5 Mistakes Investors Make When Applying for a Short-Term Rental License in Vegas

Written by Shawn Cunningham | Jul 15, 2025 7:54:41 PM

Vegas is hot for short-term rental investing—but if you don’t follow the rules, things can get messy (and expensive). Here's what seasoned investors wish they’d known before applying for an STR license:

❌ Mistake #1: Ignoring Zoning Requirements

Don’t assume every home in Vegas can be rented short-term. STR licenses are limited, and some neighborhoods ban them outright.
Tip: Always call the local planning office before you buy.

❌ Mistake #2: Underestimating the Timeline

Between applications, inspections, and neighborhood notices, the process can take several weeks to months.
Tip: Plan for delays and start early—especially before major tourist seasons.

❌ Mistake #3: Not Preparing the Property for Inspection

Failed inspections = delays. Many investors overlook basics like:

  • Fire extinguisher placement

  • Emergency exit signs

  • Smoke/CO alarms in every room
    Tip: Walk through your property like a fire marshal would.

❌ Mistake #4: Skipping Insurance Requirements

You’ll need liability insurance to operate legally.
Tip: Get a policy that specifically covers short-term rentals—not just homeowners insurance.

❌ Mistake #5: Thinking You Can "Sneak In" Without a License

The city takes illegal STRs seriously. Fines can hit $1,000+ per day for unlicensed rentals.
Tip: If you’re caught, you may lose the right to operate that property permanently.

Wrap-Up:
Vegas STRs can be highly profitable—but only if you play by the rules. Avoid these common mistakes and make the licensing process smooth from day one.