Santa Fe City Vacation Rental Laws

If you own or are considering a vacation rental in Santa Fe City, understanding the local regulatory landscape is essential. Santa Fe has specific rules governing short-term rentals, and navigating them correctly protects both your income and your investment.

Permit Cap and Eligibility

Santa Fe City limits the total number of short-term rental permits to 1,000 citywide. This cap creates real scarcity — demand for permits consistently exceeds supply, so acting promptly is important.

Key permit requirements:

• Permits must be held in an individual’s name, not a business entity
• Permits are non-transferable — they cannot be sold with the property
• Permits must be renewed annually

Minimum Stay Requirements

One of the most significant operational rules: no more than one rental per 7-day period for any given property. This effectively prevents true nightly rentals.

Exception: The November 15 – January 15 holiday season is excluded from this restriction, allowing shorter-stay rentals during the peak holiday tourism window.

Local Operator Requirement

A local operator — someone who can respond to issues in person — must be available 24/7 throughout every rental period. This can be the property owner or an appointed co-host (like Cohost Santa Fe).

This requirement is strict. Failure to have a responsive local contact can result in permit suspension.

Parking Rules

Parking requirements scale with bedroom count:

• 1 bedroom: 1 off-street parking space required
• 2+ bedrooms: 2 off-street parking spaces required

Guest parking must not spill into public streets or neighboring properties in ways that create nuisance.

Financial Obligations

Operating a vacation rental in Santa Fe City involves multiple financial requirements:

Obligation	Details
Application fee	One-time, paid at initial permit filing
Annual business license	Required for any short-term rental operation
Annual permit renewal fee	Due each year to maintain permit validity
Lodger’s Tax	Municipal tax on rental income
Gross Receipts Tax (GRT)	State/county/city GRT on rental revenue
Federal and state income tax	On net rental income

Record-Keeping Requirements

Permit holders must maintain detailed records for a minimum of 3 years, including:

• Rental dates and guest information
• Tax filings and payment confirmations
• Any complaints or incidents

City vs. County: Know the Difference

The rules above apply specifically to Santa Fe City. Properties in Santa Fe County (but outside city limits) operate under different, generally less restrictive rules. If you’re unsure which jurisdiction applies to your property, check with the city or county planning departments.

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Staying compliant is complex — and the rules evolve. Cohost Santa Fe monitors regulatory changes and handles permit management as part of our full-service co-hosting program. Contact us to learn how we keep your property protected.