%20--%3e%3cg%3e%3cg%20id='Logotype'%3e%3cg%3e%3cpath%20fill='%23141313'%20d='M46.37,250.9L136.63,28.98H0v237.25C0,296.87,21.93,318.83,52.56,318.83v-.03h160.64v-154.45l-156.9,95.23c-5.8,3.71-12.82-2.05-9.94-8.68Z'/%3e%3cpath%20fill='%23141313'%20d='M347.35,104.3c-68.33,0-115.93,44.71-115.93,108.91s47.6,108.9,115.93,108.9,115.93-44.72,115.93-108.9-47.6-108.91-115.93-108.91ZM347.35,255.04c-24.41,0-42.23-17.39-42.23-41.8s17.79-41.83,42.23-41.83,42.23,17.39,42.23,41.83-17.79,41.8-42.23,41.8Z'/%3e%3cpath%20fill='%23141313'%20d='M633.86,118.01c0,3.31-3.71,3.31-7.02,1.66-18.22-9.54-32.29-15.3-53-15.3-56.71,0-95.62,42.66-95.62,108.08s39.32,109.7,93.14,109.7v-.03c21.93,0,35.61-7.02,56.31-19.87,3.71-2.48,8.28-1.66,6.19,3.71l-5.36,12.85h86.51V28.98h-81.15v89.03ZM594.11,255.04c-24.41,0-42.23-17.39-42.23-41.8s17.79-41.83,42.23-41.83,42.23,17.39,42.23,41.83-17.79,41.8-42.23,41.8Z'/%3e%3cpath%20fill='%23141313'%20d='M1406.03,107.65l-23.58,112.61c-1.66,8.68-11.59,9.11-13.65-.4l-24.84-112.22h-94.79c-39.32,0-51.74-11.99-51.74-29.81s10.33-28.15,27.72-28.15c20.27,0,30.64,16.16,32.69,32.29h79.5C1325.35,29.38,1286.43,0,1230.52,0,1168.85,0,1130.32,36.04,1130.32,91.09v16.56h-44.71v67.07h44.71v144.08h81.15v-143.68h70.23l46.53,124.21c3.31,8.28,2.88,17.39-.4,26.1l-28.55,68.73h80.25l120.47-286.51h-93.97Z'/%3e%3cpath%20fill='%23141313'%20d='M886.41,117.98c0,3.31-3.71,3.31-7.02,1.66-19.87-9.94-34.35-15.3-54.65-15.3-60.45,0-93.97,49.29-93.97,107.65,0,64.59,37.26,98.54,87.77,98.54,23.19,0,40.57-7.02,62.1-19.47,5.37-3.31,9.51-.4,7.45,4.57-9.11,20.7-28.55,31.47-59.62,31.47h-83.2v67.07h98.5c72.04,0,123.78-47.63,123.78-114.67V107.65h-81.15v10.33ZM846.67,255.04c-24.41,0-42.23-17.39-42.23-41.8s17.79-41.83,42.23-41.83,42.23,17.39,42.23,41.83-17.79,41.8-42.23,41.8Z'/%3e%3cpath%20fill='%23141313'%20d='M1026.35,18.18c-26.1,0-44.71,16.16-44.71,39.35s18.61,39.35,44.71,39.35,44.72-16.16,44.72-39.35-18.62-39.35-44.72-39.35Z'/%3e%3crect%20fill='%23141313'%20x='985.78'%20y='107.65'%20width='81.15'%20height='211.15'/%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
What is a Business License?
A business license is a legal document required by city, county, or state governments to conduct business activities in their jurisdiction. For vacation rental operators, this license confirms that the property meets all local requirements for short-term letting, which can include zoning ordinances, safety codes, and tax obligations.
Obtaining this license is often a mandatory first step before a host can legally list and rent out their property to guests.
Join the Lodgify newsletter
How it works
To obtain a business license, a property owner or manager must apply through the relevant local government department, such as the city clerk's office or planning department. The application typically requires submitting property details, proof of ownership, liability insurance information, and sometimes undergoing a property inspection.
Once the application is approved and fees are paid, the government issues a license, which usually includes a unique registration number. This number often must be displayed on all online listings and advertisements for the property, and the license must be renewed periodically.
Why it matters
Operating with a valid business license is crucial for legal compliance and avoiding significant penalties, such as hefty fines or orders to cease operations. It also builds trust and credibility with guests, assuring them that the property adheres to local safety and quality standards.
Furthermore, many major online travel agencies (OTAs) and booking platforms now require hosts to provide a valid license number to list their properties.
Examples
- A host in Nashville, Tennessee, must obtain a Short-Term Rental Property (STRP) permit from the Metro Government before listing their spare room on Airbnb.
- A property manager overseeing several cabins in Big Bear Lake, California, is required to secure a separate business license for each property and display the license number on their direct booking website.
- In Amsterdam, a homeowner must apply for a specific tourist rental permit, which is limited in number and has strict conditions, including a cap on the number of nights the property can be rented per year.
- A new vacation rental owner in a small coastal town is informed by the city that they need to obtain a local business license, which involves a fire safety inspection and paying an annual fee of $200.
Frequently asked questions
Do I need a business license to operate a vacation rental?+
How do I get a business license for my STR?+
What happens if I don't get a required business license?+
Where should I display my business license number?+
Related terms
Zoning Laws
Zoning laws are municipal or county regulations that dictate how property in specific geographic zones can be used, which directly impacts the legality and…
STR License
An STR license is an official permit issued by a government authority that legally allows a property owner to operate a short-term rental in a specific…
STR Permit
An STR permit is an official license issued by a local government authority that legally allows a property to be operated as a short-term rental.
Registration Number
A unique identifier issued by a government or municipal authority that legally authorizes a property to operate as a short-term rental. This number is often…