What is the 90 day rule for Airbnb? A practical guide for buyers

Quick answer and what this guide covers

The phrase “90 day rule” most often means a municipal 90-day cap on the total number of nights a property can be offered as a short-term rental in a calendar year, rather than an Airbnb corporate policy. Municipal codes and guidance vary, so whether a purchase will allow operating a short-term rental depends on local rules, permits, HOA covenants, and lender conditions, not only platform settings. San Francisco short-term rental guidance

This article will: define the common structures of a 90-day cap, explain how Airbnb and cities split enforcement responsibilities, give a step-by-step framework for evaluating a target property, outline acquisition strategies that lower upfront cash and their caveats, and offer a concise pre-purchase checklist. It will not provide legal advice or promise that any financing path will work in every jurisdiction; readers should verify municipal code language and lender terms before committing.

What the 90 day rule means and why it exists

When people refer to the 90 day rule they are usually describing municipal ordinances that limit the number of nights a property can be rented short-term, commonly near 90 nights per year, although the exact number and structure differ by city. These caps can apply to non-owner-occupied units, to each property address, or to total nights in a calendar year, and you must read the exact municipal code to know which applies. San Francisco short-term rental guidance

Cities adopt these limits for several public-policy reasons: to preserve long-term housing stock, reduce neighborhood impacts, and provide a regulatory path for taxation and safety inspections. Some rules exempt owner-occupied primary residences or offer specific permit paths, so two similar-looking ordinances can behave very differently in practice depending on exemptions and definitions. City of Los Angeles short-term rentals

Typical enforcement tools are permit and registration programs, civil fines, and in some cases administrative revocation of the right to operate. Municipalities often pair local enforcement with processes that let platforms block or delist non-compliant listings when the city shares data or issues takedown notices.

How Airbnb and cities share responsibility for enforcement

Airbnb’s public guidance tells hosts to follow local laws and points hosts to registration and tax resources, but the platform’s role is primarily to surface that guidance and to cooperate with local governments where required. The platform does not replace municipal permitting or local zoning enforcement, so following Airbnb’s guidance is necessary but not sufficient for legal compliance. Airbnb Help Center

Cities enforce short-term rental limits through permit systems, registration databases, complaint-driven investigations, fines, and sometimes criminal penalties when local code provides for them. Enforcement is often complaint-driven and may focus on repeat or high-impact cases, with cities publishing enforcement processes or data in planning or code enforcement reports. Santa Monica short-term rental permits

Because enforcement and delisting can follow municipal notices, a property that appears rentable on a platform today can be blocked tomorrow if a city notifies the platform or if a listing lacks required registration. That is why verifying municipal registration paths and current permit status is an essential part of due diligence.

A practical framework: step-by-step to evaluate a target property under a 90 day cap

Step 1: Read the municipal ordinance precisely. Locate the code section that controls short-term rentals, and note definitions such as whether the rule applies to “non-owner-occupied” units, what counts as a night, and whether the limit is per calendar year. Many cities publish clear code language and FAQs on planning or code department pages; start there and copy the exact ordinance link for your file. Santa Monica short-term rental permits

Step 2: Check permit paths and exemptions. Does the ordinance exempt owner-occupied homes, or allow special permits for investors? Some jurisdictions allow a capped number of nights only for owner-occupants and require commercial-style permits or conditional use approvals for other owners. If the ordinance offers a registration or permitting path, confirm current fees, renewal terms, and whether permits are transferable on sale.

Step 3: Verify HOA and mortgage restrictions. Homeowner association covenants often include rental limits or outright bans on short-term rentals. Mortgage documents and lender policies can also contain occupancy clauses that restrict rental activity. Request HOA rules, the condo declaration if applicable, and any lender occupancy addenda early in your due diligence so you can assess legal barriers before making an offer. City of Los Angeles short-term rentals

Step 4: Model realistic income and compliance costs. If a 90 day cap or similar limit applies, compute a conservative revenue ceiling by multiplying expected average nightly rate by the capped nights, and subtract permit fees, registration costs, higher insurance premiums, and expected occupancy-related expenses. Include potential fine scenarios and legal costs if the property is later found out of compliance. This kind of realistic upside ceiling clarifies whether the acquisition still makes sense.

Common acquisition strategies that reduce upfront cash and their legal caveats

Lease-to-own and long-term leases can let an operator control a property with limited initial cash, but these arrangements may conflict with municipal rules or HOA covenants that restrict subletting or short-term stays, so you must confirm that a lease permits the intended hosting model and get written consent when necessary. BiggerPockets analysis See our guide on financing a business purchase.

Co-ownership or syndication shares purchase costs across investors and reduces individual cash needs, but it also complicates permissions, tax reporting, and decision-making if the ordinance limits investor-held short-term rentals or requires an owner-occupancy condition. Related: real estate side hustles.

Seller financing and creative note structures can lower cash at closing, but mortgage and title documents may have clauses that trigger due-on-sale or restrict rental uses; confirm that a seller-financed deal will not create a legal conflict with the municipal code or lender policies.

Rental arbitrage, where you rent a place long-term and list it short-term, can work where landlords and local law allow subletting and short-term hosting, but it is legally risky where ordinances limit non-owner-occupied short-term rentals or where leases forbid subletting. All low-cash strategies require written permissions and careful review of municipal, HOA, and lender requirements before you proceed. Airbnb Help Center

Decision criteria and a pre-purchase checklist

Must-verify items before an offer: 1) Is there an available permit or registration for the property’s use? 2) Does the ordinance explicitly ban investor-held short-term rentals or impose a strict night cap? 3) Do HOA covenants allow short-term rentals? 4) Will the mortgage terms or lender require consent or prohibit usages? 5) Is the property currently registered and in good standing with the city? Verify documents for each item before you sign an agreement. City of Los Angeles short-term rentals

Documents to request from the seller: current registration or permit, HOA rules and recent minutes showing rental votes, mortgage note or payoff statement, and seller disclosures about complaints or enforcement actions. Ask neighbors or the HOA manager whether there have been recent enforcement complaints; local experience can reveal enforcement intensity beyond what municipal pages state. See Finance Police for related checklists.

Red flags that should pause or stop a purchase: an explicit ordinance ban on investor short-term rentals, active enforcement actions or outstanding fines against the property, or lender clauses that forbid the intended hosting model. If the code contains unclear grandfathering language after a sale, get a written opinion from a local attorney or planner before proceeding.

Typical mistakes and enforcement pitfalls to avoid

One common mistake is assuming owner-occupant exemptions apply the same way everywhere. Exemptions often have strict definitions of primary residence and may require proof such as utility records or voter registration. Don’t assume a verbal promise from a seller about an exemption is adequate; always request written confirmation from the municipality if the exemption is material to your decision. San Francisco short-term rental guidance

Another error is ignoring HOA or mortgage clauses. HOA covenants and mortgage documents can contain enforceable limits that outlast a sale, and they may include remedies separate from municipal code enforcement, such as injunctive actions or association fines. Get these documents early in the process and have them reviewed for occupancy and subletting language. City of Los Angeles short-term rentals

Relying on verbal assurances or incomplete seller disclosures is another frequent pitfall. If a seller says the listing will transfer or that a permit is easy to get, confirm the statement by asking for the permit record or written municipal guidance. Enforcement often follows complaints and can lead to fines, permit revocation, or delisting of listings on platforms.

Practical scenarios and short case examples

Owner-occupied exemption example. Imagine a homeowner who lives on site and rents their spare room for occasional weeks; many cities treat owner-occupied rentals more permissively and allow more nights or simpler registration for primary residences. Still, you should confirm definition and proof requirements in the code and capture any required residency documentation. San Francisco short-term rental guidance

Investor using seller financing where permits are limited. An investor might agree to seller financing to reduce up-front cash, but if the ordinance restricts non-owner-occupied short-term rentals, the investor may be unable to obtain a permit or could face enforcement after purchase. Always check whether permits are transferable and whether the municipal code treats new owners differently. Santa Monica short-term rental permits See also Long Beach STR guidance.

Lease-to-own scenario with HOA restrictions. A lease-to-own can let an operator control a residence while making payments, but if the HOA forbids short-term rentals, leasing the unit and listing it could trigger HOA enforcement or contract breach claims. Confirm HOA rules and obtain written landlord consent when subletting is part of a lease-to-own path.

Conclusion: next steps and where to verify local rules

Start local: consult the Airbnb Help Center for platform obligations and then check your city planning department or municipal code for the exact ordinance language that applies to short-term rentals. If a 90-day cap or similar restriction exists, confirm whether it applies to owner-occupied units and whether permits are transferable on sale. Airbnb Help Center Also consider city licensing pages such as San Diego’s STRO program for local examples. San Diego STRO

Collect written confirmations from the municipality, HOA board, and lender before finalizing a purchase. Low-cash financing strategies can reduce upfront capital needs but add legal complexity, so treat them as conditional options that require explicit permissions and local legal review before relying on them. Local FAQ pages can clarify renewal and transfer rules, for example see Tybee Island FAQs. Tybee STR FAQs

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.