Lexington-Fayette Short Term Rental Regulation: A Guide For Airbnb Hosts

What are Short Term Rental (Airbnb, VRBO) Regulations in Lexington-Fayette, Kentucky?

Lexington-Fayette, Kentucky, has recently adopted regulations for short-term rentals (STRs), which include Airbnb and VRBO properties. These regulations aim to address concerns about the impact of STRs on housing availability and neighborhoods. In this expanded article, we will delve deeper into the rules and requirements for starting a short-term rental business in Lexington-Fayette.

Starting a Short Term Rental Business in Lexington-Fayette

To start a short-term rental business in Lexington-Fayette, you need to comply with the following regulations:

• Zoning Compliance Permit: All STR operators must obtain a Zoning Compliance Permit through the Division of Planning1.
• Special Fees License: STR operators must obtain a Special Fees License through the Division of Revenue, to be renewed annually, at a rate of $200 for the first unit and $100 per additional rental5.
• Local Registration Number: Short-term rentals must display a local registration number on all advertisements, including Airbnb, VRBO, Expedia, etc.6.

Short Term Rental Licensing Requirement in Lexington-Fayette

Lexington-Fayette has implemented a licensing requirement for short-term rental operators. The licensing fee is $200 for the first unit and $100 for each additional rental5. Operators with multiple properties must pay the fee for each property.

Required Documents for Lexington-Fayette Short Term Rentals

Short-term rental operators must provide the following documents:

• Local Registration Number: This number must be displayed on all advertisements6.
• Maximum Occupancy: Advertisements must specify the allowed maximum number of occupants6.
• Emergency Contact Information: The licensee must provide the name, email address, and telephone number of the registered emergency contact for the short-term rental6.
• Emergency and Rescue Opening: Each sleeping room must have at least one operable emergency and rescue opening6.
• Fire Extinguisher: The dwelling unit must contain at least one maintained and charged fire extinguisher6.
• Emergency Evacuation Plan: The licensee must post a clearly marked emergency evacuation plan for the premises6.

Lexington-Fayette Short Term Rental Taxes

Short-term rental operators must pay an annual fee of $200 for the first unit and $100 for each additional rental5. These fees help the city pay for software that will assist in managing short-term rentals.

In addition, operators with a limited liability corporation and making more than $50,000 in gross revenue must pay the city's 2.25% occupational taxes on those earnings2.

Lexington-Fayette Wide Short Term Rental Rules

Short-term rentals in Lexington-Fayette are subject to the following rules:

• Maximum Occupancy: In residential areas, short-term rentals are limited to a maximum occupancy of 12 guests3.
• Conditional Use Permit: If operators wish for a larger occupancy, they would need to apply for a conditional use permit3.
• Owner-Occupied Homes: Short-term rentals in owner-occupied homes are allowed without a conditional use permit3.
• Business Zones: Certain business zones allow for homes and other residential properties and hotels, and short-term rentals in these zones will not require conditional use permits2.

Does Lexington-Fayette Strictly Enforce STR Rules?

Lexington-Fayette has adopted regulations for short-term rentals, and operators must comply with these rules. The city has implemented a six-month grace period for current operators to comply with the new licensing, fee, and permit requirements2. Operators without proper city permits can face penalties of $500 per day2.

How to Start a Short Term Rental Business in Lexington-Fayette

To start a short-term rental business in Lexington-Fayette, follow these steps:

• Obtain a Zoning Compliance Permit: Apply for a permit through the Division of Planning1.
• Get a Special License Fee: Register for a license through the Division of Revenue5.
• Display Local Registration Number: Include the local registration number on all advertisements6.
• Provide Required Documents: Ensure that your short-term rental complies with the necessary documents, such as emergency contact information, emergency evacuation plan, and fire extinguisher6.

Who to Contact in Lexington-Fayette about Short Term Rental Regulations and Zoning

For information on short-term rental regulations and zoning in Lexington-Fayette, contact the Division of Planning or the Division of Revenue.

What do Airbnb Hosts in Lexington-Fayette on Reddit and Bigger Pockets Think about Local Regulations?

The passage of the short-term rental regulations in Lexington-Fayette has been a topic of discussion on Reddit and Bigger Pockets. While opinions vary, some hosts have expressed concerns about the impact of the regulations on their businesses and the potential for increased compliance costs. However, others believe that the regulations are necessary to address concerns about housing availability and neighborhood impacts.

In conclusion, Lexington-Fayette has implemented comprehensive regulations for short-term rentals, including licensing requirements, zoning restrictions, and occupancy limits. Operators must comply with these rules to legally operate short-term rentals in the city. The regulations aim to balance the needs of tourism with concerns about housing availability and neighborhood impacts.