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Disclaimer: This article is for informational purposes only and not legal advice. Regulations may have changed since publication. Always check with local authorities and consult a legal professional before making investment decisions.
Introduction to Short-Term Rentals in Des Moines
Des Moines, Iowa’s capital and largest city, presents a compelling opportunity for short-term rental (STR) investors seeking a profitable Midwest market with reasonable entry costs. The city’s growing reputation as a business hub, combined with its vibrant downtown scene, cultural attractions, and proximity to major universities, has created steady demand for quality short-term accommodations.
What makes Des Moines particularly attractive for STR investors is its balanced regulatory approach. Unlike some cities that have either banned short-term rentals entirely or imposed extremely restrictive requirements, Des Moines has crafted a framework that allows the industry to thrive while protecting neighborhood character and ensuring guest safety.
The city’s STR market benefits from year-round demand driven by business travelers, visitors to the State Capitol, Drake University events, and the famous Iowa State Fair. With relatively affordable real estate prices and strong rental yields, Des Moines offers investors an opportunity to build profitable portfolios without the oversaturation seen in many coastal markets.
This comprehensive guide will walk you through everything you need to know about operating a legal and successful short-term rental in Des Moines in 2025, from permit requirements to tax obligations and beyond.
Current Short-Term Rental Permit Requirements in Des Moines
Des Moines requires all short-term rental operators to obtain proper permits and certification before beginning operations. Here’s what you need to know about the permitting process:
Rental Certificate Requirement
All short-term rentals in Des Moines must acquire a rental certificate and be approved by the city’s board of adjustment. This is the primary permit required to legally operate an STR in the city.
Application Process:
- Submit application through the Neighborhood Inspection Zoning Division
- Include property details and floor plans
- Provide documentation of compliance with safety requirements
- Pay required fees (typically $75 annually)
- Schedule and pass property inspection
Five-Year Operating Period
Property owners are allowed to operate as a short-term rental for five years before needing to secure an ongoing license. This gives new operators time to establish their business before additional long-term licensing requirements kick in.
Board of Adjustment Approval
The Des Moines Board of Adjustment reviews all STR applications and can deny permits if they determine too many short-term rentals are operating in a specific neighborhood. This helps maintain neighborhood balance and prevent over-concentration of STRs in any single area.
Renewal Requirements
Renewals must be submitted at least 30 days before the permit expiration date. Late renewals can result in operational interruptions and potential penalties.
Zoning Regulations for STRs in Des Moines
Understanding where you can legally operate an STR is crucial before investing in Des Moines:
Permitted Areas
Short-term rentals are generally permitted in most residential and commercial zones throughout Des Moines, but specific restrictions apply based on property type and location.
Density Restrictions
Density restrictions also prohibit STRs from operating within 700 feet of another licensed property, unless grandfathered in. This prevents over-concentration of short-term rentals in specific neighborhoods.
Conditional Use Permits
Short-term rentals might need a conditional use permit. Contact the Planning and Urban Design Division. Properties in certain zones may require additional approvals beyond the basic rental certificate.
Zoning Verification
Before purchasing a property for STR use, verify:
- Current zoning classification
- STR eligibility in that zone
- Proximity to other licensed STRs
- Any neighborhood-specific restrictions
Always check with the Des Moines Planning and Urban Design Division to confirm your property’s STR eligibility.
Required Documentation for Des Moines Short-Term Rentals
To operate legally, maintain these essential documents:
Primary Documentation
- Rental Certificate: Your approved STR permit from the city
- Liability Insurance Policy: Minimum $500,000 coverage required
- Iowa Sales Tax Permit: For proper tax collection and remittance
- Property Inspection Certificate: Proof of safety compliance
- Parking Plan: Documentation of adequate off-street parking
- 24/7 Contact Information: Local contact who can respond to issues
Additional Required Records
- Floor Plans: Detailed layout showing room configuration
- Occupancy Limits Documentation: Based on number of bedrooms
- Safety Equipment Verification: Smoke detectors, fire extinguishers, etc.
- Tax Payment Records: Proof of timely tax remittance
Proof of tax payments must be shown within 15 days if requested by the city. Maintain organized records for easy access during inspections or audits.
Des Moines Short-Term Rental Taxes
The tax structure for STRs in Des Moines involves both state and local obligations:
State Taxes
- Iowa Hotel and Motel Tax: 5% of gross rental receipts
- Iowa Sales Tax: Additional percentage on rental income
Local Taxes
- Des Moines Local Hotel Tax: Typically 2-7% of gross rental receipts
Tax Collection Methods
Airbnb collects and remits the state hotel tax for reservations made through their platform, but hosts are responsible for assessing all other tax obligations. You must still:
- Register for local tax collection
- File required returns on schedule
- Maintain detailed records
- Remit taxes not collected by platforms
Tax Registration Requirements
Des Moines also requires STR operators to obtain a sales tax permit from the Iowa Department of Revenue. This allows the city to track and audit tax payments to ensure proper collection.
Reporting Deadlines
- Monthly or quarterly filings required (depending on revenue volume)
- Proof of tax payments must be shown within 15 days if requested by the city
- Late payments result in penalties and interest charges
Safety Requirements and Inspections
Des Moines maintains comprehensive safety standards for all STR properties:
Required Safety Equipment
- Functional smoke detectors in bedrooms and common areas
- Carbon monoxide detectors near fuel-burning appliances
- Fire extinguishers on each level
- Adequate lighting in stairways and exits
- Handrails on all staircases meeting code requirements
Property Maintenance Standards
Des Moines has rules and regulations that specify minimum building, design, maintenance standards, habitability, health, and safety requirements. Properties must meet all applicable residential and commercial codes.
Inspection Process
The Zoning Division reviews the application and conducts an on-site inspection before permits are issued. Inspections verify:
- Safety equipment functionality
- Building code compliance
- Habitability standards
- Occupancy limit appropriateness
Ongoing Compliance
Regular inspections may occur, and the city’s board of adjustment can require additional safety measures or improvements as conditions change.
Insurance Requirements in Des Moines
Des Moines has specific insurance mandates for STR operators:
Minimum Coverage
Under the revised guidelines, hosts operating short term rentals in Des Moines must now secure liability insurance with a minimum coverage of $500,000.
Coverage Requirements
“Such coverage shall defend and indemnify the owner, any named additional insured, and any tenants in the building for their bodily injury and property damage arising from the short-term rental use.”
Platform Coverage Limitations
While these platforms have extended certain degrees of coverage, significant lacunas remain—a poignant illustration being their failure to encompass instances of property damage or the forfeiture of income following guest-related misadventures.
Additional insurance beyond platform coverage is essential for full protection.
Enforcement of STR Rules in Des Moines
Understanding Des Moines’ enforcement approach helps ensure compliance:
Violation Penalties
In Des Moines, for example, violations may result in fines of up to $750 per day and the revocation of the rental certificate.
Monitoring Methods
Des Moines uses several enforcement mechanisms:
- Complaint-based investigations
- Regular monitoring of online listings
- Tax record audits
- Periodic property inspections
Common Violations
The most frequent issues include:
- Operating without proper permits
- Tax collection and remittance failures
- Exceeding occupancy limits
- Noise and nuisance complaints
- Inadequate parking provisions
- Safety code non-compliance
How to Start a Short-Term Rental Business in Des Moines
Follow this step-by-step roadmap to launch your Des Moines STR:
Step 1: Market Research & Property Selection
- Research Des Moines neighborhoods with strong rental demand
- Consider proximity to attractions like the State Capitol, Drake University, and downtown
- Evaluate seasonal demand patterns and pricing
- Analyze comparable rental rates and occupancy data
Step 2: Zoning & Regulation Verification
- Verify property is eligible for STR use
- Check for the 700-foot density restriction
- Research neighborhood-specific regulations
- Contact Planning and Urban Design Division for confirmation
Step 3: Property Acquisition & Setup
- Purchase property or secure owner authorization
- Renovate with guest comfort and local character in mind
- Install all required safety equipment
- Create appealing spaces that highlight Iowa charm
Step 4: Permitting & Licensing
- Apply for rental certificate through Neighborhood Inspection Zoning Division
- Obtain required liability insurance coverage
- Register for Iowa sales tax permit
- Schedule and pass property inspection
- Secure Board of Adjustment approval
Step 5: Tax Registration & Compliance
- Register with Iowa Department of Revenue
- Set up local tax collection systems
- Establish record-keeping procedures
- Create tax filing schedules
Step 6: Operations Launch
- Create compelling listings highlighting Des Moines attractions
- Develop house rules and guest communication protocols
- Establish cleaning and maintenance procedures
- Set up guest check-in systems
Step 7: Ongoing Compliance
- Maintain all required documentation
- File taxes on schedule
- Renew permits 30+ days before expiration
- Stay updated on regulation changes
- Respond promptly to city requests or neighbor concerns
Who to Contact About Des Moines STR Regulations
For official information and assistance:
Des Moines Neighborhood Inspections Zoning Division
- Phone: (515) 283-4046
- Address: Argonne Armory – 1st Floor, 602 Robert D Ray Drive, Des Moines IA 50309
- Email: nid@dmgov.org
Des Moines Permit and Development Center
- Phone: (515) 283-4200
- Address: 602 Robert D. Ray Drive, Des Moines, IA 50309
- Email: permits@dmgov.org
Iowa Department of Revenue
- Phone: 1-800-367-3388
- Address: PO Box 10457, Des Moines, IA 50306-0457
- Email: idr@iowa.gov
Des Moines Planning Department
- Contact through main city number for planning and zoning questions
Future Outlook for Des Moines STR Regulations
What to expect for Des Moines STR regulations going forward:
- Continued Growth Management: As the STR market expands, the city may refine density restrictions and approval processes
- Technology Integration: Potential development of online permitting and renewal systems
- Tax Simplification: Possible streamlining of tax collection and reporting requirements
- Enhanced Safety Standards: Ongoing evolution of safety requirements based on industry best practices
- Neighborhood Balance: Continued focus on preventing over-concentration while supporting economic opportunity
The overall outlook remains positive for STR investors in Des Moines, as the city recognizes the economic benefits while maintaining reasonable regulatory oversight.
Advice from Successful Des Moines STR Operators
Insights from experienced Des Moines vacation rental owners:
“Personally, I love STR’s in this area and they are currently outperforming long-term rents. One thing to keep in mind as well is the legal side of STR’s in the DSM area. Some laws have been put in place, but overall STR’s are not top of mind to the city.”
“I have yet to have a conversation with an investor who owns or manages a STR that has done ‘bad’ in the DSM area.”
“I think DSM is a great market for STRs. The key is to know the rules and be a responsible host. Work with your neighbors, keep the property in good shape, and don’t try to skirt the regulations. The city seems reasonable overall.”
The consensus among operators is that Des Moines rewards responsible hosts who follow regulations and maintain quality properties.
Ready to Invest in Des Moines Short-Term Rentals?
Des Moines offers excellent potential for STR investors who understand and follow the regulatory framework. With its growing economy, reasonable property prices, year-round demand, and balanced approach to STR regulation, the city provides an attractive opportunity for building a profitable vacation rental business.
The key to success is thorough preparation, regulatory compliance, and focus on providing quality guest experiences that showcase the best of Iowa’s capital city.
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Remember: Always consult with local legal and tax professionals before making investment decisions.