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Short-Term Rental Fact Sheet

	Short-Term Rental	Limited Home Rental
Do you own the property?	Yes	Yes
Is the property your primary home?	No	Yes
Can I lease my property for less than 30-days as a vacation rental?	No, in Lake Forest you cannot lease your rental or income property as a vacation rental.	Yes, but not more than 3 times per year and not more than 30 consecutive days.
Can I rent a room out for less than 30 days as a vacation rental?	No, the City’s Short-Term Rental Ordinance does not allow you to lease any portion of your property for less than 30-days.	No, but you may lease your entire primary home for less than 30 consecutive days.
Do I need to pay Hotel Taxes to the City?	Yes, you must register your property and pay any Hotel Taxes (10% tax) for every night the property was used as a vacation rental.	Yes, you must register your property and pay any Hotel Taxes (10% tax) for every night the property was used as a vacation rental.
If I pay the Hotel Taxes can I then legally use my property as a vacation rental?	No, payment of Hotel Taxes is required but does not permit the use of your property as a short-term vacation rental.	Yes, renting your entire home for a limited time is allowed. Make sure to pay any Hotel Taxes due for the time you leased your home.
Are there penalties if I do not pay Hotel Taxes?	Yes, failure to register and remit taxes will result penalties and interest. Each violation is also a misdemeanor offense.	Yes, failure to register and remit taxes will result penalties and interest.
Can I lease a room or my entire property as a long-term rental?	Yes, you can still lease your home on a month-to-month or longer lease.	Yes, you can still lease your home on a month-to-month or longer lease.
Do I need to pay Hotel Taxes on my long-term rental?	No, but you must continue to pay property taxes.	No, but you must continue to pay property taxes.