Short-term rentals in St. Joseph will soon face new regulations

Mar. 31—Vacation rental homes will be subject to new rules and regulations after the most recent city council meeting.

The city council approved an amendment to the city's code of ordinances this month with requirements for short-term rentals, like Airbnbs, to be properly licensed, be in appropriate zoning districts and pay all applicable taxes.

Discussions regarding these changes to short-term rentals began nearly nine months ago, and they will go into effect on July 1.

"This is a newer business use that really had not been addressed within the code as far as operation or licensing," said Clint Thompson, the city's director of planning and community development.

The language in the city's code was enforced for bed and breakfasts and rentals of 30 days and longer, but it did not include regulations of properties for short-term rental use.

Short-term rentals are currently defined as rentals lasting less than 30 days. The amendment will require anyone operating a short-term rental to have an annual business license.

"It placed the burden on the property owner, property manager of that particular rental to have their property inspected to make sure the property is up to code just to protect the public for life safety issues," he said.

The zoning code was amended to allow short-term rentals in all residential zoning districts.

"There is an opportunity to have a short-term rental exist in a commercially zoned district through a conditional use permit," Thompson said. "Short-term rentals are not allowed in manufacturing districts."

Taxes are already paid by short-term rental owners through host platforms, like Airbnb, that calculate taxes and share them with the city. But Thompson said there is an option for property owners to opt out of the state-withheld taxes.

"The next step is staff will be reaching out to property owners that may have short-term rentals to inform them of this new change and requiring an annual business license, but also the requirement that their collection of revenue should adjust to and account for any local taxes that should be remitted to the city."

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