Bernalillo County, New Mexico Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Bernalillo County, New Mexico?

Short-term rentals like Airbnb and VRBO have become increasingly popular in Bernalillo County and the Albuquerque area in recent years. However, hosts need to be aware of the various regulations, permits, and taxes that apply to operating an STR business. Here's an overview of what you need to know:

Starting a Short-Term Rental Business in Bernalillo County

To legally operate a short-term rental in Bernalillo County, you will need to:

• Obtain a business registration from the county. This requires getting a Tax ID number from the state first.
• If your property is located in the City of Albuquerque, you will also need to get a Short-Term Rental permit from the city. This has an initial application fee of $120 and an annual renewal fee of $90. A separate permit is required for each rental unit, even if they are at the same address.
• The Albuquerque STR permit application requires submitting a floor plan, proof of insurance, and a signed "Good Neighbor Agreement" to be posted in the unit informing guests of noise, parking, occupancy and other rules.
• Maximum overnight occupancy is limited to 2 adults per bedroom, plus 2 additional guests, in Albuquerque STRs. Gatherings are limited to no more than twice the overnight limit and a maximum of 20 people.
• Bernalillo County requires STR hosts to collect and remit lodgers' tax (5%) and a hospitality fee (1%) on stays under 30 days. This is handled automatically by Airbnb for reservations made on their platform.
• Review any lease agreements, HOA rules, or other restrictions that may prohibit or limit using your property as a short-term rental. Get written permission from the owner if you don't own the property yourself.

Some other New Mexico cities like Santa Fe, Taos, and Los Ranchos de Albuquerque have additional STR regulations such as permit caps, proximity restrictions between STRs, affordable housing fees, and on-site host requirements. However, these do not apply in the unincorporated areas of Bernalillo County outside of those municipalities.

Failure to comply with short-term rental regulations can result in fines, penalties, and revocation of permits. So it's important to thoroughly research the rules and ensure your STR is properly registered and operated. Consult the Bernalillo County Planning Division and City of Albuquerque STR site for the most up-to-date information.

Short-Term Rental Licensing Requirements in Bernalillo County

To legally operate a short-term rental in Bernalillo County, you must obtain a Short-Term Rental permit from the county. The permit application requires submitting the following:

1. A completed STR permit application form
2. Proof of a current business registration with the county
3. A detailed floor plan of the rental unit
4. Proof of STR insurance coverage
5. A signed "Good Neighbor Agreement" to be posted in the unit
6. The $120 initial application fee ($90 for annual renewals)

Applications can be submitted online through the county's STR permitting website or in person at the Planning Department. Once a complete application is received, permits are typically issued within 5-7 business days.

Separate STR permits are required for each individual rental unit, even if located at the same address. Permits must be renewed annually.

Failure to obtain or renew an STR permit can result in significant penalties. Operating an unlicensed short-term rental is considered a misdemeanor offense in Bernalillo County. Violators may be subject to fines up to $1000 and/or 90 days in jail, as well as forfeiture of the ability to get an STR permit in the future.

To avoid fines and legal issues, it's critical to ensure your short-term rental is properly permitted before listing it or accepting any reservations. For additional questions about the STR licensing process, contact the Bernalillo County Planning Department at (505) 314-0350.

Required Documents for Bernalillo County Short-Term Rentals

To obtain a short-term rental permit in Bernalillo County, you will need to submit the following documents:

1. Completed STR Permit Application Form - This form collects basic information about the property owner, rental unit details, and acknowledgment of STR rules and regulations. Available on the county's STR permitting website.
2. Proof of Business Registration - STRs are considered businesses and must have a current business registration with the county. Requires obtaining a state Tax ID number first. See the Bernalillo County business registration checklist for details.
3. Detailed Floor Plan - Must show the layout of the entire rental unit, including bedrooms, common areas, and entrances/exits. Can be hand-drawn or computer generated. Used to verify occupancy limits and fire safety.
4. Proof of STR Insurance - Specific short-term rental or landlord insurance is required. General homeowners or renters insurance is insufficient. Check with your insurance provider for STR coverage options.
5. Signed Good Neighbor Agreement - Commits the STR operator to following noise, parking, occupancy, and other rules to minimize impacts on neighbors. A copy must be posted prominently inside the rental unit.
6. Fire Safety Permit - Separate from the STR permit, this is issued by the Bernalillo County Fire Prevention Bureau after an annual fire and life safety inspection of the rental property. Required to be posted next to the STR permit.

Submitting an incomplete application without all required documents will delay the permitting process. Double check that you have everything before applying for your Bernalillo County short-term rental permit.

Bernalillo County Short-Term Rental Taxes

Short-term rental operators in Bernalillo County are subject to several state and local taxes:

Lodgers' Tax: Bernalillo County imposes a 5% Lodgers' Tax on short-term rentals under 30 days. This tax is paid by the guest but collected and remitted by the host. It applies to the total rental amount including any cleaning fees. Lodgers' Tax revenue is used to promote tourism in the county.

Hospitality Fee: An additional 1% Hospitality Fee also applies to short-term rentals under 30 days in Bernalillo County. Like the Lodgers' Tax, this fee is paid by the guest but the responsibility of the host to collect and remit to the county. The Hospitality Fee funds improvements to the Albuquerque Convention Center.

Gross Receipts Tax: Short-term rental income is subject to New Mexico's Gross Receipts Tax (GRT). This is a tax on the privilege of doing business in the state, based on total gross receipts. GRT rates vary by location but range from 5.125% to 8.6875% in Bernalillo County as of 2024. Hosts must register their short-term rental business with the NM Taxation and Revenue Department to pay GRT.

While these taxes add up, hosts can deduct many of the expenses of running a short-term rental to reduce their taxable income. Deductible expenses may include:

1. Mortgage interest and property taxes
2. Rental unit supplies, linens, toiletries, etc.
3. Cleaning and maintenance costs
4. Utility bills
5. Short-term rental insurance
6. Platform host service fees
7. Depreciation of furniture and appliances used in the rental

Consult with a tax professional to fully understand your tax obligations and deduction opportunities as a short-term rental operator in Bernalillo County. With proper planning and recordkeeping, you can minimize your tax burden while remaining in compliance with all state and local tax laws.

New Mexico Wide Short-Term Rental Rules

In addition to Bernalillo County's specific short-term rental regulations, there are several state-wide laws and tax requirements that apply to all New Mexico STR operators:

Lodgers' Tax: As of January 2020, New Mexico implemented a statewide Lodgers' Tax on all hotels and short-term rentals. The tax rate varies by location but ranges from 5-7% of the listing price including cleaning fees. In Bernalillo County, the Lodgers' Tax rate is 5%. This tax is paid by guests but collected and remitted by hosts.

Gross Receipts Tax: Short-term rental income is subject to New Mexico's Gross Receipts Tax (GRT). This is a tax on the privilege of doing business in the state, based on total gross receipts without deductions for business expenses. GRT rates vary across the state from 5.125% to 8.6875%. Bernalillo County's combined GRT rate ranges from 7.0% to 7.875% as of 2024. Hosts must register their STR business with the NM Taxation and Revenue Department to pay GRT.

Homeowners Associations and Lease Agreements: If a property is part of a homeowners association (HOA), hosts must comply with any HOA rules or CC&Rs that restrict or prohibit using the property as a short-term rental. Many HOAs limit or ban STRs. Additionally, hosts who rent their property must have written permission from the owner to operate an STR.

Insurance Requirements: While not legally mandated by the state, short-term rental hosts in New Mexico are strongly encouraged to obtain liability insurance that specifically covers STR use. Platforms like Airbnb and Vrbo provide some host liability coverage, but getting a separate vacation rental insurance policy is prudent to fully protect yourself and your property.

Although New Mexico does not have a state-wide registration system for short-term rentals, many cities and counties like Albuquerque, Santa Fe, and Taos have implemented their own permitting and licensing requirements. Bernalillo County STR operators must ensure they are in compliance with both state tax laws and local regulations to avoid penalties.

Does Bernalillo County Strictly Enforce STR Rules?

Based on discussions in online forums like Reddit and BiggerPockets, it appears that enforcement of short-term rental regulations is somewhat lax in Bernalillo County compared to other jurisdictions. While the county and city of Albuquerque have established permit requirements, occupancy limits, and "good neighbor" policies for STRs, many hosts seem to operate without full compliance.

Several Albuquerque residents have expressed frustration with the proliferation of short-term rentals in their neighborhoods, often without the required permits. One Redditor shared that 5 out of 7 recently sold homes on their street had been converted to STRs, but only 1 was properly registered with the city. Others noted that despite ordinances intended to limit the number of Airbnb listings, the actual number of STRs far exceeds the caps.

The city's capacity and willingness to crack down on rule-breaking STR operators appears limited. Fines for illegal short-term rentals are only around $300 per infraction, which many hosts can easily absorb as a cost of doing business. Some Reddit users reported contacting the city multiple times about unlicensed rentals without receiving any response or seeing any enforcement actions.

Compared to cities like Santa Fe that have implemented strict permit lotteries, density restrictions, and high violation penalties, Albuquerque is relatively Airbnb-friendly from a regulatory perspective. The lack of proactive monitoring and serious consequences enables many hosts to skirt the rules and operate STRs with minimal local oversight.

So while Bernalillo County has STR regulations on the books, their practical effect seems blunted by inconsistent enforcement. The county appears more tolerant of short-term rentals than some other New Mexico communities, though perhaps to the detriment of neighborhood character and housing availability. Prospective hosts should still make every effort to follow the local requirements, but be aware that many STRs operate in Bernalillo County outside of full compliance.

How to Start a Short-Term Rental Business in Bernalillo County

Starting a short-term rental business in Bernalillo County requires careful planning and adherence to local regulations. Follow these steps to launch your venture successfully:

1. Check your property's zoning and eligibility for short-term rental use. Contact the Bernalillo County Planning Department at (505) 314-0350 to verify your property is located in an area zoned for STRs. If you are part of an HOA, review any rules that may restrict short-term rentals. If you lease the property, obtain written permission from the owner.
2. Register your short-term rental business with the state and county. First, obtain a Tax ID number from the New Mexico Taxation & Revenue Department. Then register your business with Bernalillo County and the City of Albuquerque (if applicable). This is required before you can apply for an STR permit.
3. Apply for a Short-Term Rental permit. Visit the Albuquerque STR permitting site and create an account. Gather the required documents, including a detailed floor plan, proof of STR insurance, and a signed "Good Neighbor Agreement." Pay the $120 application fee. Expect the permit to be issued within 5-7 business days.
4. Prepare your property for guests. Furnish and stock your rental with all the essentials to make it comfortable and appealing. Consider your target guest demographic when decorating and equipping the space. Install smoke detectors, fire extinguishers, and smart security devices for added safety. Create a house manual with all the important information guests will need.
5. List your property on popular short-term rental platforms. Once your permit is approved, create listings on sites like Airbnb and Vrbo. Craft an enticing description, take high-quality photos, and set competitive rates. Be clear about house rules and booking policies. Enable Airbnb's auto-tax collection feature to automatically collect and remit the required lodgers' tax.
6. Manage bookings, communication, and turnovers. Respond promptly to booking inquiries and guest questions. Arrange key exchanges or install a keyless entry system. Schedule cleanings between guest stays and perform regular maintenance. Consider hiring a co-host or property manager if you need help.
7. Keep good records and stay compliant. Maintain an organized system for tracking rental income and expenses. This will make tax reporting easier and allow you to maximize deductions. Ensure you are collecting and remitting all applicable taxes. Renew your STR permit annually and keep your business registration current.

With careful planning, compliance with local regulations, and a commitment to providing great guest experiences, you can build a successful short-term rental business in Bernalillo County. It's an exciting opportunity, but requires work to do it right. Focus on creating a desirable property, optimizing your listings, and being a responsible host and neighbor.

Who to Contact in Bernalillo County about Short-Term Rental Regulations and Zoning?

For questions about short-term rental permits, regulations, and zoning in Bernalillo County and the City of Albuquerque, here are the key contacts:

Bernalillo County Planning & Development Services

1. Address: 415 Silver Ave SW, Albuquerque, NM 87102
2. Phone: (505) 314-0350
3. Email: zoning@bernco.gov
4. Website: https://www.bernco.gov/planning/

City of Albuquerque Short-Term Rental Permit Questions

1. Email: str@cabq.gov
2. Phone: (505) 924-3450

City of Albuquerque Short-Term Rental Complaint Hotline

1. Phone: (505) 465-7710 (available 24/7)
2. Online Complaint Form: https://lodging.munirevs.com/complaint/?cityid=568

City of Albuquerque Short-Term Rental Website Technical Support

1. Email: blt.str.support@govos.com
2. Phone: (888) 751-1911

In addition to contacting local government offices, short-term rental hosts in Bernalillo County may find it helpful to connect with other STR operators to share experiences, ask for advice, and stay updated on regulatory changes. Some active online communities include:

BiggerPockets Short-Term Rental & Airbnb Forum: https://www.biggerpockets.com/forums/530

With over 8,000 posts, this is an active forum for STR investors and hosts to network and discuss a wide range of topics.

Reddit Airbnb Hosts Subreddit: https://www.reddit.com/r/airbnb_hosts/

A community of over 50,000 members for current and aspiring Airbnb hosts to share ideas and resources.

Reddit Short-Term Rentals Subreddit: https://www.reddit.com/r/ShortTermRentals/

Another subreddit with 3,000+ members focused on the short-term rental industry, including regulatory discussions.

Participating in these online forums, in addition to communicating directly with Bernalillo County and Albuquerque officials, can help STR operators stay informed and adapt to the evolving regulatory landscape. Building relationships with other local hosts may also lead to collaborative advocacy efforts to shape fair and effective short-term rental policies.

What Do Airbnb Hosts in Bernalillo County on Reddit and Bigger Pockets Think about Local Regulations?

Discussions on Reddit and BiggerPockets reveal a range of opinions among Airbnb hosts in Bernalillo County regarding short-term rental regulations:

Reddit - "Can anyone point to a positive of airbnbs in your neighborhood?"

• One host shared that their elderly neighbors on fixed incomes have benefited from being able to rent out spare rooms on Airbnb for extra money.
• However, most commenters expressed concerns about the negative impacts of STRs, especially non-owner occupied whole-home rentals. Issues cited include housing affordability, neighborhood character, and enforcement challenges.
• There was general support for allowing owner-occupied STRs or longer-term rentals (1-3 months), but opposition to properties being bought up as mini-hotels for vacationers.

Reddit - "Short Term Rentals in Your Neighborhood?"

• An Albuquerque resident complained about a neighbor's house being converted into a disruptive Airbnb with a constant stream of vacationers in a quiet residential area.
• Commenters suggested contacting the city councilor and pushing for a ban or strict limits on STRs similar to an ordinance passed in Santa Fe.
• However, doubts were raised about the city's ability to effectively enforce such restrictions given other pressing issues like crime. Communicating concerns to the host was recommended as a first step.

BiggerPockets Forum - "New Mexico Politicians may tax STR properties as commercial"

• A post warned about discussions among some NM county assessors to reclassify short-term rentals as commercial properties, removing residential property tax caps.
• This could significantly increase taxes for STR owners, but no legislation has been introduced yet. Bernalillo County, as the largest county, was specifically mentioned as considering this change.

BiggerPockets Forum - "Short Term Rental Regulations"

• An aspiring STR investor asked for advice on efficiently researching local regulations in different cities and towns.
• Beyond calling each municipality directly, no clear shortcuts were offered. This highlights the complexity hosts face in navigating the regulatory landscape.

BiggerPockets Forum - "Albuquerque taxes, licenses, and permits for long term rentals"

• A new landlord in Albuquerque shared their detailed research into the various taxes, registrations, and licenses required for long-term rentals.
• While focused on LTRs, the post noted the city's STR Task Force could potentially impact LTR regulations too. This underscores the evolving nature of rental oversight.

These online discussions illustrate the challenging regulatory environment for Airbnb hosts in Bernalillo County. While some see STRs as an economic opportunity, many residents and officials want to mitigate negative community impacts through tighter restrictions and enforcement. Hosts must stay informed and engaged to successfully navigate the local rules.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.