Santa Fe, New Mexico Short-Term Rental (STR) Investor Guide

Short-Term Rental Legality Overview: Short-term rentals (rentals for fewer than 30 consecutive days) are allowed in Santa Fe, NM but are subject to strict city regulations, including a cap on the number of permits and specific zoning, occupancy, and operational rules.

How to Start a Short-Term Rental Business in Santa Fe, NM

1. Check Zoning and Eligibility: Determine if your property is in a residential or non-residential zoning district. Different rules apply. Crucially, you must have a "local operator" who can be physically present at the property within one hour to address emergencies or complaints.
2. Understand the Permit Caps: Be aware that there is a hard cap of 1,000 short-term rental permits for residentially zoned properties. For non-residentially zoned properties, there is no such cap.
3. Obtain Required Permits and Licenses:
   • Business Registration (Business License): Mandatory for all STRs.
   • STR-Specific Permit: Apply for either a "Residential Short-Term Rental Permit" or a "Non-Residential Short-Term Rental Registration" depending on your zoning.
4. Submit Applications: New permit applications are accepted starting at 5:00 PM on April 15 each year through the city's Citizen Self-Service (CSS) online portal. Permits for the following year must be applied for by November 28.
5. Schedule Inspections: Be prepared to schedule and pass required inspections, including a fire safety inspection.
6. Register for Taxes: You are responsible for collecting and remitting applicable taxes, including the New Mexico Gross Receipts Tax (GRT) and the City of Santa Fe Lodgers' Tax.

Required Documents, Permits, Licenses, and Guidelines

• Business Registration/License: A general business license from the City of Santa Fe is required for all STR operators.
• Short-Term Rental Permit or Registration: The specific permit based on your property's zoning.
• Fire Inspection: A completed fire inspection is a prerequisite for operating. (Reference: Short-Term Rental Fire Inspection Requirements).
• Public Notification: A list of neighbors must be prepared for mailing when a permit is approved. (Reference: Short-Term Rental Public Notification & Mailing List).
• Record-Keeping: Detailed records from the past three years must be maintained and made available to the city upon request. These records include reservation dates, number of nights, rent paid, and taxes/fees remitted.
• Compliance with Covenants: The property must be in compliance with any homeowner association (HOA) covenants that may prohibit STRs.

Specific Regulations for Short-Term Rentals (Santa Fe, NM)

• Permit Cap: The city limits the number of STR permits in residential zones to 1,000 units. There is no cap for non-residentially zoned properties.
• One Permit Per Person: A single natural person (individual) can only hold one permit for a residentially zoned property. Permits are non-transferable except to a spouse or domestic partner under specific conditions (e.g., the death of the permit holder).
• Proximity Rules:
  • Residentially Zoned: A new STR unit cannot be within 50 feet of an existing STR unit. In multi-unit dwellings (4+ units), no more than 25% of the units can be STRs, with a maximum of 12 permits per building. Buildings with 3 or fewer units are subject to the 50-foot rule.
  • Non-Residentially Zoned: No more than 12 registrations will be issued for a single multi-unit dwelling structure.
• Local Operator Requirement: A local operator must be able to respond to emergencies or complaints at the property within 1 hour.
• Occupancy and Parking: Regulations dictate the maximum number of guests and the requirement for off-street parking spaces.
• Rental Frequency:
  • Residentially Zoned: A unit may only be rented once in a seven-day period. This rule does not apply from November 15 to January 15.
• Advertising: The city permit number must be prominently included in all advertisements, including on platforms like Airbnb and VRBO. Platforms must remove listings if the permit is invalid.
• Taxes: Operators must collect and remit the New Mexico Gross Receipts Tax (GRT) and the City of Santa Fe Lodgers' Tax. Failure to do so is a violation.
• Annual Renewal: All STR permits expire on December 31. Renewals are accepted from January 1 to April 5:00 PM on April 15. Missing this deadline results in the permit expiring, and a new application must be filed, which is subject to all the updated rules (including the 50-foot proximity limit).

Contact Information for the Local Authority

The primary authority for short-term rentals in Santa Fe is the Short-Term Rental Office.

• Phone: (505) 955-6639
• Email: shorttermrental@santafenm.gov
• Office Hours: Monday through Friday, 8:00 AM to 12:00 PM and 1:00 PM to 5:00 PM.
• Website: Short-Term Rentals - City of Santa Fe
• Appointment Scheduling: Schedule an Appointment with the STR Office
• Citizen Self-Service (CSS) Portal: Create Account & Apply for Permits
• Non-Emergency Police: (505) 428-3710

Links to Source Pages

1. City of Santa Fe STR Homepage: https://santafenm.gov/land-use/short-term-rentals
2. Short-Term Rental Ordinance: https://library.municode.com/nm/santa_fe/codes/code_of_ordinances?nodeId=CH14LADE_ART14-6PEUSUSRE_14-6.2UECST
3. STR Fire Inspection Requirements: https://www.santafenm.gov/document_center/document/5360
4. STR Public Notification & Mailing List Form: https://www.santafenm.gov/document_center/document/5016
5. Citizen Self-Service (CSS) Portal: https://santafenm-energovpub.tylerhost.net/Apps/selfservice#/home
6. STR Application: https://santafenm.gov/land-use/short-term-rentals/short-term-rentals-application
7. STR Permit Renewal Instructions: https://www.santafenm.gov/document_center/document/12694
8. City STR Map: https://gis.santafenm.gov/portal/apps/webappviewer/index.html?id=446df6c8d49b47978088128732b31fd5
9. 2021 STR Ordinance FAQs: https://www.santafenm.gov/media/files/STRFAQs12-10-2020.pdf
10. Event Registration for STR System Changes: https://strsantafe.eventbrite.com