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

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

Hammond, Indiana, has enacted regulations for short-term rentals, such as Airbnb and VRBO properties, to balance the interests of residents and tourists. These rules are outlined in the city's zoning ordinances and aim to preserve the character of residential neighborhoods while accommodating visitors.

Starting a Short Term Rental Business in Hammond

To start a short-term rental business in Hammond, property owners must adhere to the following requirements:

• Zoning: The Zoning Ordinance and its associated Zoning Map define the specific categories or districts where residential, commercial, industrial, and other types of land uses are allowed. Short-term rental properties must comply with these zoning regulations.
• Permits: Owners are required to apply for permits for their short-term rental properties and pay a one-time fee of $150 for each property. These permits can be temporarily revoked if the property receives three or more citations for ordinance violations within a year.
• Rental Registration: Hammond requires all rental properties, including short-term rentals, to be registered annually by April 15th. There is a $5 annual fee for each rental unit, and failure to register can result in fines of up to $2,500 per unit per day for the first offense and $7,500 for subsequent violations.
• Owner Occupancy: Indiana House Bill 1035, which went into effect in July 2018, specifies that owner-occupied short-term rental properties can operate in residential areas without the need for permits. However, non-owner-occupied properties must obtain a special use permit or zoning variance to operate as short-term rentals in Hammond.
• Safety and Nuisance Regulations: Short-term rental properties are subject to the same regulations governing other types of rental properties, including fire safety, sanitation, and nuisance issues. Landlords are responsible for addressing any nuisances occurring on their property once notified.

It's important to note that while Hammond has enacted these regulations, Indiana state law limits the extent to which municipalities can restrict short-term rentals. Cities like Hammond cannot prohibit short-term rentals outright but can require permits and enforce other regulations.

Property owners can successfully operate Airbnb and VRBO rentals while contributing positively to the local community by understanding and complying with Hammond's short-term rental regulations. The city's enforcement efforts aim to strike a balance between the economic benefits of tourism and the preservation of residential neighborhoods.

Short-Term Rental Licensing Requirement in Hammond

To legally launch a short-term rental in Hammond, Indiana, property owners must obtain a license from the city on an annual basis. The licensing process ensures that STRs comply with local zoning regulations, building codes, and safety standards.

The application for an STR license in Hammond requires several documents and information, including:

1. A completed application form
2. Floor plan indicating the number of rental rooms and maximum occupancy
3. Site plan showing parking spaces for guests
4. Proof of ownership, such as a current property deed
5. Interior and exterior photos of the dwelling unit
6. Certificate of insurance covering potential liabilities
7. A copy of the rental agreement template

Applicants must also certify that the property meets safety requirements, such as working smoke alarms and carbon monoxide detectors in each bedroom and on every floor. The property owner or their designated local agent is responsible for providing renters with the city's Good Visitor Guide and a parking schematic.

Hammond's annual STR license fee is $100, and the term runs from April 1st to March 31st each year. Failure to renew the license may result in the inability to continue operating the STR. Non-compliance with the licensing requirement can lead to fines of up to $2,500 per unit per day for the first offense and $7,500 for subsequent violations.

It's crucial for STR owners in Hammond to stay informed about the renewal process and submit their applications with all required documentation by the annual deadline. The city's rental registration and STR licensing aim to protect the interests of both property owners and the surrounding community by ensuring a well-regulated short-term rental market.

Required Documents for Hammond Short-Term Rentals

Property owners must submit several required documents to successfully apply for a short-term rental license in Hammond, Indiana. These documents ensure that the STR complies with local regulations and meets safety standards. The following is a list of the necessary documents:

1. Completed Application Form: The STR license application form must be filled out entirely, providing accurate information about the property owner, the rental unit, and the designated local agent, if applicable.
2. Floor Plan: A detailed floor plan of the STR unit must be submitted, clearly indicating the number and location of bedrooms, bathrooms, and common areas. The floor plan should also specify the maximum occupancy allowed in the unit.
3. Site Plan: A site plan is required to show the location of the STR unit on the property and the designated parking spaces for guests. The site plan should also include any outdoor amenities, such as patios or decks.
4. Proof of Ownership: Applicants must provide a copy of the current property deed or other legal documentation proving ownership of the STR unit.
5. Interior and Exterior Photos: Clear, recent photographs of the interior and exterior of the STR unit must be submitted. These photos should showcase the condition of the property and any amenities provided to guests.
6. Certificate of Insurance: STR owners must provide a certificate of insurance demonstrating that the property is adequately insured against potential liabilities arising from short-term rental activities.
7. Rental Agreement Template: A copy of the rental agreement template that will be used for STR guests must be submitted. This agreement should outline the terms and conditions of the rental, including check-in and check-out times, house rules, and cancellation policies.
8. Good Visitor Guide and Parking Schematic: STR owners or their designated local agents are responsible for providing guests with the city's Good Visitor Guide and a parking schematic. These documents should be submitted as part of the license application to demonstrate compliance with local regulations.

By gathering and submitting these required documents, STR owners in Hammond can ensure a smooth licensing process and demonstrate their commitment to operating their rental properties responsibly. Failure to provide any of these documents may result in delays or denial of the STR license application.

Hammond Short-Term Rental Taxes

In addition to obtaining a license, short-term rental owners in Hammond, Indiana, are required to collect and remit various taxes. These taxes help support local services and infrastructure, ensuring that STRs contribute to the community in which they operate. The following are the primary taxes applicable to STRs in Hammond:

1. Indiana State Sales Tax: STR owners must collect and remit the Indiana state sales tax, which is currently 7% of the total rental amount. This tax applies to all short-term rentals, regardless of the platform used to advertise the property or the length of the guest's stay.
2. Lake County Innkeeper's Tax: Hammond is located within Lake County, which levies a 5% innkeeper's tax on all accommodations, including STRs. This tax is in addition to the state sales tax and must be collected and remitted by the STR owner.
3. Local Lodging Tax: The City of Hammond imposes a 3% local lodging tax on all short-term rentals. This tax is used to fund tourism promotion and development initiatives in the city. STR owners are responsible for collecting and remitting this tax to the Hammond City Clerk's office.

To ensure compliance with tax regulations, STR owners in Hammond must maintain accurate records of all rental transactions, including the dates of stay, rental amounts, and taxes collected. These records should be kept for at least three years and made available for inspection by local authorities upon request.

STR owners can remit the collected taxes through various methods, including online payment portals, mail, or in-person at the appropriate government offices. It is crucial to adhere to the tax payment deadlines to avoid penalties and interest charges.

Failure to collect and remit the required taxes can result in significant fines and legal consequences for STR owners. In some cases, non-compliance may also lead to the revocation of the STR license, prohibiting the owner from operating the rental property.

Hammond Wide Short-Term Rental Rules

In addition to licensing requirements and tax obligations, short-term rental (STR) owners in Hammond, Indiana, must adhere to a set of city-wide rules and regulations. These rules are designed to protect the quality of life for residents, maintain the character of neighborhoods, and ensure the safety of guests. The following are some of the key STR rules in Hammond:

1. Occupancy Limits: STRs in Hammond are subject to occupancy limits based on the number of bedrooms in the unit. The maximum occupancy is two guests per bedroom plus an additional two guests. For example, a two-bedroom STR can accommodate up to six guests.
2. Parking Requirements: STR owners must provide off-street parking for their guests. The number of required parking spaces depends on the size of the rental unit, with a minimum of one space per bedroom. Guests should be provided with a parking schematic outlining the designated parking areas.
3. Noise and Nuisance Regulations: STRs must comply with the city's noise and nuisance ordinances. Guests should be informed of quiet hours, typically from 10:00 PM to 7:00 AM, and asked to respect the peace and tranquility of the surrounding neighborhood. STR owners are responsible for addressing any nuisance complaints arising from their rental properties.
4. Safety Requirements: All STRs in Hammond must be equipped with working smoke alarms, carbon monoxide detectors, and fire extinguishers. The rental unit should also have clearly marked emergency exits and a first-aid kit readily available for guests.
5. Good Visitor Guide: STR owners or their designated local agents must provide guests with a copy of the city's Good Visitor Guide. This guide outlines the expectations for visitor behavior, including guidelines on noise, parking, trash disposal, and respect for neighbors.
6. Trash and Recycling: STR owners are responsible for ensuring that their guests properly dispose of trash and recyclables in accordance with the city's waste management regulations. Trash and recycling containers should be kept neat and orderly and not visible from the street.
7. Signage Restrictions: STRs in Hammond are prohibited from displaying any exterior signage advertising the rental unit. This rule helps maintain the residential character of neighborhoods and prevents the commercialization of STRs.
8. Inspections: The City of Hammond reserves the right to inspect STRs for compliance with local regulations. STR owners must allow city officials to enter the rental unit with proper notice and during reasonable hours to conduct inspections.

By familiarizing themselves with these city-wide STR rules and ensuring compliance, owners can operate their rental properties successfully while being good neighbors and contributing positively to the Hammond community. Failure to adhere to these regulations may result in fines, penalties, and the potential revocation of the STR license.

Does Hammond Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like BiggerPockets and Reddit, it appears that Hammond strictly enforces its short-term rental regulations compared to many other cities. The city is not particularly Airbnb-friendly and takes a firm stance on STR compliance.

Several BiggerPockets and Reddit users have noted that Hammond actively monitors STR listings and pursues enforcement actions against non-compliant hosts. The city has dedicated resources to identifying unregistered or improperly operated short-term rentals. Fines for violations can be substantial, up to $2,500 per day for first offenses and $7,500 for subsequent violations.

While some hosts may attempt to operate under the radar, the consensus is that it's not worth the risk in Hammond. The potential consequences, including hefty fines and legal issues, outweigh any benefits of skirting the rules. Most hosts who have successfully run STRs in Hammond stress the importance of fully complying with the city's registration, permitting, and tax requirements.

Compared to more STR-friendly cities that may turn a blind eye to minor infractions, Hammond is known for its strict and proactive enforcement. The city appears committed to ensuring a level playing field for all lodging providers and minimizing any negative community impacts from short-term rentals.

In summary, while operating an STR in Hammond is possible, hosts should be prepared to closely adhere to all applicable regulations. The city's enforcement track record suggests that attempting to fly under the radar is risky. Prospective hosts are advised to thoroughly research Hammond's STR ordinances and permitting process before launching a short-term rental business in the city.

How to Start a Short-Term Rental Business in Hammond

Starting a short-term rental business in Hammond, Indiana, can be a lucrative venture, but it requires careful planning and adherence to local regulations. Follow these steps to get your business up and running:

1. Research and plan: Conduct thorough market research to understand the demand for short-term rentals in Hammond and identify potential properties. Develop a comprehensive business plan that outlines your goals, target audience, financial projections, and marketing strategies.
2. Choose a property: Select a suitable property that meets the zoning requirements for short-term rentals in Hammond. Consider factors such as location, amenities, and potential rental income when making your decision. You can also use a short-term rental calculator to help you decide.
3. Register your business: Register your short-term rental business with the City of Hammond by completing the required forms and paying the annual registration fee of $5 per rental unit. Ensure that you have the necessary insurance coverage and provide proof of insurance during registration.
4. Obtain permits and licenses: Apply for a short-term rental permit from the City of Hammond, which is capped at a maximum fee of $150 and expires after one year. Obtain any additional licenses required for your business, such as a general business license.
5. Prepare your property: Renovate and furnish your property to meet the needs and preferences of your target audience. Ensure that your rental unit complies with all health and safety standards, including the installation of fire extinguishers, smoke detectors, and carbon monoxide detectors.
6. Set up your listing: Create an attractive and informative listing on popular short-term rental platforms like Airbnb and VRBO. Include high-quality photos, detailed descriptions, and competitive pricing to attract potential guests.
7. Manage your bookings and guests: Establish a system for managing bookings, communicating with guests, and handling check-ins and check-outs. Consider hiring a property management company or using software tools to streamline these processes.
8. Comply with tax obligations: Register your business with the appropriate city, county, and state agencies for tax purposes. Collect and remit sales and occupancy taxes (also known as lodging tax) as required by law.
9. Maintain your property:Regularly maintain and clean your rental unit to ensure a positive guest experience. Address any repairs or issues promptly to minimize negative reviews and maintain a high occupancy rate.
10. Monitor your business performance: Continuously monitor your business performance, including occupancy rates, revenue, and guest feedback. Adjust your strategies as needed to optimize your profitability and growth.

By following these steps and staying informed about Hammond's short-term rental regulations, you can successfully launch and operate a thriving short-term rental business in the city.

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

If you have questions or concerns about short-term rental regulations and zoning in Hammond, Indiana, there are several city departments and officials you can contact for assistance:

Hammond Planning and Development Department
5925 Calumet Avenue
Hammond, IN 46320
Phone: (219) 853-6371
Email: planning@gohammond.com

The Planning and Development Department is responsible for administering and enforcing Hammond's zoning ordinances, including those related to short-term rentals. They can provide information on zoning requirements, permitted uses, and the application process for short-term rental permits.

Hammond Building Department
5925 Calumet Avenue
Hammond, IN 46320
Phone: (219) 853-6316
Email: building@gohammond.com

The Building Department oversees the construction, renovation, and maintenance of buildings in Hammond, including short-term rental properties. They can assist with questions regarding building codes, inspections, and safety requirements for rental units.

Hammond City Clerk's Office
5925 Calumet Avenue
Hammond, IN 46320
Phone: (219) 853-6346
Email: cityclerk@gohammond.com

The City Clerk's Office is responsible for business licensing and registration in Hammond. They can provide information on the annual rental registration process, fees, and requirements for short-term rental businesses.

Lake County Treasurer's Office
2293 N. Main Street
Crown Point, IN 46307
Phone: (219) 755-3760
Email: treasurer@lakecountyin.org

The Lake County Treasurer's Office is responsible for collecting the county's innkeeper's tax, which applies to short-term rentals. They can provide information on tax rates, filing requirements, and payment methods.

In addition to these official contacts, you may also find helpful information and support from local short-term rental associations or online communities. Connecting with experienced hosts in Hammond can provide valuable insights into navigating the city's regulations and operating a successful short-term rental business.

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

Several Airbnb hosts in Hammond have shared their experiences and opinions about local short-term rental regulations on popular online forums like Reddit and Bigger Pockets. Here are a few notable examples:

Reddit user "HammondHosting" on r/AirbnbHosts:

In a thread titled "Navigating Hammond's STR Regulations," HammondHosting shared their experience with the city's permitting process. They emphasized the importance of thoroughly researching and understanding the local requirements before starting a short-term rental business in Hammond. While the process can be time-consuming, HammondHosting found that the city's staff was generally helpful in guiding them through the necessary steps.

Bigger Pockets user "IndianaInvestor" on the Hammond Real Estate Forum:

IndianaInvestor, a seasoned real estate investor in Hammond, shared their perspective on the city's short-term rental regulations in a post titled "Hammond STR Update." They noted that while the regulations can be stringent compared to some other cities, compliance is essential to avoid costly fines and legal issues. IndianaInvestor also highlighted the importance of maintaining positive relationships with neighbors and the community to minimize potential conflicts.

Reddit user "HoosierHost" on r/AirbnbHosting:

In a comment on a thread about Indiana's short-term rental laws, HoosierHost shared their experience operating an Airbnb in Hammond. They mentioned that the city's zoning requirements can be a significant hurdle for potential hosts, particularly in residential areas. HoosierHost advised prospective hosts to carefully review the zoning map and consult with the Planning and Development Department before investing in a property for short-term rental use.

Bigger Pockets user "HammondLandlord" on the Indiana Real Estate Forum:

HammondLandlord, a long-time rental property owner in Hammond, shared their thoughts on the city's short-term rental regulations in a post titled "Adapting to Hammond's STR Rules." They emphasized the need for hosts to stay informed about changes to local ordinances and be proactive in communicating with city officials. HammondLandlord also noted that while the regulations can be challenging, they help maintain a level playing field for all lodging providers in the city.

These examples provide a glimpse into the experiences and opinions of Airbnb hosts in Hammond regarding local short-term rental regulations. While the regulations can be strict, hosts generally acknowledge the importance of compliance and working collaboratively with the city to operate successful and responsible short-term rental businesses.