Recently Updated Airbnb Laws and Regulations in the State of Alabama

Auburn, Alabama

Amended Airbnb Laws for

Auburn revisited short-term rental laws in March and approved amendments to the ordinance on March 16th. As with many cities across the U.S., short-term rentals are only becoming more prevalent, encouraging the City to revisit the ordinance. With the help of the Short-Term Rental Taskforce created in 2018, the city was able to zoom in on particular concerns and adjust regulations to meet the needs of the community.The amended short-term rental ordinance includes the following requirements for non-primary short-term rental properties:

• A short-term non-primary rental shall be limited in operation to 240 days each calendar year.
• Each zoning certificate for a short-term non-primary rental will be valid from January 1 through December 31 of the calendar year in which the certificate is issued.
• A zoning certificate for a short-term non-primary rental may be revoked by the Planning Director in the event that two or more substantiated complaints are received by the city within a calendar year, or for failure to maintain compliance with any of the regulations set forth within this section.
• Short-term non-primary rentals may only be used for lodging (eating and sleeping); private and/or commercial events and activities are prohibited. Only registered/contracted short-term non-primary rental guests may utilize the short-term non-primary rental.

Dothan, Alabama

Implements New Laws and Regulations

As of October 4, 2022, the city of Dothan approved ordinance 2022-267 which created new regulations for short-term rentals (STRs). This ordinance included the requirement of a business license, license fee, taxes and more. To stay current with the city of Dothan’s regulations visit their website.  

Key Regulations: 

• Licensing: A business license is mandatory for each STRs.  
• Quiet time: To keep the peace of neighborhoods, quite time is between 8pm to 7am. 
• Point of Contact: The city and guests must have emergency contact information. 
• Vehicle Information: Each host must note the make, model and year of the guest’s vehicle to disclose to the city if necessary. 
• Occupancy: Maximum of two guests per bedroom, excluding children under 12.  
• Zoning: STRs require special zoning approval before licensing. More information on Love Dothan’s website. 

Mobile, Alabama

Updated Airbnb Laws and Requirements

New Airbnb laws began on January 1, 2021, in Mobile, Alabama after much consideration. The new vacation rental ordinance lays out requirements for hosts which include the following:

• A valid City of Mobile Business license must be obtained for each discrete short-term rental location and the business license number must be stated on any advertisement or listing for each short-term rental.
• The name and phone number of a local responsible party shall be conspicuously posted within each short-term rental. The local responsible party shall answer and respond to calls 24 hours a day, seven days a week to address problems or complaints associated with the short-term rental.
• Each short-term rental must meet application building and fire codes and be equipped with the following safety equipment and features:
  • Operational smoke and carbon monoxide detectors.
  • One 2.5 lb. Class A-B-C fire extinguisher per floor.
  • Prominently displayed and legible 9-1-1 address on building exterior.

Orange Beach, AL

Updates Airbnb Laws, and Regulations

With the growing popularity of Orange Beach, AL the City realized that there should be a reasonable balance between the Airbnb laws and regulations of vacation rental operations and the need to preserve the quality of life for the city’s current residents. The current vacation rental ordinance includes a license application and a fee of $500. Some items included in the application requirements section include:

• An affidavit to be signed by the applicant certifying the vacation rental complies with all applicable fire, building, and safety code requirements.
• Floor plan (to scale) showing all interior rooms and location of each bedroom to be rented as part of the vacation rental and approximate square footage.
• Site plan showing the entire property on which the vacation rental unit is located, including the number and location of designated on-site parking spaces available for use by the renter(s) and the location of trash enclosures. Parking shall be in compliance with the city’s zoning ordinance.

Continue reading the application requirements located in their City Code of Ordinances.

Smith Station, Alabama

Current Airbnb Laws and Regulations

Smith Station has implemented new Airbnb laws and regulations for hosts. Requirements include securing a short-term rental business license and providing proof of liability insurance.

• Short-Term Rentals – License Required
  • No short-term rental business shall operate in the City without first obtaining a current City of Smiths Station, AL Business License from the City.
  • Any owner of more than one short-term rental property shall be required to obtain a business license for each short-term rental property.
• Short-Term Rentals – Insurance Required
  • Every person in the municipal limits who desires to obtain a license to conduct a short-term rental business pursuit to Ordinance 2019-163 and all Amendments to Ordinance 2019-163 must provide proof of the following insurance coverage:
    • An additional rider on a homeowner’s policy that expressly covers short-term rentals and provides a minimum of $1,000,000 liability and personal liability coverage; or a commercial insurance policy covering short-term rentals at the permitted address that provides a minimum of $1,000,000 liability and personal injury coverage.
  • Insurance required above shall be without prejudice to coverage otherwise existing and shall name, as an additional interested party, the city, its officers, and employees and shall provide that the policy shall not terminate or be canceled prior to the completion of the permit period without forty-five days written notice to the city at the address shown in the permit agreement.

Tuscaloosa, Alabama

Airbnb Laws Include Insurance Requirement

Tuscaloosa Airbnb laws and regulations have been amended to now include three areas that are eligible to operate short-term rentals. Along with zoning rules, Tuscaloosa has implemented certain eligibility requirements for short-term rentals, including building and fire code compliance, a specific business license, and an insurance requirement. The City Code of Tuscaloosa states that “at the time of application submission, must provide proof of insurance” with the following insurance coverages:

• A rider on a homeowner’s policy that expressly covers short-term rentals and provides a minimum of one million dollars ($1,000,000.00) liability and personal injury coverage; or
• A commercial insurance policy covering short-term rentals at the permitted address that provides a minimum of one million dollars ($1,000,000.00) liability and personal injury coverage.

The insurance must also state the City of Tuscaloosa is additionally insured for liability and has to expressly note that it covers short-term rental operations. The best solution for hosts is to get ahead of potential regulation by properly insuring your Airbnb or Vrbo with commercial insurance, provided by a company that knows the industry. Proper Insurance provides just such a policy, which meets or exceeds all requirements levied by communities, and is custom penned for the unique risks of vacation rental properties.

Quote Your Short-Term Rental Today

Interested in a policy to protect you and your business from liability and damage claims? Proper Insurance is the nation’s leading short-term rental insurance provider protecting homes in all 50 states, replacing inadequate Homeowners/Landlord policies. Our comprehensive coverage meets or exceeds standard short-term rental requirements with $1M Commercial Liability (CGL) and unmatched protection for your property and revenue. Additional custom coverages include guest-caused theft/damage, amenity liability (bikes, kayaks, hot tub, etc.), bed bugs, fleas, squatters, and more.