Is Las Vegas, Nevada Good for Airbnb Investment?

To start an Airbnb in Las Vegas, Nevada, begin by researching Clark County's short-term rental regulations, which require hosts to obtain a business license and short-term rental permit, with properties limited to rentals of 31 days or less and subject to a 13.38% transient occupancy tax. First, secure your property either through purchase or ensuring your lease allows short-term rentals, then apply for a Clark County business license ($300-500 annually) and short-term rental permit ($200-400) through the county's licensing department, providing proof of insurance, floor plans, and safety compliance documentation. Next, ensure your property meets safety requirements including smoke detectors, carbon monoxide detectors, fire extinguishers, and emergency exit plans, then furnish the space with quality furniture, linens, kitchen essentials, and amenities that appeal to Las Vegas tourists such as blackout curtains and pool access if available. Create compelling listings on Airbnb, VRBO, and other platforms with professional photography highlighting proximity to the Strip, downtown, or local attractions, setting competitive rates based on location and seasonality (typically $80-300+ per night depending on property size and location). Finally, establish management systems for guest communication, cleaning between stays (budget $75-150 per turnover), key exchange through lockboxes or smart locks, and maintain compliance with ongoing tax reporting requirements to both Clark County and the Nevada Department of Taxation, while monitoring occupancy limits and noise ordinances to avoid penalties that can reach $1,000 per violation.

To identify profitable short-term rental properties in Las Vegas, Nevada, focus on locations within 3-5 miles of the Strip, downtown Las Vegas, or near major attractions like Red Rock Canyon and Lake Las Vegas, while avoiding areas with strict HOA restrictions or city ordinances prohibiting STRs. Target properties with 2-4 bedrooms, pools, hot tubs, game rooms, or unique themes that appeal to groups and bachelor/bachelorette parties, as Las Vegas attracts primarily leisure travelers seeking entertainment-focused accommodations. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by at least 40-60%, typically finding sweet spots in the $300,000-$600,000 range in neighborhoods like Summerlin, Henderson, and Arts District. Research competition by analyzing similar properties within a 2-mile radius using tools like AllTheRooms and Transparent, focusing on occupancy rates, average daily rates, and guest reviews to identify market gaps. Utilize Las Vegas-specific resources including the Clark County STR permit database, local real estate platforms like LasVegasRealEstate.com, and connect with Vegas-focused STR management companies like RedAwning and Vacasa to understand market dynamics, seasonal trends during major conventions like CES and EDC, and regulatory requirements for operating legally in Clark County.

To obtain an Airbnb/STR permit in Las Vegas, Nevada, you must apply through the City of Las Vegas Business License Division either online at lasvegasnevada.gov or in person at 495 S. Main Street. Required documents include a completed short-term rental application, proof of property ownership or lease agreement with landlord consent, Nevada state business license, liability insurance certificate (minimum $500,000), floor plan of the rental unit, and valid government-issued ID. The application fee is approximately $300-500 annually, with additional fees for inspections ($150-200) and business license requirements. The timeline typically takes 4-6 weeks for processing, including a mandatory property inspection by city officials to ensure compliance with fire safety, building codes, and occupancy limits. Las Vegas-specific requirements include maintaining a 24/7 local contact person within 30 minutes of the property, posting the permit number in all advertisements, limiting occupancy to 2 people per bedroom plus 2 additional guests (maximum 10 people), providing adequate parking spaces, and ensuring the property meets all zoning requirements as many residential areas restrict short-term rentals. You must also register with the Nevada Department of Taxation for room tax collection (13.38% in Las Vegas) and comply with HOA restrictions if applicable, as many Las Vegas communities prohibit short-term rentals entirely.

Short-term rentals (STRs) are legal in Las Vegas, Nevada, but operate under strict regulations implemented by the city. As of 2023, Las Vegas requires STR operators to obtain a business license and comply with zoning restrictions that limit STRs primarily to commercial and mixed-use zones, effectively prohibiting them in most residential neighborhoods. The city implemented these regulations around 2021-2022 following community concerns about noise, parking, and neighborhood character. Properties must meet safety requirements including smoke detectors, fire extinguishers, and emergency contact information, while operators face penalties for violations including noise complaints and occupancy limits. The regulations also require a 24/7 local contact person and limit occupancy to two people per bedroom plus two additional guests. Recent changes have focused on enhanced enforcement mechanisms and stricter penalties for non-compliance, with the city actively monitoring platforms like Airbnb and VRBO for unlicensed operations.

The best Airbnb investment areas in Las Vegas include the Las Vegas Strip corridor where properties benefit from proximity to major casinos, shows, and conventions with year-round tourist demand; Downtown Las Vegas (Fremont Street area) which has experienced significant revitalization since 2012 with new developments, lower property costs, and appeal to younger travelers seeking authentic Vegas experiences; Summerlin, a master-planned community offering upscale vacation rentals for families and business travelers preferring quieter accommodations while remaining 20 minutes from the Strip; Henderson, particularly near Lake Las Vegas, attracting visitors seeking luxury resort-style stays and corporate travelers working with companies like Amazon and Tesla who have major operations in the area; Arts District, which has emerged as a trendy neighborhood since 2015 with galleries, breweries, and restaurants appealing to millennials and creative professionals; and areas near McCarran International Airport (now Harry Reid Airport) which serve business travelers and those with early flights, with properties typically maintaining 70-80% occupancy rates due to convenience factors.

In Las Vegas, Nevada, Airbnb hosts must collect and remit a 13.38% transient lodging tax, which combines Clark County's 12% transient occupancy tax and Nevada's 1.38% statewide lodging tax. The tax applies to stays of 30 days or less and is calculated on the total rental amount including cleaning fees. Airbnb automatically collects and remits these taxes on behalf of hosts for bookings made through their platform since 2017, but hosts using other platforms or direct bookings must register with the Clark County Treasurer's office and file monthly returns by the 15th of the following month. The tax applies to all short-term rentals regardless of property type, with no exemptions for occasional rentals, though stays exceeding 30 consecutive days are exempt from the transient lodging tax. Hosts must also obtain a Clark County business license and may be subject to additional city of Las Vegas licensing requirements depending on the property location within the metropolitan area.

Starting an Airbnb in Las Vegas, Nevada requires approximately $450,000-$550,000 in total initial investment. Property purchase costs average $420,000 based on median home prices in desirable tourist areas like Summerlin or Henderson as of 2024. Furnishing a 3-bedroom property runs $15,000-$25,000 including beds, living room furniture, kitchen essentials, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, smart locks, and welcome amenities total $2,000-$3,000. Permits and fees include a $300 business license, $200 short-term rental permit, and $500 in various city compliance fees. Insurance specifically for short-term rentals costs $1,800-$2,400 annually, significantly higher than standard homeowner's insurance. Utilities including electricity (averaging $150/month in Vegas heat), water, internet, cable, and trash service run approximately $250/month. First six months of operating costs including utilities ($1,500), cleaning services ($1,800), property management software ($300), maintenance reserves ($1,200), and marketing ($600) total around $5,400, bringing the complete startup investment to roughly $450,000-$580,000 depending on property location and furnishing quality.

Airbnb properties in Las Vegas, Nevada demonstrate strong profitability potential with average annual revenues ranging from $35,000-$65,000 for typical 2-3 bedroom properties, while expenses including mortgage, utilities, cleaning, maintenance, and platform fees typically consume 60-70% of gross revenue, resulting in net profit margins of 25-35% for well-managed properties. Properties near the Strip command premium rates of $150-$300 per night with 70-80% occupancy rates, while suburban properties average $80-$150 nightly with 60-70% occupancy. Success factors include strategic location within 10 miles of major attractions, professional photography, dynamic pricing strategies, and exceptional guest services, with top-performing hosts like those managing properties in Summerlin and Henderson reporting annual profits exceeding $25,000 per property. The market benefits from Las Vegas's 42 million annual visitors, consistent convention traffic, and year-round tourism demand, though hosts must navigate Clark County's short-term rental regulations implemented in 2019 and increased competition from major hotel chains expanding their vacation rental offerings through partnerships with companies like Sonder and RedAwning.

Airbnb investments in Las Vegas, Nevada typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15% depending on property location and management efficiency. Properties near the Strip and downtown areas command higher nightly rates of $150-300 but require larger initial investments of $400,000-800,000, while suburban properties with $250,000-400,000 purchase prices achieve steady occupancy rates of 65-75% annually. Most investors reach profitability within 18-24 months, with prime locations potentially achieving break-even in 12-15 months due to Las Vegas's consistent tourism demand of over 40 million annual visitors. Cash-on-cash returns are optimized when investors put down 20-25% and leverage financing, with gross rental yields typically ranging 10-14% before expenses, and net yields settling around 6-10% after accounting for property management fees, cleaning, maintenance, and vacancy periods.

STRSearch is a leading national platform that specializes in Airbnb investment property analysis and market data for Las Vegas, Nevada. Local companies include Vegas Property Scouts, Desert Real Estate Investments, and Las Vegas Short-Term Rental Advisors, which focus specifically on identifying high-yield vacation rental properties in prime Las Vegas neighborhoods. National services like Awning, Mashvisor, and AirDNA provide comprehensive market analysis and property sourcing for Las Vegas STR investments. Real estate agents specializing in this niche include Jennifer Martinez with Realty One Group, Michael Thompson at Simply Vegas, and Sarah Chen from Keller Williams Southern Nevada, all of whom have extensive experience in vacation rental property acquisitions. Additional services include RedAwning Property Management, which offers end-to-end investment solutions, and local firms like Vegas Vacation Rental Consultants and Nevada STR Solutions, established around 2018-2020, that provide market analysis, property identification, and investment guidance specifically for the Las Vegas short-term rental market.