How to Invest in Rentals: Understanding Short-Term Rental Rules in Las Vegas, Henderson, and Clark County

Over the past four years, municipalities across the Las Vegas Valley have overhauled rental legislation, reshaping how, where, and whether you can host travelers. From assembly-level mandates like AB363 to tight municipal zoning rules, the path from purchase agreement to first booking is paved with regulations. Understanding those rules is the first step in investing in rental property for beginners.

In this guide, we’ll walk through how to start an Airbnb business in Las Vegas, Henderson, and unincorporated Clark County—step by step, section by section. Along the way, you’ll see why enlisting a bilingual, culturally fluent realtor like Laura Renova of Supernova Realtors can turn red tape into a red-carpet welcome for your portfolio.

Disclaimer: This article is for informational purposes only and does not constitute legal, tax, or investment advice. Always consult qualified professionals before making real estate decisions.

How to Invest in Rentals in Las Vegas—Current Short-Term Rental Regulations

What Is a Short-Term Rental? Before diving in, let’s define our terms. A short-term residential rental (STRR) is any dwelling—house or condo—rented for less than 31 consecutive days. This counts any part of a day as a full night and applies whether the owner is on-site or not.

AB363’s Impact. In June 2021, Nevada’s Assembly Bill 363 (AB363) imposed statewide minimum standards: owner-occupancy mandates, separation distances, and licensing frameworks. Cities and counties had to adopt rules at least as strict as the state’s, effectively ending outright bans but ushering in tight controls (Nevada State Legislature, 2021). ​

Licensing Steps. In Las Vegas proper, you must first secure a Conditional Use Verification (CUV). That means demonstrating:

• The property is owner-occupied during all guest stays.

• It sits at least 660 feet from any other STRR and 2,500 feet from a resort hotel.

Once the CUV clears, you schedule a home inspection—verifying smoke alarms, carbon monoxide detectors, fire extinguishers, safe egress, and proper building permits. Finally, you apply for the business license, pay a $500 annual fee, and carry $500,000 liability insurance. Only after that may you lawfully list your home.

Zoning “Friendly” Areas. Despite tight rules, some neighborhoods welcome STRRs more readily. Downtown, the Arts District, and parts of Spring Valley often clear the CUV more predictably than gated master-planned communities like Summerlin or Summerlin West.

License Caps and Competition. While Las Vegas has not imposed a hard cap on STRR licenses, local approvals are subject to first-come, first-served geographic restrictions—if a neighboring property is licensed within 660 feet, your application can be nullified, even after CUV approval.

How to Start a Short-Term Rental Business in Henderson—Laws, Costs, and Legal Areas

Unlike Las Vegas’s layered CUV process, Henderson issues STRR permits more directly, though still under AB363’s umbrella. Owners need a business license (about $500/year) and must carry $1,00,000 liability insurance—the same baseline found in the city of Las Vegas.

Owner-Occupancy Not Required. Key difference: Henderson does not mandate the owner live on-site during rentals, broadening opportunities for rental properties for sale to out-of-state investors.

HOA and Zoning Overlay. Many master-planned communities—Green Valley, Anthem, Lake Las Vegas—retain HOAs that can forbid short-term rentals outright, regardless of city permits. A simple due-diligence step: check the property’s recorded Covenants, Conditions, and Restrictions (CC&Rs) to confirm STRR allowances before signing your purchase agreement.

Startup Costs. Beyond purchase price, Henderson operators should budget for:

• Business license $500.

• Liability insurance $500,000 (approx. $600+ annually).

• Safety equipment: interconnected smoke alarms ($200), CO detectors ($100), fire extinguishers (~$100).

• Fee for noise management plans ($1,000 annually)

Legal “Friendly” Zones. Lower-density residential areas outside core master plans often clear regulations more smoothly. Laura’s local networks can guide you to neighborhoods where CC&R boards have already pre-approved STRRs.

How to Get a Short-Term Rental License in Unincorporated Clark County—Process, Caps, and Costs

Clark County (unincorporated) took a strict stance: no more than 1% of housing units in any given area may hold an STRR license at once, capped and allocated via a Random Number Generator.

Application Window. Typically held annually for 1–3 months—with a six-month window in 2022—interested hosts submit:

• $45 nonrefundable application fee

• $150 inspection fee

• Completed forms detailing ownership, Assessor-listed bedroom count, local contact info, and notarized signatures.

Draw order decides who moves forward; inclusion on the list does not guarantee a license.

Insurance & Reporting. Approved hosts pay:

• $750/year for ≤3-bed homes

• $1,500/year for larger homes

• and must carry $500,000 liability insurance.

Once licensed, they must submit monthly reports on bookings, revenue, average stay, and platform usage—or partner with a licensed accommodations facilitator (hosting platform) to file on their behalf.

On-Site Equipment. Clark County enforces:

• Noise monitoring devices at property lines

• 24-hour security cameras

• Local representative available within 30 minutes, 24/7

• Good Neighbor Pamphlet posted in the unit.

DISQUALIFIERS. Properties on septic systems, in prohibited townships (Mt. Charleston, Moapa Valley, etc.), apartments, and mobile homes are automatically ineligible.

Practical Tip. Laura’s team can vet sewer-map records, coordinate the lodgings facilitator paperwork, and enhance your odds in the random draw by ensuring every application is error-free.

Startup Costs Beyond Purchase Price—Licensing, Inspections, and Safety Retrofits

Every savvy investor knows the sticker price on a house is only the opening line of the expense story. In Southern Nevada, transforming a home into a legally compliant short-term rental demands a significant up-front investment in licensing, inspections, and safety upgrades—what I like to call the “compliance capital.”

Imagine you’ve closed on a three-bedroom in Spring Valley. Before posting your first “how to start an Airbnb” listing, you’ll face city or county fees, mandatory safety gear, and proof of insurance. These costs can easily run $3,000–$5,000, squeezing your initial budget if you don’t plan ahead.

Item	Las Vegas	Henderson	Clark County (Uninc.)
Business license fee	$500/year	$500/year	$750 (≤3 br) or $1,500 (>3 br)
Application & inspection fees	—	—	$45 + $150
Liability insurance minimum	$500,000	$1,000,000	$500,000
Smoke & CO detectors	$300–$400 total	$300–$400	$300–$400
Fire extinguishers & signage	$200–$300	$200–$300	$200–$300

Beyond the tables, you’ll need professionally drawn floor plans for Las Vegas CUV applications, notarized statements in Clark County, and, in Henderson, evidence of HOA authorization where relevant. Missing any document can push your listing into a bureaucratic purgatory—costly in both time and money.

Operating Costs—Cleaning, Management, Utilities, Insurance, and Taxes

Once your doors open, the daily reality of running an investment property hits home: turnover cleaning, guest support, utility bills, and tax compliance quietly devour revenue. A property might gross $4,000 one month, but after these line items, net profit can sink below the mortgage payment if you’re not careful.

Expense Category	Typical Range	Notes
Property management fee	20–30% of revenue	Full-service guest handling.
Cleaning per turnover	$100–$200	Based on size and service.
Electricity	$300–$500/month	AC-intensive summers.
Water & sewer	$100–$200/month	Pools increase cost.
Internet & cable	$75–$150/month	Guest expectations rising.
Transient Occupancy Tax	12–13% of gross revenue	Monthly/quarterly remittance.
Insurance renewal	+20–40% over standard policies	STR policies carry premium pricing.

In practice, many hosts see 40–60% of their gross revenue absorbed by these expenses. That’s why even the best short term apartment rentals require meticulous budgeting. Some investors offset costs by offering basic add-ons—late checkout fees, pet surcharges—though these must be disclosed clearly to avoid regulatory headaches.

Why Occupancy Rates and Revenue Projections Matter Before You Invest

Turning a house into a short-term rental isn’t a roll of the dice—it’s a numbers game. The single most critical metric is occupancy rate, which measures how often your property is booked out of the total nights available.

In Las Vegas, recent market data shows:

• 55-61% median occupancy (August 2023–July 2024)

• 223 nights booked per year on average

• Average daily rate (ADR): $131

• Typical annual host revenue: $28,000 ​

Even a five-point swing in occupancy can erase projected profits. For a home listing at $131/night, raising occupancy from 60% to 65% could mean an extra $1,000–$1,500 in monthly revenue—enough to cover annual licensing fees.

Before committing to your next rental property for sale, gather neighborhood-specific occupancy and ADR data. The Strip area will outperform suburbs, but also comes with steeper start-up costs and stiffer competition. Laura Renova’s team often helps clients model these scenarios, ensuring expectations align with on-the-ground realities.

Short-Term Rental Investment FAQ for Las Vegas, Henderson, and Clark County

Q: How much net income can I expect each month?

A: While gross earnings might hit $3,000–$5,000, after management, cleaning, utilities, and taxes you’re often left with 40–60% of that—roughly $1,200–$3,000 net, depending on occupancy and price point.

Q: Which area is easiest to launch an STRR?

A: Henderson’s non-occupancy requirement and straightforward permitting make it the most accessible market. Clark County is the toughest—its 1% cap and lottery draw mean many applications never see a license.

Q: Can I rent a condo or apartment?

A: Generally no. Apartments are prohibited under AB363 in both Clark County and the City of Las Vegas. A condo might work only if its CC&Rs explicitly allow transient lodging.

Q: How do HOA rules fit in?

A: HOA bans override city or county permission. Always request a CC&R status letter before purchase—ideally with Laura’s help to interpret any legal jargon.

Q: What are the penalties for noncompliance?

A: Fines range from $500 to $10,000 per day for operating without a valid license, plus possible criminal citations and loss of good-neighbor credentials.

Q: Is it worth working with a bilingual real estate agent?

A: Absolutely. Misunderstandings around zoning language or permit deadlines can cost tens of thousands. Laura’s bilingual fluency and deep local network turn those pitfalls into smooth transactions.

Turning Regulatory Complexity Into Competitive Advantage

Southern Nevada’s short-term rental market rewards those who treat it as a regulatory puzzle rather than a quick-flip scheme. From how to buy an investment property to investing in rental property for beginners, success depends on anticipating both the visible costs—mortgage, furniture, marketing—and the less-obvious ones: fees, inspections, HOA approvals, and tax remittances.

By partnering with experts like Laura Renova and the Supernova Realtors team, who speak your language—literally and figuratively—you transform complex rental legislation into practical, profit-driving knowledge. With a well-budgeted startup, realistic occupancy projections, and a trusted guide at your side, your short-term rental can soar above the desert skyline of ever-shifting regulations and marketplaces.

📞 Call us at (702) 409-2424 to book your consultation today! We put our heart into every transaction ♥️