What Is Considered a Short Term Rental? Atlanta Laws and Regulations Explained

Thinking about renting out your property as a short term rental? If you’re not familiar, Atlanta has implemented an ordinance that regulates short term rentals (STRs) in the city. The question is, what is considered a short term rental exactly? According to Atlanta regulations, an STR is a rental property that is leased for no longer than 30 consecutive days at a time, with specific guidelines owners must follow when operating one. If you’re curious about how they work, here’s a comprehensive review of Atlanta’s STR ordinance to help you ensure compliance.

Key Takeaways

• Following Atlanta’s STR ordinance, any rental lasting 30 consecutive days or less is considered a short-term rental and is subject to the city’s STR-specific regulations and requirements.
• Atlanta’s ordinance generally requires STRs to be operated from a host’s primary residence, with limited exceptions depending on current city regulations.
• STR operators must follow strict rules, including annual license renewals, occupancy limits, noise regulations, neighbor notifications, and posting required notices within the unit.

What Is Considered a Short Term Rental in Atlanta?

As Atlanta property managers, we know that nowadays, short term rentals have become an accessible and lucrative way for property owners to generate passive income. But did you know that Atlanta has an ordinance specifically designed to control and manage short term rental businesses in the city? The regulation covers what is considered a short term rental and how and where owners can operate these properly. With that, let’s start at the very beginning.

Short-term rentals, or STRs, in Atlanta are rental units that a host or agent rents out for 30 consecutive days or less. This means that you can rent it to guests out daily, weekly, or at max a month, but not any longer. This setup is most common in vacation rentals, temporary housing, and the like. This distinction is important as rentals longer than 30 days are not classified as short-term rentals and may fall under different regulations.

Licensing and Permit Requirements for Short-Term Rentals in Atlanta

Now that you know what is considered a short term rental in Atlanta, let’s jump right into the series of rules, regulations, and guidelines that you need to know if you plan to start an STR business in the city. One of the first requirements is that you need to secure a license and permit to operate an STR from the city’s Department of City Planning. Following Atlanta’s policy, a property owner or a long-term tenant can apply for the STR license and submit the required documentation.

Before we move on, you might be wondering: Why is a long-term tenant allowed to apply for a short term rental license? Simply, Atlanta’s ruling applies to the primary residence and is not limited to ownership. This means that a long-term tenant of a rental property can qualify as the primary resident, even if they don’t own the property. However, this may be subject to lease terms and city approval. So, they can also apply for an STR license, but with the property owner’s permission.

As we’ve mentioned, Atlanta has a primary residence rule that applies to STRs. While this setup allows long-term tenants to apply for the license, it limits STR businesses by generally requiring STR hosts to operate from their primary residence and, if permitted by city limits, an additional unit. This is designed to encourage house-sharing and minimize multiple investment-only STRs across the city.

Fortunately, processing your STR application is done completely online, and the city has even provided a checklist of the required documents for the STR permit.

Operational and Compliance Requirements for Atlanta STRs

Securing your STR license in Atlanta is only the first step. For rental owners, there is a wide array of rules and guidelines to follow to maintain compliance with local regulations. Here’s a quick review of key policies and reminders:

License Renewals

The approved short term rental license is only valid for 12 months and must be renewed annually to continue to operate. In case the property under license (either the primary residence or the ADU) accumulated three violations, pending renewals may result in suspension, revocation, or denial of renewal depending on severity and frequency. If the other property under the same license does not receive any violations, its license maintains its validity until it needs to be renewed again.

Short Term Rental Agent

STR businesses are required to have a designated agent, as part of the application process, who will be the point of contact when problems arise from the use of the short term rental unit. In line with this, their name and contact information must be readily available and visible in the unit. Similarly, the rental agent will also be the one notified in case of any violation of the STR. Aside from this, the agent must also monitor and maintain compliance with STR policies and ensure that the rental’s license number is included on every online listing of the property.

Take note that you don’t necessarily have to hire a third-party STR agent, as owners can list themselves as the rental agent on the application. However, in any case that the rental agent changes, you need to let the responsible department know about this adjustment within 10 business days.

Occupancy and Noise Limits

Atlanta’s ruling limits the maximum occupancy for short term rental units to two persons per dedicated bedroom (subject to local occupancy standards). At the same time, STRs must comply with the established noise ordinance and ensure not to create any disturbance to neighboring properties. This is meant to protect people’s right to quiet enjoyment in their homes.

Signages and Notices

Before officially operating a short term rental in your primary residence, you may be required to let your neighbors in adjacent properties know via certified mail of your intent to run an STR business. While an external signage about the STR is not necessary, you are required to post the unit’s license number within the unit, along with the contact information of the short term rental agent, maximum occupancy limit, and maximum number of parked vehicles at the unit. Similarly, a copy of the rental unit’s specific rules and policies must be posted in the unit.

Taxes and Financial Obligations

Short term rental businesses in Atlanta are subject to additional tax and financial obligations. Specifically, STRs in Atlanta are charged with the hotel-motel tax. This is on top of the usual state and local tax requirements, such as property taxes and income taxes.

How Bay Property Management Group Can Help

In today’s rental market, short term rentals designed particularly for nightly or weekly stays have become increasingly popular. That is why Atlanta has implemented an ordinance specifically meant to control and manage short term rental businesses in the city and maintain peace and order, especially in residential neighborhoods.

Now we know what is considered a short term rental. However, navigating Atlanta’s STR ordinance can feel a bit overwhelming. A clear understanding of the rules, policies, and guidelines can take you a long way – from licensing requirements to operational compliance. Still unsure what to do next? Start your rental property business with confidence with Bay Property Management Group. With our lengthy experience and knowledge of local regulations, we can provide you with critical support and guidance to ensure compliance with all regulatory requirements. Jumpstart your rental business with BMG and contact us today to learn more!