Short-term rentals (STRs) continue to gain popularity across global markets — and so do the regulations that govern them. For hosts, investors, and property managers, staying compliant with local short-term rental laws is no longer optional — it’s essential.
From city ordinances to national frameworks, short-term rental regulations vary widely by location. In the United States, rules can change dramatically from state to state, and even between neighboring cities. In the UK, landlords must comply with both national housing laws and local authority restrictions. Managing properties across different jurisdictions means navigating a patchwork of compliance requirements.
The good news is that these rules don’t have to be obstacles. Instead, compliance can be a major business advantage, bringing you access to corporate contracts, high-value long-stay guests, and exclusion from illicit market pressure.
In this guide, we take a look at some of the key short term rental regulations in the US and UK. We’ll compare and contrast them, and suggest 10 practical, actionable strategies to help you remain compliant in key jurisdictions across both countries.
Read on to find out how to protect your operation across markets, while optimizing your revenue, and positioning your business for sustainable growth.
10 STR strategies for US and UK market
1. Understand local definitions of STR
In the US: Definitions can vary quite a bit between cities and states. For example, in New York City, STRs are limited to stays under 30 consecutive days, and the host must be present if it’s not their primary residence. San Francisco defines an STR as under 90 days, but requires a local registration and caps the number of listings. Austin considers the context of primary residence, extended oversight, and licensing requirements. Understanding these definitions is essential since it determines what type of licence you need, and whether the property counts against caps set in zoning districts.
In the UK: England’s regulations generally define STRs as lettings of under 90 nights, so exceeding that threshold triggers planning conditions and potential VAT classification. Wales and Northern Ireland may apply different definitions depending on tourist area licensing requirements, and Scotland doesn’t actually have a statutory duration limit, but categorises all non-primary tourism lets under its licensing authority regardless of how long you let the accommodation for.
Misclassification (such as treating a regulated let as unregulated) can lead to fines and enforcement action such as suspension of your license, or loss of tax deductions. Stay informed about your property’s definition in each jurisdiction, and ensure your listing clearly states your property type so platforms automatically apply the relevant rules, so you stay listed.
2. Keep up with zoning laws
Zoning dictates whether STRs are even allowed, and in which parts of your city or borough.
In the US: Municipal zoning codes in cities like Chicago, Boston, Seattle, Portland, and Los Angeles often prohibit STR activity in residential zones, or cap rentals to primary residences only. For example, Chicago’s Type 1 license restricts rentals to owner-occupied homes, and Portland uses “Overlay Zones” to limit density. Failure to adhere to these zoning laws can result in shut-down notices, retroactive taxes, and denied permits.
In the UK: Planning designations matter. Most English council areas differentiate between residential and hotel-style holiday let usage. Converting residential properties to holiday lets without permission can incur enforcement actions.
To ensure compliance, investigate zoning rules for your rental properties by address. If you manage too many properties to do this manually, consider hiring a consultant or using specialist tools to track property locations and tag listings by zone type, helping you to identify areas where regulatory risk is high.
3. Apply for all relevant permits and permissions
In the US: This often varies between individual cities, based on their own municipal regulations. Cities like Denver and San Francisco demand annual permits. San Diego restricts STRs to 1% of housing stock, meaning waitlists or pending issuance are common. New York enforces takedown orders on listings without valid registration.
In the UK: In Scotland, STR licenses require mandatory renewal every three years. Wales follows a similar route with local authority licensing zones. In England, government plans include national STR registration combined with mandatory planning registration for long lets. London boroughs—like Camden—demand planning permission and licence numbers more often than rural areas.
Develop a property-by-property compliance spreadsheet that includes expiry dates, and use tools like Rentals United’s channel manager to issue expiry alerts ahead of deadlines.
4. Stick to stay-length limits
In the US: In the US, STR stay limits are not standardized and vary significantly by location. While the IRS generally defines an STR as a property rented for 30 days or less, local regulations often dictate specific stay limits and other rules. These limits can be based on the number of days per year, the type of property (primary residence vs. non-primary), or occupancy limits.
In the UK: The national “90-night rule” applies across England, restricting short lets to a total of 90 nights per calendar year. For stays exceeding this limit, planning consent is required, or the let is considered a holiday home for tax and regulatory purposes. Scotland and Northern Ireland may use annual licensing protocols with similar thresholds.
Exceeding stay limits can lead to various penalties, including fines, legal action, and even the revocation of permits or licenses to operate an STR. These limits are typically in place to regulate the impact of STRs on local communities and housing availability, and failure to comply can result in significant consequences. Ensure compliance without manual intervention by setting availability-blocking rules for stays that overrun these limits.
5. Safety and insurance
Operating legally involves adhering to health and safety standards.
In the US: Make sure you provide all legally required safety features, like smoke alarms, CO detectors, fire extinguishers, pool fencing or elevator safety certificates. Check your local regulations too–some areas require professional safety inspections and minimum $1 million liability insurance.
In the UK: Smoke detectors must be linked to an interlinked system; carbon monoxide alarms and regular gas safety checks are mandatory. Furnished Holiday Let regulations in England require additional safety measures like firefighting equipment and escape route signage.
You can use property management tools like Rental United’s channel manager to store certificates and inspection records, and auto-alert when updates are needed, through a centralized dashboard and unified inbox.
6. Stay on top of tax obligations
In the US: STR hosts often must collect local occupancy taxes, remitting them monthly or quarterly. In some states like Florida, tourism taxes combine with local district taxes and in some jurisdictions, platforms like Airbnb no longer collect them automatically, increasing the responsibility as a host to submit these records.
In the UK: While there’s no nationwide STR-specific tax, Furnished Holiday Let classification can offer some tax advantages like capital gains rollover relief, wear-and-tear deductions, and VAT exemptions until threshold. Properties generating consistent revenue must also be declared via Self Assessment or confirmed via ‘rent-a-room’ relief, if relevant.
Property managers in the UK and US should be aware of the tax compliance rules in their area, and separate STR income from long-term rent on accounting records. You can use tracking services that tally nights and income per listing, producing data-ready reports for accountants or personal tax submissions..
7. Respect occupancy restrictions
In the US: Occupancy and zoning can also affect your rental operations. Census or HOA rules may limit occupancy to a certain number of unrelated adults (e.g., no more than six unrelated individuals), and an excess can be prohibited under residential zoning code.
In the UK: Similarly, UK council licensing zones sometimes set maximum occupancy levels (e.g., no more than two unrelated adults per bedroom). Property size and layout, number of bedrooms, fire safety compliance, and HMO status can all affect these occupancy levels. Insurance coverage and requisite safety systems may also depend on this figure.
You can mitigate the risk of overstepping these limits by clearly stating the maximum occupancy on your property listings and house rules. Whether in the US or UK, be sure to check the occupancy limits for your area, and ensure that your listings are only allowing groups that fit within this capacity.
8. Maintain good neighbour communications
In the US: Community relations influence regulatory enforcement, and many cities (like New Orleans, Houston, and LA) allow anonymous STR complaints via reporting portals, triggering inspections or warnings within days.
In the UK: Similarly, local councils in the UK may receive neighbour grievances, resulting in official notices under community bylaws or environmental health legislation.
To increase the likelihood of good neighbourly relations, start by clearly communicating house rules regarding noise and behaviour, and maintain 24/7 contacts for neighbours and guests. You can also track any reported issues, and persistent complaints of a similar nature may indicate need for better screening or restrictions.
9.Maintain quality
Perform regular upkeep and maintenance like checking appliances, repainting interiors, refreshing linen can set you apart on platforms like Airbnb and Booking.com. Consistently high reviews depend on reliable heating, clean bathrooms, and well-maintained outdoor areas. Make timely and strategic upgrades to your listing such as keyless entry, soundproofing, or energy efficient heating not only meet guest expectations but can also address regulatory requirements.
In the US: The Vacation Rental Management Association (VRMA) offers a professional certification and accreditation for property managers, focusing on operational excellence, safety, and guest services. It’s not property-based, but company-based, emphasizing best practices for managing multiple units
In the UK: In addition to the rules laid out by the Housing Health and Safety Rating System (HHSRS), groups like the UK’s Short Term Accommodation Association (STAA) (partnered with accreditation body Quality in Tourism) have launched the Safe, Clean, and Legal certification. Unlike self-certifications, QiT conducts in-person inspections based on rigorous criteria covering health, safety, cleanliness, and documentation. The process ensures properties meet high professional benchmarks and helps operators build trust.
10. Stay informed with regulatory updates
In the US: Since 2022, more than 40 major municipalities, including large hubs like NYC, Denver, and Seattle have introduced STR legislation. In 2024, industry groups like Short-Term Rental Advocacy Center and Rent Responsibly have influenced changes to local codes, especially in tourist-driven markets.
In the UK: England is poised to introduce a national STR register with enforcement powers and link it to planning compliance; Wales and Northern Ireland are expanding enforcement of existing licensing schemes; and Scotland’s licensing council started in 2023.
Regulatory updates evolve rapidly, so subscribe to local STR newsletters; join councils or civic groups, and attend planning meetings to stay in the loop. If using a channel manager like Rentals United, opt into legal update feeds and receive guidance updates integrated directly into your dashboard.
Conclusion
Regulation of short-term rentals across the US and UK is growing increasingly complex. From occupancy caps and business rate triggers to zoning bylaws and licensing regimes, the responsibility on hosts has never been greater.
But viewed differently, compliance is a strategic asset. It unlocks access to professional guests, stable revenue, and broader markets.
The 10 strategies outlined in this guide combine to form a strong compliance framework. No property manager can work in isolation. Success comes from staying connected with local authorities, trade organisations, platform tools, and legal advisors.
To flourish in this environment, software platforms can give you a real boost. Tools like Rentals United’s channel manager not only enable automated calendar blocking and licence insertion; they provide audit-ready reporting, and support multi-market efficiency while reducing human error.
At the end of the day, being proactive and compliant means you’ll stand out as a credible, enterprise-ready operator in rental markets around the world.
Start building your compliance toolkit today and position yourself for sustainable growth.