Short-Term Rental Requirements
Overview
The City of Las Cruces adopted regulations for short-term rentals to support safety, accountability, and neighborhood quality of life.
Effective date: January 1, 2026
Enforcement begins: July 1, 2026
If you operate a short-term rental in the City of Las Cruces, you must complete two registrations:
- Obtain a City of Las Cruces business registration (Community Development Department) Permits, Licenses, and Registrations – The City of Las Cruces
- Register each short-term rental unit with Visit Las Cruces – https://lascrucesnm-self.govplatform.com/
Who is Covered by This Ordinance?
What is a short-term rental unit?
A short-term rental unit is real property rented to the public and advertised or regularly rented on a short-term basis, meaning no longer than 30 days.
Not included:
- Bed-and-breakfasts (owner- or management-occupied where meals are regularly prepared and provided)
- Hotels and motels
Who is the “operator”?
A short-term rental operator is any person acting as or on behalf of an owner, property manager, or other responsible party. If multiple people own or manage the property, each is equally subject to this article.
What You Must Do
Step 1: City business registration (Community Development)
All persons owning real property within the City with intent to use it as a short-term rental must obtain a certificate of business registration from the City of Las Cruces Community Development Department before establishing that service.
Important notes:
- If others manage the unit, the registering owner must provide business and contact information for those additional operators.
- Any change in ownership or management requires an updated registration before the unit may be rented again.
- If you were operating before the effective date, you must submit a business registration application within 30 days of January 1, 2026.
Step 2: Register each unit with Visit Las Cruces
Operators must also register each short-term rental unit with Visit Las Cruces.
Fees
- City business registration: $35 annual fee (per short-term rental unit registration through Community Development)
- Visit Las Cruces registration: $50 one-time registration fee + $35 annual renewal fee (per unit)
Operating Standards
Posting requirement
Your City business registration must be posted inside the unit in a clearly visible area accessible to renters/occupants.
Insurance
Operators must maintain adequate insurance, including a minimum of $500,000 liability insurance, and provide proof as required.
Parking
Operators must provide off-street parking onsite (garage, parking shelter, or driveway). If off-street parking is not possible, operators must advise renters of appropriate parking that does not affect traffic, roadways, or neighbors’ peaceful enjoyment.
Building and fire safety
Short-term rentals must comply with all applicable building and fire codes. In addition:
- Smoke detectors must be installed and maintained; batteries replaced at least once per year
- Egress identification must be provided (map on wall or back of door at each egress)
- One currently serviced fire extinguisher must be placed within 10 feet of any kitchen/indoor cooking area
- Fire Chief/designee may inspect for fire code compliance with 24 hours’ notice
Occupancy and gatherings
- Maximum overnight occupancy: two people per bed + two additional people per unit (children under age two are excluded)
- Gatherings: properties may not be used for gatherings of more than 15 additional persons above the allowed number of renters, or more than twice the limit of renters allowed, whichever is greater
Noise
Noise or disturbance is prohibited under Chapter 19, and violations in the short-term rental context may be treated as an offense under this article.
Taxes
Operators are expected to pay applicable taxes (including lodger’s tax, gross receipts tax, income tax) and must provide a New Mexico State Tax ID number associated with the short-term rental business when obtaining the business registration.
Community Notification Requirement
Within 10 days of business registration submission, the operator must mail or hand-deliver notice of issuance of the short-term rental registration to all other property owners within 500 feet (for informational purposes only).
Operators must also provide contact information for a qualifying person/company responsible for responding to complaints (including names and all available contact information). No registration will be issued without this complaint-response contact information.
Within 10 days of the mailing, the operator must provide the City a copy of the notice and a statement listing addresses notified.
Failure to comply can result in non-issuance of the business registration until requirements are met.
Enforcement
The City may enforce through municipal court or another court of competent jurisdiction.
Civil fines:
- First offense: $50 to $300
- Second or subsequent offense: $300 to $500
In addition to fines, the court may set terms to remedy noncompliance and may order revocation of the business registration in certain cases.
The City may also use administrative authority to revoke registrations in cases involving significant risk to health/safety or patterns of noncompliance, with mandatory revocation for a fifth offense within three years.
Frequently Asked Questions
Yes. If you operate a short-term rental unit in the City, you must obtain a City business registration and register each unit with Visit Las Cruces.
A short-term rental unit is real property rented to the public on a short-term basis, meaning a rental period no longer than three continuous months. Hotels/motels and bed-and-breakfasts (as defined) are not included.
All requirements become effective January 1, 2026. Enforcement begins July 1, 2026.
You must submit the business registration application within 30 days of the effective date (January 1, 2026).
Two steps:
- Obtain a City business registration through the Community Development Department before establishing the service.
- Register each short-term rental unit with Visit Las Cruces.
- City business registration: $35 annually
- Visit Las Cruces: $50 one-time registration fee + $35 annual renewal fee (per unit)
Yes. A change in ownership or management requires an updated registration before the unit may be made available for rent.
Yes. The business registration must be posted inside the unit in a clearly visible area accessible to renters/occupants.
Operators must maintain “adequate insurance,” including a minimum of $500,000 liability insurance, and provide proof at registration and upon request as outlined in the ordinance.
Yes. Operators must provide off-street parking onsite (garage, parking shelter, or driveway). If off-street parking is not possible, renters must be advised of appropriate parking that does not affect traffic or neighborhood peaceful enjoyment.
Yes. Overnight occupancy is limited to two people per bed plus two additional people per unit, excluding children under age two.
Gatherings are limited. Short-term rental properties shall not be used for gatherings of more than 15 additional persons above the allowed number of renters, or more than twice the limit of renters allowed, whichever is greater.
Short-term rentals must comply with applicable building and fire codes. In addition, the ordinance requires smoke detectors, egress identification, and a serviced fire extinguisher near cooking areas, and allows fire code inspection with 24 hours’ notice.
Noise or disturbance is prohibited under Chapter 19. Violations in the short-term rental context may be considered an offense under this article in addition to other enforcement options.
Yes. Within 10 days of submitting the registration, operators must provide notice to property owners within 500 feet and provide complaint-response contact information. The City will provide the list of property owners within 500 feet to facilitate the notice.
The ordinance states that failure to comply results in non-issuance of the business registration until requirements are met.
Operators are expected to pay applicable local, state, and federal taxes (including lodger’s tax and gross receipts tax) and must provide their New Mexico State Tax ID when obtaining the City business registration.
Lodgers tax is a 5% tax paid on gross taxable rent by individuals staying at lodging establishments including short-term rentals; and remitted to the City of Las Cruces by the owner or manager of the property.
The City of Las Cruces works with Granicus to identify and monitor short-term rental listings. You can register to make online payments here. Tax payments are due by the 25th of each month for the previous month.
Late payments are subject to a late fee of 10% or $100, whichever is greater, and a 1% interest penalty on any unpaid monthly balance. The City of Las Cruces has the authority to audit short-term rental properties for compliance.
The City may issue civil fines, including $50 to $300 for a first offense and $300 to $500 for second or subsequent offenses, and may pursue remedies including potential registration revocation as outlined in the ordinance.
For more information
For questions about lodgers tax or how to register with Visit Las Cruces, email shorttermrental@clcstaging.lascruces.gov or call 575-541-2444.
For questions about your business registration or details about the ordinance, email inspectionrequest@clcstaging.lascruces.gov or call 575-528-3059.
