DeKalb County, Georgia Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in DeKalb County, Georgia?

DeKalb County, Georgia has recently proposed new regulations for short-term rentals like those listed on Airbnb and VRBO. The DeKalb County Board of Commissioners is amending Chapters 24 (Taxation) and 27 (Zoning Ordinance) of the Code of DeKalb County to address the growing popularity of STRs.

A short-term rental is defined as the rental of any room, lodging, or overnight accommodations for a period not exceeding 30 consecutive days. This includes vacation homes, residential dwellings, guestrooms, or other overnight lodging advertised through online marketplaces like Airbnb.com, Booking.com, Hometogo.com, and VRBO.com.

Key aspects of the proposed DeKalb County STR ordinance include:

• An 8% excise tax on the rent for occupancy of a short-term rental in unincorporated DeKalb County
• Requirement for STR operators to obtain a business license and annually register with the DeKalb County Business License Division
• An application fee for STR permits, to be established by the Board of Commissioners

The ordinance is still in the proposal stage. The DeKalb County staff has recommended a 4-month deferral to gather feedback from citizens and other jurisdictions before finalizing the regulations. Significant changes are expected based on this feedback.

Starting a Short-Term Rental Business in DeKalb County

Under the proposed ordinance, anyone operating a short-term rental in DeKalb County would need to:

1. Obtain a business license
2. Register annually with the DeKalb County Business License Division
3. Pay an application fee (amount to be determined)
4. Collect and remit an 8% excise tax on rental income

Failure to comply could result in penalties. Making a false or fraudulent tax return with intent to evade the tax is considered a misdemeanor punishable by fines and/or jail time.

Neighboring cities and counties in the Atlanta metro area have also been enacting STR regulations recently:

1. Atlanta restricts STR hosts to renting their property for no more than 30 consecutive days and owning a maximum of two STR properties
2. Brookhaven has banned STRs citywide as part of their new zoning code
3. Cobb County requires STR operators to register properties and obtain permits starting in 2023

As STRs continue to grow in popularity, it's important for hosts and property managers in DeKalb County to stay informed about the evolving regulatory landscape. The proposed ordinance will significantly impact how STRs operate in the county if enacted.

Short-Term Rental Licensing Requirements in DeKalb County

To legally operate a short-term rental in unincorporated DeKalb County, property owners must meet the following requirements according to the county's official website:

1. Obtain a business license from the DeKalb County Business License Division. This must be renewed annually.
2. Register the STR property annually with the DeKalb County Business License Division.
3. Pay an application fee for the STR permit. The exact amount will be established by the DeKalb County Board of Commissioners.
4. Collect and remit an 8% excise tax on all rental income. This tax is authorized under the Official Code of Georgia Annotated (O.C.G.A.) § 48-13-51(b).

To submit the required STR permit application and registration, contact the DeKalb County Business License Division:

DeKalb County Business License Division
330 W. Ponce de Leon Ave, Suite 500
Decatur, GA 30030
Phone: (404) 371-2461

The county has not provided an estimate for how long the STR licensing process typically takes. Permit application fees have also not been finalized yet, as the STR ordinance is still in the proposal stage.

Failure to comply with the STR permit requirements is considered a violation. Making a false or fraudulent tax return with intent to evade taxes is a misdemeanor punishable by fines and/or jail time. Exact penalty amounts are not specified.

It's important to note that DeKalb County's STR ordinance has not been enacted yet. The county staff has recommended deferring the proposal by 4 months to gather more citizen feedback and make changes. STR operators should monitor the ordinance's progress to ensure they meet all requirements once the regulations are finalized.

Required Documents for DeKalb County Short-Term Rentals

To legally operate a short-term rental in unincorporated DeKalb County, property owners must submit the following documents according to the county's proposed STR ordinance:

1. Business License Application: This form is required to obtain a business license from the DeKalb County Business License Division. The purpose is to register the STR as a business operating in the county. The application can be obtained from the Business License Division office or website.
2. Short-Term Rental Registration Form: STR operators must register their property annually with the DeKalb County Business License Division. This form collects information about the rental property, owner, and local contact person. It helps the county track and regulate STRs. The registration form will be available through the Business License Division once the STR ordinance is enacted.
3. Proof of Property Ownership or Permission: Applicants must provide documentation showing they own the property or have permission from the owner to operate an STR. Acceptable proof includes a property deed, tax statement, or notarized letter from the owner. This ensures STRs are operated with the property owner's consent.
4. Local Contact Person Designation: STR operators must designate a local contact person who can respond to any issues at the property within 1 hour. The contact's name and phone number must be provided. This helps address neighborhood concerns promptly.
5. Proof of Insurance: The county may require STR operators to maintain liability insurance coverage. Proof of insurance, such as a declaration page, would need to be submitted. This protects guests and neighbors in case of accidents or damages.

Note that DeKalb County's STR ordinance has not been finalized yet. The exact documentation requirements and submission process are subject to change based on the final adopted regulations. STR operators should contact the DeKalb County Business License Division for the most current information and required forms.

DeKalb County Short-Term Rental Taxes

Short-term rental operators in unincorporated DeKalb County are subject to several taxes according to the county's proposed STR ordinance. The main tax is an excise tax on rental income.

Excise Tax: DeKalb County imposes an 8% excise tax on the rent collected for occupancy of an STR. This tax is authorized under the Official Code of Georgia Annotated (O.C.G.A.) § 48-13-51(b). The 8% excise tax must be collected by the STR operator and remitted to the county.

Half of the excise tax revenue collected will be used to promote tourism, conventions, and trade shows through a contract with the DeKalb Convention and Visitors Bureau. The other half will fund tourism product development, including capital costs and operating expenses for the Porter Sanford Performing Arts Center.

In addition to the county excise tax, STR operators in Georgia are also responsible for state taxes:

State Sales Tax: STRs in Georgia are subject to the state's sales tax of 4% on the rental charge. This tax is collected by online platforms like Airbnb on behalf of the host.

Hotel-Motel Tax: Some counties and cities in Georgia also levy a hotel-motel tax on STRs, ranging from 2-8%. In DeKalb County, Airbnb collects a hotel-motel tax of $5 per night for stays 30 days or less.

Tax Deductions and Write-Offs

STR operators can deduct many of their rental expenses to reduce their taxable income. Some common deductions include:

1. Depreciation of the rental property and furnishings over 27.5 years
2. Property taxes
3. Mortgage interest
4. Cleaning fees and supplies
5. Utilities
6. Repairs and maintenance
7. Insurance
8. Advertising and marketing costs
9. Host service fees charged by rental platforms
10. Accounting, legal, and other professional fees

STR owners who use a home office to manage their rental business may also be able to deduct a portion of their housing expenses. The home office deduction can be calculated using the simplified $5 per square foot method (up to 300 sq ft) or the regular method based on actual expenses.

It's important for STR operators in DeKalb County to maintain good records of their rental income and expenses in order to properly report their taxes and maximize their deductions. Consulting with a tax professional experienced with short-term rentals can help ensure compliance with all applicable tax laws.

Georgia Wide Short-Term Rental Rules

Georgia does not have any statewide laws or regulations specifically governing short-term rentals. The state leaves it up to individual cities and counties to set their own rules for vacation rentals listed on platforms like Airbnb and Vrbo.

However, there are a couple of state-level tax requirements that apply to short-term rental hosts in Georgia:

State Sales Tax: Short-term rentals are subject to Georgia's statewide sales tax of 4% on the rental charge. Airbnb and Vrbo collect and remit this tax on behalf of their hosts in Georgia.

Hotel-Motel Fee: Georgia also imposes a $5 per night hotel-motel fee on short-term rentals. This fee is waived for stays over 30 nights. Airbnb collects this fee for applicable bookings.

In 2021, Georgia passed legislation treating licensed short-term rentals more like hotels for tax purposes. Licensed short-term rental owners must collect and remit state and local excise taxes like hotels do.

Other than these tax rules, short-term rental regulations in Georgia are determined at the city and county level. DeKalb County, for example, is currently in the process of enacting a new ordinance that would require short-term rental operators to:

1. Obtain a business license and renew it annually
2. Register their short-term rental property each year
3. Pay an application fee for a short-term rental permit
4. Collect and remit an 8% excise tax on rental income

So while Georgia itself does not have comprehensive statewide vacation rental regulations, hosts in DeKalb County and other jurisdictions need to comply with the specific rules where their property is located. It's important for hosts to research the local short-term rental laws that apply to them.

Does DeKalb County Strictly Enforce STR Rules?

Based on discussions among short-term rental hosts on forums like BiggerPockets, it appears that DeKalb County's enforcement of STR regulations has been inconsistent, leading many hosts to operate despite potential rule violations.

One host on BiggerPockets reported being told by multiple DeKalb County officials that there were no STR regulations prior to purchasing a property, only to later receive an email from the Planning Department stating STRs are not allowed because there are no regulations in place. This host noted there are "hundreds of STRs presently listed on OTA sites" for DeKalb County that are collecting and remitting taxes, indicating many of these may not be fully compliant with county rules.

The existence of numerous DeKalb STR listings and the county's proposed ordinance to legalize and tax STRs suggests the county has not been strictly monitoring or enforcing STR restrictions thus far. The fact that the county is recommending a 4-month deferral on the new ordinance to gather feedback also points to some regulatory ambiguity and flux.

Compared to other jurisdictions in the Atlanta area that have clearer, stricter STR rules, like the City of Atlanta's 30-day rental limit and 2-property maximum, DeKalb County appears to be more of a gray area for STR hosts currently. The county seems to be playing catch-up on regulating the growing industry.

While DeKalb may not be overtly "Airbnb friendly" given its aim to restrict and tax STRs going forward, the current lack of clear enforcement has enabled many hosts to operate openly to date, though not without risk. The proposed regulations will likely drive more hosts into compliance once enacted, but for now, a number of STRs are functioning in the county despite the regulatory uncertainty.

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

Starting a short-term rental business in DeKalb County requires careful planning and compliance with the county's proposed regulations. Here are the key steps to get started:

1. Research the local STR regulations: DeKalb County is currently finalizing a new ordinance that will require STR operators to obtain a business license, register their property annually, pay an application fee, and collect an 8% excise tax on rental income. Stay informed about the ordinance's progress and requirements to ensure your business is compliant from the start.
2. Choose a suitable property: Consider factors like location, property type, and amenities that will appeal to your target guests. Look for properties in desirable areas near attractions, transportation, and amenities. Ensure the property is in a zone that allows STRs and meets any county requirements like parking and occupancy limits.
3. Prepare your property for guests: Make any necessary repairs, upgrades, and decorations to create an inviting space for guests. Invest in quality furniture, linens, and amenities. Consider hiring a professional photographer to showcase your property's best features in your listing.
4. Obtain necessary licenses and permits: Once the DeKalb STR ordinance is enacted, apply for your business license and STR permit with the DeKalb County Business License Division. Be prepared to pay the required application fees and provide documentation like proof of ownership and insurance.
5. Create your STR listing: Choose an STR platform like Airbnb or Vrbo to list your property. Craft a compelling listing description, use high-quality photos, and set competitive rates. Be transparent about your property's features, rules, and any unique selling points.
6. Establish your business operations: Set up a system for managing bookings, communicating with guests, handling payments, and coordinating cleaning and maintenance. Consider using STR software to automate tasks and streamline operations. Determine your policies for things like cancellations, house rules, and guest screening.
7. Market your STR: Promote your listing through the STR platform, social media, and other channels to attract guests. Encourage satisfied guests to leave reviews, which can boost your property's visibility and credibility. Consider offering special promotions or discounts during slower periods.
8. Comply with tax requirements: Once your STR is operational, be diligent about collecting and remitting the required 8% excise tax to DeKalb County. Maintain accurate records of your rental income and expenses for tax purposes. Consult with a tax professional to ensure you're meeting all your tax obligations.

Some additional tips for success:

1. Provide exceptional customer service to guests to earn positive reviews and repeat bookings
2. Be responsive to guest inquiries and issues to maintain a high rating on your STR platform
3. Stay up-to-date on any changes to DeKalb County's STR regulations and adapt your business as needed
4. Consider partnering with local businesses like tour operators or restaurants to offer unique experiences for your guests
5. Continuously improve your property and guest experience based on feedback and market trends

By following these steps and prioritizing compliance with DeKalb County's STR regulations, you can build a successful and sustainable short-term rental business.

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

For questions about short-term rental regulations, business licenses, and zoning in DeKalb County, contact the following departments:

DeKalb County Business License Division
330 W. Ponce de Leon Ave, 2nd Floor
Decatur, GA 30030
Phone: (404) 371-2461
Email: business.license@dekalbcountyga.gov
Website: http://www.dekalbcountyga.gov/planning-and-sustainability/business-and-alcohol-license

The Business License Division handles applications and renewals for business licenses, which will be required for short-term rentals under the proposed ordinance. They can provide information on the application process, fees, and requirements.

DeKalb County Department of Planning & Sustainability
178 Sams Street
Decatur, GA 30030
Main Phone: (404) 371-2155

• For Planning/Zoning, press Option 4
• For Business Licenses, press Option 5
• Email: PlanSustain@dekalbcountyga.gov
• Website: www.dekalbcountyga.gov/planning

The Department of Planning & Sustainability oversees zoning, permitting, and land use in DeKalb County. Contact them for questions about whether a property is zoned for short-term rentals and any other zoning restrictions that may apply.

Additional online resources for DeKalb County short-term rental hosts:

• DeKalb County's official page on the proposed short-term rental ordinance: https://engagedekalb.dekalbcountyga.gov/airbnb-dekalb-county
• DeKalb County Business License application forms and information: https://www.dekalbcountyga.gov/planning-and-sustainability/business-and-alcohol-license

Hosts can also connect with other local short-term rental operators and get advice through online forums and Facebook groups, such as:

• Atlanta Airbnb Hosts Facebook Group: https://www.facebook.com/groups/atlantaairbnbhosts/
• Atlanta Short-Term Rental Alliance: https://www.astraatl.org/
• Airbnb Atlanta Forum: https://community.withairbnb.com/t5/Atlanta/bd-p/atlanta

By contacting the relevant county departments and connecting with the local host community, short-term rental operators in DeKalb County can get the most up-to-date information on regulations and resources to run a compliant business.

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

Discussions among Airbnb hosts on forums like Reddit and BiggerPockets reveal mixed experiences and confusion regarding short-term rental regulations in DeKalb County. Here are some insights from local hosts:

Inconsistent Information from County Officials

• In a BiggerPockets thread titled "Any STR hosts in Dekalb county, GA?", one host shared their frustrating experience:
• "Prior to purchasing I was told by multiple officials in Dekalb county office that there are no STR regs for Dekalb county... Problem is, now that I own the house... I was told via email from the Planning Department that because there are no regulations for STRs, STRs are NOT ALLOWED."
• This highlights the lack of clear, consistent guidance from county officials on the legality of short-term rentals.

Lengthy and Confusing Permitting Process

• A Reddit user in the r/Atlanta subreddit described the arduous process of obtaining a short-term rental permit in the city of Atlanta:
• "I rent out my basement via Airbnb. I will say it's a mess of a process. I've been applying since the end of February and still haven't gotten my license... It's a mess and you can never get a hold of anyone for help or questions."
• While this comment pertains to the city of Atlanta rather than unincorporated DeKalb County, it suggests that navigating the permitting process can be challenging for hosts in the area.

Concerns about the Impact on Housing Affordability

• In the same Reddit thread, some users expressed concerns about the proliferation of short-term rentals and their effect on local housing prices:
• "This sub section of the real estate market is out of control. I know, around where I live someone built two 2000-3000 Sq ft homes for the sole purpose of airbnb right next to each other and they're planning on building two more in the lot next door. It's craven and ridiculous."
• This sentiment reflects broader debates about the impact of short-term rentals on housing affordability and neighborhood character.

Overall, the experiences shared by DeKalb County hosts on these forums paint a picture of regulatory uncertainty and frustration. Many hosts seem to be operating in a gray area due to the lack of clear, enforced rules. As the county works to finalize its short-term rental ordinance, hosts are anxiously waiting for more definitive guidance on how to comply with local regulations.

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.