Columbia Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Columbia, Missouri?

Columbia, Missouri currently does not have regulations specific to short term rentals (STRs) operated through sites like Airbnb and VRBO. However, the city government is in the process of developing an ordinance to regulate STRs.

The draft ordinance aims to establish safety standards, a registration system, zoning rules on permitted locations, limits on the number of rental nights allowed, and a requirement to charge the same lodging taxes as hotels.

The regulations are still being finalized through a public feedback process before going to City Council for approval, but they indicate Columbia has an Airbnb-friendly approach focused primarily on basic oversight and tax compliance rather than heavily restricting STRs. The Community Development Department fields questions on STR rules and input on shaping the regulations.

Starting a Short Term Rental Business in Columbia

Launching a short term rental in Columbia is straightforward since the city currently does not have specific regulations or licensing requirements. You can get started by choosing a property, preparing it to host guests, listing on rental platforms, and managing bookings.

When selecting a rental property, research location and competition to pick an ideal spot. Popular areas like downtown or near the University of Missouri campus tend to have high demand. List your Columbia rental on major sites like Airbnb, VRBO, and Booking.com to maximize bookings. Craft an appealing listing with professional photos to stand out.

To host guests, thoroughly clean and furnish the rental, provide amenities like wifi/TV, make a house manual, and stock supplies. Consider smart home technology to remotely control entry and adjust temperature when unoccupied. Manage all guest communication and confirm check-in/checkout times. Collect payment securely through the rental platform.

Though Columbia currently lacks short term rental regulations, proposed rules would require licensing, a lodging tax, safety rules, and caps on rental nights allowed per year. Monitoring local policy discussions will enable proactively complying with any emerging regulations.

Short Term Rental Licensing Requirement in Columbia

As of January 2024, the city of Columbia, Missouri does not yet require hosts to obtain any kind of permit, license, or registration to operate a short term rental property. However, the city is currently considering adopting regulations that would mandate all short term rental operators acquire a business license and register each rental unit.

The proposed licensing system aims to increase health, safety, and neighborhood livability without placing major barriers to hosting. If enacted, hosts would need to submit an application with details on the rental property like maximum guest capacity, proof of insurance, parking availability, and an emergency contact. Licenses would need to be renewed every two years. Fees would likely be between $50-100 per unit.

Additionally, the draft regulations outline several continuing eligibility requirements to maintain an active short term rental license. For example, hosts may need to respond to complaints within 60 minutes and limit noise between 10pm and 7am. Three or more unresolved complaints could result in fines or license suspension.

While Columbia hosts currently operate in a largely unregulated environment, it appears likely the city will soon formalize licensing rules to provide more oversight of short term rental activity. The next step is for city council to review and refine the commission's proposal before finalizing any new requirements.

Required Documents for Columbia Short Term Rentals

Currently, Columbia does not require hosts to submit any documents to operate short term rentals. However, proposed regulations would change that. If approved, all hosts would need to register with the city and obtain an annual short term rental license.

To get a license, hosts would likely have to provide proof of ownership or signed approval from the property owner allowing short term rental use. Documents like property deeds, mortgage statements, or a notarized letter from the owner could work. Hosts might also need to show a business license, sales tax ID, and certificate of occupancy or passing inspection report.

In addition, the draft regulations mention conditional use permits for some short term rentals. So hosts planning to rent more than 30-120 nights per year may need to apply for this special city zoning approval. That process could require submitting a site plan, floor plan, parking plan, neighbor notices, and more.

Finally, if the regulations pass, hosts would probably need to maintain records proving they comply with rules like maximum rental nights and occupancy limits. That documentation would likely be required at license renewal or audit.

Columbia Short Term Rental Taxes

Columbia does not levy any specific taxes on revenue generated from short term rental properties listed on sites like Airbnb and VRBO as of the moment. However, proposed regulations would require short term rental hosts to collect and remit the same 5% lodging tax that is charged to hotel and motel guests in the city.

If enacted, this lodging tax would apply to the nightly rental rate paid by guests, just as it does for traditional accommodations. The tax would need to be collected by hosts from guests at the time of booking and then submitted regularly to the city. Platforms like Airbnb may potentially handle tax collection and remittance to the city on behalf of local hosts using their system, as Airbnb does for state sales tax in some areas. However, hosts using other platforms would likely need to handle tax filing themselves using available lodging tax management services.

Columbia estimates $44,000 in additional annual revenue if a 5% lodging tax is implemented for short term rental properties. This added income would benefit the Convention and Visitors Bureau's budget. Some hosts have expressed concern that adding another tax could negatively impact their rental occupancy.

Missouri Wide Short Term Rental Rules

Unlike some states, Missouri does not have a uniform statewide regulatory framework that governs short term rentals across all cities and counties. The Show-Me State leaves it up to local municipalities and counties to enact their own ordinances and zoning rules if they desire oversight of short term rental properties operating within their boundaries.

As a result, the regulations, permit requirements, taxes, restrictions and general red tape imposed on hosts can vary widely even between neighboring towns. For example, Kansas City enforces strict licensing and zoning density caps that prohibit short term rentals in certain neighborhoods, while Columbia currently has no formal regulations in place.

This localized patchwork approach provides flexibility but also uncertainty for hosts looking to operate short term rentals across multiple Missouri cities. Navigating the disparate rules can prove challenging. Hosts must research regulations in each locale to ensure compliance or risk fines for violations. Until the state steps in to introduce a standardized framework, hosts should expect to contend with fluid short term rental ordinances that differ across every city and county in Missouri.

Does Columbia Strictly Enforce STR Rules?

Since Columbia does not currently have formal regulations for short term rentals, there is no strict enforcement of any specific rules. The city takes a relatively flexible approach compared to other cities that impose more restrictions on hosts.

Airbnb and VRBO operators are presently able to run their businesses without facing stringent oversight or permitting hurdles. Proposed ordinances to regulate short term rentals have faced pushback from hosts concerned about negative impacts.

As it stands, hosts report having no issues with operating in Columbia’s loose regulatory environment. They can rent out properties with minimal interference. However, future city policies could tighten control of the short term rental market.

How to Start a Short Term Rental Business in Columbia?

Launching a lucrative short term rental in Columbia is straightforward with this 5-step guide:

First, identify ideal neighborhoods and properties based on demand, pricing, and ROI projections. Focus on central areas like downtown or near the University of Missouri that draw consistent bookings.

Next, set up and furnish your vacant house, apartment or condo for transient guests. Stock necessities like linens, toiletries, and cleaning supplies. Also install smart locks and home automation.

The listing process is now simple using sites like Airbnb and Vrbo. Write compelling descriptions and take professional photos to showcase your stylish space. Price competitively by analyzing comparable area rentals.

Getting the word out is vital, so market across social platforms and travel blogs. Run promotions to build initial occupancy and reviews. Provide exceptional and consistent customer service.

Finally, oversee check-ins, cleaning, restocking supplies, and addressing issues. Local help like a property manager can handle day-to-day details so you focus on bookings and finances for maximum profits.

Who to Contact About Short Term Rental Regulations and Zoning?

For inquiries regarding potential future regulations for short term rental businesses in Columbia, contact the Columbia Community Development Department at 573-874-7239 or email communitydevelopment@CoMo.gov. Speak with Patrick Zenner, Development Services Manager, who oversees planning and zoning issues related to short term rental properties.

Patrick can address questions about zoning allowances as well as details on proposed ordinances that may impact licensing, taxes, rental limits, and other short term rental operations. Reach out to Patrick for authoritative information before starting your Columbia short term rental.

What Columbia Hosts on Reddit and BiggerPockets Think About Regulations?

Columbia hosts on Reddit and BiggerPockets have expressed mainly positive sentiments about the current lack of regulations for short term rentals in the city.

They appreciate the flexibility to operate their businesses without burdensome restrictions that exist in some other locales. Some hosts do voice concerns that potential future regulations from the city could negatively impact their short term rental operations.

Overall though, Columbia hosts seem grateful to run their Airbnbs and VRBOs free of stringent oversight and limitations at this time.