Chapter 123 REGULATIONS FOR SHORT-TERM RENTALS

CHAPTER 123
REGULATIONS FOR SHORT-TERM RENTALS¹ Revised 11/24

Section

123.01 Title Revised 11/24

123.02 Purpose Revised 11/24

123.03 Definitions Revised 11/24

123.04 General provisions Revised 11/24

123.05 Short-term rental permit Revised 11/24

123.06 Application for a short-term rental permit Revised 11/24

123.07 Inspections Revised 11/24

123.08 Fees Revised 11/24

123.09 Administrative enforcement and fines Revised 11/24

123.10 Criminal violation and penalty Revised 11/24

123.01 TITLE. Revised 11/24

This chapter shall be known as “Regulations for Short-Term Rentals in the City of Rio Rancho” and is referred to elsewhere herein as “these regulations.” The City of Rio Rancho shall hereafter be referred to as “the city.”

(Ord. 24-22)

123.02 PURPOSE. Revised 11/24

These regulations establish standards and procedures for the issuance of a permit to operate short-term rental units within the city.

(Ord. 24-22)

123.03 DEFINITIONS. Revised 11/24

For the purpose of these regulations, the following definitions shall apply unless the context clearly indicates or requires a different meaning:

NATURAL PERSON. An individual human being, distinguished from the broader category of “person” used elsewhere in this title that additionally includes estate, trust, receiver, cooperative association, club, corporation, company, firm, partnership, joint venture, syndicate or other entity engaging in a business, profession, occupation, trade, pursuit or commercial activity.

SHORT-TERM RENTAL OPERATOR. The owner or party otherwise responsible for a short-term rental unit.

SHORT-TERM RENTAL UNIT. All or portion of a “dwelling unit,” as defined in Section 154.03, providing accommodation which is offered for rent to a number of guests for a period of less than 30 days.

(Ord. 24-22)

123.04 GENERAL PROVISIONS. Revised 11/24

(A) Short-term rentals will be permitted in single-family residential zoning districts E-1, R-1, R-2, R-3, R-4, and R-5 as described in Chapter 154.

(B) Unless otherwise stated, the following general provisions apply to all short-term rental units:

(1) The short-term rental operator shall maintain a valid business registration, as described in Chapter 110, for the purpose of operating a short-term rental unit within the city.

(2) The short-term rental operator shall pay all applicable local, state, and federal taxes, including lodger’s tax, gross receipts tax, and income tax associated with the operation of each short-term rental unit.

(3) A short-term rental unit shall meet all building, fire, and safety codes for the applicable zoning of the property.

(4) The short-term rental operator shall maintain short-term rental insurance coverage for each short-term rental unit in the minimum amount of $250,000 per short-term rental unit.

(5) A short-term rental unit shall have a local short-term rental operator that is available 24 hours per day, seven days per week, to respond to complaints regarding the operation or occupancy of the short-term rental unit. The short-term rental operator must be accessible by telephone and able to be physically present at the short-term rental unit within one hour of being contacted.

(6) The short-term rental operator shall notify all guests in writing of relevant city ordinances. All guests shall comply with all relevant city ordinances.

(7) The maximum overnight occupancy of a short-term rental unit is limited to two people per bedroom plus an additional two people per unit. For the purposes of calculating occupancy, children under the age of two are excluded.

(8) Gatherings of persons in excess of the maximum overnight occupancy prescribed above shall not exceed two times the maximum overnight occupancy.

(9) The short-term rental operator shall provide off-street parking on site as follows:

(a) One parking space for a short-term rental unit with zero to two bedrooms available for rent;

(b) Two parking spaces for a short-term rental unit with three to four bedrooms available for rent; and

(10) A short-term rental unit shall not be rented more than once within a seven-day period.

(Ord. 24-22)

123.05 SHORT-TERM RENTAL PERMIT. Revised 11/24

(A) Permit required. No short-term rental operator shall operate, rent, offer to rent or advertise any short-term rental unit within the City of Rio Rancho without a valid short-term rental permit issued by the Department of Development Services.

(B) Display of permit. The short-term rental operator shall clearly display inside each short-term rental unit a copy of the applicable short-term rental permit issued pursuant to this chapter. The short-term rental operator shall include the permit number issued by the city on all marketing materials for each short-term rental unit they operate, including listings on a host platform.

(C) Natural person required. The Department of Development Services shall issue short-term rental permits to natural persons only and each natural person may possess a maximum of two permits. If the subject property is owned by a legal or business entity, the permit must be held in the name of a person with legal authority to act on behalf of that entity. The fact that a permit must be issued to a natural person does not mean that the property cannot be titled in such entities as a revocable trust, an LLC, or a corporation.

(D) Permit limit. The total number of short-term rental permits issued by the Department of Development Services shall not exceed 1% of the “total housing units” in Rio Rancho as listed in “Comparative Housing Characteristics” table of the most recent U.S. Census Bureau’s American Community Survey as of January 1st of each year.

(E) Permit not transferrable. A short-term rental permit is not transferable to another person or property. Upon the transfer of ownership of a short-term rental unit, the permit shall terminate.

(F) Permit renewals. Unless revoked pursuant to Section 123.09, an owner may renew a short-term rental permit annually.

(1) An application for renewal of a short-term rental permit shall include the records required by Section 123.06 for the previous one year.

(2) A short-term rental operator must renew a short-term rental permit and the associated business registration by expiration date of the previous short-term rental permit.

(3) If a short-term rental permit is not renewed by the date the previous short-term rental permit expires, the owner may pay a late fee of $50 to extend the time for filing by 30 days.

(4) If a permit is not renewed by its expiration date, including any 30-day extension, then the permit will revert to the Department of Development Services and will become available to the next eligible applicant.

(Ord. 24-22)

123.06 APPLICATION FOR A SHORT-TERM RENTAL PERMIT. Revised 11/24

Applicants for a short-term rental permit under this chapter must file with the Department of Development Services a sworn application in writing or electronically as prescribed by the Uniform Electronic Transactions Act, Section 14-16-1, NMSA 1978, on a form to be furnished by Department of Development Services, which shall include, but is not limited to, the following information:

(A) The name and phone number of the local short-term rental operator to be available to respond to the property within one hour, 24 hours per day while the property is rented.

(B) Address of short-term rental unit.

(D) Proof of short-term rental insurance.

(E) Site plan to include:

(1) Dwelling floor plan showing number of bedrooms.

(2) Designation of which rooms will be used as short-term rentals.

(3) Location and size of bedroom windows.

(4) Clear opening per emergency escape.

(5) Location and size of means of egress doors.

(6) Bathroom locations.

(7) Pools or spas including covers and fencing.

(8) Parking spaces as detailed in Section 123.04(B)(9).

(F) Completed inspection.

(Ord. 24-22)

123.07 INSPECTIONS. Revised 11/24

(A) The Department of Development Services Director or their representative has the authority to enter all buildings and premises for the purpose of inspection as necessary to perform assigned duties.

(B) To obtain a short-term rental permit, a dwelling unit must be inspected and meet the following requirements:

(1) Fire evacuation plan with emergency contact information and address conspicuously posted.

(2) Carbon monoxide detection.

(3) Smoke alarms in all bedrooms.

(4) Fire extinguishers on each floor.

(5) No storage of combustible materials in mechanical, boiler, or electrical rooms.

(6) Fireplace or wood stove with non-combustible ash receptacle outside the dwelling unit.

(7) Fences and covers on all pools and spas.

(8) Address numerals at least four inches tall, with one-half-inch stroke width, in contrasting color, visible from the street.

(9) Available parking spots as detailed in Section 123.04(B)(9).

(C) Short-term rental units that fail to meet the requirements set forth in subsection (B) of this section may schedule a reinspection after any noted issues are addressed and the requirements are met. Failure to pass the short-term rental inspection after two reinspections will result in denial of the application.

(D) Failure to schedule an inspection within 30 days of the submission of a completed application may result in denial of the application and will require reapplication.

(Ord. 24-22)

123.08 FEES. Revised 11/24

The following fees shall be used to administer, manage, and enforce this chapter:

(A) Application fee. An application for a new short-term rental permit shall be accompanied by a one-time nonrefundable application, processing, and inspection fee of $100.

(1) The application fee shall be due upon submission of the application for a short-term rental permit.

(2) The application fee includes an initial inspection only. A reinspection fee of $50 will be required anytime a reinspection is scheduled.

(3) Where a short-term rental operator is seeking to renew a short-term rental permit, a late fee of $50 is required to extend the time for filing by 30 days.

(B) Permit fee. A short-term rental unit is subject to an annual permit fee of $300.

(Ord. 24-22)

123.09 ADMINISTRATIVE ENFORCEMENT AND FINES. Revised 11/24

(A) Except as otherwise provided in this chapter, the Director of the Department of Development Services, or their designee shall enforce this chapter, including the inspection of premises, the issuance of notice of violations and the revocation of short-term rental permits.

(B) The Department of Development Services may revoke any short-term rental permit or fine any short-term rental operator for noncompliance with any requirement contained within these regulations.

(C) Any fine issued by the Department of Development Services for a violation of the short-term rental permit requirements shall not exceed $500 per violation. Each day a violation occurs shall be considered a separate violation.

(D) Failure to pay any fine imposed by the Department of Development Services within 15 days shall result in the automatic revocation of the short-term rental permit.

(Ord. 24-22)

123.10 CRIMINAL VIOLATION AND PENALTY. Revised 11/24

(A) It is unlawful to operate, rent, offer to rent or advertise any short-term rental unit within the City of Rio Rancho without a valid permit issued by the Development Services Department.

(B) It is unlawful to operate any short-term rental unit within the City of Rio Rancho in violation of any of the provisions contained within Section 123.04.

(C) Any person violating subsection (A) or (B) of this section shall be subject to the penalties prescribed in Section 10.99.

(Ord. 24-22)

Code reviser’s note: Per Ord. 24-22, Section 4, this chapter is effective July 1, 2025.