Do I need a permit for short-term rentals in Birmingham?

**Yes**, Birmingham requires a Short-Term Rental License for all rentals. You need to obtain this STR license and a standard business license to legally operate. The cost for the Short-Term Rental License is $300. Operating without the correct license can result in penalties as outlined by Ordinance No. 23-146.

What is the TOT tax rate in Birmingham, AL?

**14% TOT** is the current transient occupancy tax rate for short-term rentals in Birmingham. Hosts are responsible for collecting this tax from guests and remitting it to the city. Make sure to register with the city to properly collect and remit taxes as required by local law.

Are short-term rentals allowed in Birmingham?

**Yes**, short-term rentals are allowed in Birmingham, even if they are not owner-occupied. The city allows non-owner-occupied rentals in most residential zones, provided that you obtain the necessary Short-Term Rental license. Always check local zoning ordinances to ensure your property is eligible for short-term rentals, per Ordinance No. 23-146.

How much does an STR permit cost in Birmingham?

**$300** is the cost for the required Short-Term Rental license in Birmingham. You must obtain this specific STR license, in addition to a standard business license, to operate legally. Ensure you complete the application process and pay the fee to avoid potential fines for operating without a permit per Ordinance No. 23-146.

Can renters host on Airbnb in Birmingham?

**Yes**, tenants can host on Airbnb in Birmingham, as the city does not explicitly prohibit renters from listing properties. However, renters must still obtain the required Short-Term Rental license and standard business license. Renters should also verify that their lease agreements allow for short-term rentals to avoid violating their contract.

Birmingham, AL Short-Term Rental Laws & Regulations

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Eligibility8 rules

Birmingham allows tenants to host STRs. Requirements: Requires written owner consent.
Birmingham, AL: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
Birmingham does NOT require the property to be a primary residence. Investment properties are allowed.

Requirements21 rules

Common mistakes and gotchas for STR hosts in Birmingham: 1. You must have at least $1 million in liability insurance specifically for STRs. 2. Max occupancy is strictly capped at 10 people, regardless of house size. 3. Your permit number must be visible in the first line of your online listing description. 4. If you are a tenant, you must provide a signed and notarized permission form from your landlord. 5. Quiet hours are strictly enforced between 10 PM and 7 AM. 6. Properties in unincorporated Jefferson County follow different rules; ensure you are within city limits. 7. Apartment buildings may have additional unit-count caps under 'Limited' license types.

Application process10 rules

Step-by-step guide to get an STR permit in Birmingham: Step 1: Zoning Verification - Confirm your property is in a residential-permitted zone via the city's interactive map. Estimated time: 1 day. More info: https://www.birminghamal.gov/about/city-directory/planning-engineering-permits/zoning-administration/ Step 2: Apply for STR License - Submit the STR application along with your floor plan and insurance certificate. Documents needed: Floor plan, Insurance COI. Estimated time: 14 days. Cost: 300. More info: https://www.birminghamal.gov/shorttermrentals Step 3: Obtain Business License - After STR approval, obtain the standard city business license. Documents needed: Approved STR License. Estimated time: 7 days. Cost: 30. More info: https://www.birminghamal.gov/about/city-directory/finance/tax-and-license-administration/

Fees & costs2 rules

Birmingham charges a registration fee of $300 (annual).
Birmingham: You must have at least $1 million in liability insurance specifically for STRs.

Taxes2 rules

Birmingham charges a Lodging Tax of 14%. This applies to stays under 30 days. Platforms like Airbnb collect and remit this tax. Note: Airbnb and VRBO remit the state and city lodging tax directly.
Alabama has a state sales tax of 4% that applies to STR rentals.

Limits & restrictions8 rules

Birmingham limits stays to a maximum of 29 nights.
Birmingham enforces quiet hours: 10:00 PM to 7:00 AM.
Birmingham: Max occupancy is strictly capped at 10 people, regardless of house size.
Birmingham limits STRs to a maximum of 10 guests. Formula: 2 per bedroom plus 2 additional guests, not to exceed 10 total.

Safety requirements1 rule

Birmingham requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, posted maximum occupancy, posted emergency contact, Egress plan posted.

Penalties3 rules

Birmingham, AL: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
Birmingham enforces the following penalties for STR violations: First offense: $250. Second offense: $500. Third offense: License revocation. Daily fine: $250. Maximum fine: $500 per day. Permit may be revoked for violations.

Exemptions3 rules

Birmingham exempts the following from STR regulations: long-term rentals (30+ days).
Birmingham: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
Birmingham, AL: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).

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Summary

Restriction level

Why this classification

In plain English

At a glance

7 things hosts often miss

Regulation details

Frequently asked questions

1Do I need a permit for short-term rentals in Birmingham?

2What is the TOT tax rate in Birmingham, AL?

3Are short-term rentals allowed in Birmingham?

4How much does an STR permit cost in Birmingham?

5Can renters host on Airbnb in Birmingham?

Disclaimer