Some good tips from Michelle, including the VRBO insurance option. I would only add, whether looking at VRBO or AirBnB, etc., that if a unit does not have MANY strong, believable reviews-like a dozen or more imo-move on to the next choice.
Regarding James' comment on enforcement, the last number I heard for owners who were actually fined, is about 40. The number of "enforcers" is small compared to the size of the pool. It is a contract, and you need to move carefully and with due diligence, but the chance that you will have a problem due to a rental being illegal remains quite low. In reading reviews, be alert for comments about neighbors being unfriendly or unwelcoming, etc., as that could be a red flag for a rental that has deeper issues-and a lot of issues manifest in terms of neighbor complaints about a holiday rental.