What is the process to apply for a short-term rental permit?

Step 1: Complete the short-term rental application

You can complete the Short-term Rental Permit Application. Applicants are encouraged to prepare the following required information or documentation prior to starting the application process.

What will I need? 

• Short-term rental property information including the owner, street address and Parcel ID number.  The Parcel ID number is listed on your Sandoval County Treasurer property tax bill.
• Contact information for the person applying for the permit. The property can be held by an entity, but the applicant must be a natural person or individual human being that has legal authority to act on behalf of the entity.
• Contact information for a responsible party that will be available 24 hours a day, 7 days a week to respond to complaints or issues at the property within an hour.
• Proof of short-term rental insurance coverage for each unit with minimum coverage of $250,000 per unit. Please note, that the documentation you submit must indicate that short-term rental stays are specifically covered. If your hosting platform automatically provides sufficient insurance, you will need to submit documentation of this coverage.
• Site plan to include all the requirements listed in the Short-term Rental Permit Application Process and Checklist. A sample site plan has been included for your review. Site plans may be hand drawn or digitally made but must contain all required information and be legible.
• Application Fee of $100 (invoice will be sent after the application is submitted)
• Completed Short-term Rental Safety Inspection. The inspection will be completed by Development Services after your application has been reviewed and determined to be complete. The inspection checklist is linked here to aid in the preparation of your property.

What are the fees I should be aware of?

• $100 Application Fee. This non-refundable fee covers the cost to review and process your application for a short-term rental permit and the initial safety inspection. Once your application has been reviewed and determined to be complete, you will be sent an invoice for the application fee at the email address listed in your application with instructions on how to submit payment. You may submit your payment online or in person at City Hall.
• $50 Reinspection Fee. If a short-term rental unit fails to meet the requirements of the initial safety inspection, the Operator will be charged this fee each time another inspection is conducted.
• $35 Business Registration Fee. Operators are required to maintain a valid business registration with the City of Rio Rancho. You can apply for your business registration once your application is reviewed, and your inspection is complete.
• $300 Annual Permit Fee. Once your application is reviewed and approved, and your business registration is complete, you will be emailed the permit fee invoice at the email address listed in your application. This fee will need to be paid before your short-term rental permit is issued.  
• $50 Late-fee. This fee applies to annual renewals only and is required to hold your permit (for 15 days) if you have not successfully completed the renewal process by the expiration date.
• $1.75 Transaction fee. A transaction processing fee will be charged for each credit card payment made through the web portal. This fee can be avoided by paying invoices in person at City Hall (3200 Civil Center Circle, Rio Rancho, NM 871244)

Step 2: Pass the Short-term Rental Safety Inspection

To obtain a permit, all short-term rental units must successfully complete a safety inspection conducted by Development Services. Once your application for a permit is determined to be complete, you will be contacted to schedule an inspection of your unit(s). If a short-term rental unit fails to meet the requirements of the initial safety inspection, the Operator will be charged a $50 reinspection fee each time another inspection is conducted. Two failed inspections will result in denial of your application. Operators are advised to review the Short-term Rental Safety Inspection Checklist and prepare their unit(s) prior to scheduling their safety inspection.  

Step 3: Complete the business registration application 

Operators are required to maintain a valid business registration with the City of Rio Rancho. You can apply for your business registration once your application is reviewed, and your inspection is complete. To expedite issuance of a permit, applicants are advised to fulfill the requirements for a business registration prior to reaching this step in the process. 

Please note that you will need to register your business with and obtain a Business Tax Identification Number from the NM Taxation and Revenue Department. Additionally, on Section 2 of the Application for Business Applicants, applicants may use the NAICS Code: 531190 - Lessors of Other Real Estate Property.

Step 4: Approval notification and issuance of permit

Once your application is reviewed and approved by Development Services, your business registration is complete, and your annual permit fee is paid, you will be issued your short-term rental permit. 

Permits are valid for one year and must be renewed prior to the expiration date. If a permit is not renewed by its expiration date, including the 15-day extension, then the permit will revert to Development Services and will become available to the next eligible applicant.

For the purpose of calculating the permit cap and proximity limitation, completed applications will be considered in the order in which they are submitted.  Applications will be considered "complete" once Development Services has notified you that all application information has been properly submitted. Failure to provide complete information or falsifying information will result in a delay in reviewing your application or denial of your application.

Step 5: Post permit and relevant ordinances at the property and on all advertising materials

Operators are required to clearly display a copy of the short-term rental permit, a fire evacuation plan, emergency contact information, and the Relevant City Ordinances Poster inside each short-term rental unit.  

Operators must also include the permit number issued by the City on all marketing materials for each short-term rental unit you operate, including listings on a host platform. 

Step 6: Register on the City’s Lodger’s Tax Payment Portal 

In addition to paying applicable income and gross receipts taxes to state and federal tax authorities, Operators must register and remit Lodgers' Tax revenue to the City through the Lodgers' Tax Payment Portal each month. The Lodgers' Tax Payment Portal is now available. Click here Version OptionsOperator InstructionsHeadlineWhat is the process to apply for a short-term rental permit?How will my short-term rental application be processed? to register your property. The email address you submitted with your permit should be the same email address you use when registering your property in the Lodgers' Tax payment portal.