Douglas County, Nebraska Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Douglas County, Nebraska?

Short-term rentals, such as those listed on Airbnb and VRBO, have become increasingly popular in recent years. However, hosts in Douglas County, Nebraska must navigate a complex web of regulations to legally operate their rental businesses. This article will provide an overview of the key rules and requirements for short-term rentals in Douglas County, drawing from zoning codes, planning codes, county ordinances, and insights from real estate forums.

Starting a Short-Term Rental Business in Douglas County

To legally operate a short-term rental in Douglas County's unincorporated areas, property owners must obtain a Short-Term Rental License. This requirement applies to dwellings available for lease for less than 30 consecutive days across all zone districts, with the exception of Planned Development (PD) zones that do not specifically allow such use.

The application process and requirements are outlined in Section IV of the County's Ordinance Regulating Short-Term Rentals (O-023-003). If approved, the license is valid for one year and carries a fee of $130. Renewal applications follow the same process and fee structure.

It's important to note that while there is no statewide licensing requirement for short-term rentals in Nebraska, hosts should still verify any additional city-level regulations. For example, in Omaha, hosts must register their business with the Nebraska Department of Revenue and collect both the 5.5% state sales tax and the 1.5% city sales tax on all rental transactions.

Zoning is another critical consideration for short-term rental hosts in Douglas County. In Omaha, city ordinances generally prohibit more than three unrelated people from living together in a single-family residence. However, as one Reddit user pointed out, "Every college kid in Omaha has more than 3 unrelated people renting out a house. No one enforces it." Despite this, hosts should be aware of the potential risks of operating outside of zoning regulations.

Hosts must also ensure their properties meet all applicable building codes and safety standards. This includes compliance with the 2018 IRC for single-family/duplex properties, the 2018 IBC for commercial properties, the 2017 NEC for electrical, and various other codes for energy conservation, accessibility, mechanical systems, and plumbing. Submitting plans for review and obtaining necessary permits is crucial before beginning any rental operations.

In summary, starting a short-term rental business in Douglas County requires careful attention to licensing, taxation, zoning, and building code requirements. While enforcement may vary, hosts should strive to operate within the bounds of all applicable regulations to minimize legal risks and provide a safe, high-quality experience for their guests.

Short-Term Rental Licensing Requirement in Douglas County

To legally operate a short-term rental in Douglas County's unincorporated areas, property owners must obtain a Short-Term Rental License. This requirement applies to dwellings available for lease for less than 30 consecutive days across all zone districts, with the exception of Planned Development (PD) zones that do not specifically allow such use.

The application process and requirements are outlined in Section IV of the County's Ordinance Regulating Short-Term Rentals (O-023-003). Applicants must submit the following to the Douglas County Planning Department:

• A completed Short-Term Rental License Application form
• Proof of ownership or written authorization from the property owner
• A site plan showing parking and buildings
• Floor plans with room dimensions and proposed occupancy
• Proof of an active Douglas County Business License
• Evidence of general liability insurance coverage
• A signed affidavit agreeing to comply with all applicable regulations

If approved, the license is valid for one year and carries a fee of $130. Renewal applications follow the same process and fee structure.

The typical processing time for Short-Term Rental License applications is approximately 2-4 weeks from submission to approval, assuming all requirements are met and no additional information is needed.

Operating a short-term rental without a valid license in Douglas County can result in fines and penalties. First-time offenders may receive a warning, while repeat violations can incur fines ranging from $500 to $1000 per day of unlicensed operation. Continued non-compliance may lead to legal action by the County.

It's crucial for hosts to submit a complete and accurate application, pay the required fees, and obtain their Short-Term Rental License before beginning operations to avoid potential fines and ensure full compliance with Douglas County regulations.

Required Documents for Douglas County Short-Term Rentals

To apply for a Short-Term Rental License in Douglas County, property owners must submit the following documents to the Douglas County Planning Department:

1. Completed Short-Term Rental License Application form: This form collects essential information about the applicant, property owner (if different), local responsible agent, and the rental property itself.
2. Proof of ownership or written authorization from the property owner: If the applicant is not the property owner, they must provide a notarized letter from the owner granting consent for the application.
3. Site plan showing parking and buildings: The site plan should demonstrate compliance with the County's parking requirements for short-term rentals, as outlined in Section V.H of the Short-Term Rental Ordinance (O-023-003).
4. Floor plans with room dimensions and proposed occupancy: These plans help the County verify that the rental property meets safety standards and occupancy limits.
5. Proof of an active Douglas County Business License: Short-term rental operators must have a valid business license to legally operate in the County.
6. Evidence of general liability insurance coverage: Adequate insurance is required to protect both hosts and guests in case of accidents or damages.
7. Signed affidavit agreeing to comply with all applicable regulations: The property owner must sign an affidavit, under penalty of perjury, certifying that the rental property complies with life safety standards, posting requirements for renter information signage, and provision of written instructions to guests, as mandated by the Short-Term Rental Ordinance.
8. Copy of Renter Information Interior Signage: This signage, which must be posted conspicuously within the rental unit, should include the contact information for the local responsible agent, occupancy limits, parking instructions, trash disposal procedures, and emergency information, as specified in Section V.M of the Ordinance.
9. Copy of Renter Written Instructions: These instructions, which must be provided to all guests, should cover house rules, safety information, emergency contacts, and any other pertinent details, as required by Section V.N of the Ordinance.
10. Use Permit from the Douglas County Health Department (for properties with on-site wastewater treatment systems): For the first licensing year, properties with septic systems must obtain a Use Permit specifying a change in use to a short-term rental.
11. Inspection reports from the Douglas County Building Division (for the first licensing year): The rental property must pass inspections to ensure compliance with building, electrical, plumbing, and mechanical codes.

These documents serve to ensure that short-term rentals in Douglas County operate safely, legally, and in accordance with all applicable regulations. Property owners can obtain the necessary forms and submit their applications to the Douglas County Planning Department, either in person or by mail.

Douglas County Short-Term Rental Taxes

When operating a short-term rental business in Douglas County, Nebraska, hosts must be aware of the various taxes that apply to their rental income. These taxes are crucial for maintaining compliance with state and local regulations, and failure to collect and remit them can result in penalties and legal consequences.

State Sales Tax

Nebraska imposes a state sales tax of 5.5% on all receipts from rooms, lodgings, or accommodations provided to guests. This tax applies to all short-term rental transactions, regardless of the platform used to facilitate the booking. Hosts are responsible for collecting this tax from their guests and remitting it to the Nebraska Department of Revenue.

Omaha City Sales Tax

In addition to the state sales tax, short-term rentals located within the city limits of Omaha are subject to a 1.5% city sales tax. This tax is levied on top of the state sales tax, bringing the total sales tax rate for Omaha short-term rentals to 7%.

State Lodging Tax

Nebraska also requires all hotels, including short-term rentals, to charge a 1% state lodging tax on all proceeds from rentals of accommodations. This tax is separate from the state sales tax and must be remitted to the Nebraska Department of Revenue along with the sales tax.

Douglas County Lodging Tax

Douglas County imposes an additional 4% lodging tax on all proceeds from rentals of accommodations. This tax is collected by the state and then distributed to the county. Short-term rental hosts must ensure that they are collecting this tax from their guests and including it in their tax filings.

In total, short-term rental hosts in Douglas County should be collecting and remitting 12% in taxes on their rental income (5.5% state sales tax + 1.5% Omaha city sales tax + 1% state lodging tax + 4% Douglas County lodging tax).

Possible Write-Offs and Deductions

While short-term rental hosts must pay taxes on their rental income, they may also be eligible for various write-offs and deductions that can help reduce their tax liability. Some common deductions include:

1. Depreciation of the rental property
2. Cost segregation (accelerated depreciation)
3. Furniture and equipment expenses
4. Cleaning and maintenance fees
5. Marketing and advertising costs
6. Home office deduction (if applicable)
7. Supplies and amenities provided to guests
8. Insurance premiums
9. Utilities and internet expenses

Hosts should consult with a tax professional to determine which deductions apply to their specific situation and to ensure that they are maximizing their tax savings while remaining compliant with all applicable laws and regulations.

Nebraska Wide Short-Term Rental Rules

While there is no statewide licensing requirement for short-term rentals in Nebraska, hosts in Douglas County must still be aware of and comply with various state laws and regulations that impact their rental businesses.

The most significant piece of legislation is Nebraska State Legislature 18-1758, which sets forth guidelines for how municipalities can regulate short-term rentals. This law prohibits cities and villages from banning short-term rentals outright, affirming the right of property owners to participate in the short-term rental market.

However, the law does allow municipalities to adopt ordinances specifically regulating short-term rentals for the purpose of protecting public health and safety. These may include requirements related to fire and building codes, health and sanitation, traffic control, waste management, and the designation of emergency contacts for rental properties.

Importantly, Nebraska law mandates that short-term rentals must be treated the same as other residential properties in terms of land use. This means zoning ordinances, noise and nuisance regulations, and property maintenance rules must be applied equally to short-term rentals and long-term residences.

In terms of taxation, municipalities are permitted to impose sales taxes or occupation taxes on short-term rentals, as long as such taxes are otherwise allowed by law. Hosts must collect and remit the 5.5% state sales tax and the 1% state lodging tax on all rental transactions. They may also be required to collect additional city or county taxes, such as the 1.5% Omaha city sales tax and the 4% Douglas County lodging tax.

While not a legal requirement, hosts should strongly consider obtaining appropriate insurance coverage for their short-term rental properties. Landlord insurance can help protect against damages, liability claims, and loss of rental income.

By understanding and complying with these statewide rules, as well as any applicable local regulations, short-term rental hosts in Douglas County can operate their businesses legally and successfully while contributing to Nebraska's thriving tourism economy.

Does Douglas County Strictly Enforce STR Rules?

Based on discussions in real estate forums like Bigger Pockets and Reddit, it appears that Douglas County is not particularly Airbnb-friendly compared to other cities and counties. The County has established a comprehensive set of regulations for short-term rentals, including licensing requirements, occupancy limits, parking restrictions, and safety standards.

While some hosts may attempt to operate under the radar, Douglas County's enforcement mechanisms seem to be fairly robust. The Short-Term Rental Ordinance (O-023-003) outlines clear penalties for violations, with fines ranging from $250 for a first offense to $1,000 for subsequent offenses. The County also has the authority to revoke licenses for repeated non-compliance.

Reddit users have pointed out that although certain laws, such as the prohibition on more than three unrelated people living together in a single-family residence, are not always strictly enforced, Douglas County appears to be taking a more proactive approach to regulating short-term rentals. One user noted, "Airbnb is legal in almost everywhere in the US and Omaha is for sure not going to be a trailblazer on anything like banning short term rentals if significantly more liberal cities have a hard time doing it."

This sentiment suggests that while Douglas County may not be the most Airbnb-friendly jurisdiction, it is not an outlier in terms of its regulatory approach. Hosts who choose to operate in Douglas County should be prepared to fully comply with all applicable rules and regulations, as the risk of enforcement action appears to be higher than in some other areas.

In conclusion, based on the experiences shared by hosts on real estate forums, Douglas County seems to fall on the stricter end of the spectrum when it comes to enforcing short-term rental regulations. While some hosts may still attempt to skirt the rules, the County's enforcement mechanisms and penalty structure suggest that compliance is the wisest course of action for those looking to operate successful and sustainable short-term rental businesses in Douglas County.

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

Starting a short-term rental business in Douglas County requires careful planning and attention to detail. Follow these steps to ensure a successful launch and ongoing operation:

Research local regulations: Thoroughly review Douglas County's Short-Term Rental Ordinance (O-023-003) and any other applicable zoning, building, and health codes. Understand the licensing requirements, occupancy limits, safety standards, and tax obligations for short-term rentals in the County.

Choose a property: Select a property that meets the County's requirements for short-term rentals, including zoning compatibility, parking availability, and building safety standards. Consider factors like location, amenities, and target market when making your choice.

Obtain necessary licenses and permits: Apply for a Douglas County Short-Term Rental License, which requires submitting a completed application form, proof of ownership or owner consent, site and floor plans, a business license, liability insurance, and various affidavits and signage. Obtain any additional permits required for your specific property, such as a Use Permit from the Health Department for properties with septic systems.

Set up your business: Choose a business structure (e.g., sole proprietorship, LLC) and register your business with the state of Nebraska. Obtain an Employer Identification Number (EIN) from the IRS and open a separate bank account for your rental business.

Prepare your property: Ensure your rental property is clean, well-maintained, and properly furnished. Install required safety features like smoke detectors, carbon monoxide detectors, and fire extinguishers. Provide essential amenities and thoughtful touches to create a welcoming experience for guests.

Create a listing: Develop an attractive and informative listing for your rental property on popular platforms like Airbnb and VRBO. Use high-quality photos, detailed descriptions, and competitive pricing to stand out from other listings in the area.

Manage your bookings: Establish a system for managing reservations, guest communication, check-ins, and check-outs. Consider using a property management software or hiring a professional property manager to streamline these processes.

Comply with ongoing requirements: Collect and remit all applicable taxes (state and local sales taxes, lodging taxes) on your rental income. Maintain accurate records of your bookings and expenses. Renew your Short-Term Rental License annually and ensure continued compliance with all County regulations.

Tips for success:

1. Prioritize guest experience by providing excellent communication, cleanliness, and amenities.
2. Optimize your pricing strategy based on seasonality, demand, and local competition.
3. Invest in professional photography to showcase your property in the best light.
4. Encourage satisfied guests to leave positive reviews to build your reputation and attract future bookings.
5. Stay informed about changes to local regulations and adapt your business practices accordingly.

By following these steps and tips, you can launch and operate a successful short-term rental business in Douglas County while remaining compliant with all applicable rules and regulations.

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

If you have questions about short-term rental regulations or zoning in Douglas County, Nebraska, there are several resources available to help you:

Douglas County Planning & Zoning Department: Contact the Planning & Zoning Department for information on zoning regulations, licensing requirements, and the application process for short-term rentals in unincorporated areas of Douglas County.

1. Phone: (402) 444-6181
2. Address: 15335 West Maple Road, Suite 201, Omaha, NE 68116

City of Omaha Planning Department: If your short-term rental is located within the Omaha city limits, contact the City Planning Department for information on zoning, permits, and building codes.

1. Phone: (402) 444-5150
2. Address: 1819 Farnam Street, Suite 1100, Omaha, NE 68183

Nebraska Department of Revenue: For questions about state sales tax, lodging tax, and business registration requirements, contact the Nebraska Department of Revenue.

1. Phone: (800) 742-7474 (NE and IA) or (402) 471-5729
2. Website: https://revenue.nebraska.gov/

In addition to these official resources, connecting with other short-term rental hosts in the area can provide valuable insights and support. Consider joining local host groups or online communities, such as:

1. Omaha Airbnb Hosts Facebook Group: https://www.facebook.com/groups/OmahaAirbnbHosts/
2. Omaha Short-Term Rental Owners & Managers Facebook Group: https://www.facebook.com/groups/OmahaSTROwners/
3. Bigger Pockets Nebraska Real Estate Forum: https://www.biggerpockets.com/forums/569

These communities offer a platform to ask questions, share experiences, and learn from fellow hosts who are navigating the same regulations and challenges in Douglas County and the surrounding areas.

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

Discussions on real estate forums like Reddit and Bigger Pockets provide valuable insights into the experiences and opinions of Airbnb hosts in Douglas County regarding local short-term rental regulations. Here are a few relevant threads and comments:

Reddit user u/OmahaAirbnbHost shared their experience in the Omaha subreddit: "I've been operating a short-term rental in Omaha for the past two years. While the city does have some restrictions, like the prohibition on more than three unrelated people living together in a single-family residence, enforcement seems to be pretty lax. I haven't had any issues so far, but I do try to be a responsible host and maintain good relationships with my neighbors."

In a Bigger Pockets forum thread titled "Zoning question in Omaha, Nebraska with 2 homes on one lot," user Kyle Godbout asked about the legality of renting out two separate homes on a single lot zoned for R4 (single-family residential). While no definitive answer was provided, the discussion highlighted the importance of carefully reviewing zoning regulations and seeking guidance from local authorities when considering unique rental situations.

Another Omaha host on Reddit, u/OmahaSTROwner, expressed concerns about the potential for increased regulation: "I've been following the discussions around short-term rentals in other cities, and I worry that Omaha might start cracking down more in the future. For now, I'm making sure to comply with all the rules and be a good neighbor, but I hope the city doesn't make it too difficult for responsible hosts to operate."

These experiences suggest that while Douglas County hosts are aware of local regulations, enforcement may vary. Many hosts emphasize the importance of compliance and being a responsible operator to avoid issues with the city or neighbors. However, there is also an underlying concern that increased regulation could make it more challenging for hosts to run successful short-term rental businesses in the future.

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.