Staff Report on Short Term Rental Regulations
From: Chloe Barnes, Planning Intern To: Jeremy Young, Planning DirectorDescription
Jessamine County is in close proximity to Lexington-Fayette County, which is experiencing a lot of visitors because of Keeneland, Kentucky Horse Park, UK sports events, horse farms, the bourbon industry, river recreation, Barbasol PGA events in Louisville, agritourism, ecotourism, and horse industry tourism as well as yearling sales. Demand for short term rentals (STRs) is increasing in Jessamine County, and the county is considering adjustments to STR regulations.
This report summarizes the current Jessamine County regulations, and STR regulations from several other cities. The cities researched include Lexington, KY; Maryville, TN; Clarksville, TN; Fort Collins, CO; Ontario, NY.
Similar cities were identified, not by population size, but by similar characteristics to Nicholasville, as a smaller city or town located near a larger city with a lot of visitors.
Location
Overview
Cities outside of larger cities that are home to Southeastern Conference (SEC) universities were researched first. This is because Nicholasville is adjacent to Lexington, KY which is home to the University of Kentucky. To find similar or relevant STR ordinances, it seemed best to look at cities similar to Nicholasville, and that would possibly be regulating short-term rentals for related reasons.
Lexington, KY was included because the regulations there could be easily applied to Nicholasville since it is in close proximity. The other cities researched are cities I found by searching cities that are home to universities, and then searching on the outskirts for neighboring cities.
After some research, three cities chosen did not actually regulate their short-term rentals, so they were removed from the list:
- Lexington, SC (in proximity of USC)
- Boonville, MO (in proximity of Mizzou)
- Baker, LA (in proximity of LSU)
Potential STR regulations were found in Maryville, TN as well as Clarksville, TN. They seem to have strict regulations, and this is working to keep the short-term rental unit issues under control. I then researched cities in the U.S. that have the best short-term rental regulations and chose two more cities from this list:
- Fort Collins, CO
- Ontario, NY
Ontario, NY was found to be unique because it allows more than one owner of each rental unit. They also allow the unit to be transferable to new owners, as long as all rules are followed, and the process is completed legally. This is not allowed in any of the other cities
Jessamine County and Nicholasville, KY
Currently, there are 227 active listings available to book in Jessamine County on the Airbnb website. Average prices on non-game days range from $45-300. On game-day weekends, prices can range from $80-500. Sports events are the leading factor of demand for places to stay for people coming in from out of town. However, yearling sales in the horse industry and Keeneland races also bring lots of visitors, including some international visitors.
Resources:
o List of Forms and Applications in jessamine County
o https://jessamineco.com/departments/planning-zoning-forms-and-applications/
o Zoning Ordinance of Jessamine County
o https://online.encodeplus.com/regs/jessaminecounty-ky/doc-viewer.aspx?secid=1124#secid1124
o Zoning Ordinance of the City of Nicholasville
o https://www.nicholasville.org/wp-content/uploads/2020/07/ZONING_ORD_0222.pdf
Current Regulations in Jessamine County and City of Nicholasville
o Required to meet residential fire and building codes
o A change of use zoning permit is required to open business
o Each room needs to be designed and intended to accommodate no more than two persons (with exception of children under 12 years)
o Each room shall be rented for no longer than 30 days
o Shall not affect uses permitted in the area by excessive traffic generation, noise and light
o One off-street parking space shall be required for each guest room available to rent
o Number of bedrooms is limited to 5
o Board of adjustment takes into consideration whether or not the development should be considered for such use in the general neighborhood
o Guestroom accommodations must occur on the 2nd floor or higher in B-1, B-2, B-3, and P-1 zones (applicant may seek a waiver of this requirement from the board of adjustment)
o Board of adjustment is allowed to impose any additional restrictions deemed necessary to lessen the impact of STR on the surrounding area
o Applicant must register with the occupational tax office before a permit will be issued
o Recreational vehicles or trailers may not be used for STR accommodations (no exception to this requirement)
Draft for Review
12/31/2023
Lexington, KY
o Home to the University of Kentucky
o Neighboring city to Nicholasville
o Fayette County
o Total population (July 2022): 320,347
o Lexington KY Short Term Rental Ordinance
o https://www.lexingtonky.gov/short-term-rentals
Lexington is home to UK and therefore has a much larger population and more activities than Nicholasville. The ordinance for short-term rentals here could have an impact on Nicholasville and Jessamine County may want to consider adopting some of the regulations of its bigger next-door neighbor.
STR Ordinance Summary (July 2023):
o All STR operators must obtain a Zoning Compliance Permit through the Division of Planning
o All STR operators must obtain a Business License through the Division of Revenue.
o All 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 unit
o Unit must contain sufficient smoke detectors (one on the ceiling or wall outside of each separate sleeping area)
o Unit must contain at least one functional carbon monoxide detector in an appropriate location (outside each separate sleeping area)
o Unit must contain at least one maintained and charged fire extinguisher in an easily accessible location
o Unit must contain at least one emergency and rescue opening in every sleeping area
o Shall not contain any outdoor signage to indicate the dwelling unit as a short-term rental
o The Licensee must post within the short-term rental their contact information, as well as an emergency contact’s information. Must also include emergency contacts of police, fire, and medical services, as well as trash and recycling pickup information. It must include a clearly marked emergency evacuation plan for
the premises showing exit routes, exits, and fire extinguisher. Lastly, a website address needs to be provided in order for the occupants to be able to file a complaint.
o Advertisements must include the local registration number, language specifying maximum occupancy, as well as language specifying that guests are prohibited from allowing more people onto the premises than the maximum occupancy allowed during their stay.
o The Administrative Hearing Board has authority to issue subpoenas to obtain information needed to determine if violations of the STR Ordinance have occurred.
o The Division of Revenue is empowered to issue fines – can range from $125 to $1000 per offense.
o Licensees have the right to appeal denials of applications for STR Special Fees Licenses, revocations of STR special fees licenses, or failures to renew STR special fees licenses.
o In vicinity of the University of Tennessee
o 24-minute (approximate) drive to Knoxville, TN
o Blount County
o Total population (U.S. Census, July 2022): 32,716
o City of Maryville City Council Meeting Agenda (November 5, 2019)
o https://www.maryvillegov.com/uploads/8/2/6/7/8267180/finalnovember.pdf
o The Daily Times Article: Short-term Rental Amendment that Lifts Ban gets Maryville Planning Commission’s Blessing
o
https://www.thedailytimes.com/news/short-term-rental-amendment-that-lifts-ban-getsmaryville-planning-commissions-blessing/article_0af9447e-1e57-5646-a54768eeb9068018.html
Maryville’s planning commission voted unanimously in September 2019 for short term rentals to be allowed in several zoning districts, and this also lifted their “no-exceptions” ban on short term rentals.
They continue to ban short term rentals in residential and single-family and historic districts, but they allow them in 14 other districts. The allowed zones range from office and office transition to high-density residential to retail. The list of prohibited zones is shorter, but these 6 districts constitute a larger portion of land inside the city limits.
STR Ordinance Summary (November 2019):
o Allowed in the following 14 zoning districts:
o Business and Transportation District
o Central Community District
o Office District
o Neighborhood District
o Central Business
o Washington Street Commercial Corridor
o Office Transition Zone
o Heritage Development Zone
o Central Business Support Zone
o High Intensity Commercial District
o High Density Residential
o Industrial
o Institutional
o High Intensity Retail District
o Prohibited in the following 6 districts:
o Residential District
o Environmental Conservation District
o Single Family District
o College Hill Historic District
o Oak Park Historic District
o Estate Zone
o All properties must adhere to the requirements of the zone in which it is located.
o Prospective hosts are required to apply for a short-term rental permit that costs $300 for application and $100 annually for renewal. If a permit is denied and the resident wishes to appeal, the cost is $150.
o Responsible for applicable taxes (including but not limited to: Hotel Occupancy Tax, Local Option Sales Tax, Gross Receipts Tax to the City, Sales Tax to the state of Tennessee, and Gross Receipts Tax to the state of Tennessee.
o Defined as residential units or dwellings with occupancy for 30 consecutive days or less.
o Only structures previously approved for residential occupancy are eligible to become an official ShortTerm Rental Unit.
o All persons eligible to operate a Short-Term Rental unit within the City must be issued an official permit pursuant to the requirements of this section and obtain a Business License in the City of Maryville.
o Every qualifying property owner shall submit an application for short-term rental operation to the Development Services Department. City staff may request other information reasonably required to allow the city to process the application if needed. Each application must include all the following information:
o Applicant must acknowledge all regulations: City’s business license requirements, the City’s occupancy privilege tax requirements, any additional administrative regulations promulgated or imposed by the City to implement this section, and the responsibility for compliance with the provisions of this article.
o Applicant must submit an Affidavit of Life Safety Compliance acknowledging that during each occupancy, the unit shall have on the premises, and installed to manufacturer specifications.
o Applicants must be available twenty-four hours per day, 7 days per week for the possibility of responding ASAP if needed.
o Must provide floor plan accurately depicting the size and location of existing dwelling, as well as approximate square footage of proposed section to be utilized as the rental unit.
Clarksville, TN
o In vicinity of Vanderbilt University
o 1 hour (approximate) drive to Nashville, TN
o Montgomery County
o Total population (U.S. Census, July 2022): 176,974
o Code of Ordinances (Short-Term Rentals): Clarksville, TN
o https://library.municode.com/tn/clarksville/codes/code_of_ordinances?nodeId=TIT5BUPROC_CH 3SHRMRE_S5-303PEREOPSHRMREUN
o City of Clarksville Permit Application Form
o https://www.clarksvilletn.gov/DocumentCenter/View/6707/Short-Term-Rental-InformationSheet?bidId=
o Short-Term Rental Rules Relaxed in Clarksville for Small-time Owners (9/5/2021)
o https://clarksvillenow.com/local/short-term-rental-rules-relaxed-in-clarksville-for-small-timeowners/
Clarksville is a city adjacent to Nashville, TN and is near Vanderbilt University, so it is a bordering city that will host short-term occupants for many reasons. It sits on the border of Kentucky and Tennessee, which can be seen from the aerial screenshot. Clarksville has a larger total population than the other cities listed as examples and is also home to Austin Peay State University.
It is one of Tennessee’s oldest cities and includes many museums and natural parks with recreational activities as an option. So, although it is near Nashville, it has many other tourist opportunities right in the area. This can increase tourism more so than the other examples, so their short-term rental ordinance is a bit more advanced.
In 2021, short-term rental rules became more relaxed for small-time owners. People who were renting out a small portion of their home expressed concern that the rules were too strict. The safety permit they needed to apply for was too time consuming, so Clarksville relaxed the rules for the following individuals:
o Individuals who operate only one single short-term rental unit.
o Individuals who operate and list only one single room as a short-term rental unit in a dwelling that is owner-occupied.
o Individuals who operate a short-term rental unit for less than six months in any calendar year.
STR Ordinance Summary (2021):
o Operating permit required to operate or advertise any short-term rental listing within the City of Clarksville.
o Any potential owner shall submit an application to the Clarksville Department of Finance and Revenue. Application packet includes the following:
o Pay the permit fee to the City of Clarksville
▪ Permit is valid for one calendar year, unless revoked. Every year, a renewal application and processing fee of $120 is required, no more than 30 calendar days before the shortterm rental unit operating permit’s expiration date.
o Obtain a City and County Business License ($15 each)
o Complete a Life Safety Compliance Verification Form
o Site plan and floor plan accurately depicting size and location of existing dwelling, and approximate square footage in the dwelling to be used for the rental unit.
o An administrative processing and inspection fee that is non-refundable in the amount of $150 shall be paid to the Clarksville Department of Finance and Revenue.
o Right of entry of fire department and building and codes department shall be granted through the submission of a permit to the Clarksville Fire Rescue Department and the Clarksville Department of Building and Codes to conduct inspections of the short-term rental unit. A fire and life safety inspection will then be conducted within 15 calendar days of the date of application.
o No person holding a short-term rental unit operating permit shall sell, lend, lease, or in any manner transfer the permit for value. The permission to operate the unit shall be personal and limited to the owner to whom the city issued the permit.
o Any unauthorized transfer or attempt to transfer an operating permit shall automatically void such permit.
o Required to comply with the city, state, and federal laws and regulations in which the unit resides.
o If any complaint is filed with the City of Clarksville alleging the owner has violated the provisions or any city ordinance or state law, a code official shall provide written notification of the complaint by registered mail to the owner’s address listed on the application.
o If false information is found to have been used on permit application, a revocation or suspension of the permit will be implemented.
o Operational requirements:
o Specific safety standards (all installations must be operational)
▪ Smoke alarm inside each sleeping room, outside and within 15 feet of sleepin5 feet of sleeping rooms, and on each story of the dwelling unit
▪ Carbon monoxide alar detector within 15 feet of all bedrooms
▪ Fire extinguisher
o Required to pay all applicable taxes (real and personal property taxes, the hotel/motel tax, sales tax, gross receipts taxes, and any employment and income taxes
o All advertisements must include the operating permit number clearly displayed
o Maximum occupancy shall not exceed as prescribed by the operating permit
o All renters shall be at least 18 years of age
o Each unit shall provide at least 1 parking space per bedroom
o No food shall be prepared for, or served to the guests by the owner for any consideration
o Contact information shall be provided for each rental period
o The owner shall ensure that the use of the unit complies with all applicable noise, nuisance, parking, trash, and property maintenance code, ordinances, regulations, and all provisions of the City Code.
o Home to Colorado State University
o Larimer County
o Total population (U.S. Census, July 2022): 169,249
o City of Fort Collins Short-Term Rental Ordinance
o https://www.fcgov.com/shorttermrentals/
o Guide for Operating a Short-Term Rental in the City of Fort Collins
o https://www.fcgov.com/shorttermrentals/files/short-term-rental-operatingguide.pdf?1682974917
o STR Zoning Map Fort Collins, CO
o https://gisweb.fcgov.com/HTML5Viewer/Index.html?Viewer=FCMaps&layerTheme=Short%20Ter m%20Rental%20Zoning
STR Ordinance Summary (2019):
o STRs are not allowed in Multi Family R-2 buildings (apartment or condo buildings with 3 or more dwelling units)
o Initial STR license fee is $150 and needs to be renewed each year with a renewal fee of $100
o Required to apply for a Sales and Lodging Tax license as well as an STR business license
o STRs are currently allowed in single-family dwellings (townhomes or single-family-attached homes) as well as R-1 hotel/motel occupancies which many have code requirements for fire/life/safety
o If unit is undergoing a change of zoning classification from R-2 to R-1, it must undergo a change of occupancy process
o Required documents:
o Business name (LLC not required, first and last name are ok to use)
o Proof of Ownership
o Proof of Personal Liability Insurance Coverage
o For Primary STRs – Proof of Residence
Short Term Rental Regulations
o For Primary STRs – A signed Primary Residence Affidavit
o STR application (this is an online application)
o Self-Inspection Checklist
o Sales and Lodging Tax License Application (these are online applications)
o $150 non-refundable application fee (payable online via e-check or credit card)
o Required Information:
o Mailing Address of owner and STR property address
o Local Contact Information (must be able to assist at property if needed within 4 hours of a call)
o Number of bedrooms
o Photos and description of rentable space
o Number of off-street parking spaces
o Ensure there are no expired building permits on property
o Applicant must ensure that HOA covenants allow STRs
o Fort Collins includes a Short-Term Rental Zoning Map on their website to see the zoning classifications within the city limits – this can help if someone is starting up a rental unit in their personal dwelling unit
Page 9 | 12
Draft for Review 12/31/2023
Ontario, NY
o In vicinity of the University of Rochester
o 26-minute (approximate) drive to Rochester, NY
o Ontario County
o Total population (U.S. Census, July 2022): 112,707
o STR Ordinance Ontario County, NY
o https://ontariocountyny.gov/DocumentCenter/View/24461/97-2020-existing-t-geneva-Shortterm-rental-regulations#:~:text=(1)%20A%20short%2Dterm,as%20a%20short%2Dterm%20rental
STR Ordinance Summary (2021):
o An owner shall obtain a revocable short-term rental permit
o Permit is valid for three calendar years and shall expire on December 31 of the third year
o The permit is transferable to a new owner so long as the owner registers with the Town, updates the rental permit application, and agrees in writing to comply with the requirements of the permit and the regulations
o All doors and passageways are required to be operational, and the exterior doors shall be clear and unobstructed
▪ Each sleeping room shall have an exterior exit that opens directly to the outside, or an escape or rescue window
o A site plan, drawn to scale, showing the location of buildings, required parking and, if not served by a public sewer, the location of the septic system and leach field. An accurate, suitable plan need not be prepared by a professional
o A contact person needs to post all their information in an easily accessible location for occupants at all times
o A house number needs to be visible from the road
o Provisions are to be made for weekly garbage removal during rental periods
o The property must have sufficient off-street parking spaces, and occupants shall not be allowed to park on the lawn nor on the street
o Applications are approved or denied through the Town Code Enforcement Officer
o Must include a statement that littering is illegal, that all fires need to be attended (whether indoors or outdoors)
o Owners of short-term rental units shall obey all applicable laws, ordinances and regulations of the Town in the town of Geneva, Ontario County, New York State and the United States of AmericaShould any be violated, the permit shall be suspended or revoked
Recommendations
o Require an annual STR operating permit - The Initial STR license fee should be $150 and needs to be renewed each year (choose specific date as a deadline) with a renewal fee of $100 each year
o Safety requirements:
o at least one operational fire extinguisher in an easily accessible location
o one smoke alarm on the ceiling or wall adjacent to each sleeping area
o at least one operational carbon monoxide alarm in an appropriate location
o Prohibit short-term rental units in certain zoning classifications (reference Maryville, TN regulations)
o For advertisements for each rental unit, require a maximum number of occupants per rental unit, as well as language specifying that guests are prohibited from allowing more people onto the premises than the maximum occupancy allowed during their stay
o Prohibit any outdoor signage to indicate that the dwelling unit is a short-term rental unit to avoid any visual impact in the neighborhood
o Prohibit any person holding a short-term rental unit operating permit from selling, lending, leasing, or in any manner transferring the permit for value. The permission to operate the unit shall be personal and limited to the owner to whom the city issued the permit.
o Any unauthorized transfer or attempt to transfer an operating permit shall automatically void such permit.
o Building inspection needs to be administered and accepted before occupants can rent the space
o An inspection renewal should be implemented annually
o The owner of the rental unit should be required to post essential information for guests for each occupancy term and should include:
o Contact information for the owner
o Contact information for an emergency contact of the owner
o Contact information for local police, fire, and emergency medical services
o Site plan and floor plan accurately depicting size and location of existing dwelling, and approximate square footage in the dwelling to be used for the rental unit
o An age limit should be put in place for occupants: 18+
o The owner shall ensure that the use of the unit complies with all applicable noise, nuisance, parking, trash, and property maintenance code, ordinances, regulations, and all provisions of the county code
o Especially if short-term rentals will be allowed in mostly residential areas
Short Term Rental Regulations
o The property must have sufficient off-street parking spaces, and occupants shall not be allowed to park on the lawn nor on the street
o A house number needs to be visible from the road
o Weekly garbage removal should be required for
Additional Resources
o Top 11 STR-friendly cities in the USA 2023
o https://airbtics.com/str-friendly-cities/
Draft for Review
12/31/2023
Jessamine County Planning Department