STR buyer due-diligence checklist

Phase 1 — Kill it fast Before you offer

• Confirm the governing jurisdiction on the parcel recordClark County Assessor parcel detail — not the mailing address, not the listing, not the seller. This one item reorders everything below it.
• Confirm the zoning designation permits short-term rental useZoning that allows residential use does not automatically allow transient lodging.
• Determine whether an HOA controls the parcelIf yes, this becomes the most important question in the file.
• Check the separation distance requirement for that jurisdiction2,500 ft in unincorporated county, 1,000 ft in Henderson, 660 ft in Las Vegas and North Las Vegas. Houses on the same street can get opposite answers.
• Check the resort-hotel buffer2,500 ft in most jurisdictions. Rules out a lot of otherwise attractive inventory near the Strip and downtown.
• Confirm whether applications are open at all in that jurisdictionUnincorporated Clark County's window closed August 21, 2023. Do not assume you can simply apply.
• If Las Vegas: confirm you will actually occupy the propertyOwner-occupancy is required, documented down to which bedroom you sleep in. No entity structure changes this.
• If Las Vegas: confirm the home is three bedrooms or fewerHard cap.
• If North Las Vegas: accept that approval requires a discretionary public hearingMeeting every written standard does not guarantee the CUP. Price that risk or structure around it.

Phase 2 — Due diligence Under contract

• Obtain and read the current CC&Rs in fullNot a summary, not the resale package cover sheet. The document.
• Obtain and read the current rules and regulations separatelyThe STR prohibition is frequently in the rules, not the CC&Rs. These are different documents.
• Note when any rental restriction was adoptedNRS 116.335 contains meaningful nuance about restrictions adopted after an owner purchased. If the timing is close, get an attorney's read.
• Ask the association in writing whether short-term rental is permittedGet the answer in writing. Verbal from a property manager is not an answer you can rely on later.
• Verify any claimed existing license directly with the licensing bodyStatus, expiration, conditions. Not a screenshot from the seller.
• Confirm in writing whether that license or permit survives transferHenderson states plainly that it does not and every buyer re-applies. Assume the same posture everywhere until told otherwise in writing.
• If it does not transfer, confirm you can qualify todayYou re-apply under current rules and current separation maps — which may be stricter than when the seller was approved.
• Check for existing code violations, citations, or liens on the parcelParticularly relevant for properties with unlicensed operating history.
• Get a written quote for short-term rental insuranceStandard homeowner policies typically exclude transient lodging. Henderson requires $1M general liability; Las Vegas requires $500,000 minimum.
• Confirm your lender permits short-term rental useOccupancy covenants and some loan products restrict it. Ask before you are 20 days from closing.
• Inspect for the jurisdiction's life-safety requirementsSmoke alarms per bedroom, CO detectors per floor, extinguishers, illuminated address numbers, evacuation maps, egress.
• Verify parking capacity and any on-street restrictionsThe most common source of neighbor complaints, and the most common condition attached to a discretionary approval.
• Budget the setup costs the pro forma usually omitsFurnishing, linens, safety equipment, smart locks, noise monitoring where required, photography, listing setup.

Phase 3 — Protect yourself contractually Contract

• Include a contingency tied to STR approval or eligibilityIf your underwriting depends on short-term income, your contract should let you exit if approval fails. We draft this for our clients.
• Address regulatory change between contract and closeIn this market that window is long enough for a governing body to act. Contemplate it in writing.
• Make HOA document review a condition, with adequate timeResale packages arrive late. Build the calendar around that reality.
• Underwrite the long-term rental floorWhat does this property produce on a 12-month lease? That is your actual downside. If you cannot live with it, do not buy the property.
• Model the deal with STR income at zeroNot because it will be zero — because knowing you survive that scenario is what lets you make a clear-headed decision.

Phase 4 — Before the first guest Post-close

• Complete licensing or permitting and have approval in handCity approval is required before the first guest checks in. Operating ahead of approval draws daily fines.
• Designate and post your local or emergency contactLas Vegas requires it posted outside the property. Henderson requires a Clark County resident who responds fast.
• Register for transient lodging tax and confirm what your platform remitsDo not assume the platform covers everything. Direct bookings are entirely yours.
• Calendar your renewal date and set a reminder 60 days outOperating on a lapsed license is operating unlicensed.

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We will email you this checklist plus a heads-up whenever the rules change in your jurisdiction — which, in this market, is the part that actually has value.