Birmingham, AL Short-Term Rental Regulations Guide 2025

Written by: Sanjin Hadziomerovic

7 Step Guide to Birmingham Rental Regulations

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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.

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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.

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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:

1. Visit the City of Birmingham Business License Portal.
2. Gather required materials, including:
   • Business License Application
   • Proof of ownership
   • Valid ID
   • Zoning compliance approval
   • Tax registration documentation
3. Submit the application online.
4. 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:

1. Complete the Business License Application.
2. Gather all required documents.
3. 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

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