How to Start a Short-Term Rental in Santa Fe: Residential Permit, 50-Foot Spacing and Neighbor Notice

If you plan to rent a home, casita or guest room in Santa Fe for fewer than 30 days at a time, the city treats it as a short-term rental (STR) and requires permission before your first booking. The rule covers any dwelling unit rented for fewer than 30 days, so a spare room in your own house or a backyard casita can fall under it. This guide walks through the Santa Fe NM short-term rental permit process in the order most owners find easiest: confirm zoning, check spacing, set up your business and tax registrations, assemble documents, apply, and then notify your neighbors.

This article is informational, not legal or tax advice. Rules, fees and office procedures change, so confirm every figure with the agency named before you spend money or sign a purchase or lease. If your property is in an HOA dispute, has multiple units, or you are unsure how to hold title, talk with a New Mexico attorney and a CPA before you apply.

What You Need Before You Start

Gather these items before you open an application. Some of them take days or weeks to obtain, so start with the slow ones.

• Proof of ownership, such as a recorded deed or a current property record that shows your name
• A New Mexico Business Tax Identification Number (BTIN) from the Taxation and Revenue Department, which costs nothing
• Your gross receipts tax (GRT) certificate from the Taxation and Revenue Department
• Site plan and floor plans for the unit you will rent, showing rooms, entries and the exterior layout
• Proof of insurance for the rental. Confirm the coverage the city expects with your insurer and the STR Office
• A draft of the neighbor notification letter
• A letter from your HOA, if the property is in one
• Your Articles of Organization, if you will hold the rental in an LLC (ask the STR Office whether it wants a copy)

Expect to pay at least one fee you cannot find on a city page. Santa Fe does not publish its permit and registration fees on the city page, so budget only after you get the numbers from the STR Office.

Step 1: Confirm Your Zoning and Which Permit Track Applies

Santa Fe uses two tracks. A Residential Short-Term Rental Permit applies to residentially zoned property. A Non-Residential STR Registration applies where zoning allows that track instead. Your zoning decides the track, and the track decides your paperwork.

Look up the zoning designation for your parcel, then call the STR Office at 505-955-6639 and ask which track applies to that address. Ask for the answer in writing or by email if you can, and write down the name of the person who gave it to you.

Ask about your HOA at the same time. A city permit does not change what your covenants allow. If your HOA prohibits rentals of fewer than 30 days, a city permit will not override that restriction, and you should resolve the conflict before you apply.

Step 2: Check the 50-Foot Spacing Rule and Multi-Unit Limits

A residential short-term rental cannot be located within 50 feet of an existing STR. Before you buy or commit to a property, ask the STR Office whether any registered STR sits within 50 feet, and ask how the city measures that distance. Do not assume a nearby listing is unregistered. Online listings are not a reliable record of permits, so ask the office to check its own files.

If the property is in a multi-unit development of four or more units, two more limits apply. No more than 25% of the units may be used as STRs, and no more than 12 permits may be issued for a single multi-unit structure. Meeting those caps does not guarantee you a permit. New permits are first come, first served and subject to the city's residential permit cap, so a unit that qualifies today may not qualify when your application is reviewed.

Step 3: Set Up Your Business Entity and Tax Registrations

New Mexico has no statewide business license. The city permit is the approval that matters for your rental, but the city asks for your GRT certificate, so set up your tax registration first.

If you form an LLC, file Articles of Organization through the Secretary of State's SOS Enterprise Business Filing System at https://enterprise.sos.nm.gov/. The filing fee is $50. An LLC files no annual or biennial report with the Secretary of State. Expedited service costs $150 for same business day service when the filing is received before 2:00 p.m., or $100 for two business day service. Expedited fees are paid separately and are nonrefundable, and you should confirm with the Secretary of State that expedited service is currently offered. Your LLC must also maintain a registered office and a registered agent in New Mexico, and changing either one later costs $20.

If you want to rent under a brand name, such as a casita name rather than your LLC name, New Mexico has no statewide DBA or assumed-name registration. Instead, state the rental name in your Articles of Organization. Decide the name before you file. A name reservation costs $20 and lasts 120 days, and it cannot be renewed.

Next, register with the New Mexico Taxation and Revenue Department at https://www.tax.newmexico.gov/. The BTIN is free. It is a tax registration, not a license. New Mexico has no sales tax. It has a gross receipts tax on the seller, which reaches rental income, so you need the GRT registration and the certificate the city asks for. The department's guidance on who must register is at https://www.tax.newmexico.gov/businesses/who-must-register-a-business/.

Lodgers tax is a separate obligation, and the lodgers tax help desk can tell you how it applies to your rental. Confirm the rate and filing schedule with them before your first booking. Whether an LLC makes sense at all depends on your liability and tax picture, so ask a CPA or attorney rather than deciding from this guide. For reference, an LLC taxed as a default pass-through does not owe the $50 corporate franchise tax, while a corporation does.

Step 4: Get the City Business Registration

Santa Fe requires a city Business Registration for any dwelling unit rented for fewer than 30 days, in addition to the STR permit or registration from Step 1. The city page does not state the registration fee or the STR permit fee, so call the STR Office at 505-955-6639 and ask for both figures, the payment methods and whether either fee is due with the application. Write the answers down with the date and the name of the person who gave them.

Step 5: Assemble the Application Packet

The packet includes proof of ownership, your GRT certificate, site and floor plans, insurance, the notification letter draft and any HOA letter. Make the floor plan match the unit as it exists today. Inspectors compare the plan to the space, and a mismatch is one of the easiest ways to delay a review.

Plan for inspection early. You must be ready for inspection within two weeks of applying. Before you submit, walk through the unit as an inspector would, and fix anything that is out of order. Ask the STR Office what the inspector checks and whether it provides a checklist. If you cannot complete the work within two weeks, wait and apply when you can.

Step 6: Apply During an Open Window

The most recent new-application window opened April 15, 2026 at 5 PM. Confirm with the STR Office whether new applications are open now, because new permits are first come, first served and subject to the city's residential permit cap. If the cap is reached, you may have to wait for the next opening, so do not sign a lease or purchase on the assumption that a permit will be available when you want it.

Submit the complete packet in one filing. An incomplete application can cost you your place in line, so confirm the list with the office before you upload or deliver anything.

Step 7: Notify Your HOA and Neighbors Within 10 Days

Within 10 days of permit issuance or renewal, you must notify the HOA and the owners of residentially zoned property within 200 feet of your property. Send the notice by first-class mail. Then file the notification affidavit with the city. Use the letter draft you prepared for the application, and keep a copy of the letter, a list of recipients and the mailing date.

The 10-day clock runs from issuance or renewal, not from your application, so plan to mail after the permit is in hand. Ask the STR Office whether it expects a specific wording or format. A short, plain letter that gives your contact information and a way to reach you is easier for neighbors to act on than a long notice full of legal language.

Step 8: Keep Booking Records and Calendar Renewal

Keep booking records for three years. Export them regularly from your booking platform or a spreadsheet, and include the dates, the number of nights, and the amounts you collected so you can support your GRT and lodgers tax reports.

All STR permits expire December 31. Renewal runs January 1 to April 15 at 5 PM. Put April 15 at 5 PM on your calendar, and start early, because a missed renewal can leave you without a valid permit. If there is a gap, stop taking bookings until you confirm your status with the STR Office. Renewal also restarts the 10-day neighbor notice, so build that mailing into your renewal plan.

Costs to Confirm Before You Budget

The table below lists the costs involved. Items marked as confirm must be checked with the named agency before you rely on them.

Item	Amount	Where to confirm
LLC Articles of Organization	$50	Secretary of State, SOS Enterprise
Expedited LLC filing	$150 same business day, or $100 for two business days	Secretary of State, SOS Enterprise
Name reservation	$20 for 120 days, not renewable	Secretary of State, SOS Enterprise
Change of LLC registered agent or office	$20	Secretary of State, SOS Enterprise
Annual report (LLC)	None required	Secretary of State
Business Tax Identification Number (BTIN)	Free	Taxation and Revenue Department
City Business Registration	Confirm	STR Office, 505-955-6639
Residential STR Permit or Non-Residential STR Registration	Confirm	STR Office, 505-955-6639
Lodgers tax	Confirm rate and filing schedule	Lodgers tax help desk
Insurance premium	Varies by insurer and coverage	Your insurer

Common Mistakes to Avoid

• Booking before the permit is issued. Accepting a reservation first and seeking the permit later puts you in breach of the rule and can cost you the guest's trust.
• Assuming the 50-foot rule is met. You cannot see every registration from the street. Ask the STR Office to check the distance to existing STRs.
• Ignoring the HOA. A city permit does not override private restrictions.
• Using a rental name without stating it. New Mexico has no DBA filing, so the name belongs in your Articles of Organization if you use an LLC.
• Mismatched floor plans. A plan that does not match the room layout invites a failed inspection.
• Mailing the notice too early or too late. The 10-day clock starts at issuance or renewal. Keep proof of mailing.
• Treating December 31 as the renewal deadline. Renewal runs January 1 to April 15 at 5 PM, and it is the deadline that matters.
• Discarding booking records early. Keep them for three years.

What Results to Expect

A complete, accurate packet may help your application move through review with fewer delays. Owners who confirm spacing and zoning before buying property are less likely to face a surprise denial, and a clean inspection can support a smooth start. These are general tendencies, not promises.

Nothing in this guide guarantees a permit, a booking volume or any level of rental income. Results depend on your zoning, the spacing around your property, the city's permit cap, and how complete and accurate your packet is. Build any income estimate from your own data and review it with an accountant before you rely on it.

Next Steps

Start with the zoning call to the STR Office at 505-955-6639, because the answer determines your track, your paperwork and your fees. Then set up your tax registration and entity, and keep a running file of every answer you receive. If a step is complicated, such as a multi-unit building, an HOA dispute or a property held in trust, pay for an hour with a New Mexico attorney or CPA before you file.

Disclaimer: This article is general information about New Mexico and Santa Fe business requirements. It is not legal, tax or insurance advice. Confirm all fees, deadlines and permit requirements with the Santa Fe STR Office, the Taxation and Revenue Department and the Secretary of State before you act.