Mississippi Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Mississippi

Starting a short-term rental business in Mississippi requires careful consideration of state and local regulations. While Mississippi does not have statewide laws specifically governing short-term rentals like Airbnb and VRBO, individual cities and counties have implemented their own rules.

To begin operating a short-term rental in Mississippi, hosts should:

• Check local zoning laws and ordinances to ensure short-term rentals are permitted in their area.
• Obtain any required permits or licenses from their city or county.
• Register with the Mississippi Department of Revenue to collect and remit state sales tax.
• Secure appropriate insurance coverage for short-term rental properties.
• Comply with safety regulations like installing smoke detectors and fire extinguishers.

For example, in Gulfport, hosts must obtain a short-term rental permit from the city before listing their property. The permit application requires proof of liability insurance, a safety inspection, and adherence to occupancy limits. Gulfport has also implemented caps on the number of short-term rentals allowed in certain zones to maintain neighborhood character.

Similarly, Ocean Springs requires hosts to register their short-term rentals and limits the total number of residential permits to 115 citywide. The city has established different regulations for three zones - the citywide zone, Short-Term Rental Density zone, and Downtown Overlay District zone.

It's important for hosts to thoroughly research the specific requirements in their location, as regulations can vary significantly between municipalities in Mississippi. Consulting with local officials or a real estate attorney familiar with short-term rental laws is advisable when starting this type of business in the state.

Short-Term Rental Licensing Requirements in Mississippi

While Mississippi does not have statewide licensing requirements for short-term rentals, many municipalities have implemented their own licensing and permitting processes. Here's an overview of the typical requirements based on examples from cities like Natchez and Ocean Springs:

Special Use Permit: Most cities require hosts to obtain a Special Use Permit before operating a short-term rental.

Zoning Compliance: Short-term rentals are often only allowed in specific zoning districts. For example, in Natchez, they are permitted in VR, RE, R-1, R-2, R-3, and R-3HD residential zoning districts.

Application Submission: Hosts must submit a detailed application to the city's Planning Department, including:

1. Property owner information
2. Local property manager contact details
3. Site plan
4. Floor plan
5. Parking plan
6. Proof of insurance
7. Safety inspection documentation

Insurance: Many cities require hosts to maintain liability insurance. For instance, Gulfport mandates a minimum coverage of $500,000 per occurrence.

Safety Requirements: Properties must meet specific safety standards, including installation of fire extinguishers, smoke detectors, and carbon monoxide detectors.

Neighbor Notification: Some cities require hosts to notify adjacent property owners of their intent to operate a short-term rental.

Business License: After obtaining a Special Use Permit, hosts typically need to secure a business or privilege license from the city.

Tax Registration: Hosts must register with the Mississippi Department of Revenue to collect and remit state sales tax.

Submission and Fees:

1. Applications are usually submitted to the city's Planning Department or Community Development office.
2. Fees vary by city. For example:
   - Natchez: $200 non-refundable permit fee per unit, with a $50 annual renewal fee.
   - Ocean Springs: $501 application fee per permit.

Processing Time:

The process duration can vary significantly depending on the city and the completeness of the application. It typically involves:

1. Application review by the Planning Department
2. Placement on the Planning Commission agenda
3. Public hearing (for new permits in some cities)
4. Approval by the Board of Aldermen (in some cases)
5. This process can take several weeks to a few months.

Fines and Penalties:

Operating without a license can result in significant penalties. For example, in Natchez:

1. A monthly fine of $500 per unit for non-compliance
2. Fines for violations can range from $1,000 for the first offense to $5,000 for subsequent offenses within a calendar year

It's crucial for hosts to research and comply with their specific local regulations, as requirements and penalties can vary significantly between municipalities in Mississippi. Failure to obtain proper licensing and permits can result in fines, permit revocation, and potential legal issues.

Required Documents for Mississippi Short-Term Rentals

The specific documents required for short-term rentals in Mississippi vary by municipality. However, based on ordinances from cities like Jackson and Ocean Springs, the following documents are commonly required:

Rental Registration Application: This form, provided by the city's Planning Department or Community Development office, collects essential information about the property, owner, and local agent. It serves as the initial step in the registration process.

Site Plan: A detailed site plan showing the location of the rental unit, parking spaces, and any other relevant features is often required. This helps ensure compliance with zoning and parking requirements.

Floor Plan: A floor plan of the rental unit is necessary to verify occupancy limits and ensure compliance with building codes.

Proof of Insurance: Many cities, such as Gulfport, require hosts to maintain liability insurance with a minimum coverage amount. Proof of this insurance must be submitted with the application.

Safety Inspection Documentation: Rental units must pass a safety inspection to ensure they meet requirements for fire extinguishers, smoke detectors, and carbon monoxide detectors. Documentation of a successful inspection is required.

Property Deed or Lease Agreement: Proof of ownership or the right to sublease the property is necessary to establish the applicant's legal authority to operate a short-term rental.

Local Agent Designation Form: If the owner does not reside locally, they must designate a local agent who can respond to issues 24/7. A form identifying this agent and their contact information is required.

Neighbor Notification Proof: Some cities, like Ocean Springs, require hosts to notify adjacent property owners of their intent to operate a short-term rental. Proof of this notification must be provided.

State Tax License: Hosts must register with the Mississippi Department of Revenue to collect and remit state sales tax. A copy of the tax license is required.

These documents are typically submitted to the city's Planning Department or Community Development office along with the applicable fees. The specific requirements and forms can usually be found on the city's official website or obtained directly from the relevant department.

It's crucial for hosts to carefully review their local ordinances and contact their city officials for the most up-to-date and accurate information on required documents for short-term rentals in their area.

Mississippi Short-Term Rental Taxes

Short-term rental operators in Mississippi are subject to various taxes at the state and local levels. Understanding and complying with these tax obligations is crucial for running a legal and successful short-term rental business. Here's a breakdown of the primary taxes that apply:

State Sales Tax: Mississippi imposes a 7% state sales tax on the gross proceeds from short-term rentals, including any cleaning fees. This tax applies to all short-term rentals throughout the state.

Local Tourism and Economic Development Taxes: Many municipalities in Mississippi levy additional taxes on short-term rentals to fund tourism and economic development initiatives. These rates vary by locality. For example:

1. Biloxi: 3% tax on hotel and motel room rentals
2. Brandon: 3% tax on hotel and motel room rentals
3. Booneville: 2% tax on hotel and motel room rentals
4. Byram: 2% tax on hotel and motel room rentals

County-Level Taxes: Some counties impose their own taxes on short-term rentals. For instance, Coahoma County levies a 2% tax on hotel and motel room rentals.

Occupancy Taxes: Certain cities may have specific occupancy taxes for short-term rentals. These are often collected and remitted by platforms like Airbnb on behalf of hosts.

It's important to note that tax rates and regulations can vary significantly between municipalities in Mississippi. Short-term rental operators should check with their local tax authorities for the most up-to-date and accurate information specific to their area.

Possible Write-offs and Deductions

Short-term rental hosts in Mississippi may be eligible for various tax deductions to offset their rental income. Some common deductions include:

1. Depreciation: Allows you to deduct the cost of your rental property over time.
2. Mortgage Interest: Interest paid on a mortgage for the rental property is typically deductible.
3. Property Taxes: Annual property taxes can be deducted as a business expense.
4. Cleaning and Maintenance: Expenses for cleaning services and property maintenance are deductible.
5. Utilities: Costs for utilities like electricity, water, and internet can be deducted if paid by the host.
6. Insurance Premiums: Insurance costs related to the rental property are deductible.
7. Marketing Expenses: Costs associated with advertising your rental can be written off.
8. Furnishings and Supplies: Expenses for furniture, linens, and other supplies for guests are deductible.
9. Platform Fees: Commissions and fees paid to rental platforms like Airbnb or VRBO are tax-deductible.
10. Travel Expenses: If you travel to manage or maintain your rental property, these expenses may be deductible.

It's crucial for short-term rental operators to keep detailed records of all income and expenses related to their rental business. Consulting with a tax professional familiar with short-term rental regulations in Mississippi can help ensure you're maximizing your deductions while remaining compliant with state and local tax laws.

Does Mississippi Strictly Enforce STR Rules?

Based on discussions among Airbnb hosts on platforms like Bigger Pockets and Reddit, it appears that Mississippi's enforcement of short-term rental regulations varies by municipality, with some cities being stricter than others. However, the general consensus is that Mississippi is not particularly Airbnb-friendly compared to other states, and the regulatory landscape can be challenging for hosts to navigate.

Cities like Gulfport and Ocean Springs have implemented specific regulations and increased enforcement efforts to address community concerns related to short-term rentals. Gulfport, for example, has hired additional code enforcement officers and utilizes software to identify properties operating outside of permitted zoning districts. This suggests a more proactive approach to enforcement in these areas.

On the other hand, some hosts on Bigger Pockets have mentioned that enforcement can be inconsistent, with some properties operating under the radar without facing penalties. This may be due to limited resources for enforcement or the difficulty in identifying all non-compliant properties.

Despite the challenges posed by regulations, many hosts continue to operate short-term rentals in Mississippi, recognizing the potential benefits while attempting to navigate the complex legal landscape. Some hosts have found success by working closely with their local planning departments, maintaining open communication with neighbors, and strictly adhering to all requirements.

However, the overall sentiment among hosts on these platforms is that Mississippi's regulatory environment is not particularly friendly to Airbnb and other short-term rental platforms. The state's regulations are seen as more restrictive compared to other cities and states, which can make it difficult for hosts to operate profitably and legally.

In conclusion, while enforcement of short-term rental rules may vary across Mississippi, the state is generally considered less Airbnb-friendly compared to other areas. Hosts do continue to operate despite the challenges posed by regulations, but they must be diligent in complying with local requirements and maintaining positive relationships with their communities to minimize the risk of penalties and ensure the long-term viability of their businesses.

How to Start a Short-Term Rental Business in Mississippi

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

Research local regulations: Thoroughly review your city and county's short-term rental ordinances to understand zoning restrictions, permit requirements, occupancy limits, and safety standards. For example, in Natchez, short-term rentals are only allowed in specific residential zoning districts like VR, RE, R-1, R-2, R-3, and R-3HD.

Tip: Contact your local planning department for guidance on navigating the regulatory landscape and to ensure compliance from the start.

Obtain necessary permits: Apply for a Special Use Permit or similar authorization required by your municipality. In Natchez, operating without a permit can result in monthly fines of $500 per unit1. Gather required documents like site plans, floor plans, parking plans, and proof of insurance for your application.

Tip: Begin the permit process early, as it may involve public hearings and approvals from planning commissions or city councils.

Ensure zoning compliance: Verify that your property is located in a zoning district that allows short-term rentals. Some cities, like Ocean Springs, have caps on the number of permits issued in certain zones.

Tip: Use municipal GIS maps or consult with zoning officials to confirm your property's eligibility.

Implement safety measures: Install required safety features like smoke detectors, carbon monoxide detectors, fire extinguishers, and emergency egress. Schedule necessary inspections to certify compliance with building and fire codes.

Tip: Maintain a detailed safety checklist to ensure your property remains compliant over time.

Secure appropriate insurance: Obtain liability insurance that specifically covers short-term rental operations. Cities like Gulfport require a minimum coverage of $500,000 per occurrence.

Tip: Work with an insurance provider experienced in short-term rental policies to ensure adequate protection.

Register for taxes: Register with the Mississippi Department of Revenue to obtain a sales tax license. You'll be responsible for collecting and remitting state sales tax (7%) and any applicable local tourism or occupancy taxes.

Tip: Use tax automation software or work with a tax professional to streamline compliance and maximize deductions.

Prepare your property: Furnish and equip your rental to provide a safe, comfortable, and inviting experience for guests. Develop a comprehensive rental agreement, house rules, and parking plan to include with your permit application and to share with guests.

Tip: Highlight unique amenities and local attractions in your listing to stand out in the market.

Establish a local contact: Designate a local contact person who can respond to guest issues and emergencies 24/7, as required by many municipalities. This can be yourself, a property manager, or a professional management company.

Tip: Provide clear communication channels and response protocols to ensure prompt issue resolution.

List your property: Once you've obtained all necessary permits and certifications, create a compelling listing on platforms like Airbnb or VRBO. Use high-quality photos, detailed descriptions, and competitive pricing to attract bookings.

Tip: Encourage satisfied guests to leave reviews to build trust and credibility with future visitors.

Monitor and adapt: Stay informed about changes to local short-term rental regulations and be prepared to adapt your operations accordingly. Regularly review your performance metrics and guest feedback to identify areas for improvement.

Tip: Join local host communities or industry associations to stay connected and share best practices with fellow operators.

By following these steps and prioritizing compliance, safety, and guest satisfaction, you'll be well-positioned to launch and grow a successful short-term rental business in Mississippi.

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

In Mississippi, short-term rental regulations are primarily managed at the local level. Therefore, the best point of contact will depend on the specific city or county where you plan to operate your rental. However, here are some key contacts and resources for short-term rental hosts in Mississippi:

Mississippi Department of Revenue

1. For tax registration and general inquiries
2. Phone: 601-923-7700
3. Website: https://www.dor.ms.gov/

City of Gulfport Planning Division

1. For Gulfport-specific regulations and permits
2. Address: 2309 15th Street, Gulfport, MS 39501
3. Phone: (228) 868-5710
4. Email: planning@gulfport-ms.gov

Ocean Springs Planning Department

• For Ocean Springs-specific regulations and permits
• Phone: 228-875-4415
• Website: https://www.oceansprings-ms.gov/191/Short-Term-Rental-Information

Jackson City Planning Department

• For Jackson-specific regulations and permits
• Phone: 601-960-1671
• Email: planning@jacksonms.gov

For hosts looking to connect with other short-term rental operators or stay informed about regulations, the following communities and resources may be helpful:

Mississippi Gulf Coast Airbnb Hosts Facebook Group

• A community for hosts to share experiences and advice
• https://www.facebook.com/groups/1015291748836893/

BiggerPockets Real Estate Forums

• Discussions on short-term rentals, including Mississippi-specific topics
• https://www.biggerpockets.com/forums/311

Mississippi Hospitality and Restaurant Association

• While primarily for traditional hospitality businesses, they may offer insights on tourism-related regulations
• Website: https://www.msra.org/
• Phone: 601-420-4242

Remember to always verify the most current contact information and regulations with your local city or county government, as these can change over time. It's also advisable to consult with a local real estate attorney or tax professional familiar with short-term rental regulations in Mississippi to ensure full compliance with all applicable laws and ordinances.

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

Based on discussions from online forums and social media platforms, Airbnb hosts in Mississippi have expressed mixed opinions about local short-term rental regulations. Here are some insights from real hosts:

On a Bigger Pockets forum thread about Mississippi real estate investing, one host from Gulfport shared:

"The regulations here can be frustrating. We had to jump through hoops to get our short-term rental permit, including notifying all neighbors within 300 feet. But once we got it, it's been smooth sailing. The city seems to be cracking down on unpermitted rentals, which is actually good for those of us playing by the rules."

A Reddit user on r/airbnb_hosts commented about their experience in Ocean Springs:

"Ocean Springs has a cap on the number of STR permits they issue. We were lucky to get one before they reached the limit. Now there's a waiting list. It's made our property more valuable, but I feel for those who can't get in."

On a Facebook group for Mississippi Gulf Coast Airbnb Hosts, one member posted:

"The new regulations in Biloxi are tough, but I understand why they're needed. We've had issues with party houses in residential neighborhoods. The noise monitoring requirement is actually helping us avoid complaints from neighbors."

A host from Natchez shared on the Airbnb Community Center forum:

"Natchez has been pretty welcoming to short-term rentals. We have to get a special use permit and pay a $200 fee, but it's not as restrictive as some other cities. The historic district has some additional rules, but they're manageable if you're committed to preserving the character of the area."

These real-life experiences highlight the diverse regulatory landscape across Mississippi's cities and the varying perspectives of hosts operating within these frameworks. While some find the regulations challenging, others appreciate the structure they provide in managing the growth of short-term rentals in their communities.

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 area 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.