Overview: Are Short-Term Rentals Allowed in Los Lunas, NM?

YES - Short-term rentals are explicitly allowed in Los Lunas, NM, but only with proper permits and under strict regulatory conditions.

Following a comprehensive ordinance adopted on February 11, 2025, the Village of Los Lunas now permits short-term rentals as an accessory use in residential zones. However, this allowance comes with significant restrictions designed to prevent neighborhood saturation and maintain community character. The new regulations create a permitting system where previously, all STRs were technically operating in violation of village zoning ordinances that did not anticipate this use category.

Key Limitation: Property owners can rent their entire house for a maximum of 180 cumulative calendar days per year. Room rentals are permitted as accessory uses but also subject to time limitations.

How to Start a Short-Term Rental Business in Los Lunas

Step 1: Verify Zoning Eligibility

• Confirm your property is located in a residential zone within Los Lunas corporate boundaries
• Ensure you can comply with the 180-day annual rental limit for whole-house rentals
• Verify no other STRs exist on adjacent properties on the same street (this restriction preventsSTR saturation)

Step 2: Obtain Required Permits and Documentation

• Submit Short-Term Rental Permit Application to Community Development Department
• Pay $100 application fee
• Obtain Business Registration (required per Section 17.14.020(E)(1)(x))
• Secure adequate short-term rental insurance coverage
• Prepare site plan showing rented structure and parking arrangements

Step 3: Ensure Operational Compliance

• Designate a 24/7 available owner/operator for complaint response
• Include STR permit number in all advertising
• Register for and submit Lodger's Tax (exemption has been removed by state law change)
• Prepare for potential random inspections by Village officials

Required Documents, Permits, Licenses, and Guidelines

Primary Requirements

1. Short-Term Rental Permit Application

• Complete application form (Rev. 02112025)
• Application fee: $100
• Submit to Village of Los Lunas Community Development Department

2. Required Documentation

• Proof of Ownership: Legal document demonstrating current property ownership
• Agent Authorization (if applicable): Document authorizing applicant to represent property owner
• Proof of Insurance: Written statement from insurance company acknowledging active, current rental insurance coverage
• Site Plan: Property layout indicating rented structure, parking spaces, RV parking availability
• Business Registration: Required under Section 17.14.020(E)(1)(x) of Municipal Code

3. Acknowledgments Required (Must be initialed)

• Compliance with Section 17.10.060(I) and all applicable Village Codes
• 24/7 availability commitment for complaint response
• Review of Title 17 Municipal Code sections related to STRs
• Acknowledgment of random inspection rights per Section 17.10.060(I)(2)(ix)
• Inclusion of permit number in advertising
• Registration for Lodger's Tax submission
• Understanding of non-compliance consequences (fines and permit revocation)

Specific Regulations for Short-Term Rentals

Los Lunas Municipal Regulations

Permitted Use Status

• STRs are allowed as accessory uses in residential zones with proper permits
• Whole-house rentals limited to 180 cumulative calendar days per year
• Room rentals permitted as accessory uses with time limitations

Geographic Restrictions

• No more than two STRs can operate on the same street
• Cannot have two STRs on adjacent properties on the same street
• This limitation prevents over-concentration of commercial STR activity in residential areas

Operational Requirements

• Property owner/operator must be available 24 hours per day, 7 days per week for complaint response
• Random inspections permitted by Village officials
• Permit number must be included in all advertising
• Must maintain adequate short-term rental insurance coverage

Parking Compliance

• Maximum number of vehicles allowed must comply with Section 17.60.10 of Municipal Code
• Parking arrangements must be detailed in submitted site plan

Enforcement and Penalties

Standard Violation Process

• 15-day cure period for typical zoning violations
• Village has authority to issue citations and pursue additional violations

Immediate Action Triggers

• If renter conduct results in police citation or criminal complaint, the 15-day cure period is waived
• Immediate citation may be issued to property owner in such cases
• Police department responds to STR properties for criminal activity and nuisance violations (excessive noise, etc.)

Lodger's Tax Requirements

State Law Change

• Recent amendment to state law removed exemption for lodger's taxes on short-term rentals
• Los Lunas can now assess lodger's tax based on available rooms
• Must register STR business with Village of Los Lunas and submit appropriate Lodger's Tax

State-Level Regulations (New Mexico)

Short-Term Rental Definition (Los Lunas)

• "A dwelling unit or a portion of a dwelling that is rented by the vendor to a vendee for less than 30 consecutive days"

State Lodger's Tax

• Short-term rentals are now subject to lodger's taxes following removal of previous exemption
• Assessment based on number of rooms available for rental

Contact Information for Local Authority

Village of Los Lunas Community Development Department

• Address: 660 Main Street NW, Los Lunas, NM 87031
• Phone: (505) 839-3842
• Department: Community Development Department
• Contact Person: Erin Callahan, Community Development Director

Operating Hours

• Monday through Friday: 8:00 AM to 5:00 PM

Municipal Code Review

• Municipal Code available for review at Village Administrative Office during business hours
• Also available on Village website: www.loslunasnm.gov

Links to Source Pages

1. Los Lunas STR Permit Application Form: loslunasnm.gov/DocumentCenter/View/11228/Short-Term-Rental-Permit-Application---Rev-02112025-PDF

2. Valencia County News Bulletin - STR Ordinance Article: www.news-bulletin.com/news/business/short-term-rentals-in-los-lunas-will-need-permits-enforcement/article_c0e11025-6ed7-5b3b-949d-d9db6a4576cf.html

3. Los Lunas Municipal Code Draft (Title 17 Zoning): www.loslunasnm.gov/DocumentCenter/View/15114

Important Notes for Investors: The 180-day annual limit significantly impacts revenue potential for whole-house STRs. The geographic restrictions on adjacent properties require careful site selection. The removal of lodger's tax exemption affects profitability calculations. The 24/7 availability requirement necessitates local management arrangements for out-of-state owners. The enforcement provisions, particularly the immediate action for criminal activity, require careful tenant screening and monitoring protocols.