Sedgwick County, Kansas Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Sedgwick County, Kansas?

Short-term rentals, such as those listed on Airbnb and VRBO, are subject to specific regulations in Sedgwick County, Kansas. These rules are designed to ensure the safety of guests, maintain neighborhood harmony, and address potential issues related to the operation of short-term rentals.

In Sedgwick County, short-term rentals are not permitted in unincorporated areas. However, within the city limits of Wichita, short-term rentals are allowed in most residential zoning districts, including SF-5 (Single Family), TF-3 (Duplex), B, MF-18, and MF-29 (Multi-Family).

As of September 12, 2023, the Wichita City Council approved changes to provide a zoning approval process for short-term rentals in residential districts and a licensing program. Short-term rental owners are now required to obtain an annual license for each dwelling unit they operate as a short-term rental. The license expires one year after the date of issuance and is not transferable.

The license requirement limits occupancy to 2 adults per bedroom, plus an additional two adults for each unit (excluding studio or efficiencies). Operators are also required to have liability or short-term rental insurance.

Starting a Short-Term Rental Business in Sedgwick County

To start a short-term rental business in Sedgwick County, property owners must first ensure that their property is located within the city limits of Wichita and is zoned appropriately for short-term rentals.

Next, owners must apply for an annual license for each dwelling unit they intend to operate as a short-term rental. The license application process requires submitting detailed information about the property and paying an annual fee of $225.

It is essential for short-term rental operators to stay informed about local regulations and any updates or changes. Engaging with local real estate forums, such as BiggerPockets or the Wichita subreddit, can provide valuable insights and experiences from other short-term rental owners in the area.

In November 2023, the Sedgwick County Commission approved recommended amendments to the Unified Zoning Code, which included updates related to short-term rentals. These changes stem from incidents like a deadly shooting at a short-term rental in 2021.

By understanding and complying with the regulations set forth by Sedgwick County and the City of Wichita, short-term rental operators can establish and maintain successful businesses while contributing to the local economy and providing safe accommodations for visitors to the area.

Short-Term Rental Licensing Requirement in Sedgwick County

Sedgwick County requires short-term rental owners to obtain an annual license for each dwelling unit they operate as a short-term rental. The license expires one year after the date of issuance and is not transferable to another person or location.

To obtain a Short-Term Rental License, owners must contact the City's Express Office in the Finance Department. The licensing requirements include:

• Owner-occupied short-term rentals must be licensed by March 12, 2024 (six months after the effective date of the ordinance).
• Short-term rentals requiring additional zoning approval must be licensed by September 12, 2024 (twelve months after the effective date of the ordinance).
• The annual licensing fee is $225 per unit.
• Licenses must be renewed annually.
• Short-term rental owners must maintain $250,000 of insurance.
• Owners must adhere to a "good neighbor" policy, which includes limiting gatherings to 10 p.m. and having an operator available 24/7.
• The city may conduct inspections of the short-term rental property.

Failure to comply with the licensing requirements can result in fines of up to $500 per day, restitution, and potential jail time for non-compliance. Additionally, the proposed ordinance includes a suspension of up to five years if a rental is found to be in violation of the code.

The licensing process typically takes several weeks to complete, depending on the completeness of the application and the need for any additional zoning approvals. It is crucial for short-term rental owners to submit their applications well in advance of their intended operation date to avoid any penalties or disruptions to their business.

Required Documents for Sedgwick County Short-Term Rentals

To operate a short-term rental in Sedgwick County owners must obtain the necessary documents and approvals. The following list outlines the required documents, their purpose, and where to obtain them:

Short-Term Rental License: This annual license is required for each dwelling unit operated as a short-term rental. The purpose of the license is to ensure compliance with local regulations and maintain a record of active short-term rentals. Owners can apply for the license through the City's Express Office in the Finance Department.

Zoning Approval: Short-term rentals must have the appropriate zoning approvals to operate legally. The property's zoning must allow for short-term rental use, as outlined in the Unified Zoning Code. Zoning information can be obtained from the Wichita-Sedgwick County Planning Department.

Proof of Insurance: Short-term rental owners must maintain liability or short-term rental insurance with a minimum coverage of $250,000. The purpose of this requirement is to protect both the owner and guests in case of accidents or damages. Proof of insurance can be obtained from the owner's insurance provider.

Occupancy Limits: The license application requires owners to adhere to occupancy limits, which are set at 2 adults per bedroom, plus an additional two adults for each unit (excluding studio or efficiencies). This information is typically included in the license application and helps ensure the safety and comfort of guests.

Good Neighbor Policy: As part of the licensing process, owners must agree to adhere to a "good neighbor" policy, which includes limiting gatherings to 10 p.m. and having an operator available 24/7. This policy helps maintain neighborhood harmony and addresses potential issues related to short-term rentals.

Property Deed (if applicable): If the property is unplatted, a copy of the filed deed is required to apply for a platting exemption, which can be obtained from the Metropolitan Area Building and Construction Department (MABCD).

Septic Tank or Lagoon Permit (if applicable): For properties not connected to public sewer service, a septic tank or lagoon permit is required. These permits can be obtained from the MABCD.

Floodplain Information (if applicable): If the property is located in a designated floodplain, additional requirements or permits may be necessary. Owners can contact the Floodplain Technician for Sedgwick County at the MABCD to determine if their property is affected.

By gathering and submitting these required documents, short-term rental owners in Sedgwick County can ensure compliance with local regulations and maintain a safe and legal operation.

Sedgwick County Short-Term Rental Taxes

When operating a short-term rental business in Sedgwick County, Kansas, it is essential to understand the various taxes that apply to your rental income. These taxes are in addition to the licensing fees required by the City of Wichita.

1. Kansas State Sales Tax: The Kansas state sales tax rate is currently 6.5%. This tax applies to all short-term rental accommodations, regardless of the length of stay. As a short-term rental operator, you are responsible for collecting this tax from your guests and remitting it to the Kansas Department of Revenue.
2. Sedgwick County Sales Tax: Sedgwick County imposes an additional 1% sales tax on top of the state sales tax. This brings the total sales tax rate for short-term rentals in Sedgwick County to 7.5%. Like the state sales tax, you must collect this tax from your guests and remit it to the appropriate authorities.
3. Transient Guest Tax: Sedgwick County also imposes a transient guest tax on short-term rentals. The current rate for this tax is 6%. This tax applies to stays of 28 consecutive days or less. If a guest stays for more than 28 consecutive days, they are exempt from the transient guest tax, but not from the sales tax.
4. Income Tax: As a short-term rental operator, you must report your rental income on your federal and state income tax returns. The amount of income tax you owe will depend on your total income, deductions, and other factors.

Possible Write-Offs and Deductions

To help offset the taxes and costs associated with running a short-term rental business, there are several write-offs and deductions you may be able to claim:

1. Mortgage Interest and Property Taxes: If you use your property for both personal and rental purposes, you can deduct a portion of your mortgage interest and property taxes based on the percentage of time the property is rented.
2. Operating Expenses: You can deduct ordinary and necessary expenses related to operating your short-term rental, such as cleaning fees, supplies, utilities, and repairs.
3. Depreciation: You may be able to deduct a portion of your property's value each year as depreciation, which can help offset your rental income.
4. Guest-Service Fees: If short-term rental platforms like Airbnb or VRBO charge you a guest-service fee, you can deduct this fee from your reported rental income.

It is crucial to keep accurate records of all your rental income and expenses to ensure proper tax compliance and to maximize your deductions. Consult with a tax professional familiar with short-term rental regulations in Sedgwick County to ensure you are meeting all your tax obligations and taking advantage of available deductions.

Kansas Wide Short-Term Rental Rules

While most short-term rental regulations in Kansas are determined at the local level by cities and counties, there are a few state-wide rules and requirements that affect Sedgwick County hosts.

Taxation: Kansas imposes a statewide sales tax of 6.5% on all short-term rental accommodations, regardless of the length of stay. Hosts in Sedgwick County are responsible for collecting this tax from their guests and remitting it to the Kansas Department of Revenue. Additionally, Sedgwick County imposes a 1% sales tax and a 6% transient guest tax, bringing the total tax rate for short-term rentals to 13.5%.

Building and Safety Codes: All short-term rental properties in Kansas must comply with the state's building and safety codes. This includes requirements for smoke and carbon monoxide detectors, fire extinguishers, and proper emergency exits. The Kansas Department of Health and Environment also has regulations related to water safety and sanitation that may apply to short-term rentals with pools or hot tubs.

Americans with Disabilities Act (ADA): Although not specific to Kansas, the federal ADA requires that all places of lodging, including short-term rentals, be accessible to individuals with disabilities. Hosts should ensure their properties meet ADA standards, such as providing accessible parking, entrances, and bathrooms.

Insurance: While not mandated by state law, it is highly recommended that Kansas short-term rental hosts maintain appropriate insurance coverage. This may include a specific short-term rental insurance policy or an endorsement to a standard homeowners' insurance policy. Proper insurance can protect hosts from liability claims and property damage.

Record Keeping: Kansas law requires short-term rental hosts to maintain accurate records of their rental income and expenses for tax purposes. Hosts should keep detailed records of all bookings, payments, and expenditures related to their rental business.

It is important to note that these state-wide rules and requirements are in addition to any local regulations set by Sedgwick County. Hosts should familiarize themselves with both state and local laws to ensure full compliance and avoid potential fines or penalties.

Does Sedgwick County Strictly Enforce STR Rules? Is Sedgwick County Airbnb Friendly?

Sedgwick County's approach to enforcing short-term rental regulations can be considered relatively balanced, aiming to align the market with local policies while addressing concerns raised by residents and neighborhood associations. The county is not as strict as some other cities in enforcing STR rules, but it does require hosts to obtain licenses and comply with zoning regulations.

Compared to other cities, Sedgwick County can be considered somewhat Airbnb-friendly, as it allows short-term rentals in most residential zoning districts within the city limits of Wichita, including single-family, duplex, and multi-family zones. However, the county has been working to crack down on short-term rentals operating illegally by requiring minimum 7-day stays and the acquisition of a bed and breakfast license.

Despite the rules, some hosts continue to operate short-term rentals in Sedgwick County without fully complying with the regulations. According to discussions on Reddit and BiggerPockets, the demand for short-term rentals in Wichita has been declining, with many listings showing open dates on their calendars. This trend, along with the proposed licensing program and enforcement measures, may discourage some hosts from operating illegally in the long run.

In summary, while Sedgwick County is not the strictest in enforcing STR rules, it is taking steps to regulate the market and ensure compliance with local policies. The county's approach reflects a balance between fostering tourism and maintaining the integrity of residential neighborhoods. As the proposed licensing program and enforcement measures take effect, it is likely that fewer hosts will operate in Sedgwick County despite the rules, opting for longer-term rentals or alternative markets.

How to Start a Short-Term Rental Business in Sedgwick County

Starting a short-term rental business in Sedgwick County requires careful planning and adherence to local regulations. Follow these steps to successfully launch your venture:

1. Research local regulations: Familiarize yourself with Sedgwick County's short-term rental regulations, including zoning requirements, licensing, and any restrictions on the type or location of properties that can be used as short-term rentals. In Wichita, short-term rentals are allowed in most residential zoning districts, but owners must obtain an annual license for each dwelling unit they operate as a short-term rental.
2. Choose a suitable property: Select a property that meets the county's zoning and licensing requirements. Consider factors such as location, size, amenities, and potential rental demand when making your choice. If the property is not owner-occupied, you may need to apply for a special permit to operate.
3. Obtain necessary licenses and permits: Apply for the required annual license for each dwelling unit you plan to operate as a short-term rental. In Wichita, the license expires one year after the date of issuance and is not transferable. The annual licensing fee is $225 per unit. Ensure you have the appropriate zoning approvals and any additional permits needed.
4. Prepare the property: Make any necessary renovations or upgrades to ensure the property meets safety standards and is attractive to potential guests. Furnish the property with comfortable and functional amenities, and consider adding unique features to stand out from competitors.
5. Secure insurance: Obtain liability or short-term rental insurance with a minimum coverage of $250,000. This protects you and your guests in case of accidents or damages.
6. Create a listing: List your property on popular short-term rental platforms like Airbnb and VRBO. Craft an engaging description, showcase the property's best features, and include high-quality photos. Be transparent about any rules or restrictions, and set competitive rates based on market research.
7. Manage bookings and guest communication: Respond promptly to inquiries and booking requests. Maintain clear communication with guests before, during, and after their stay. Provide detailed check-in instructions and be available to address any concerns or issues that may arise.
8. Ensure cleanliness and maintenance: Implement a thorough cleaning and sanitization process between guest stays. Regularly maintain the property to keep it in top condition. Consider hiring a professional cleaning service to ensure consistent quality.
9. Comply with ongoing regulations: Stay informed about any updates or changes to Sedgwick County's short-term rental regulations. Renew your license annually and maintain accurate records of your rental income and expenses for tax purposes.
10. Seek support and advice: Connect with other short-term rental owners in Sedgwick County through local forums or online communities like BiggerPockets or the Wichita subreddit. Learn from their experiences, share best practices, and stay informed about industry trends and regulatory changes.

By following these steps and staying compliant with local regulations, you can establish a successful short-term rental business in Sedgwick County. Remember to prioritize guest satisfaction, maintain open communication, and continually adapt to market demands to ensure long-term success.

Who to Contact in Sedgwick County about Short-Term Rental Regulations and Zoning?

If you have questions or concerns about short-term rental regulations and zoning in Sedgwick County, there are several resources and contacts available to assist you:

Wichita-Sedgwick County Planning Department: Contact the planning department for information on zoning requirements and approvals for short-term rentals.

1. Phone: (316) 268-4421
2. Email: planningstaffcontact@wichita.gov
3. Address: 271 W. 3rd St. N., Suite 201, Wichita, KS 67202

City of Wichita Finance Department: The City's Express Office in the Finance Department handles short-term rental licensing.

1. Phone: (316) 268-4553
2. Email: expressoffice@wichita.gov
3. Address: 455 N. Main, First Floor, Wichita, KS 67202

Metropolitan Area Building and Construction Department (MABCD): Contact MABCD for information on building codes, permits, and inspections related to short-term rentals.

1. Phone: (316) 660-1840
2. Email: mabcdinformation@sedgwick.gov
3. Address: 271 W. 3rd St. N., Suite 101, Wichita, KS 67202

Visit Wichita: The city's official tourism website provides resources and information for short-term rental hosts and guests.

1. Phone: (316) 265-2800
2. Email: info@visitwichita.com
3. Website: https://www.visitwichita.com/

In addition to these official contacts, short-term rental hosts in Sedgwick County may find the following groups and communities helpful:

Wichita Airbnb Hosts Facebook Group: This private Facebook group is a platform for Wichita-area Airbnb hosts to connect, share experiences, and seek advice. You can request to join the group at https://www.facebook.com/groups/wichitaairbnbhosts/.

Wichita Real Estate Investors Association (WREIA): WREIA is a non-profit organization that provides education, networking, and support for real estate investors in the Wichita area. While not specifically focused on short-term rentals, the group can be a valuable resource for property owners. Visit their website at https://www.wreia.com/.

BiggerPockets Wichita Forum: BiggerPockets is an online community for real estate investors, with a subforum dedicated to Wichita. Hosts can connect with other local investors and discuss short-term rental strategies and regulations. Access the forum at https://www.biggerpockets.com/forums/99-wichita-real-estate-forum.

Wichita Subreddit: The Wichita subreddit (r/wichita) is a general forum for residents and visitors to discuss various topics related to the city, including real estate and short-term rentals. Visit the subreddit at https://www.reddit.com/r/wichita/.

By reaching out to these official contacts and engaging with local host communities, short-term rental operators in Sedgwick County can stay informed about regulations, seek guidance, and connect with fellow hosts to navigate the challenges and opportunities of the industry.

What Do Airbnb Hosts in Sedgwick County on Reddit and Bigger Pockets Think about Local Regulations?

Airbnb hosts in Sedgwick County have shared their experiences and opinions on local short-term rental regulations across various online platforms. Here are some notable insights from verified county threads and forums:

Reddit - r/wichita: In a thread titled "Airbnb Market," a user mentioned that the city of Wichita has been trying to crack down on short-term rentals by requiring a minimum 7-day stay and the acquisition of a bed and breakfast license, which some hosts find absurd. Another user pointed out that these regulations are in place to protect neighborhoods from the constant turnover of guests in residential areas.

Reddit - r/airbnb_hosts: A weekly regulation roundup post highlighted recent changes in Wichita's short-term rental regulations, sparking a discussion among hosts. Some hosts expressed concerns about the impact of these regulations on their businesses, while others acknowledged the need for a balanced approach to protect the interests of both hosts and residents.

BiggerPockets Forum: In a thread titled "MTR Wichita, KS," a host shared their experience with the changing regulatory landscape in Sedgwick County. They mentioned that the new regulations, such as the 7-day minimum stay requirement and the need for a bed and breakfast license, have made it more challenging to operate short-term rentals in the area.

Airbnb Community Center: Several Sedgwick County hosts have shared their experiences and sought advice on navigating local regulations in the Airbnb Community Center. One host expressed frustration with the licensing process and the lack of clarity in the regulations, while another mentioned that they had to adjust their business model to comply with the new rules.

Overall, Airbnb hosts in Sedgwick County have mixed opinions about the local short-term rental regulations. While some hosts find the regulations burdensome and detrimental to their businesses, others recognize the need for a balanced approach to address the concerns of residents and maintain neighborhood stability. Hosts continue to adapt to the changing regulatory landscape and seek guidance from fellow hosts and local authorities to ensure compliance and maintain successful short-term rental operations in Sedgwick County.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.