How do I start an Airbnb in Montgomery, Alabama?

Confirm City or police-jurisdiction status, check the one-unit-per-block rule, verify zoning and private restrictions, complete the required inspection and insurance, then apply for a property-specific Short-Term Rental Business License before advertising or operating.

Does Montgomery require a short-term rental license?

Yes. Ordinance No. 29-2026 requires a current Short-Term Rental Business License for each property in Montgomery or its police jurisdiction, and advertisements must display the annual business-license number.

What counts as a short-term rental in Montgomery?

The ordinance defines a short-term rental as a habitable dwelling or portion offered for overnight occupancy for less than 180 consecutive days, subject to listed exclusions for businesses already licensed under other lodging categories.

Can I use rental arbitrage for a Montgomery Airbnb?

No. The ordinance prohibits rental-arbitrage agreements and assignments. The operator must own the property or have qualifying notarized authority from the registered owner.

How many guests may stay in a Montgomery short-term rental?

Maximum guest occupancy is two people per bedroom. The application also requires a scaled floor plan showing rooms and each bedroom offered for rent.

What inspections does Montgomery require?

A Building Compliance Report is required before licensing. Single-family dwellings require an Alabama-licensed home inspector, while multifamily dwellings require an Alabama-licensed architect or engineer, subject to City approval.

What insurance is required for a Montgomery short-term rental?

The ordinance requires qualifying homeowners-policy rider or commercial STR coverage with at least $1 million in liability and personal-injury coverage, plus the other policy terms stated in the ordinance.

What lodging tax applies to Montgomery short-term rentals?

Ordinance No. 29-2026 states an 11% City lodging tax inside city limits and 5.5% in the police jurisdiction, due by the 20th day of the following month. State and county duties should be confirmed separately.

What operating rules apply to Montgomery STRs?

Guests must use designated parking, operators must control noise and trash, event rentals are prohibited, required safety equipment must be maintained, and a local contact must be able to respond within 15 minutes.

Can Montgomery revoke a short-term rental license?

Yes. The City may suspend a license, and three or more violations within 12 months may be referred to the City Council for revocation. The ordinance also provides $250 first and $500 subsequent fines.

Montgomery, AL Airbnb Guide

Decision point

Montgomery STR Investment Decision

Montgomery now requires property-specific licensing and compliance before short-term rental operations begin.

Confirm the address is inside Montgomery city limits or the police jurisdiction.
Check the one-unit-per-city-block rule before committing capital.
Verify ownership or documented agency because rental arbitrage is prohibited.
Price inspections, insurance, licensing, and monthly lodging-tax filings.
Underwrite the exact property rather than relying on citywide revenue claims.

Property eligibility

Montgomery STR Property Eligibility

Eligibility depends on jurisdiction, block density, ownership authority, zoning, and private restrictions.

Confirm City or police-jurisdiction status with official mapping.
Check whether another nonconforming STR unit operates on the same block and street.
Confirm the operator owns the property or holds qualifying notarized authority.
Review zoning, historic-district, subdivision, and deed restrictions.
Do not assume platform availability proves legal eligibility.

Applications and filings

Montgomery STR License Application

Each STR property needs its own City business license and a complete property packet.

Apply through Montgomery License and Revenue before advertising or operating.
Submit proof of insurance and the required Building Compliance Report.
Provide floor and site plans, including bedrooms and guest parking.
Supply local 24-hour response and alternate contact information.
Display the annual business-license number in every advertisement.

Property operations

Montgomery STR Operating Rules

Operators must control occupancy, parking, noise, events, refuse, safety, and complaint response.

Limit occupancy to two guests per bedroom.
Keep guest vehicles in designated parking areas.
Respond to emergencies or complaints within 15 minutes.
Do not rent the unit for weddings, parties, or similar events.
Post the required interior placard and communicate trash procedures.

Safety and insurance

Montgomery STR Safety Requirements

A compliant inspection and dedicated STR insurance are prerequisites for licensing.

Use an Alabama-licensed home inspector for a single-family dwelling.
Use an Alabama-licensed architect or engineer for a multifamily dwelling.
Correct code violations before the City issues the license.
Maintain required alarms, extinguishers, and sleeping-room egress.
Carry at least $1 million in qualifying liability and personal-injury coverage.

Taxes and filings

Montgomery STR Lodging Taxes

City lodging tax and business-license filings apply separately from platform payout records.

Budget for the 11% City lodging tax inside city limits.
Use the 5.5% City rate only for qualifying police-jurisdiction units.
Remit City lodging tax by the 20th day of the following month.
Track gross receipts because license cost is receipt-based.
Confirm state and county tax duties with the responsible agencies.

Compliance and enforcement

Montgomery STR Enforcement and Appeals

Multiple departments may enforce the ordinance, and repeat violations can threaten the license.

Expect enforcement by Police, Fire and Rescue, Inspections, License and Revenue, or Land Use.
Treat a missed 15-minute complaint response as a license risk.
Budget for $250 first and $500 subsequent ordinance fines.
Three violations in 12 months can trigger a revocation referral.
Report ownership, management, or contact changes within 24 hours or the next business day.

Property analysis

Montgomery Property-Level Underwriting

Compliance costs and block-level eligibility can materially change a deal.

Verify the block-density rule before paying nonrefundable diligence costs.
Quote inspection and corrective-work costs for the actual building type.
Confirm insurance availability and the required $1 million limit.
Model the correct City jurisdiction lodging-tax rate.
Keep reserves for renewals, repairs, and compliance work.

Contacts and support

Montgomery Short-Term Rental Contacts

Confirm jurisdiction, licensing, zoning, inspection, and tax requirements with the City before operating.

City business licenses and lodging-tax filings: License and Revenue
Zoning and historic-district review: Land Use Division
Adopted STR ordinance and City records: City Clerk
Current Montgomery ordinances: City Code
Building inspection requirements: City Inspections

Sources and review

Montgomery Official Sources

Use current City documents because licensing forms and implementation guidance may change.

Montgomery Short-Term Rental Rules and Investment Review