Summary of Requirements:
In December 2015, Metro Council passed an ordinance to regulate the use of short term rentals (affecting listings offered on Airbnb, VRBO, and other platforms). City leaders monitored implementation of this ordinance and the evolution of the new shared economy and in May 2019, amendments to the ordinance were implemented in response to the growing popularity of this tourist experience and how to best integrate it into our neighborhood fabric. To view the new ordinance and the changes that were approved by Metro Council in their entirety, click here.
A few things to know:
- A short term rental is a dwelling unit that is rented, leased, or otherwise assigned for a tenancy of less than 30 consecutive days. The short term rental regulations do apply to hotel/motel rooms, extended stay lodging facilities, bed and breakfast inns, or boarding rooms.
- All short term rental hosts must annually register each of their rentals with Louisville Metro's Office of Planning & Design Services; register with the Louisville Metro Revenue Commission (for tax purposes); and, if necessary, obtain Conditional Use Permits from the Louisville Metro Board of Zoning Adjustment.
A short term rental must be in a single-family residence or duplex unless the dwelling unit is located on property zoned EZ-1, C-R, C-N, C-1, C-2, or C-3.
- At no time shall more persons reside in the short term rental than 2 times the number of bedrooms plus 2 individuals, except where the property is in excess of 2 acres in which case the occupancy limits shall be 2 times the number of bedrooms plus 6 individuals. For example, if a short term rental has 3 bedrooms, 8 people may reside in that short term rental. Bedrooms must be the dimensional and occupancy requirements provided in Chapter 156 of Louisville Metro Code of Ordinances.
- All short term rental hosts are prohibited from serving food and alcohol.
- Short term rentals regulations do not supersede lease agreements, homeowner's association bylaws, covenants, deed restrictions, or any other agreement, law or regulation that prohibits subletting or use of your dwelling as a short term rental.
- Unless waived by the Board of Zoning Adjustment during the approval process, a short term rental requiring a conditional use permit must be located more than 600 feet from any other short term rental that has been approved by a conditional use permit. This provision does not impact host-occupied rentals and rentals with non-residential zoning that are not subject to the conditional use permit requirement.
At this time, the following cities that retain independent zoning authority have not adopted a zoning ordinance specifically allowing short term rentals therefore short term rentals are not permitted within their jurisdiction: Anchorage, Douglass Hills, Graymoor-Devondale, Hurstbourne, Indian Hills, Jeffersontown, Lyndon, Prospect, Shively, St. Matthews, and St. Regis Park.
Failure to register a short term rental is equivalent to operating without a permit and will result in enforcement action. A first offense results in a $125 fine, a second offense results in a $250 fine, a third offense results in a $500 fine, and any additional offense results in a $1,000 fine. Each day may be considered a separate offense.
Advertising a short term rental that is not registered is prohibited. Unlawfully advertising a short term rental without a registration can result in a notice of violation for a first offense and a $125 fine for every additional day that the short term rental remains advertised.
The annual registration fee is $100.
How to register your short term rental:
The first thing to consider when registering your short term rental is to find out the zoning of the property. Based on the property's zoning and whether or not the dwelling is your primary residence, the application process can vary. Those scenarios are spelled out below. To find your property's zoning, please click here (search using your property address, then click on the small green "d" which will provide you with the Land Development Report including the property's zoning). The zoning designation will provide you with how you need to register your short term rental.