Written by: Sanjin Hadziomerovic
7 Step Guide to Birmingham Rental Regulations
1. City Overview: Short-Term Rental Landscape
Birmingham, Alabama, is a growing market for short-term rentals (STRs), offering unique investment opportunities. The city is currently reviewing potential regulatory measures that could impact STR operations in the near future.
For the most up-to-date short-term rental data, including occupancy rates, average daily rates, and revenue trends, visit the Chalet Market Dashboard.
2. Quick Facts
- Permit Required? No, but a business license is required.
- Zoning Restrictions? Currently, there are no citywide zoning restrictions, but this may change pending a City Council vote in March 2025.
- Maximum Occupancy: Subject to general residential occupancy codes.
- Tax Requirements: STR operators must collect and remit local, county, and state lodging taxes.
- Renewal Frequency: Business licenses must be renewed annually.
- Insurance Required? Strongly recommended for liability protection.
- Enforcement Level: No dedicated STR enforcement at present, but changes are under review.
3. Getting Started with STRs in Birmingham (Step-by-Step Guide)
Step 1: Verify Zoning Compliance
Before applying for an STR business license, property owners must confirm their property’s eligibility based on zoning regulations.
- Check Zoning Maps: Review the STR zoning regulations in the Birmingham STR Draft Code Amendment.
- Contact Birmingham Planning & Zoning Department:
- Phone: (205) 254-2479
- Email: planning@birminghamal.gov
Step 2: Obtain a Business License
All STR operators must apply for a business license through the City of Birmingham Tax & License Division.
- Required Documents:
- Completed Business License Application
- Proof of property ownership
- Valid government-issued ID
- Zoning compliance confirmation
- Tax registration documentation
License Fees:
- Fees vary based on property classification and STR revenue.
- Annual renewal is required.
Where to Apply:
- Online: City of Birmingham Business License Portal
- In Person:
- City of Birmingham Tax & License Division
- Address: 710 North 20th Street, Birmingham, AL 35203
- Phone: (205) 254-2198
- Email: revenue@birminghamal.gov
Step 3: Submit Required Documents
STR operators must submit all required documents either online or in person.
Online Application Process:
- Visit the City of Birmingham Business License Portal.
- Gather required materials, including:
- Business License Application
- Proof of ownership
- Valid ID
- Zoning compliance approval
- Tax registration documentation
- Submit the application online.
- The review process begins upon submission, including:
- Zoning Department: Confirms compliance.
- Fire Marshal: Conducts a safety inspection if required.
- Tax & License Division: Issues the business license after approval.
Physical Application Process:
- Complete the Business License Application.
- Gather all required documents.
- Submit the application in person at:
- City of Birmingham Tax & License Division
- Address: 710 North 20th Street, Birmingham, AL 35203
- Phone: (205) 254-2198
- Email: revenue@birminghamal.gov
