Proposed changes to short term rental regulations:
In December 2015, Metro Council passed an ordinance to regulate the use of short term rentals (Airbnb, VRBO and others). City leaders have been monitoring implementation of this ordinance and the evolution of the new shared economy. Louisville Metro Department of Develop Louisville, Metro Council District 8 and Louisville Tourism have partnered to propose changes to the short term rental ordinance (Chapter 115.515-521 of the Louisville Metro Code of Ordinances and Chapter 4 of the Land Development Code) in response to the growing popularity of this tourist experience and how to best integrate it into our neighborhood fabric.
Proposed changes include:
Limiting the number of guests eligible to reside in a short term rental to two (2) times the number of bedrooms plus two (2)
Defining primary residence
Providing a minimum distance of 600 feet between short term rentals approved by Conditional Use Permits (this change would not impact host-occupied rentals and rentals with non-residential zoning).
Requiring a host to register within 60 days of issuance of a Conditional Use Permit
Requiring a host and property owner to maintain an active registration to keep Conditional Use Permit
Allowing the Director of Planning & Design services to require a host with questionable residency status to go to the Board of Zoning Adjustment for approval
Providing authority to prohibit a host who has had a registration revoked from re-applying for another registration for 1 year
Improving emergency contact requirements
Requiring carbon monoxide detector and operable emergency openings
Allowing short term rentals in properties zoned EZ-1. A map of EZ-1 zoned properties that would be eligible can be found here.
Increasing the registration fee from $25 to $100
Providing requirements related to removing listings from platforms and platform reporting.
Prohibiting the advertising of a short term rental if it is not registered with Louisville Metro. Enforcement for advertising a short term rental without registering it results in a notice of violation for a first offense and a $125 fine for every additional day that the short term rental remains advertised.
Introducing a new enforcement fine structure: 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.
To view the proposed changes recommended by the Planning Commission in their entirety, click here.
To view public comments submitted between August 14 and September 14, please click here.
Develop Louisville staff presented these proposed changes to the Planning Commission on December 6, 2018 and January 24,2019 after all public feedback had been reviewed. The changes will next be reviewed by the Metro Council's Planning & Zoning Committee.
Short term rental regulations:
On August 1, 2016 the regulations for short term rentals approved by Metro Council went into effect.
- All short term rental hosts must submit an annual registration form, register with the Revenue Commission, post an evacuation plan and meet smoke detector requirements.
- All short term rentals are prohibited from serving or providing food and alcohol and from posting outdoor signage.
- 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 term short term rental does not apply to hotel or motel rooms, extended stay lodging facilities, bed and breakfast inn or boarding and lodging hotel rooms therefore these exact regulations do not apply to those facilities.
- The dwelling unit shall be a single-family residence or duplex unless the dwelling unit is located on property zoned C-R, C-N, C-1, C-2 or C-3 and the property meets the following criteria: 1) within 200 feet of a TARC route, 2) within .75 miles of a public park, 3) within one mile of a National Register District or local Preservation District.
- At no time shall more persons reside in the short term rental than two times the number of bedrooms plus four individuals. For example if a short term rental has 3 bedrooms, then 10 people may reside in that short term rental.
- 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.
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, Middletown, 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.
How to register your short term rental:
The first thing to cinsider when registering your short term rental is to find out the zoning of the property. Based on the zoning and if you live in the home you are using as a short term rental, your application process could vary from someone else's. 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.