As the housing market in central Kentucky continues to grow, many homeowners are looking for ways to supplement their income by renting out their properties on a short-term basis. However, before jumping into the world of short-term rentals, it's important to understand the restrictions and regulations that may apply.
The Rise of Short-Term Rentals
Short-term rentals, also known as vacation rentals or Airbnb rentals, have become increasingly popular in recent years. With the rise of online platforms such as Airbnb and VRBO, it has become easier for homeowners to rent out their properties for short periods of time to travelers and tourists. In central Kentucky, cities like Lexington and Louisville have seen a significant increase in short-term rental listings. This is due to the region's growing tourism industry, as well as its proximity to popular attractions such as the Kentucky Bourbon Trail and Keeneland Racecourse.The Impact on Housing in Central Kentucky
While short-term rentals can provide homeowners with a lucrative source of income, they have also raised concerns about their impact on the local housing market.Some argue that the rise of short-term rentals has led to a decrease in available long-term rental properties, making it more difficult for residents to find affordable housing. In response to these concerns, many cities in central Kentucky have implemented regulations on short-term rentals in an effort to balance the needs of homeowners and residents.
Lexington's Short-Term Rental Ordinance
In 2018, Lexington passed an ordinance that requires homeowners to obtain a permit before renting out their property on a short-term basis. The permit costs $100 and must be renewed annually. Additionally, homeowners must pay a 3% transient room tax on all short-term rental bookings. The ordinance also includes restrictions on the number of guests allowed in a short-term rental property, noise levels, and parking. Homeowners are also required to provide a 24-hour contact person for guests in case of any issues.Louisville's Short-Term Rental Regulations
In Louisville, short-term rentals are only allowed in certain zoning districts and must be approved by the city's Planning Commission.Homeowners must also obtain a permit and pay a 10% transient room tax on all bookings. Similar to Lexington, Louisville's regulations also include restrictions on the number of guests, noise levels, and parking. Additionally, homeowners must provide proof of liability insurance and undergo an annual safety inspection.
The Benefits of Short-Term Rentals
Despite the restrictions and regulations, short-term rentals can still be a beneficial option for homeowners in central Kentucky. For one, they can provide a significant source of income, especially during peak tourist seasons. This can be particularly helpful for homeowners who may be struggling to make mortgage payments or cover other expenses. Short-term rentals can also have a positive impact on the local economy.By attracting more tourists to the area, they can help boost businesses such as restaurants, shops, and attractions.
