A short-term rental: what is it?

Any residential housing unit or ancillary building rented for a brief duration is sometimes referred to as a short-term rental. While visits less than 30 days are usually included in this, the maximum duration may differ according on the state and jurisdiction where the rental is located.

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These types of rentals are also occasionally called resort living units, transitory rentals, holiday rentals, and short-term vacation rentals. Therefore, depending on the area, agency, or organization you’re working with, the response to a query like “What is a short-term rental?” may very well include terminology like these.

What kinds of short-term rentals are there?

There are several classifications for short-term rentals, including whole houses, separate apartments, and single rooms. A property is often classified as owner-occupied if the owner uses it as their homestead at least 51% of the time. If not, the house would be regarded as non-owner occupied.

complete houses

If the owner lives there the most of the time but periodically lets the entire house for a few days or weeks at a time, up to a certain number of days per year, the property might be classified as a short-term rental.

Furthermore, a short-term rental would also apply if an absentee owner rented out their home for a limited number of days annually or shorter.

Adjacent homes

It would also be seen as a short-term rental if the owner rented out a section of the property they reside in, such a guest house or garage apartment, for brief intervals of time.

It would also be classified as a short-term rental if an absentee owner rented out comparable ancillary homes on a property they own but do not reside in for a certain number of days each year.


A short-term rental occurs when an owner lets out one or more rooms in their principal residence for a few days at a time, up to a certain number of days each year.

This would still be regarded as a short-term rental if the owner lived off-site at another property.

How do you envision short-term rentals developing in the future?

The enduring appeal of businesses such as Airbnb and Vrbo demonstrates that short-term rentals are not limited to major urban areas. There is currently a global boom, with hundreds of different short-term rental websites existing and a yearly increase in the number of postings for short-term rental homes.

It’s becoming more and more crucial for communities to interact with all parties involved in the short-term rental sector given the expansion of the sharing economy. Most owners and operators of short-term rentals, according to studies, are ignorant of the laws pertaining to compliance and matters of community preservation. Our host compliance software for short-term rentals facilitates communication and raises compliance rates.

It might be challenging to navigate the world of short-term rentals and the various differences that are made, but your community will have the knowledge necessary to uncover hidden earnings with the aid of the Short-Term Rental Solution. Your reporting process may be improved without affecting staff time if you have solutions for detection of short-term rentals, host compliance, tax collection, licensing, and a hotline.

We products help cities communicate changes and close the adoption gap regarding compliance, health, and safety through real-time notifications. The advantages go beyond only greater income and efficiency.

Recognizing short-term rentals

The popularity of vacation rental companies like Sonder and Airbnb has skyrocketed in the previous ten years. Because short-term rentals are so popular, many businesses let their staff deduct their expenses for these stays, just like they would for a hotel room.

Due to the possibility of revenue, ease of use, tax advantages, and marketing automation, homeowners choose for the short-term rental approach. Less dedication is needed for short-term leases than for long-term ones. If the owners intends to use the property for their personal enjoyment, a holiday rental may be a good option.

However, seasonality can also affect demand for rentals, which means owners may have to forfeit personal stays at the busiest seasons of the year. In addition, owners are in charge of organizing, maintaining, and cleaning the short-term rental property to make it ready for visitors.