Idaho Short Term Rental Laws: AirBnB & Vacation Rental Regulations

In Idaho, the short-term rental landscape is shaped by state laws that define and regulate properties like Airbnbs. This article explores Idaho's specific Airbnb rules, the varying regulations across its cities, and how these local ordinances intersect with state-level directives, offering a comprehensive view of the short-term rental market in the Gem State.

Idaho State Short Term Rental Laws

The State of Idaho, in response to the growing need for short-term rentals, continues to evolve its laws and regulations regarding Airbnb and similar services. Currently, Idaho has specifically updated insurance requirements for short-term rental hosts in Boise, reflecting the state's active involvement in adapting to the changing landscape of short-term rentals..

In Boise, the city's regulations define short-term rentals as single-family houses, units in condominiums or timeshares, or owner-occupied residential homes that are rented out for less than thirty days. This definition is crucial for operators as it dictates the type of properties that can be offered as short-term rentals under the law.

To operate a short-term rental in Boise, hosts must adhere to several requirements. These include obtaining a license and providing detailed information such as on-site representative contact information, the type and address of the rental, listings on rental marketplaces, parking availability, and safety equipment details (number of smoke detectors, carbon monoxide detectors, and fire extinguishers). Additionally, there is a mandate for a local representative, especially for owners residing outside of Idaho, to address any license issues and accept legal notices on behalf of the owner..

Regarding insurance, every licensed short-term rental property in Boise must maintain liability insurance with a minimum coverage of one million dollars, or use a platform that offers equivalent or greater coverage..

Starting a Short Term Rental Business in Idaho

Starting an Airbnb business in Idaho involves several key steps:

Research Local Regulations and Obtain Necessary Permissions: Check if short-term renting is allowed in your area and understand any restrictions on the number of days you can rent your property each year. Acquire any required business licenses, permits, or registration numbers. Pay attention to accommodations or transient occupancy taxes, which may be levied by local governments on short-term rentals.
Develop a Comprehensive Business Plan: Define your target market (tourists, business travelers, long-term tenants) and select appropriate property types (apartments, houses, unique stays). Conduct a competitive analysis and develop effective marketing strategies, utilizing tools like professional photography and listing enhancements.
Establish a Legal Business Entity: Choose between forming a limited liability company (LLC) or a corporation, each offering different benefits in terms of asset protection and taxation.
Set Up a Business Bank Account: A dedicated bank account helps in managing business finances and streamlines bookkeeping and tax preparation.
Acquire Necessary Insurance: General liability and property insurance are crucial. Additionally, Airbnb’s AirCover provides liability coverage and property damage protection.
Consider Earnings and Costs: Understand potential earnings, occupancy rates, and seasonal fluctuations. Be mindful of expenses such as mortgage/rent, maintenance, and taxes. Airbnb typically charges a 3% service fee on bookings.
Find and Prepare Your Airbnb Space: Choose a location that appeals to your target market. Ensure your space has unique features, comfort, safety, and all necessary amenities.
Obtain Permits and Licenses: Research specific local laws and acquire any special permits, licenses, or registration numbers required for your rental.
Set Your Pricing: Balance profitability with competitive pricing, considering factors like location, amenities, and market competition. Utilize Airbnb's Smart Pricing feature for optimal pricing.
List Your Airbnb: Create a compelling listing with high-quality photos and detailed descriptions to attract guests.
Hiring or Enlisting Help: Consider hiring a cleaning crew or handyman to manage multiple properties and ensure high standards.
Host an Airbnb Experience: Offer unique local experiences to guests, enhancing your Airbnb business’s appeal.

Short Term Rental Licensing Requirement in Idaho

To obtain a short-term rental license in Idaho, hosts are typically required to:

Obtain Local Permits or Licenses: Most municipalities mandate the acquisition of local permits or licenses. For instance, McCall charges $250 annually, and Ketchum requires a $100 permit.
Register for Taxes: Hosts need to register with the Idaho State Tax Commission to collect and remit state and local taxes on rentals.
Comply with Health and Safety Standards: Rentals must adhere to various health, fire, and safety regulations, including functional fire extinguishers, smoke detectors, escape routes, and regular fire code compliance.
Adhere to Building and Health Codes: Rentals must meet state standards regarding electrical, plumbing, egress, etc., and are subject to local health agency inspections.

In Boise, a short-term rental license costs $80 annually, indicating a yearly renewal requirement.

Obtaining a short-term rental license in Idaho enables owners and operators to legally offer their properties for rent. It signifies compliance with local regulations and standards, ensuring the health and safety of the community. This compliance is particularly crucial for everyone living, working, playing, or visiting the city. Moreover, the licensing process helps ensure that short-term rentals are adequately prepared and regulated before enforcement begins.

License Renewals for Short Term Rentals in Idaho

To renew a short-term rental (STR) permit in Idaho, specific steps must be followed. The renewal process is typically annual, with a deadline for completion. For instance, in McCall, Idaho, the 2024 STR Permit Renewal form is available and must be completed before the deadline of December 31, 2023, to renew permits issued in 2023.

Key components of the renewal process include:

Completion of the STR Permit Renewal Paperwork: This is mandatory for all STR operators.
Submission of Required Documents: These include a dimensioned floor plan, site plan, notification to neighboring properties within a 300-foot radius, proof of solid waste removal, and details of a local contact person (if different from the owner).
Compliance with Specific Requirements: Depending on the location, certain other requirements like a Conditional Use Permit for larger rental units (maximum occupancy of 11 or more persons) and annual Fire, Health, and Safety inspections might be necessary.

Apart from the renewal process, there are several license restrictions and obligations for STR operators in Idaho, including:

Tax Obligations: All STRs must collect and remit various taxes, including Idaho sales tax, Travel and Convention tax, and local taxes (e.g., city sales taxes). This applies to both STRs arranged through a short-term rental marketplace and those arranged directly by the lodging provider.
Registration Requirements: Lodging providers and rental marketplaces must register as retailers to collect and report taxes on the sales price of lodging and related services.
Local Compliance: There may be additional local regulations, such as the McCall City Code requirement for an active STR Permit or a declaration of compliance in certain areas.
Posting of Rules: City Code may require the posting of specific rules at each rental unit.

Idaho Short Term Rental Taxes

In Idaho, short-term rental operators, including those using platforms like Airbnb, are responsible for collecting and remitting several taxes:

Idaho sales tax and Travel and Convention tax on all rentals.
Auditorium district tax if the property is within an auditorium district's boundaries.
Local taxes (e.g., city sales taxes), which are forwarded to the Tax Commission or the respective city.

The taxes collected by short-term rental operators are remitted directly to the Idaho State Tax Commission. This includes state sales tax, Travel and Convention tax, and auditorium district tax.

Federal tax interactions mainly involve limitations on deductions for homeowners renting out their personal residences.

Internal Revenue Code Section 280A restricts deductions for personal expenses when the property is rented out and used personally by the owner for more than 14 days a year or more than 10% of the days it is rented at a fair market price.
Deductions are limited to interest, property taxes, and casualty losses under these circumstances.

Short Term Rental Rules By Idaho City

Each city in Idaho has tailored its short-term rental regulations to address specific local concerns, ranging from preserving neighborhood character to ensuring guest safety and maintaining housing availability. Compliance with local ordinances and regulations is key for operating successfully in these areas.

Boise, Idaho Short-term Rental Laws

In Boise, Idaho, short-term rental operators are required to obtain a license from the city. The license costs $80 annually with a $1.50 processing fee. Operators must provide various details in their application, including on-site representative contact information, property type, rental marketplaces listing, parking availability, and safety equipment details. A local representative residing within 20 miles of the city limits is also necessary, especially for owners residing outside of Idaho. Additionally, operators must provide proof of liability insurance with their application. This licensing is designed to ensure basic safety precautions and to protect the public welfare and character of Boise’s neighborhoods.

Meridian, Idaho Short-term Rental Laws

In Meridian, Idaho, short-term rentals are governed by local regulations which may include zoning laws, occupancy and safety standards, taxation, licensing, and insurance requirements. The specifics of these regulations can vary, with some municipalities requiring hosts to obtain local permits or licenses to legally operate short-term rentals. For instance, McCall charges $250 annually for a permit, while Ketchum requires a $100 permit.

Hosts in Meridian need to register with the Idaho State Tax Commission to collect and remit applicable state and local taxes on rentals. This includes a 6% state sales tax on short-term rental transactions, applied to the total rental rate plus any cleaning or service fees paid by guests. The hosts are responsible for collecting this tax at booking and reporting and paying it to the state monthly in most cases.

Additionally, Meridian enforces various health, fire, and safety regulations for short-term rentals. These include compliance with state fire safety laws, like having functional fire extinguishers and smoke detectors, and adhering to state electrical, plumbing, egress standards. Local health agencies conduct housing inspections to ensure compliance with these standards.

Nampa, Idaho Short-term Rental Laws

In Nampa, short-term rental regulations aim to balance residential quality of life with the benefits of tourism. Hosts must register their properties and comply with local building and fire safety codes. Nampa enforces restrictions on rental frequency and length to prevent commercial exploitation of residential properties.

Idaho Falls, Idaho Short-term Rental Laws

Idaho Falls' short-term rental rules are designed to ensure guest safety and minimize neighborhood disruption. Hosts must comply with local zoning laws and may be subject to safety inspections. The city's enforcement strategies include penalties for hosts who fail to meet these regulations.

Pocatello, Idaho Short-term Rental Laws

Pocatello regulates short-term rentals to safeguard residential areas from excessive commercial activity. Hosts need to adhere to zoning requirements and may face restrictions on the number of guests and rental duration. The city's enforcement mechanisms include fines and potential revocation of rental licenses for serious violations.

Caldwell, Idaho Short-term Rental Laws

Caldwell's short-term rental regulations focus on preserving the character of residential neighborhoods. Hosts are required to obtain permits, and there are stringent rules regarding noise, parking, and guest behavior. The city actively enforces these regulations to ensure short-term rentals coexist harmoniously with permanent residents.

Coeur d'Alene, Idaho Short-term Rental Laws

In Coeur d'Alene, short-term rental rules are designed to protect the interests of permanent residents. This includes compliance with zoning laws and adherence to safety standards. The city enforces these regulations to ensure that short-term rentals do not disrupt the residential nature of neighborhoods.

Twin Falls, Idaho Short-term Rental Laws

Twin Falls' approach to short-term rentals includes a focus on maintaining affordable housing availability. Hosts are required to register their properties and comply with health and safety standards. The city enforces these rules to ensure that short-term rentals do not negatively impact the local housing market or community well-being.

Lewiston, Idaho Short-term Rental Laws

Lewiston's short-term rental regulations aim to balance the economic benefits of tourism with residential needs. Hosts must adhere to zoning regulations and obtain necessary permits. The city's enforcement efforts focus on ensuring that short-term rentals operate within the framework of local laws and community standards.

Post Falls, Idaho Short-term Rental Laws

In Post Falls, short-term rental regulations are geared towards ensuring guest safety and preserving neighborhood integrity. Hosts are typically required to follow zoning laws and may need to secure relevant permits. Local authorities enforce these regulations to maintain the balance between residential living and short-term tourism.

Takeaway

Navigating Idaho's short-term rental market requires understanding both state and city-specific regulations. While the state prohibits broad rental restrictions, local nuances in cities like Ketchum highlight the complexity of this evolving sector. For operators and guests alike, staying informed about these varied regulations is key to a successful and compliant short-term rental experience in Idaho.