Iowa is one of the most profitable Airbnb locations in the United States. The key factors that make Iowa a top destination for vacationers are its heartland charm and attractive landscapes. As of July 2024, the most expensive Airbnb vacation rentals in the state cost $1,824 a night after fees. Complying with Iowa regulations for short-term rentals is essential for success as a host. Iowa’s temporary lodging industry evolves rapidly, so staying up-do-date with Airbnb laws that govern such accommodations can help you protect guests and improve their stay. This comprehensive guide will help hosts boost their understanding of Iowa’s short-term rental laws and regulations.

Top 3 Airbnb Laws and Regulations in Iowa That Hosts Should Know

Obeying Iowa laws and streamlining your Airbnb business with award-winning short term rental software can help you save a lot of money. Here are the top three rules and regulations on Iowa short-term rentals that every host should know and observe.

1. License Renewals for Short-Term Rentals

Hosts must prioritize periodic license renewal if their municipality requires a permit or license to operate an Airbnb vacation rental business. License renewal in Iowa requires navigating a string of complex local and state regulations on Airbnb properties. The steps for renewing your license may vary according to your property’s location in Iowa. It’s worth noting that this state does not use a centralized system for Airbnb rental regulations. Local ordinances play essential roles in determining the processes for license renewal and accompanying regulations. Iowa hosts are required to check zoning laws as some regions limit short-term rentals to commercial zones, while others restrict them entirely.

2. Rental Taxes

Airbnb is quickly dominating Iowa’s booming short-term rental market. Hosts are subject to various state and local tax regulations. These laws don’t only determine how property owners can run rental properties, but they also specify how taxes should be collected and remitted. In places like Des Moines, any lodging offered a fee for one month or less is regarded as a short-term rental. This applies to accommodations provided by various platforms such as Airbnb and VRBO. State laws subject these properties to a 5% hotel tax, which comprises the total rental rate, including cleaning services and fees charged to guests. Most importantly, hosts in Iowa must file tax returns each period regardless of their rental income. Compliance also applies to state and local tax authorities in Iowa. This helps ensure that the requisite taxes are paid and remitted appropriately.

3. Liability Insurance Coverage for Hosts

Under new Airbnb guidelines, Iowa hosts operating vacation rentals in Des Moines must obtain property liability insurance with a minimum coverage of $500,000. This regulation is crucial for financially safeguarding hosts against claims of personal injury and property damage concerning the use of the rental property. It also creates a safe avenue for hosts and guests to engage in home sharing endeavors. Apart from liability insurance, Iowa has established clear property maintenance requirements for Airbnb rentals to boost visitors’ and residents’ wellbeing.

Prioritizing Airbnb regulatory compliance is not only about knowing the rules, but also creating a safe and welcoming environment for guests. Hosts risk incurring massive fines if they fail to follow Airbnb laws and laws regulations, so please keep the above tips in mind.