Airbnb Rules in Georgia: Laws, Regulations, and Taxes

If you're considering investing in short-term rental properties in Georgia, it’s essential to understand the local laws, regulations, and taxes to ensure compliance and long-term success. Georgia stands out as a prime destination for vacation rental businesses, thanks to its thriving tourism industry, mild climate, and an array of popular attractions. While the state does not enforce statewide Airbnb laws, many cities in Georgia have introduced their own short-term rental regulations to oversee this rapidly growing industry.

This blog offers a comprehensive guide to operating short-term vacation rentals in Georgia, covering key aspects such as licensing requirements, zoning restrictions for the subject property, tax obligations, and expert tips to help you navigate the short-term rental industry with ease and confidence. Whether you're a local resident or an out-of-state investor, understanding these rules is crucial for maximizing your returns and avoiding penalties.

What is a Short Term Rental in Georgia?

Georgia does not provide a statewide definition for short-term rentals, leaving regulation up to local governments. However, most cities in Georgia define a short-term rental as lodging offered to transient guests for fewer than 30 consecutive days. These properties, often referred to as short-term rental units, include single-family homes, apartments, and condominiums.

The absence of a universal definition allows cities to adopt zoning ordinances that suit local communities and their needs, resulting in a patchwork of short-term rental regulations. Property owners and investors need to understand the local laws in the city where they plan to operate.

Despite the lack of state-imposed short-term rental laws, all short-term rentals are required to pay state sales tax (4%) and a hotel-motel fee of $5 per night. Extended stays of over 30 nights however are exempt from night hotel tax and the $5-per-night hotel motel fee tax. Cities may impose sales and other taxes of their own. Airbnb collects and remits such taxes to the relevant department.

Starting a Short-Term Rental Business in Georgia

Launching a short-term rental business in Georgia is relatively simple due to the lack of statewide licensing requirements. Hosts only need to register with the Georgia Department of Revenue to obtain a Tax Identification Number for filing taxes. If you rent your property through platforms like Airbnb or Vrbo, these platforms typically handle hotel-motel tax remittance on your behalf.

Steps to start your rental business

1. Register with the Georgia department of revenue: Complete the online application to obtain your Georgia Tax Identification Number.

2. Determine your tax filing schedule: Depending on the state's assignment, taxes can be filed monthly, quarterly or annually.

3. Understand local regulations: Research city-specific short-term rental laws to ensure compliance with zoning and licensing requirements.

Unlike some states, Georgia doesn’t require you to establish a Limited Liability Company (LLC) to operate a short-term rental business. However, forming an LLC may provide additional liability protection.

Georgia Short-Term Rental Taxes

All short-term rental operators in Georgia must pay two main types of taxes,

1. State sales tax: Georgia imposes a statewide sales tax rate of 4% on short-term rentals.

2. Hotel-motel tax: This additional tax is levied by local jurisdictions and varies by city. For example, Atlanta charges a 7% hotel-motel tax, while Savannah imposes a 6% rate.

If you rent your property through Airbnb or similar platforms, these taxes are often remitted automatically. However, verifying this with the platform is compulsory to ensure compliance.

Tax filing requirements

Tax filings submitted online, are due on the 20th day of the month following the end of your assigned filing period. Staying current with your tax obligations ensures smooth operation and avoids penalties.

Key Tax Deductions for Vacation Rental Owners

Owning a vacation rental in Georgia offers significant tax advantages. Federal tax laws allow deductions for short-term rental properties used for more than 14 days annually. Maximizing these deductions can greatly enhance your vacation rental business-provided profits.

Common deductions include

• Mortgage interest and insurance premiums.

• Property taxes and depreciation.

• Maintenance, repairs and cleaning services.

• Utilities and supplies.

• Business-related services such as accounting or legal assistance.

• Home office expenses if part of the property is used exclusively for business.

By documenting all eligible expenses, property owners can reduce their taxable income and optimize their financial outcomes.

Airbnb Laws, Regulations, and Taxes in Top Georgia Cities

Since Georgia doesn’t enforce statewide short-term rental regulations, each Georgia city sets its own rules. These local laws cover licensing, zoning and operational requirements.

Here’s an overview of key regulations in some of Georgia’s most popular cities for short-term rental businesses.

Atlanta, GA

The City of Atlanta's short-term rental regulations full-term rental ordinance defines a short-term rental as a residential dwelling unit that provides lodging for transient guests for up to 30 consecutive days in exchange for compensation. This ordinance ensures proper regulation of the city’s growing short-term rental industry.

To operate a short-term rental in Atlanta, hosts must obtain a full short-term rental ordinance for-term rental license issued by the Department of City Planning, which must be renewed annually. Hosts are allowed to hold up to two licenses, one of which must be for their primary residence. Even if you don’t plan to actively rent out your primary residence, you must first obtain a full short-term rental license for it before applying for a full short-term rental license for a second property.

Additionally, property owners are required to notify all neighbors of the short or long-term tenant, short-term rental agent, or property via certified mail regarding its intended use as a short-term rental unit. Hosts or property managers must also be available 24/7 to address any issues that may arise.

Short-term rental operators in Atlanta are subject to:

• Hotel-motel tax: A 7% tax applied to all short-term rentals.

• State sales tax: 4%, if not remitted by platforms like Airbnb.

Atlanta’s regulations strike a balance between supporting local short-term rental businesses and addressing community concerns, making it an attractive market for investors seeking non-owner-occupied properties.

South Fulton, GA

The City of South Fulton defines a short-term rental as a residential unit provided for lodging for up to 30 consecutive days in exchange for compensation. This definition applies to all housing types and includes both single-family homes and multi-family properties.

To operate a short-term rental business in South Fulton, you must,

1. Obtain a short-term rental license.

2. Secure an occupation tax certificate.

3. Apply for a business license.

Licenses expire annually five business days, on December 30th and must be renewed to continue operations. Property owners are also required to adhere to local zoning ordinances and must notify adjacent neighbors of the property’s intended use.

Taxes applicable to short-term rentals in South Fulton include,

• Hotel-motel tax: 8%, payable monthly.

Savannah, GA

The City of Savannah defines a short-term vacation rental (STVR) as the rental of an entire dwelling unit (such as an apartment or house) for 30 days or less. Renting a single room within a dwelling unit, however, is categorized as a bed-and-breakfast homestay, where the owner must reside on the property and only one bedroom can be rented at a time.

To operate a vacation rental in Savannah, property owners must:

1. Apply for and obtain an STVR Certificate, which ensures compliance with zoning and local ordinances.

2. Secure a business tax certificate from the revenue department, which is then forwarded to the Planning and Urban Design Office for final approval.

3. Renew the STVR certificate annually.

Short-term rentals are permitted only in specific overlay districts, such as Downtown, Victorian, and certain central business district and agricultural and residential zones only. The city also caps the percentage of residential parcels allowed as STVRs within each ward to maintain balance within communities.

Tax requirements for Savannah Airbnb operators include:

• State sales tax: 7%.

• Hotel-motel tax: 6%.

Due to zoning restrictions and parking regulations, careful research is necessary before investing in a short-term rental property in Savannah, but the city remains a lucrative option for well-located properties.

Columbus, GA

The City of Columbus defines a short-term rental as a residential dwelling unit (either a primary structure or approved accessory residential dwelling unit) rented to transient guests for a period of 30 consecutive days or less. This applies to both single-family homes and multi-family properties but excludes motor vehicles or other non-residential structures.

To legally operate a short-term rental in Columbus, hosts must,

1. Obtain a short-term rental permit.

2. Secure a business license from the city.

Additional requirements include zoning compliance, particularly for properties located in Historic Districts, where non-owner-occupied properties may face restrictions. Occupancy limits are set at two guests per bedroom plus one additional occupant.

Taxes applied to short-term rentals in Columbus include,

• Hotel-motel tax: 8%.

Columbus’s minimal restrictions and affordable permit fees make it an excellent location for launching a short-term rental business.

Sandy Springs, GA

The City of Sandy Springs defines a short-term rental as a non-subsidized house, apartment, or condominium rented to the same tenant for less than 30 days. Short-term rentals are only permitted when they are located inside or adjacent to the owner’s primary residence on the same property, effectively limiting opportunities for non-owner-occupied properties.

To operate a vacation rental in Sandy Springs, hosts must:

1. Obtain a short-term rental permit for each unit.

2. Secure a business license.

Permits and licenses must be renewed annually. Property owners must also notify neighbors and ensure that parking is confined to the Airbnb property.

Taxes include,

• Hotel-motel tax: 7%.

Sandy Springs' restrictive policies make it less conducive for investors, but it remains an option for those looking to rent out primary residences.

Roswell, GA

Roswell’s regulations surrounding short-term rentals are vague but generally restrictive.

Short-term rentals are believed to be prohibited in residential zones, while bed-and-breakfast accommodations are allowed in designated areas such as the Downtown Historic Districts.

To operate legally in the city limits Roswell, property owners should consult local zoning ordinances and may need to apply for a business license.

Tax obligations include:

• Hotel-motel tax: 8%.

Roswell’s unclear rules may present challenges for investors, but careful navigation of local laws can reveal potential opportunities.

Advantages and Challenges of Georgia Airbnb Rentals

Advantages

• No statewide licensing requirements.

• High demand for vacation rentals in tourist hotspots.

• Significant tax benefits through deductions.

Challenges

• Complex local laws in some cities like Sandy Springs and Roswell.

• Zoning restrictions that limit non-owner occupied properties.

Tips for Navigating Georgia’s Short-Term Rental Laws

1. Research city-specific rules thoroughly before purchasing a property.

2. Consult with local experts or property managers for guidance.

3. Verify tax remittance with your rental platform to avoid compliance issues.

4. Stay updated on changes in zoning ordinances or local laws.

Navigating Georgia’s Short-Term Rental Market

Georgia’s vibrant tourism scene and favorable business environment make it a prime location for short-term rental investments. With its mild climate, historical landmarks, and bustling urban centers, Georgia consistently attracts visitors, driving demand for vacation rental properties. However, understanding and complying with the state’s short-term rental laws is essential. While Georgia does not enforce statewide, short or long term tenant and rental laws and regulations yet, many local governments have implemented zoning restrictions, licensing requirements, and hotel-motel tax obligations. Staying compliant with these local rules ensures that your rental business operates smoothly and avoids potential penalties.

Whether you’re a local resident or an out-of-state investor, navigating Georgia’s short-term rental industry requires attention to detail and strategic planning. From zoning ordinances to tax filing deadlines, understanding the specific requirements for your market is critical for success. Partnering with industry experts can simplify the process, ensuring compliance with short-term rental regulations while maximizing your returns. Take the first step toward a profitable Airbnb investment in Georgia by leveraging professional guidance and tapping into the state’s thriving tourism economy.

FAQs on Georgia Short-Term Rental Laws and Regulations

What are the licensing requirements for short-term rentals in Georgia?

Georgia does not have statewide licensing requirements for short-term rentals, but many cities, such as Atlanta and Savannah, require a short-term rental license or similar permit. Hosts should check local regulations to ensure compliance with zoning and licensing requirements in their area.

Do I need to pay taxes on my short-term rental property in Georgia?

Yes, hosts must pay state sales tax (4%) and hotel-motel tax, which varies by city (e.g., 7% in Atlanta and 6% in Savannah). Platforms like Airbnb often remit these taxes on behalf of property owners, but it’s essential to confirm this and file additional taxes if necessary.

Are non-owner-occupied properties allowed as short-term rentals in Georgia?

It depends on the city. Locations like Atlanta and South Fulton allow non-owner-occupied properties, provided you obtain the necessary licenses. However, cities like Sandy Springs have strict zoning restrictions, requiring short-term rentals to be adjacent to the owner’s primary residence.

What are the zoning restrictions for short-term rentals in Georgia cities?

Zoning regulations vary by location. For example, Savannah restricts short-term vacation rentals to designated overlay districts, while Blue Ridge permits them only in commercially zoned areas. Always verify the zoning ordinances in your target market before purchasing property.

What tax deductions can Georgia short-term rental hosts claim?

If you rent your property for more than 14 days annually, you can claim deductions for expenses such as mortgage interest, property taxes, maintenance, utilities, and depreciation. These deductions help maximize profits and optimize the financial performance of your vacation rental business.