What are Short-Term Rental (Airbnb, VRBO) Regulations in Wyoming?

Short-term rental regulations in Wyoming vary by city and county, with most rules found in local zoning codes, planning codes, and ordinances. Here's an overview of the current landscape for Airbnb and VRBO hosts in the Cowboy State.

Starting a Short-Term Rental Business in Wyoming

Before launching a short-term rental business in Wyoming, it's crucial to understand the local regulations in your specific area. The city of Cheyenne currently lacks specific short-term rental regulations, giving property owners more flexibility in offering homes as Airbnbs. However, hosts should still be mindful of broader safety and tax regulations.

In contrast, the town of Jackson requires short-term rental hosts to secure a Basic Use Permit and short-term rental license. Cody bases its regulations on zoning districts, requiring registration and lodging tax payments.

At the state level, Wyoming legislates a uniform 4% vacation rental sales tax and 5% lodging tax on all short-term rentals. Hosts must register and collect these taxes.

Wyoming-wide Short-Term Rental Rules

Wyoming has adopted regulations that effectively prohibit short-term rentals in residential districts, defining them as rentals under 27 days. This limits where short-term rentals can be operated.

The new section added to the city code prohibits short-term rentals in all of Wyoming's residential districts. It includes a handful of exceptions, such as for occupancy by family members, prior owners, personal representatives, and house sitters. Campgrounds, hotel rooms, transitional housing, group homes, and health facilities are also not included in the definition of short-term rentals. This broad definition and prohibition may impact a significant number of properties in the city.

By prohibiting short-term rentals in all residential areas, the city may be limiting the options available to travelers looking to stay in Wyoming. This could lead to higher prices for hotel rooms and other accommodations, as well as a potential decrease in tourism revenue for the city.

Short-Term Rental Licensing Requirements in Wyoming

Wyoming does not have a statewide short-term rental licensing requirement. Instead, the licensing and permitting process is handled at the local level by individual cities and counties.

For example, in Teton County, short-term rental operators must obtain a permit from the Teton County Planning & Development Department. The application requires a floor plan, parking plan, and proof of ownership or lease agreement. There is a $100 application fee, and permits must be renewed annually for $50.

The city of Cody requires short-term rental operators to register their property and obtain a business license from the City Clerk's office. The application includes a $50 fee, and licenses must be renewed annually.

In Cheyenne, there are currently no specific licensing requirements for short-term rentals. However, operators are still required to register with the Wyoming Department of Revenue and collect applicable sales and lodging taxes.

Failure to comply with local licensing and permitting requirements can result in fines and penalties. In Teton County, operating a short-term rental without a permit can lead to a fine of up to $750 per day. Repeat violations may result in misdemeanor charges.

It's important for short-term rental operators to check with their local city or county government to determine the specific licensing and permitting requirements in their area. The process and fees can vary widely across the state.

To apply for a short-term rental license, contact your local planning department or city clerk's office. They will provide the necessary application forms and information on submitting the required documents and fees. The approval process typically takes several weeks, so it's best to apply well in advance of your planned rental start date.

Required Documents for Wyoming Short-Term Rentals

The specific documents required for operating a short-term rental in Wyoming vary by city and county. However, there are some common documents that hosts may need to provide:

• Basic Use Permit (BUP): In some areas like Jackson, a BUP is required to ensure the intended use of the property meets parking and building code standards. Hosts must apply for this permit through the town's Planning Department before applying for a short-term rental license.
• Short-Term Rental License: Many cities, such as Jackson, require hosts to obtain an annual short-term rental license from the Finance Department. The application typically includes proof of neighbor notification, compliance with building and fire codes, and the approved BUP.
• Sales Tax License: Hosts must register with the Wyoming Department of Revenue for a sales tax license to collect and remit the required state sales tax (4%) on short-term rentals.
• Lodging Tax Registration: Short-term rentals are considered lodging facilities in Wyoming and must register to pay the state lodging tax (5%). This registration is also handled through the Wyoming Department of Revenue.
• Zoning Verification Certificate (ZVC): In Teton County, a ZVC is required to confirm the property is located in an approved short-term rental zone. Hosts must submit a ZVC application to the county Planning Division.
• Homeowners Association (HOA) Approval: If the property is part of an HOA, the host must obtain written approval from the HOA before the city or county will issue a short-term rental permit.
• Neighbor Notification: Some cities, like Jackson, require hosts to notify neighbors within a certain distance (e.g., 200-300 feet) of their intention to operate a short-term rental.
• Floor Plan and Parking Plan: As part of the BUP and license application process, hosts may need to submit a floor plan and parking plan to demonstrate compliance with building and parking requirements.

It's important to note that document requirements can change over time, so hosts should always check with their local city and county offices for the most up-to-date information. Failure to obtain the necessary permits and licenses can result in fines and penalties, so it's crucial for hosts to ensure they are in full compliance with all applicable regulations.

Wyoming Short-Term Rental Taxes

Short-term rentals in Wyoming are subject to several state and local taxes. Here's a breakdown of the key taxes that apply to vacation rental businesses:

Wyoming Sales Tax: The state levies a 4% sales tax on all short-term lodging, including vacation rentals. This tax applies to the total listing price, including cleaning fees and guest fees, for reservations 29 nights or shorter.

Wyoming Lodging Tax: In addition to the sales tax, Wyoming imposes a statewide lodging tax of 5% on short-term rentals. This tax also applies to the total listing price for stays of 29 nights or less.

Local Sales Taxes: Many counties and cities in Wyoming charge additional local sales taxes, typically ranging from 1% to 2% of the listing price. These local taxes apply to short-term rentals in the same manner as the state sales tax.

Local Lodging Taxes: Some localities also levy their own lodging taxes on top of the state lodging tax. These rates usually fall between 1% and 4% of the total listing price for reservations under 30 days.

Resort District Tax: Certain resort areas like Teton Village and Grand Targhee charge an extra 2% tax on short-term rentals. This resort district tax is administered by the state and applies to stays of 29 nights or fewer.

It's crucial for short-term rental hosts to register with the Wyoming Department of Revenue for a sales tax license, collect the appropriate taxes from guests, and file regular tax returns. However, many vacation rental platforms like Airbnb and Vrbo automatically collect and remit state and local lodging taxes on behalf of hosts8. If taxes are not being collected by the platform, the host is responsible for compliance.

Short-Term Rental Tax Deductions

Owners of short-term rental properties in Wyoming may be eligible to deduct certain expenses to reduce their taxable income. Some common deductible expenses include:

1. Mortgage interest
2. Property taxes
3. Rental income taxes
4. Cleaning and housekeeping costs
5. Repairs and maintenance
6. Utilities
7. Supplies and amenities
8. Insurance premiums
9. Advertising and marketing fees
10. Property management costs
11. Depreciation of assets

To claim these deductions, detailed record-keeping is essential. Hosts should maintain receipts, invoices, and other documentation for all rental-related expenses. It's also important to separate personal and rental use when calculating deductions for properties used part-time as STRs.

Understanding and complying with Wyoming's short-term rental tax laws is critical for hosts to avoid penalties and maintain a successful vacation rental business. Consulting with a tax professional can help ensure all necessary taxes are collected and deductions are properly claimed.

Does Wyoming Strictly Enforce STR Rules? Is Wyoming Airbnb Friendly?

Wyoming's short-term rental regulations are not particularly Airbnb-friendly compared to other states. The state has adopted rules that effectively prohibit short-term rentals in all residential districts, defining them as rentals under 27 days. This broad prohibition significantly limits where hosts can operate.

However, enforcement of these rules appears to be primarily complaint-based. The city will typically only take action against non-compliant short-term rentals when complaints are received from neighbors or other concerned parties. This approach can lead to inconsistent enforcement, potentially allowing some hosts to operate under the radar without facing consequences.

Despite the restrictive regulations, some hosts continue to operate short-term rentals in Wyoming. A Reddit thread discusses the high demand for housing in certain areas and the money being left on the table due to short-term rental restrictions. This suggests that there is still a market for Airbnb and VRBO rentals in Wyoming, even with the current regulations in place.

Compared to more Airbnb-friendly states, Wyoming falls short in terms of embracing the short-term rental economy. While some municipalities like Cheyenne currently lack specific short-term rental regulations, giving hosts more flexibility, the state-wide prohibition on rentals under 27 days in residential areas severely limits opportunities for hosts.

In conclusion, Wyoming is not particularly Airbnb-friendly, with strict state-wide rules prohibiting short-term rentals in residential districts. Enforcement is complaint-based, which may allow some hosts to operate despite the rules. However, compared to other cities that have embraced short-term rentals, Wyoming's regulations are much more restrictive and limiting for hosts looking to capitalize on the Airbnb and VRBO market.

How to Start a Short-Term Rental Business in Wyoming

Starting a short-term rental business in Wyoming requires careful planning and compliance with local regulations. Here's a step-by-step guide to help you get started:

Research local regulations: Before investing in a short-term rental property, thoroughly research the specific regulations in your target city and county. Understand zoning restrictions, licensing requirements, and any other local rules that may impact your ability to operate a short-term rental.

Choose a property: Select a property that complies with local short-term rental regulations and has the potential to attract guests. Consider factors like location, amenities, and parking when making your choice. If you already own a property, ensure it meets all necessary requirements.

Register your business: Choose a business structure (e.g., sole proprietorship, LLC) and register your short-term rental business with the Wyoming Secretary of State. Obtain a federal Employer Identification Number (EIN) for tax purposes.

Obtain necessary licenses and permits: Apply for any required licenses and permits from your local city or county government. This may include a basic use permit, short-term rental license, or zoning verification certificate. Prepare to submit floor plans, parking plans, and other documentation as needed.

Register for tax collection: Register with the Wyoming Department of Revenue for a sales tax license and lodging tax registration. Set up processes to collect and remit the appropriate taxes on your short-term rental income.

Prepare your property: Ensure your property is clean, well-maintained, and equipped with all necessary amenities. Consider hiring a professional photographer to capture high-quality images of your rental for online listings.

Create a listing: Choose a vacation rental platform like Airbnb or Vrbo and create a compelling listing. Include detailed descriptions, high-quality photos, and information about your property's unique features and nearby attractions.

Set competitive rates: Research similar properties in your area to determine competitive nightly rates. Consider factors like seasonality, local events, and demand when setting your prices.

Establish house rules and rental agreements: Develop clear house rules and rental agreements to set expectations for guests and protect your property. Include information about occupancy limits, noise restrictions, and pet policies.

Manage your bookings and guests: Be responsive to guest inquiries and booking requests. Provide excellent customer service to ensure positive reviews and repeat business. Consider hiring a property manager if you need assistance with day-to-day operations.

Tips for success:

1. Be transparent and communicative with guests to build trust and positive reviews.
2. Maintain detailed records of all income and expenses for tax purposes.
3. Regularly inspect and maintain your property to ensure a high-quality experience for guests.
4. Stay up-to-date on changes to local short-term rental regulations to ensure ongoing compliance.
5. Network with other short-term rental hosts in your area to share knowledge and best practices.

By following these steps and prioritizing compliance with local regulations, you can successfully launch and operate a short-term rental business in Wyoming. Remember to provide exceptional service and maintain a high-quality property to attract guests and build a positive reputation in the market.

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

When seeking information about short-term rental regulations and zoning in Wyoming, it's important to contact the appropriate local authorities. Since regulations can vary significantly between cities and counties, here are some key contacts:

Wyoming Department of Revenue

For state-level tax registration and compliance

1. Phone: (307) 777-5200
2. Email: dor@wyo.gov
3. Website: https://revenue.wyo.gov/

Town of Jackson Planning Department

For short-term rental regulations in Jackson

1. Phone: (307) 733-0440
2. Email: planning@jacksonwy.gov
3. Website: https://www.jacksonwy.gov/335/Short-Term-Rentals

Teton County Planning & Development Department

For short-term rental regulations in Teton County

1. Phone: (307) 733-3959
2. Email: planning@tetoncountywy.gov
3. Website: https://www.tetoncountywy.gov/653/Short-Term-Rental-Violations

City of Cheyenne Planning & Development Department

For zoning and planning inquiries in Cheyenne

1. Phone: (307) 637-6282
2. Email: planning@cheyennecity.org
3. Website: https://www.cheyennecity.org/Your-Government/Departments/Planning-and-Development

Cody Planning, Zoning and Code Enforcement

For short-term rental regulations in Cody

1. Phone: (307) 527-3469
2. Email: planning@cityofcody.com
3. Website: https://www.codywy.gov/166/Planning-Zoning-Code-Enforcement

For hosts looking to connect with other short-term rental operators or stay updated on regulations, consider joining these communities:

Wyoming Lodging and Restaurant Association

1. Website: https://www.wyominghotels.com/
2. Phone: (307) 634-8816
3. Email: info@wyominghotels.com

BiggerPockets Real Estate Forum

Wyoming subforum: https://www.biggerpockets.com/forums/311-wyoming-real-estate

Remember to always verify the most current regulations with your local city or county government, as short-term rental laws can change frequently. These contacts and resources should provide a good starting point for understanding and complying with Wyoming's short-term rental regulations.

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

Discussions about short-term rental regulations in Wyoming on online forums are relatively limited, but there are a few relevant experiences and opinions shared by hosts:

• On Reddit, a user discussing short-term rentals in Jackson, Wyoming noted the strict regulations: "Jackson has very strict short-term rental laws. You can only do it in certain zones, and you need a permit. The fines for operating without a permit are steep."
• In a Bigger Pockets forum thread about investing in Wyoming, one user mentioned: "Be careful with short-term rentals in Wyoming. Some areas like Jackson have really cracked down. Make sure you research local laws before investing."
• A host on the Airbnb Community forum shared their experience in Cody, Wyoming: "We had to register our property and get a business license from the city. It wasn't too difficult, but it's important to follow the rules here."
• On a Reddit thread about Airbnb regulations, a Wyoming host commented: "In my small town, there aren't many specific rules for Airbnbs yet. But I've heard rumors that the county is looking into creating some regulations soon. It's something to keep an eye on."
• A user on the Wyoming subreddit discussed the impact of short-term rentals: "In tourist areas like Jackson Hole, short-term rentals have really affected the housing market for locals. There's a lot of debate about how to balance tourism and housing needs."

These comments suggest that while regulations vary across Wyoming, hosts are generally aware of the need to comply with local rules and are keeping an eye on potential changes to short-term rental laws in their areas.

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.