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

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

Kansas has recently seen changes in regulations for short-term rentals (STRs) like Airbnb and VRBO. These rules are typically found in city zoning codes, planning codes, and local ordinances. Here's what you need to know about starting and operating a short-term rental business in Kansas.

Starting a Short-Term Rental Business in Kansas

To legally operate a short-term rental in Kansas, you must:

• Obtain a short-term rental permit from the city. The application process varies by city but generally requires submitting documents like a completed permit application, tax clearance, proof of insurance, and safety compliance.
• Meet zoning regulations. Many cities in Kansas restrict where STRs can operate. For example, Kansas City prohibits non-resident STRs (where the owner doesn't live on-site) in residential zones. Check your property's zoning to ensure STRs are allowed.
• Meet density requirements (1 per 1000 ft. / 12.5% of multi-family dwellings). Some cities limit how close STRs can be to each other. In Kansas City, a non-resident STR cannot be within 1,000 feet of another in buildings with under 3 units. In larger buildings, no more than 25% of units can be STRs.

Hosts on forums like Bigger Pockets and Reddit have expressed frustration with complex and changing regulations in Kansas. One Kansas City host inadvertently violated the STR ordinance by launching an Airbnb without realizing a permit was required.

However, many hosts continue operating STRs despite restrictions, indicating inconsistent enforcement in some areas. It's crucial to thoroughly research your city's specific requirements to ensure compliance.

Short-Term Rental Licensing Requirement in Kansas

Kansas does not have a statewide licensing requirement for short-term rentals. Instead, regulations are determined at the local level, with each city or county setting its own rules. However, we can examine the licensing requirements for some of the major cities in Kansas to provide a general overview.

Kansas City, Kansas

Kansas City has implemented comprehensive licensing requirements for short-term rentals:

1. Obtain a short-term rental permit from the city
2. Meet zoning regulations
3. Comply with density requirements (1 per 1000 ft. / 12.5% of multi-family dwellings)
4. Certify compliance with safety, legal, and tax requirements
5. Limit to one STR on parcels with only one principal dwelling unit

To register your short-term rental in Kansas City, you must provide:

1. Completed short-term rental permit application
2. Tax clearance/business license
3. Proof of compliance with safety, legal, and tax requirements
4. RD-108 form per owner and RD-306 forms for each location

The registration fee is $200, which increases annually based on the Consumer Price Index. The process typically takes 2-4 weeks for approval.

Penalties: Short-term rentals operating without a registration are subject to ordinance violations and fines ranging from $200 to $1,000 per day.

Wichita, Kansas

Wichita has recently implemented new regulations for short-term rentals:

1. Obtain appropriate zoning approvals
2. Acquire an annual license for each dwelling unit operated as a short-term rental
3. Comply with housing, fire, building, zoning, and all other applicable City Codes
4. Submit to inspections upon complaint

To obtain a license, contact the City's Express Office in the Finance Department. The licensing process must be completed by:

1. March 12, 2024, for owner-occupied STRs
2. September 22, 2024, for STRs requiring additional zoning approval
3. Fees and processing times are not specified, but it's advisable to start the process early due to potential inspections and zoning approvals.

Penalties: While not explicitly stated, operating without a license likely results in fines and potential closure of the STR.

Topeka, Kansas

Topeka has an online application process for short-term rentals:

1. Schedule a pre-application meeting with Planning + Urban Design staff
2. Submit a completed application form
3. Pay the required fee (amount not specified)
4. Provide an affidavit of ownership and title report
5. Submit pictures of the property
6. Schedule and pass a home inspection

The process includes a neighborhood meeting requirement for Special Use Permits. The timeline can vary depending on the need for special approvals and inspections.

Penalties: Specific fines for unlicensed STRs are not mentioned, but operating without proper permits likely results in fines and potential legal action.

It's crucial to note that these requirements can change, and smaller cities or counties in Kansas may have different rules. Always check with your local government for the most up-to-date and accurate information regarding short-term rental licensing in your specific area. Compliance with local regulations is essential to avoid potential fines, penalties, or legal issues while operating a short-term rental in Kansas.

Required Documents for Kansas Short-Term Rentals

The specific documents required for short-term rentals vary by city and county in Kansas. However, most jurisdictions require some combination of the following:

Completed STR Application: This form collects key details about the property, host, and planned rental operations. It's typically available through the city's planning or development department website.

Proof of Ownership or Landlord Approval: Applicants must demonstrate they own the property or have the owner's permission to operate an STR. Acceptable documents include a deed, lease, or notarized letter from the landlord.

Affidavit of Building Code Compliance: This sworn statement affirms the STR property meets all relevant building, fire, health, and safety codes. Some cities provide a template that must be signed by the host and notarized.

Property Floor Plan: A floor plan with labeled room dimensions and locations helps officials assess occupancy limits and safety requirements. This needn't be a professional blueprint but should be clear and legible.

Proof of Primary Residence (for Type 1 Permits in Kansas City): For STRs in an owner's primary home, Kansas City requires two documents proving residency, such as a driver's license, voter registration card, or utility bill in the host's name at that address.

Neighbor Notification Letter: Some cities, like Kansas City, require hosts to provide written notice to adjacent property owners about their intent to operate an STR. This letter must be submitted with the permit application.

Hotel Tax Registration: In cities with lodging taxes, hosts need a hotel/motel tax license and must register with the local collection authority before applying for an STR permit.

Business Personal Property Tax Receipt: Kansas City requires proof that all property taxes have been paid prior to approving an STR permit. A tax receipt or clearance letter is typically sufficient.

In addition to these documents, hosts may need to submit a trash disposal plan, parking plan, and rules of conduct for the property, as seen in Riley County's application process.

Gathering these documents takes time and careful attention to detail. Start the process early to avoid delays in getting your STR permit approved. When in doubt, contact your local planning or development office for the most up-to-date information on STR registration requirements.

Kansas Short-Term Rental Taxes

As a short-term rental host in Kansas, it's crucial to understand the various taxes that apply to your rental business. Failing to collect and remit these taxes can lead to penalties and legal issues. Here's a breakdown of the key taxes you need to be aware of:

State Sales Tax

1. Kansas imposes a statewide sales tax of 6.5% on short-term rentals.
2. This tax applies to the total rental price, including any cleaning fees.
3. Whether the tax is collected depends on the number of bedrooms in the rental unit.

Local Sales Tax

1. In addition to the state sales tax, many cities and counties in Kansas levy their own local sales taxes on short-term rentals.
2. Local sales tax rates typically range from 1% to 7% of the total rental price, including cleaning fees.
3. As with the state sales tax, collection depends on the number of bedrooms in the rental.

Transient Guest Tax

1. Some Kansas cities and counties also impose a transient guest tax on rentals of 28 nights or less.
2. Transient guest tax rates are usually between 2% and 9% of the total booking value.
3. This tax is separate from and in addition to state and local sales taxes.
4. Collection of the transient guest tax is based on the bedroom count of the rental property.

It's important to note that tax rates and rules can vary significantly between jurisdictions in Kansas. Hosts are responsible for determining their specific tax obligations and registering with the appropriate authorities.

Airbnb collects and remits state, local, and transient guest taxes on behalf of hosts in Kansas for most reservations. However, hosts listing on other platforms like Vrbo are typically responsible for managing tax collection and remittance themselves.

Possible Tax Deductions for Short-Term Rentals

While short-term rental hosts must collect and pay various taxes, there are also several expenses that may be deductible on federal income taxes:

• Mortgage interest on the rental property
• Property taxes (up to $10,000 combined with sales taxes)
• Licensing, registration, and inspection fees
• Depreciation of the rental property structure and furnishings
• Cleaning, maintenance, and repair costs
• Utilities, insurance, and HOA fees attributable to rental use
• Marketing and advertising expenses
• Host service fees charged by rental platforms

To claim these deductions, detailed record-keeping is essential. Consult with a tax professional to ensure you're optimizing deductions while remaining compliant with all tax laws.

Understanding and staying current with Kansas short-term rental tax obligations is a key part of running a successful hosting business. By collecting the appropriate taxes and taking advantage of available deductions, hosts can minimize risks and maximize the financial benefits of their rental operation.

Does Kansas Strictly Enforce STR Rules?

Based on discussions among hosts and investors on forums like BiggerPockets and Reddit, Kansas, particularly Kansas City, has a complex relationship with short-term rental regulations and enforcement. While the state has implemented stricter rules in recent years, enforcement appears to be inconsistent, allowing many hosts to continue operating despite restrictions.

Kansas City, the largest city in the state, is not particularly Airbnb-friendly compared to other markets. The city has been called one of the "worst places" for STRs by the National Association of Realtors due to its restrictive zoning code that prohibits rentals under 30 days in residential districts. Despite this, Kansas City had the second-highest Airbnb bookings in Missouri in 2016, indicating that hosts are operating despite the rules.

In May 2023, Kansas City passed new ordinances to tighten STR regulations, banning non-owner occupied STRs in residential zones and requiring all listings to include a city registration number. Fines for violations now range from $200 to $1,000 per day. However, STRs approved before these rules took effect are grandfathered in, creating a two-tiered system.

Despite these stricter regulations, many hosts continue to operate STRs in Kansas City and throughout the state. On BiggerPockets, one investor noted, "The money is too good. People are going to keep doing Airbnbs whether the city likes it or not." This sentiment is echoed across various forums, with hosts admitting to operating under the radar, betting that the city lacks resources for proactive enforcement.

Some hosts have adapted by focusing on properties outside city limits to avoid compliance issues. Others simply continue to operate unlicensed rentals, particularly in smaller cities where enforcement may be less of a priority. As one Reddit user put it, "I'm not happy about the new rules, but I'm going to keep operating my Airbnb anyway."

While Kansas has implemented regulations that paint it as less than Airbnb-friendly, inconsistent enforcement enables many hosts to continue operating profitably. The risk of fines or shutdown orders is real, but not prohibitive for hosts willing to skirt the law. This creates a situation where STRs are technically restricted but continue to thrive in practice.

In conclusion, while Kansas, especially Kansas City, has strict STR rules on paper, enforcement is not consistent enough to deter many hosts. The state is not particularly Airbnb-friendly compared to more lenient markets, but the profitability of STRs has led to widespread operation despite the regulations. Hosts are finding ways to navigate or circumvent the rules, making Kansas a complex and somewhat contradictory market for short-term rentals.

How to Start a Short-Term Rental Business in Kansas

Starting a short-term rental business in Kansas can be a lucrative venture, but it requires careful planning and compliance with local regulations. Here's a step-by-step guide to launching your STR business in the Sunflower State:

Research local regulations and zoning requirements.

• Familiarize yourself with the specific STR rules in your city and county, as they can vary significantly across Kansas.
• Determine if your property is zoned for short-term rentals and what type of permit or license you'll need to operate legally.
• Attend local planning meetings or consult with a real estate attorney to ensure you understand all applicable regulations.

Develop a business plan and budget.

• Outline your target market, pricing strategy, marketing plan, and financial projections.
• Consider the costs of furnishing, maintaining, and managing your rental property.
• Factor in the fees associated with licensing, taxes, insurance, and any necessary renovations or upgrades.
• Determine your anticipated return on investment and set realistic goals for occupancy and revenue.

Obtain necessary permits and licenses.

• Apply for the appropriate STR permit or license with your local city or county government.
• Gather all required documents, such as proof of ownership, floor plans, and neighbor notification letters.
• Pay any associated fees and submit your application well in advance of your planned launch date.
• Comply with any inspection requirements or other conditions of approval.

Register for tax collection.

• Obtain a Kansas sales tax license and any necessary local tax registrations.
• Familiarize yourself with the tax rates and rules for state, county, and city taxes that apply to your STR.
• Set up a system for collecting and remitting taxes on your rental income, either through your booking platform or manually.
• Keep detailed records of all tax payments and guest receipts for reporting and deduction purposes.

Prepare your property for guests.

• Furnish and decorate your rental to create an inviting and comfortable space for guests.
• Invest in quality linens, towels, and amenities to enhance the guest experience.
• Ensure your property meets all safety requirements, such as smoke detectors, fire extinguishers, and carbon monoxide alarms.
• Create a comprehensive house manual with check-in instructions, house rules, and local recommendations.

List your property on popular STR platforms.

• Choose the booking platforms that align with your target market and business goals, such as Airbnb, Vrbo, or Booking.com.
• Create a compelling listing with high-quality photos, detailed descriptions, and competitive pricing.
• Optimize your listing for search visibility and guest appeal, highlighting unique features and amenities.
• Develop a system for managing bookings, communications, and guest reviews across platforms.

Implement a management and maintenance plan.

• Decide whether you'll manage the property yourself or hire a professional property manager.
• Establish a cleaning and maintenance schedule to ensure your rental is always guest-ready.
• Have a plan in place for handling guest issues, emergencies, and repairs promptly.
• Consider investing in technology solutions like smart locks, noise monitors, and automated messaging to streamline operations.

Launch and market your STR business.

• Announce your new rental listing through social media, local tourism groups, and targeted advertising.
• Offer competitive rates and special promotions to attract initial bookings and build positive reviews.
• Provide exceptional guest service to encourage repeat business and referrals.
• Continuously monitor and adjust your pricing, marketing, and operations based on performance data and guest feedback.

By following these steps and staying informed about local regulations, you can successfully launch and grow a profitable short-term rental business in Kansas. Remember to prioritize compliance, guest satisfaction, and adaptability as you navigate the dynamic world of STRs in the Sunflower State.

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

When navigating the short-term rental regulations and zoning requirements in Kansas, it's essential to reach out to the appropriate local authorities for accurate and up-to-date information. Here are some key contacts in major Kansas cities:

Wichita, Kansas

1. Wichita-Sedgwick County Planning Department
2. Phone: 316-268-4421
3. Address: Ronald Reagan Building, 271 W. 3rd St. N., Wichita, KS 67202
4. Website: https://www.wichita.gov/157/Wichita-Sedgwick-County-Planning

Kansas City, Kansas

1. Planning & Urban Design Department
2. Phone: 913-573-5750
3. Email: planninginfo@wycokck.org
4. Website: https://www.wycokck.org/PlanningandZoning

Topeka, Kansas

1. Planning & Development Department
2. Phone: 785-368-3728
3. Email: planning@topeka.org
4. Website: https://www.topeka.org/planning/

Lawrence, Kansas

1. Planning & Development Services
2. Phone: 785-832-3150
3. Email: pds@lawrenceks.org
4. Website: https://lawrenceks.org/pds/

In addition to these official resources, short-term rental hosts in Kansas may find valuable information and support through online communities and forums. Some popular options include:

1. BiggerPockets Short-Term Rental Forum
2. Reddit /r/AirBnB
3. Reddit /r/kansascity
4. Wichita Short-Term Rental Alliance Facebook Group
5. Kansas City Airbnb Hosts Facebook Group

These communities provide a platform for hosts to share experiences, ask questions, and stay informed about local regulations and best practices. However, always verify any information obtained through these channels with official sources to ensure accuracy and compliance.

By staying connected with local authorities and engaged with the short-term rental community, hosts in Kansas can navigate the regulatory landscape more effectively and build successful, compliant businesses.

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

Based on discussions from Reddit, BiggerPockets, and other online forums, Airbnb hosts in Kansas have mixed feelings about local short-term rental regulations. Here's a summary of key sentiments and experiences shared by hosts:

Frustration with Kansas City's new regulations:

Many hosts express frustration with Kansas City's stricter rules implemented in 2023. On Reddit, one host commented: "This is really going to affect our industry. There would be no future for short-term rentals in residential zones. We would have to open them up here in the Crossroads or the West Bottoms. They wouldn't be allowed in neighborhoods."

Concerns about registration and compliance:

A significant number of hosts are worried about the registration process and compliance requirements. On BiggerPockets, a Kansas City host noted: "The new rules require all existing short-term rentals to register under the new regulations once their annual registration expires. It's a hassle, but I'm trying to stay compliant to avoid fines."

Impact on business models:

Some hosts are rethinking their business strategies due to the new regulations. A host on Reddit shared: "I own multiple properties in KC, and these new rules are forcing me to consider converting some of my short-term rentals to long-term rentals. It's not ideal, but I need to adapt to stay in business."

Support for regulations:

Not all hosts are against the regulations. Some see them as necessary for maintaining neighborhood quality. A Reddit user who identified as both a host and a resident stated: "While the new rules are tough, I understand why they're needed. We've had issues with party houses in our neighborhood, and something needed to be done."

Adaptation strategies:

Some hosts are sharing strategies for adapting to the new regulations. On BiggerPockets, a Kansas host advised: "I've started focusing on properties just outside city limits to avoid some of the stricter regulations. It's been working well so far."

These sentiments reflect the complex and evolving landscape of short-term rental regulations in Kansas, particularly in urban areas like Kansas City. Hosts are grappling with compliance, business impacts, and uncertainty while trying to navigate the changing regulatory environment.

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 area 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.