Rental arbitrage landlord permission and permit checklist.

Why this comes before the numbers

A profitable model is worthless if the lease forbids short stays or the city does not issue a permit for the address. Rules differ by state, city, building and association, and they change, so this page gives you questions to answer from the primary documents rather than a list of rules for every place. It is general information, not legal advice.

1. Written landlord permission

• Read the lease sections on subletting, assignment, guests, business use and term of occupancy. Many leases prohibit subletting without consent, and short stays can fall under that wording.
• Get permission in a signed document that names short-term rental (stays under 30 days, or whatever your lease calls it), the unit, the platform and the term. A text message or a verbal OK is thin evidence.
• Ask who carries liability, whether the landlord’s insurer is told, whether a higher deposit or fee is required, and whether the landlord can revoke permission and on what notice.
• Check the lease term against your payback: a one-year lease with a three-year payback is a problem you can see before signing.

2. City or county short-term rental rules

• Search your city or county code for “short-term rental” and read the definition, any permit or registration, caps on nights, and whether non-owners may operate at all. Some places require the operator to be the owner or a primary resident, which can rule out renters.
• Note the fee, renewal date and penalties, and put the permit fee in the calculator’s annual permit field.
• Check zoning for the specific address, not just the city in general.

3. HOA, condo and building rules

• Request the current CC&Rs, bylaws and rules. Associations can set minimum rental terms or ban short stays even where the city allows them.
• Ask about guest registration, parking, key access and fines, and who is billed when a guest breaks a rule.

4. Occupancy and lodging taxes

• Lodging, occupancy or transient taxes are set by state and local authorities. Find out which apply, the rate, and whether the platform collects and remits them for you or you register and file yourself.
• Decide whether your nightly rate includes the tax or adds it on top, and set the calculator’s toggle to match. Airbnb’s fee article states its service fee excludes taxes.
• Tax on your own profit is a separate matter; see the Schedule C or Schedule E explainer.

5. Insurance and operations

• Renters and standard landlord policies may exclude commercial short-term use. Ask an insurance agent in writing what covers you, and put the premium in the model.
• Check any platform host protections against what your lease and policy require, using the platform’s own help pages.

Before you commit

Put the permit fee, insurance and deposit into the startup cost and payback calculator, then check the low-occupancy case in the rental arbitrage calculator. If the lease or the permit is uncertain, resolve that first.

Sources

Airbnb Help Center, "Airbnb service fees" (article 1857). Retrieved 2026-10.

What this does not cover

• The actual rules for your city, building or association: only your lease, your municipal code and your governing documents can answer that, and they change.
• Legal advice, lease drafting or review. Consider a local attorney before signing a sublease arrangement.
• Insurance coverage terms, which vary by insurer and policy.
• Tax on your profit. That is covered, in general terms, in the Schedule C or Schedule E explainer.