compliance and financial management of vacation rental properties.

Transient Lodging Tax

Many Nevada cities and counties impose hotel occupancy taxes (transient lodging tax, room tax, or lodging tax) on short-term accommodations. These rates vary by location:

Henderson: 13%
North Las Vegas: 13%
Washoe County (Reno and Sparks): 13.5%
Las Vegas: 13% a 13.38%

Local taxes are collected from guests and remitted to the local tax authority, typically monthly. Local tax registration and remittance procedures are managed by individual municipalities, with varying requirements.

Tax Collection by Platforms

Major booking platforms like Airbnb and Vrbo collect and remit some taxes on behalf of hosts in Nevada, but these arrangements don't cover all taxes or apply only to direct bookings. Operators remain responsible for ensuring all tax obligations are fulfilled.

When platformscollect taxes, they focus on certain jurisdictions and specific taxes, leaving other obligations to the property owner. Verify which taxes your booking platforms collect and which remain your responsibility.

Income Taxes

Rental income from short-term rentals in Nevada is subject to federal income tax. Nevada has no state income tax, which is a tax advantage. Federal tax rates depend on your overall income and filing status.

Short-term rental operators can reduce their tax burden through various rental business deductions, including:

Property depreciation
Mortgage interest
Property taxes
Utilities and internet
Cleaning and maintenance costs
Furnishings and supplies
Platform commission fees
Marketing expenses
Professional service fees

Property Tax Implications

Operating a short-term rental in Nevada usually doesn't change your property's classification for property tax purposes, though this may vary by jurisdiction. Short-term rentals are typically taxed as residential properties unless operated at a commercial scale.

Proper record-keeping is essential for maximizing deductions and complying with tax regulations. Many professional hosts work with accountants specializing in short-term rentals to optimize their tax strategy and ensure accurate reporting.

Operators must report and remit transient lodging taxes monthly, by the 15th of the following month. Income tax is reported annually on federal tax returns.

Statewide Rules

Unlike many states that delegate regulatory authority to local governments, Nevada has implemented significant statewide oversight of short-term rentals through Assembly Bill 363 (AB363), passed in 2021. This legislation establishes a consistent baseline of requirements across the state, whileallowing local jurisdictions to implement additional regulations.

Key elements of Nevada's statewide framework include:

AB363 requires local governments to establish short-term rental regulations, ensuring state-wideoversight.
Minimum Standards: The legislation sets baseline requirements that all local regulations must meet or exceed, creating a consistent foundation across jurisdictions.
State Business License Requirement: All short-term rental operators must obtain a business license from the Nevada Secretary of State.
Insurance Requirements: AB363 establishes minimum insurance standards; local jurisdictions may increase these requirements.
Operational Standards: The legislation addresses basic operational issues like local contacts and response times.

While AB363 creates this foundation, it doesn’t preempt local laws. Cities and counties retain substantial authority to implement additional tailored requirements. Local regulations can be and often are more restrictive than the state baseline.

Local governments have responded to AB363 by developing or updating their short-term rental ordinances to meet or exceed state requirements. This has led to a diverse regulatory landscape across the state, with significant variations in permitting processes, operational restrictions, and enforcement mechanisms.

For property owners and investors, this multi-layered regulatory approach requires attention to state and local requirements. The state framework provides a starting point, but successful operation depends on understanding and complying with the specific regulations for your property's location.

Short-Term Rental Laws by City

Nevada's major cities have distinct regulatory approaches to short-term rentals, based on the state's AB363 framework to address their unique housing markets, tourism patterns, and community priorities. Understanding these city-specific regulations is essential for successful operation in different markets across the state.

1. Las Vegas Short-term Rental Laws

As Nevada's largest city and a major international tourism destination, Las Vegas has implemented one of the state's most stringent regulatory frameworks for short-term rentals.

Overview: Las Vegas defines a short-term rental as a unit rented for less than 31 consecutive days. The city has specific and stringent regulations for short-term rentals, requiring owner-occupancy in most cases.

Key Regulations:

Mandatory business license and Conditional Use Verification (CUV)
Application, home inspection, liability insurance ($500,000 minimum), and affidavit of compliance required.
Annual $500 license fee
STRs must be in zones allowing transient lodging.
1,000 feet from other licensed STRs
2,500 feet from resort hotels
Not allowed for commercial events.
Must be owner-occupied during rental period (owner must reside on-site, with exceptions for work or errands).
A placard with occupancy limits and 24-hour contact must be displayed.
Noise and parking rules apply.
Maximum occupancy: 16.

Las Vegas enforces these regulations strictly, with the owner-occupancy requirement prohibiting investment properties used solely as short-term rentals.

Tax Rates:

Transient lodging tax ranges from 13% to 13.38%.

2. Reno Short-term Rental Laws

As Nevada's second-largest city and a significant tourist destination, Reno has developed its own approach to short-term rental regulation.

Overview: Reno defines a short-term rental as renting out property for periods shorter than 28 consecutive days. The city operates under the Reno Short Term Rental Regulation, requiring permits for such rentals.

Key Regulations:

Requires a Short Term Rental Administrative Permit
Application submission on the 8th of each month.
Proof of insurance required.
STRs must be 660 feet from other residential units.
2,500 feet from resort hotels
Zoning regulations are crucial for STR operations.
Occupancy limited to two per bedroom or 10 per unit.
No events or large gatherings.
Quiet hours: 10 PM - 7 AM.
Must adhere to safety standards and inspections.

Reno's approach reflects the city's balance between its tourism economy and residential neighborhoods, with distance requirements to prevent clusters of short-term rentals.

Tax Rates:

Transient lodging taxes are 13.5% in Washoe County, including Reno and Sparks.

3. Henderson Short-term Rental Laws

As Nevada's third-largest city and a Las Vegas suburb, Henderson has implemented its own approach to short-term rental regulation.

Overview: While not explicitly defined, Henderson follows the standard Nevada definition of rentals for less than 30 days. The city legalized and regulated short-term rentals in 2019, focusing on permits and responsible hosting.

Key Regulations:

Requires a short-term rental permit with an annual registration fee of $820.
Must complete a city-approved certification program.
$500,000 liability insurance required
New STRs must be 1,000 feet from other licensed STRs.
Restrictions in multifamily buildings (max 25% STR units)
Minimum 2-night stay, max 30-day stay.
No parties or large gatherings.
Quiet hours: are from 10 PM - 7 AM.
Occupancy limits (2 per bedroom, max 10 per unit)
Noise management plan required.
Local contact must be available 24/7.

Henderson's regulations focus on managing short-term rentals in residential areas while preventing over-concentration through distance requirements.

Tax Rates:

Transient lodging tax is 13%.

4. North Las Vegas Short-term Rental Laws

As a major city in the Las Vegas metropolitan area, North Las Vegas has developed its own short-term rental regulations.

Overview: North Las Vegas's short-term rental definition aligns with rentals for 30 or fewer days. The city requires a Conditional Use Permit and a business license to operate short-term rentals.

Key Regulations:

Requires Conditional Use Permit approval before applying for a business license.
Annual business license fee of $900.
Self-inspection checklist, noise monitoring affidavit, and neighbor notification required.
660-foot separation from other STRs
2,500-foot separation from resort hotels
Multifamily buildings limited to 10% STR units.
Apartment buildings are prohibited.
Must comply with city rules.
24/7 complaint hotline
State business license required.
Need noise monitoring equipment.

North Las Vegas enforces these regulations to balance short-term rental economic opportunities with residential neighborhood preservation.

Tax Rates:

Transient lodging tax is 13%.

Bottom Line

Successfully operating a short-term rental in Nevada requires navigating the state's regulatory landscape. With significant state-level requirements under AB363 and varied local regulations, property owners must take a comprehensive approach to compliance and operational planning.

Before investing in a short-term rental property in Nevada:

Research state requirements under AB363 and local regulations, including business licensing, zoning, and operational standards. Consult the Nevada Secretary of State, city planning, business licensing offices, and legal advisors.
Consider location carefully - Local regulations beyond state requirements make some areas significantly more favorable for short-term rental investments than others, even within the same region. For example, Las Vegas's owner-occupancy requirement creates very different operational parameters than areas without such restrictions.
Budget for compliance costs - Factor in state and local license fees, tax obligations, insurance requirements, and ongoing operational expenses related to regulatory compliance. These costs vary by jurisdiction and should be incorporated into your financial planning.
Implement professional management practices - Regardless of specific requirements, professional standards for guest screening, property maintenance, noise management, and neighbor relations help prevent problems and support business sustainability.
Stay informed about regulatory changes - Nevada's short-term rental regulations are evolving at state and local levels, with ongoing updates in response to market growth and community feedback. Monitoring communications from relevant authorities can help you stay ahead.

Despite regulatory complexities, Nevada's short-term rental market, especially in tourist areas, remains robust, offering significant opportunities for compliant operators. By understanding and adhering to state and local regulations, operators can build successful businesses that positively contribute to Nevada's tourism and housing economy while maintaining good relationships with communities and authorities. Proper complianceavoids penalties and supports the long-term viability of your vacation rental investment in the Silver State.