Short-Term Rental Investment Guide: Española, NM

Overview: Are Short-Term Rentals Allowed in Española, NM?

Yes, short-term rentals are allowed in Española, NM, but they are subject to Santa Fe County regulations since Española is an incorporated municipality within the county. The county adopted Ordinance 2022-07 on October 25, 2022, which established a licensing and regulatory framework for short-term rentals. This ordinance was amended on January 9, 2024, with Ordinance 2024-01 to refine the regulatory framework.

Short-term rentals are defined as renting out a dwelling, or portion of a dwelling, for periods of less than 30 days, typically through platforms like Airbnb or Vrbo.

How to Start a Short-Term Rental Business in Española

Step 1: Determine Your STR Category

Santa Fe County distinguishes between two categories:

• Owner-Occupied: A dwelling that is the owner's primary residence or an accessory dwelling unit located on the same legal lot as the owner's primary residence
• Non Owner-Occupied: Any dwelling that does not meet the owner-occupied criteria

Step 2: Application Process

• Applications are accepted via appointment only beginning November 30, 2022
• Schedule appointments by calling 505-995-2700
• Upon submission of a complete application for any required permits, plats, or variances, business owners receive a temporary registration/license number to continue operations while applications are processed

Step 3: Complete Required Documentation

Download and complete the appropriate application packet based on your STR category (see Required Documents section below).

Required Documents, Permits, Licenses, and Guidelines

Application Packets Include:

• Checklist
• Application Form
• STR Fire Code Compliance Certification Form

Available Application Packets:

1. Owner-Occupied STR Application (for primary residences and accessory dwelling units)
2. Non Owner-Occupied STR Application (for investment properties and second homes)

Additional Requirements:

• Lodger's Tax Compliance: Access the Lodger's Tax system at lodgers.santafecountynm.gov/account/user/login
• Business License: Commercial business licenses may be required (contact county for specifics)
• Fire Code Compliance: Certification required as part of the application process

Specific Regulations for Short-Term Rentals

Fee Structure:

• Owner-Occupied STRs: $35 annually
• Non Owner-Occupied STRs: $375 initial fee + $300 annual renewal fee

Key Regulatory Provisions:

1. Moratorium on New Non-Owner-Occupied STRs: A one-year moratorium on new registrations for non-owner-occupied short-term rentals began in March 2023. Current property owners were not affected by this moratorium.

2. Neighbor Notification Requirements: Property owners are required to notify neighbors and provide contact information.

3. Data Collection: The registration process is designed to gather data on the number and location of STRs throughout the county to inform future policy decisions.

4. Primary Residence Focus: The regulatory framework emphasizes owner-occupied properties, with lower fees and fewer restrictions for properties where the owner resides on-site.

Operational Guidelines:

• Properties must be legal lots of record
• Unpermitted dwellings require permits, plats, or variances before STR licensing
• Compliance with local fire codes is mandatory
• Adherence to all building and safety regulations

Contact Information for Local Authority

Santa Fe County - Growth Management/Building Development

Phone: 505-995-2700 (for STR appointments) Main Office: 505-986-6200 Address: Santa Fe County 240 Grant Ave. Santa Fe, NM 87501-2061 Mailing Address: PO Box 276 Santa Fe, NM 87504-0276 Website: www.santafecountynm.gov/growth-management/building-development/str

Additional Resources:

• Lodger's Tax System: lodgers.santafecountynm.gov/account/user/login
• County Website: www.santafecountynm.gov/
• Code Enforcement: Available through the Building Development department

Important Notes and Considerations

Current Regulatory Status:

• The county is collecting data during the initial implementation period
• Future regulations may be developed based on collected data
• The moratorium on new non-owner-occupied STRs affects the timing for new investment property STRs

Compliance Requirements:

• All STR operators must register with Santa Fe County
• Non-compliance can result in enforcement actions
• Regular renewal of licenses is required

Market Considerations:

• Española is experiencing significant growth due to Los Alamos National Laboratory expansion
• Housing shortage in the region may impact STR opportunities
• The regulatory framework is designed to balance tourism revenue with housing availability

Links to Source Pages

• Santa Fe County STR Main Page: www.santafecountynm.gov/growth-management/building-development/str
• Ordinance 2022-07: www.santafecountynm.gov/documents/ordinances/Ordinance_2022-07.pdf
• Ordinance 2024-01: www.santafecountynm.gov/uploads/documents/Ordinance_2024-01_Re-recorded.pdf
• Owner-Occupied Application: www.santafecountynm.gov/uploads/documents/Owner_Occupied_STR_Application_2.10.23.pdf
• Non Owner-Occupied Application: www.santafecountynm.gov/uploads/documents/Non_Owner_Occupied_STR_Application_2.10.23.pdf
• Lodger's Tax System: lodgers.santafecountynm.gov/account/user/login

Disclaimer: This guide is based on the provided content and should be verified with current county regulations. Investors should consult directly with Santa Fe County officials for the most current requirements and any city-specific regulations that may apply.