Step 4: Tax Registration & Payment
STR hosts are required to collect and remit lodging taxes, which apply to short-term rentals of less than 180 days.
Tax Breakdown:
- Alabama State Lodging Tax: 4%
- Baldwin County Lodging Tax: 2%
- City of Gulf Shores Lodging Tax: Varies by property type
How to Pay:
- Taxes are typically collected and remitted by platforms like Airbnb, but owners should verify compliance by registering with the Gulf Shores Revenue Division:
4. Regulatory Breakdown
1. What is considered a short-term rental in Gulf Shores, AL?
A dwelling rented or offered for rent for fewer than 180 consecutive days qualifies as a short-term rental. A 2025 zoning clarification restated that rentals of 180 days or more to a single tenant are not considered short-term and do not require a Rental License.
2. Do I need a permit to operate a short-term rental in Gulf Shores, AL?
Yes. You must hold a business license and a Rental License:
- Business License: Complete the City’s general Business License application.
- Rental License: Submit the Rental Property License Application with checklist materials.
- Short-Term Rental Fee: $45 per unit, based on gross receipts (see Fee Schedule A) gulfshoresal.gov.
Licenses expire December 31 each year; renewals are due January 1 and delinquent after January 31.
3. What are the zoning laws for STRs in Gulf Shores, AL?
All rentals must comply with existing residential zoning. During the application review, the Planning & Zoning Department confirms zoning compliance; no additional short-term–rental-specific zoning overlays or restrictions are imposed.
A 2025 zoning clarification confirms that rentals offered for fewer than 180 days fall under short-term rental regulations; rentals of 180 days or more to a single tenant are exempt from STR licensing (Gulf Shores Rental License).
4. Are there occupancy limits for short-term rentals in Gulf Shores, AL?
Occupancy limits are governed by applicable building and fire codes rather than the Rental License ordinance. Best practice is to adhere to the fire-safety occupancy rating based on square footage and egress.
5. What taxes are short-term rental hosts required to pay in Gulf Shores, AL?
In addition to the Rental License fee, STR hosts must collect and remit lodging taxes as administered by the City’s Revenue Department. Consult the city’s lodging-tax webpage for current rates and remittance procedures (Gulf Shores Rental License).
6. What are the safety and health requirements for STR properties in Gulf Shores, AL?
- Local Emergency Contact: You must designate and maintain a 24-hour local emergency contact as required under the 2025 Rental License criteria.
- Safety Inspections: With the latest updated in 2025, Gulf Shores requires rental safety inspections every three years by the Fire Marshal as a condition of receiving or renewing the Rental License. Properties must comply with all applicable building, plumbing, mechanical, electrical, and fire codes.
7. How are noise and nuisance complaints handled in Gulf Shores, AL?
Short-term rentals fall under the City’s general noise and nuisance ordinances (Chapter 9); complaints are routed through Code Enforcement. Best practice is to adopt a clear guest conduct policy and provide your local contact to address issues promptly.
8. Can I manage multiple short-term rental properties in Gulf Shores, AL?
Yes. Each dwelling unit offered as an STR requires its own Business License and Rental License (with associated fees). Submit separate applications for each property.
9. What are the penalties for non-compliance with STR regulations in Gulf Shores, AL?
Operating without a valid Rental License is unlawful under Section 8-19 of the Code of Ordinances. Enforcement actions may include fines, license denial or revocation. Under the updated 2025 inspection rules, properties that fail required safety inspections may also face enforcement or be denied license issuance or renewal.
10. Are there any updates or changes to STR regulations I should be aware of in Gulf Shores, AL?
Yes. Gulf Shores updated its short-term rental regulations in 2025:
• Safety inspections are now required every three years by the Fire Marshal as a licensing condition. The inspection requirement is listed on the City’s Rental License checklist.
• Hosts must maintain a 24-hour local emergency contact.
• A zoning clarification in 2025 confirmed that licensed vacation rentals may be rented for a maximum of 180 days; rentals beyond this are not considered short-term under local code.
These changes are part of Gulf Shores’ current Rental License requirements under Chapter 8 of the City Code, and are published on the City’s official licensing pages.
11. Can I self-manage my short-term rental in Gulf Shores, AL?
Yes. You may self-manage; no third-party management company is required. You must, however, provide and maintain a designated local emergency contact in your application.
12. What are the insurance requirements for short-term rentals in Gulf Shores, AL?
Insurance requirements are not specified in the Rental License ordinance. Best practice is to carry at least $1 million in liability coverage and property insurance that explicitly covers short-term rental activity.
13. Are there any local rules regarding hosting platforms (e.g., Airbnb, Vrbo) in Gulf Shores, AL?
The ordinance does not directly regulate online platforms. Hosts should ensure their platform listings display their Rental License number and comply with all City licensing and tax obligations.
14. What are the inspection requirements for STRs in Gulf Shores, AL?
- Safety Inspection: Gulf Shores requires a Fire Marshal inspection every three years as a licensing condition.
- Zoning & Documentation Review: Conducted by Planning & Zoning and Revenue departments during application review.
Failure to complete inspections will prevent issuance or renewal of the Rental License under updated 2025 requirements.
15. Are there any neighborhood-specific restrictions for STRs in Gulf Shores, AL?
No neighborhood-specific caps or bans exist. Hosts with HOA- or deed-restricted properties should verify any additional private restrictions before applying.
16. Is there a cap on the number of STR permits issued in Gulf Shores, AL?
No numerical cap is imposed. All qualifying residential properties may obtain a Rental License.
17. What parking requirements exist for STRs in Gulf Shores, AL?
Parking requirements for STRs are governed by the City’s residential zoning off-street parking standards; no additional short-term-rental–specific parking mandates are in place.
5. Key Considerations for Investors
- Investment Potential: Gulf Shores remains an attractive STR market due to its tourism appeal.
- Regulatory Trends: The city enforces STR regulations, and investors should monitor updates.
- Community Compliance: Operators should be aware of neighborhood restrictions and HOA rules.
6. Taxes and Financial Obligations
Tax Breakdown:
- Alabama State Lodging Tax: 4%
- Baldwin County Lodging Tax: 2%
- City of Gulf Shores Lodging Tax: Varies
7. How Chalet Can Help
- Local Realtor Partnerships:
Looking to invest in short-term rental properties? Chalet’s nationwide network of specialized realtors is here to guide you. Our experts understand the nuances of vacation rentals and local markets, helping you identify high-ROI properties and navigate complex regulations with ease. Best of all, their services come at no extra cost to you. Click here to connect for free.
- Chalet’s Regulation Updates:
Chalet email subscribers receive updates regarding regulatory changes in cities. Subscribe here!
- Connect with Local Experts:
At Chalet, our goal is to enable everyone to create wealth with short-term rentals. We bring the experience and expertise to optimize your rental property. Connect with a STR professional in your area here.
Recommended Tools and Resources
- Chalet STR Market Insights Tool
Chalet offers a free market analytics tool that allows investors to explore detailed data on occupancy rates, average daily rates, revenue estimates, and market trends for specific cities. This tool helps investors make informed decisions based on comprehensive insights. Access the STR Market Insights Tool.
- Airbnb Income Guide
Investors can dive into this guide to better understand how to maximize income from STRs. It covers critical aspects such as dynamic pricing, guest management, and how to boost profitability through effective listing strategies. Read the Comprehensive Guide to Airbnb Income.
- AI-Powered Market Comparison Dashboard
Chalet’s market comparison dashboard offers a powerful tool for comparing different STR markets based on yield, occupancy rates, and other key performance indicators. This tool is particularly useful for investors looking to diversify across different regions. Check out the Market Dashboard.
- Chalet STR Calculator
The free Chalet STR Calculator is a powerful tool designed to help short-term rental investors evaluate potential property performance with ease. It enables users to estimate revenue, analyze expenses, and project profitability for any STR market, streamlining investment decisions. Whether you’re comparing properties or exploring new opportunities, the Chalet STR Calculator simplifies the process with precision. Learn more about the Chalet STR Calculator.
DISCLAIMER: The information provided in these guides is for entertainment and general informational purposes only. It may not reflect the most up-to-date regulations, and Chalet is not responsible for any inaccuracies or changes to the information on third-party sites. These guides are not legal advice. We highly recommend verifying details directly with local authorities and consulting professionals before making any investment decisions. Ultimately, it is your responsibility as an investor to ensure compliance with local laws.
