HomeMy WebLinkAbout04-24-17 City Commission Packet Materials - A2. Short Term Rentals Recommendations Page 1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission FROM: Chuck Winn, Assistant City Manager
Karen Stambaugh, Assistant City Attorney
SUBJECT: Recommendations for Regulating Short Term Rentals MEETING DATE: April 24, 2017
AGENDA ITEM TYPE: Action
RECOMMENDATION: Consider the Assistant City Manager’s recommendations and provide
specific direction regarding provisional adoption of an ordinance to regulate short term rentals
throughout the City.
SUGGESTED MOTION: I move to direct the Assistant City Manager to return to the
Commission with an ordinance for provisional adoption regulating short term rentals as provided
for in the Assistant City Manager’s recommendations.
BACKGROUND: Attachment A contains recommendations for short term rental (STR)
regulations. While not in final ordinance form, the specific language included in Attachment A
will, if the Commission so directs, be converted into ordinance form and presented to the
Commission for provisional adoption at a later date, and as such should be considered proposed
regulations.
I. Development of short term rental recommendations
For several years, the City Commission has been considering issues related to the increase in the
number of STRs throughout the City and in particular Bozeman’s lower density residential
zoning districts. During the past 9-10 months City staff has, at the Commission’s direction, been
studying possible regulation of STRs. The Commission discussed this issue at its regular meeting
on July 11, 2016 and a continuation of that discussion occurred on July 18, 2016. The staff
memorandum from those policy discussions can be found here.
116
Page 2
A. Interim Zoning Ordinance
On July 18, 2016 the Commission requested that staff draft an interim zoning ordinance that
would prohibit extended stay lodging uses in specific zoning districts until such time as the City
was able to study the effects of the increasing number of STRs on existing residential
neighborhoods. “Extended stay lodging” was a conditional use in R-1, R-2, R-S and NEHMU,
subject to approval of a conditional use permit (CUP) pursuant to 38.19.110, Bozeman
Municipal Code (BMC). Interim Zoning Ordinance 1958 repealing and suspending “extended
stay lodging” as a conditional use in these zones was adopted on August 8, 2016 and was to
expire on February 8, 2017. It was extended by Ordinance 1970 on February 6, 2017 for an
additional six months and will now expire on August 8, 2017.
B. Public outreach, data gathering and research
The Interim Zoning Ordinance directed the City Manager to “investigate and study the effects of
extended stay lodgings, and other similar uses, including short term and vacation rentals” in the
City and to make recommendations to the City Commission. In particular, staff was directed to
gather and analyze data on the number of STRs in the City, solicit public input on the issues,
research best practices in other similar communities, and bring back a set of recommended
regulations for the Commission’s consideration.
Since the adoption of the Interim Zoning Ordinance an internal team was formed to define the
scope of the issues, identify a process to obtain public feedback, gather data, and conduct
research as directed by the Commission. The team includes Fire Chief Josh Waldo, Fire Marshal
Trisha Wolford, Community Development Director Martin Matsen, Community Development
Policy and Planning Manager Chris Saunders, City Attorney Greg Sullivan, Assistant City
Attorney Karen Stambaugh, Neighborhood Coordinator Jessica Johnson, Police Captain Jim
Veltkamp, and Assistant City Manager Chuck Winn.
1. Data on STRs in Bozeman
On June 27, 2016, before the effective date of the Interim Zoning Ordinance, the
InterNeighborhood Council performed an informal review of VRBO and Airbnb and found
almost 300 STR listings. This is in comparison to 140 listings in 2013 (see Attachment B).
On November 3, 2016, after the effective date of the Interim Zoning Ordinance, the city internal
team performed its own review of the top four STR websites: VRBO, Airbnb, HomeAway, and
Trip Advisor. At that time, there was an average of 142 STRs (see Attachment C). We believe
the difference is attributable to two main factors: the prohibitions enacted by the interim
ordinance, and the end of the summer busy season.
117
Page 3
On January 12, 2017, Airbnb submitted correspondence to the City of Bozeman that shared data
from their site regarding Bozeman (see Attachment D). The letter stated there were 350 STR
listings that hosted 13,000 guests per year. The typical listing was rented for 49 nights per year
and nearly 80 percent of listings were rented for fewer than 90 days per year.
Due to the way these sites list properties there is no way to determine exact locations; as a result,
it is difficult to tell which are located within the city limits. Additionally, the different listing
sites and unique characteristics of each makes determining the exact number of STRs in
Bozeman difficult if not impossible.
2. Public outreach and feedback
Subsequent to the adoption of the Interim Zoning Ordinance and in preparation for this
discussion, City staff took a proactive approach to soliciting community input. We initiated three
major opportunities for citizen input into this initiative:
• Online City Hall Forum
• Public Forums
• Written Public Comment
Online City Hall: The internal team drafted and launched an Online City Hall survey which
began on December 19, 2016 and ran through January 31, 2017.
The City received 768 survey responses with 177 of those from registered, identified users.
Survey highlights (rounded to nearest percentage):
• 73% of people surveyed believed there are STRs in their neighborhood.
• When asked about the positive effects of STRs,
o 84% believed STR properties are usually well cared for,
o 47% believed there are fewer empty/dark houses in their neighborhood, and
o 47% believed that it provided an opportunity to meet new people.
• When asked about the negative effects,
o 65% were concerned with parking,
o 56% were concerned with the effect on the supply of housing, and
o 44% were concerned with changes to the character of their neighborhood and
noise.
• 62% agreed there should be a permit and fee for operating a STR
• 64% agreed there should be a limit on the number of guests
• 79% agreed there should be a local property manager or responsible person
• Primary reasons for owning or operating a STR:
o 44% own or operate an STR to make additional income,
o 35% to pay the mortgage, and
o 21% because they live there part-time and did not want to leave their property
empty.
118
Page 4
When asked about the areas in which STRs should be allowed, 73% felt they should be allowed
in all city residential zoning districts.
Public forums: Assistant City Manager Winn led three public engagement meetings in January
2017. The public meetings were scheduled on different days of the week in the evening at three
different locations in an effort to boost attendance. The meetings were organized in a consensus
format with all participants’ input captured in their words.
103 people attended the community forums. Participants were asked to describe their “worst
fears” and “best possible outcomes”. Staff captured these ideas in the speaker’s own words on
large pads of paper. At each meeting, discussions were lively and the participants were engaged
and respectful of the different viewpoints offered. Overall, we received very positive feedback
on the usefulness of these meetings.
A summary of the feedback received at these public forums can be found in Attachment E.
Written public comment: At the time of this writing, the City has received 63 written comments
related to STRs. These comments were submitted to agenda@bozeman.net and the
Neighborhood Coordinator including comments submitted for a related CUP application for a
property at 304 W. Cleveland (see 2016 comments and 2017 comments online). These
comments reflect a wide range of viewpoints.
The InterNeighborhood Council (INC), which is composed of an elected representative from
each of the 13 neighborhood associations, formed a working group to investigate STRs and their
effect on neighborhoods. This resulted in a set of recommendations that were supported by the
INC. Regarding the zoning districts that should allow STRs, INC’s recommendation is that the
rental of a room should be allowed in all zoning districts, and that STRs which are not the
owner’s primary residence should not be allowed in R-S and R-1. They were not able to reach a
consensus on where to allow STRs that are the owner’s primary residence. See Attachment F
for INC’s recommendation.
3. Research into best practices in similar communities
In researching best practices, Staff looked at regulations proposed or adopted in Missoula (pop.
69,122), Flagstaff (pop. 68,667), Austin (pop. 885,400), Hood River OR (pop. 7,379), Vail (pop.
5311), and Breckenridge (pop. 4,648). These cities were chosen because they are Western
college towns or resort towns and/or similar in population. Although it is a much larger city, we
studied Austin because it has an STR ordinance that has been in place for some time and has
been cited as a model in planning articles. For further detail on each city’s regulations, please
refer to Attachment G, Survey of Regulations.
119
Page 5
Missoula. Missoula regulates only “tourist homes”, defined as a private home or
condominium that is not occupied by an owner or manager and is rented, leased or furnished in
its entirety to guests on a daily or weekly basis. Missoula’s ordinance does not include rental of
single rooms. STRs are allowed in all but industrial zones.
Besides Austin, Missoula is the only town or city study that imposes a density cap. No more
than one Tourist Home is allowed per parcel in most single-household residential zones, and no
more than two Tourist Homes per building in multi-unit residential zoning districts. The
maximum occupancy of Tourist Homes is one guest per 150 square feet. Applicants are required
to notify neighbors within 150 feet. The maximum occupancy and contact information of the
local responsible person must be posted within the Tourist Home.
Missoula charges $50 for initial registration and $25 for renewals.
Other Montana cities and towns. STRs are not an authorized use in Billings or Great Falls. In
Whitefish, STRs are not allowed in several residential districts, but are authorized in the WRR-1
and WRR-2 (low- and medium-density resort residential districts) and business districts.
Whitefish requires a business license and a fire inspection, and imposes standards including trash
removal, parking standards, local contact person, and no exterior signage. Flathead County is
currently considering regulations requiring an administrative conditional-use permit, maximum
occupancy, no signage, two off-street parking spaces, and a 24-hour local contact.
Flagstaff. Coconino County defines “Vacation Rental” as “the business of letting any Dwelling
or any portion of any Dwelling for occupancy for any time period less than thirty (30)
consecutive days in duration in a residential zoning district to a single family through one
contract at any given time.”
Vacation rentals are a permitted use in residential zones. Occupancy is capped at two persons
per bedroom plus two additional persons, not to exceed 10 persons. The property must provide
one onsite parking space per bedroom, with a minimum of two on-site parking spaces provided.
There is no requirement that the property be the owner’s primary residence.
The County requires a site plan review, and a property management plan showing how the rental
will be managed and how impacts to neighboring properties will be avoided. A fire inspection
does not appear to be required, but the applicant must submit a notarized affidavit affirming to
the size and location of emergency escape and rescue openings, and installation of smoke alarms.
Coconino County charges $200 for a five-year renewable vacation rental permit.
Austin. Austin classifies short terms rentals into different types depending on the type of use:
Type-1: Owner-occupied
Type-2: Single-family units that are not owner-occupied
120
Page 6
Type-3: Multi-family units that are not owner-occupied.
In February 2016, the Austin City Council placed a moratorium on new applications for Type-2
STRs, and plans to ban them outright by 2022. They were sued in June 2016 by the Texas
Public Policy Foundation, a non-profit research institute that has challenged the constitutionality
of the ordinance.
The Austin regulations place a density cap on Type-2 and Type-3 STRs. Type-3 STRs (multi-
family) are limited to 3% of the units in a building in non-commercial zones, and 25% in
commercial zones. In commercial zones, there is a maximum occupancy for all STRs of two
persons per bedroom plus two, up to 10 adults, or six unrelated adults. In residential zones, no
more than four unrelated adults are allowed. Austin does not limit the number of days an STR
can be rented.
Austin provides notice to all neighboring properties within 100 feet at the licensee’s expense.
Licensee must provide guests with the City’s rules, which must also be posted conspicuously
within the unit. Of the cities and towns surveyed, Austin was the only one that required proof of
insurance.
Austin’s rules are relatively strict when it comes to noise and outside assembly. No STR may be
used for an “assembly” (defined as a wedding, bachelor or bachelorette party, concert, sponsored
event, or any similar group activity other than sleeping) between 10 pm and 7 am. Between 7 am
and 10 pm, there can be no outside assembly of more than six adults. No noise audible to an
adjacent residence or business is allowed between 10:30 pm and 7 am; no sound equipment
producing sound audible at the property line is permitted between 10 pm and 10 am.
Austin charges $443 (including a $50 notice fee) for new licenses and $236 for renewals.
Hood River. Hood River classifies STRs as “Hosted Homeshare” (transient rental of a portion
of a dwelling while the homeowner is present) and “Vacation Rental Units” (transient rental of
entire dwelling unit). “Transient” is defined as less than one month.
STRs are an accessory use in residential zones and must be the owner’s primary residence.
STRs are a permitted use in commercial zones. In residential zones, STRs cannot be rented for
more than 90 days per year. STR occupancy is limited to two persons per bedroom plus two
additional persons. Hood River requires that one hard-surfaced parking space be provided for
every two bedrooms. An Accessory Dwelling Unit may not be used as a STR.
A local contact person available 24/7 is required. The City formulated “Good Neighbor
Guidelines” that must be acknowledged by guests, must be made a part of the rental agreement,
and must be posted in the unit. Owners of Vacation Home Rentals are required to either
annually provide notice to neighbors within 250 feet with the license number or contact
121
Page 7
information, or post a placard on the site with the same information. The STR license is required
to be posted inside the unit by the front door.
Hood River charges $225 for the initial fire inspection, and $100 if a repeat inspection is
required. Application review is $75 and the annual STR operating license is $150.
Vail. Vail defines an STR as “a rental of an accommodations unit or dwelling unit, or any room
within an accommodations unit or dwelling unit, for a term not in excess of thirty (30)
consecutive days.”
STRs in Vail are required to obtain a business license. Vail charges a flat annual fee of $150 if
renting up to two STRs for more than 14 days, and $325 if renting three or more STRs, plus a
per-unit charge of $17 (if within the “core” of Vail), or $12.75 (if outside the “core”).
Advertisements must include the Vail sales tax account number.
There are no additional regulations specific to STRs in Vail.
Breckenridge. Breckenridge does not regulate rental of less than an entire “accommodation
unit”, which is defined as “separate and distinct living units including condominium, townhome,
house, trailer, studio unit, condo-hotel units, or any such other similar unit which is rented to any
person, who, for consideration, uses, possesses or has the right to use or possess such
accommodation unit, regardless of the number of days during a license year such unit is rented.”
“Short term” is defined as less than one month.
There is no maximum occupancy for STRs. Parking must be provided on-site or in an off-site
city designated parking lot within 250 feet. There must be a local responsible person available
24/7. If a single-family home is used as an STR, special conditions apply including noise
restrictions, parking restrictions, and storage and disposal of trash. The list of special conditions
must be provided to guests.
Breckenridge charges an annual fee depending on size of the STR: Studio: $75; 1-bed: $100; 2-
bed: $125; 3-bed: $150; 4+ bed: $175.
4. Legal issues
The City is authorized by its Charter and Montana law to adopt zoning regulations and provide
for their enforcement and administration. In addition, the City’s police powers allow it to enact
reasonable regulations to protect health, safety and the public welfare. With self-government
powers, Bozeman may exercise any power not prohibited by the constitution, law, or charter.
There is a statutory prohibition in the Montana Code against exercising “any power that applies
to or affects landlords, as defined in 70-24-103, when that power is intended to license landlords
or to regulate their activities with regards to tenants beyond what is provided in Title 70, chapters
24 and 25. This subsection is not intended to restrict a local government’s ability to require
122
Page 8
landlords to comply with ordinances or provisions that are applicable to all other businesses or
residences within the local government’s jurisdiction.” 7-1-111(13), MCA. Staff’s position is
that this prohibition does not apply to the regulation of STRs. The set of draft regulations
specifically excludes rentals that are subject to the Montana Residential Landlord Tenant Act of
1977 (Title 70, Chapter 24 MCA).
II. Recommended Regulations
The recommendations in Attachment A are based on the City’s authority to regulate on the basis
of public health, safety, and general welfare as well as the City’s self-governing powers. A
summary of the proposed regulations is below.
In addition to an Ordinance adopting STR regulations, Staff recommends the City maintain a
webpage on the bozeman.net website dedicated to STRs. As described more fully below, the
webpage could contain information on the registration process and the applicable standards,
copies of registration and fire inspection forms, a means for reporting complaints, and a listing of
currently registered properties.
It should be noted that other agencies also regulate STRs and these requirements are not
addressed in the proposed City regulations. Staff recommends that, as a means of assisting and
educating the public, the City include some limited information on its STR webpage regarding
such regulations so that users may do further research. Other regulations which may be
applicable include but are not limited to Montana Department of Revenue lodging facility sales
and use taxes, County/City Health Department licensing of STRs as public accommodations, and
liability insurance. The City webpage should make it clear that determining which of such
regulations applies and compliance with such regulations is the responsibility of the STR owner.
A. Definition of STR; types; examples
The recommended definition of “short term rentals” is “a vacation home; dwelling as defined in
38.42.940; accessory dwelling unit; or room within a vacation home or dwelling, rented by or on
behalf of the owner to the general public for compensation for periods of less than 30
consecutive days.” The term “extended stay lodgings” would be eliminated from the municipal
code.1 Any rental which is subject to the Montana Residential Landlord Tenant Act of 1977
(Title 70, Chapter 24 MCA) is specifically excluded.
For purposes of the recommended regulations, STRs were divided into three different types:
Type-1, Type-2, and Type-3.
1 The current definition of “extended stay lodgings” in the BMC proposed to be eliminated is “Guest rooms intended or designed to be used, or which are used, rented or hired out to be occupied, or which are occupied for sleeping
purposes for guests and contain kitchen facilities for food preparation, including, but not limited to, such facilities as refrigerators, stoves and ovens. Generally an individual guest will not exceed 30 days stay. This definition includes
dwelling units used, rented or hired out for vacation homes.” 38.42.1040, BMC. As this definition includes only units with a kitchen, it covers some STRs but not all (i.e., rental of one or more bedrooms).
123
Page 9
Type-1: Rental of one or more bedrooms in an owner-occupied dwelling while the owner is
occupying the same dwelling unit for the entire rental period.
Type-2:
a. The rental of an owner-occupied dwelling if the owner is not occupying the dwelling
during the entire rental period.
b. The rental of a permitted accessory dwelling unit (ADU) whether or not the ADU’s
owner is present in the primary dwelling unit during the rental period.
c. The rental of one dwelling unit within a duplex whether or not the duplex’s owner is
present in the duplex’s other dwelling unit during the rental period.
Type-3: A short term rental that is not owner-occupied.
“Owner-occupied” in the recommended regulations means the owner occupies the dwelling as
his or her principal residence for more than 50% of the calendar year.
The classification of STRs into different types was in response to Commission input and public
comment regarding the perceived intensity of use of different types of STRs and that certain
types of STRs were of greater concern than others. Creating different types of STRs allowed
staff to recommend varying levels of regulation.
If the recommended regulations are adopted:
Type-1 STRs would not be subject to any of the STR regulations except for the requirement
to register the STR with the city, and the general requirement to comply with all other
applicable laws (Bozeman’s nondiscrimination ordinance, Lodging Facility Sales and Use
taxes, registration as a public accommodation with the County/City Health Department, etc.).
Type-1 STRs would be required to register annually on a simple short form. Staff
recommends that Type-1 STRs not be charged a registration fee. If the Type-1 STR is
required by another agency to obtain a fire inspection from the Bozeman Fire Department, an
inspection fee would be required.
Type-2 STRs would need to register annually with the City, would need to pass fire
inspection(s), and would be subject to the STR standards listed in Attachment A in addition
to the general requirement to comply with all other applicable laws.
Type-3 STRs would be subject to the same requirements as a Type-2 STR, except that Type-
3 STRs in R-1 and R-S would also be subject to requirements to provide written notice to
neighboring properties and a CUP approval. A dwelling purchased as a “lower-priced home”
subject to the restrictions in 38.43.120, or that received financial support from the city,
including but not limited to down payment assistance, impact fee payment, or other funding,
shall not be used as a Type-3 STR.
124
Page 10
By way of illustration, below is a non-exhaustive list of examples of different ways STRs are
being rented in Bozeman, and the classification of each under the recommended regulations:
• Renting out one or more spare bedrooms in a house while the owner is present: Type-1
• Renting out an ADU or guest cottage while the owner is present in the main house: Type-
2
• Renting out an ADU or guest cottage; the owner is present in the main house during part
of the weeklong rental period, but goes out of town on the weekend: Type-2
• Renting out an entire home while the owner, who usually uses the home as his primary
residence, is away from Bozeman on a 3-month trip: Type-2 (but note that the rental
periods must be for less than 30 days at a time or this isn’t an STR)
• Renting out one-half of a duplex while owner is present in the other half: Type-2
• Renting out an entire home; the owner lives in a different state, and uses a local property
owner to manage the rental: Type-3
• Renting out one or more bedrooms in a home, or the entire home; the owner doesn’t
occupy the home but lives locally and manages the rental herself: Type-3
• Converting all or significant portions of a building of condominiums into STRs: Type-3
B. Where authorized
Before adoption of Interim Zoning Ordinance 1958, extended stay lodging was allowed as a
principal use in R-3, R-4, R-5, R-O, REMU, B-2, B-2M, B-3, and UMU zoning districts and as a
conditional use in R-1, R-2, R-S, and NEHMU. As such, proposed extended stay lodging in R-1,
R-2, R-S and NEHMU districts required approval of a conditional use permit.
Staff proposes allowing Type-1 and Type-2 STRs in R-S, R-1, R-2, R-3, R-4, R-5, R-O, RMH,
REMU, NEHMU, UMU, B-P, B-2, B-2M, and B-3 zoning districts as a principal use, and Type-
3 STRs in R-1 and R-S only upon approval of a CUP and R-2, R-3, R-4, R-5, R-O, RMH,
REMU, NEHMU, UMU, B-P, B-2, B-2M, and B-3 zoning districts as a principal use. STRs
would not be allowed in B-1, industrial zoning districts, and PLI.
C. Registration
Staff recommends that owners wishing to operate any type of STR be required to register with
the City and obtain a unique registration number for each STR. This requirement is
recommended to replace business licensing of STRs – an STR owner would not be subject to a
separate business licensing requirement.2 The STR registration would be valid for one year,
would expire automatically unless renewed, and a change of ownership of the STR would
require a new registration.
2 Chapter 12 of the BMC – Business Licensing – would be revised to add STRs to the list of exemptions in 12.02.040.
125
Page 11
Registration of Type-1 STRs: Staff recommends a short registration form be developed by the
Community Development Department for Type-1 STR registration that asks for owner name,
“responsible person” 3 name (if different), address of the STR and confirmation the STR fits the
definition of a Type-1.
Application process for registration Type-2 and Type-3 STRs: Application forms for registration
of Type-2 and Type-3 STRs would be developed by the Community Development Department,
and would require the applicant to provide:
1. Name and contact information for the property owner and the “responsible person” (if
different);
2. A description of the STR, including number of parking spaces available for the use;
3. Certification the applicant has read and agrees to the STR standards (see below);
4. For Type-3 STRs in R-1 and R-S, applicants will be subject to the requirements of
BMC 38.40 which requires noticing of property owners within a 200-foot radius;
5. Proof of application for a Health Department license for public accommodation; and
6. The registration fee.
Applications for STRs where there is not sufficient parking available for the use would be
denied, as would incomplete applications.
Listing of STR registration on City website. The registration form would require the registrant to
agree to inclusion of the STR and the owner/responsible person’s contact information in an
online listing.
D. Health and safety inspections
Initial. As part of the STR registration process, Type-2 and Type-3 STRs will require an initial
inspection by an inspector from the Bozeman Fire Department or a fire-certified inspector from
the Building Division. The registration would not be issued until the fire inspection form is
signed by a fire/building inspector. If repeat inspections are required, additional fees may apply.
The city Fire Marshal suggests allowing applicants to contract with private fire inspectors to
conduct the required fire inspection, so long as the City’s fire inspection form is used and the fire
inspector is NFPA certified. This should help relieve a potential backlog of fire inspection
requests when the ordinance is first adopted.
Although not covered by the proposed regulations, a Type-1 STR may also need a fire inspection
by the Fire Department as part of the County/City Health Department public accommodations
licensing process.
3 In the draft regulations, “responsible person” means the person responsible for addressing all maintenance, nuisance, and safety concerns related to an STR.
126
Page 12
Subsequent inspections; self-certification. Staff recommends that registered STRs not be
inspected every year. Instead, as part of the registration renewal, the applicant would certify that
the property continues to comply with Fire Department requirements. If registrations are
allowed to lapse, another fire inspection would be required with another inspection fee being
assessed. In addition, the Fire Department reserves the right to require a re-inspection
periodically (if a number of years has elapsed since the last inspection) and at any time upon a
complaint or evidence of non-compliance.
Cost recovery. We are proposing a separate life-safety inspection fee in addition to the
registration fee that is intended to offset the expense involved in performing these non-routine
fire and life-safety inspections (see G below).
E. Standards.
Applicants for Type-2 and Type-3 STR registrations would agree to comply with the following
requirements:
1. Written rental agreements with guests. The rental agreement must require the guest
to acknowledge and agree to the rules (see #2).
2. Written rules for guests. The list of rules would be mailed to the guest with the rental
agreement, and must be prominently displaced within the STR for the guests’
reference. The written rules must include:
a. The name and contact information for the responsible person.
b. The STR’s maximum occupancy.
c. Schedule for trash removal.
d. Prohibition against excessive noise.
3. Designation of a local responsible person. The responsible person must be available
to take and respond to complaints on a 24/7 basis during rental periods.
4. Maximum occupancy for the STR of two persons per bedroom plus two additional
persons.
5. Proper removal of trash.
6. A sign must be provided inside the front door showing locations of fire extinguishers,
fire exits, and gas shut-off valve.
7. Ensuring guests are aware of and comply with City noise ordinance, and prohibiting
excessive noise after 10:00 p.m.
8. The STR registration number must be included in all advertising, including online
and print.
F. Enforcement.
Code enforcement. As discussed in prior Commission meetings, enforcement of STR rules is
challenging and has not previously been a priority. Firstly, finding all the listings can be a
challenge; Airbnb listings may use the “public view” feature which only shows a large circle
127
Page 13
within which the STR is located. Even when STRs are identified, monitoring compliance with
the regulations requires staff time. At present, the City employs only one code compliance
officer who is responsible for all code compliance issues in the City.
Staff, in formulating the proposed regulations, attempted to keep these enforcement challenges in
mind. For example, maintaining an online listing of all registered STRs should help the City in
verifying whether an identified STR is complying with the registration requirement. A
centralized listing also provides members of the public who wish to make a complaint contact
information for registered STRs so they can contact the responsible person directly. It also may
help residents determine if a structure being used as an STR is in compliance with City
requirements. Staff also considered and rejected several regulations based on difficulty of
enforcement, including restricting the maximum number of days per year an STR may be rented,
and density caps (for example, only one STR permitted per city block).
Staff also recommends including a feature on the STR website for sending complaints directly to
the City; this may be an email form that could be filled in. Again, staff resources would be
required to respond to the complaints and track them.
Several communities, including Denver, Los Angeles, Truckee, Vancouver, Durango, Asheville,
and Islamorada use software tools designed to aid in compliance. One such tool is Host
Compliance, which claims it “makes it easy for municipalities to implement and enforce fair and
effective short-term rental rules.” There are other similar online tools. These tools comb
through online listing sites to gather and analyze data on STRs operating within the jurisdiction,
and also offer compliance monitoring and enforcement features. The compliance monitoring
features can send form letters to noncompliant STRs identified by the tool and provide monthly
reports. See Attachment H for summary of Host Compliance services and pricing (pricing
shown is for a community with 300 STRs).
Violations. Staff recommends a similar process of suspension, revocation, and appeal for STR
registrations as is currently in place for business licenses. The City Manager would be
authorized to suspend or revoke an STR registration for failure to comply with the STR
regulations, interfering with the rights of abutting property owners, cancellation of any other
required permit (such as the Health Department public accommodation license), and providing
false or misleading information on the registration application.
A registrant wishing to appeal the City Manager’s decision would be subject to the appeal
provisions in Chapter 12 – Business Licensing.
Violation of the regulations, including failure to register, would be a misdemeanor punishable as
provided in 1.01.210, BMC.
128
Page 14
G. Fees.
STR registration and inspection fees would be established by resolution of the City Commission.
Staff proposes a $250 annual registration fee and a $225 fire and life-safety inspection fee. The
annual renewal fee would be $250. As described above, repeat fire inspections would not be
required every year so long as the registrant does not allow the registration to lapse.
This is a new program and the registration fee is significantly higher than the current business
license fee of $25. Staff feels the amount of the fee is justified by the administrative staff time
required for processing applications, monitoring registrations (or, alternatively, to pay licensing
fees for monitoring software), responding to complaints, and enforcing the new regulations. In
addition, business license fees have not been increased since 1989, and so are likely to be
increased when a new business license fee schedule is adopted.
For Type-3 STRs in R-1 and R-S, the applicant would additionally have to pay the Conditional
Use Permit review fee. The current cost of a CUP is $1,508. The Commission has the discretion
to adjust that fee for STRs should they determine another fee amount is more appropriate.
Presently, the Bozeman Fire Department conducts life-safety and building code inspections for
STRs in accordance with the public accommodations requirements of the City-County Health
Department. The Fire Marshal analyzed the amount of time spent by Department inspectors for
each of the various elements of the inspection process and determined an average of 3 hours is
spent on a “routine” inspection (see Attachment I, Cost Estimate for Doing Vacation Rental
Inspections). Based on ARM Rule: 24.301.138, a fee of $75 per hour is authorized for requested
inspections bringing the total for a 3-hour inspection to $225.
H. Website; forms.
Educating the public on new and existing STR regulations is crucial to the success of the
proposed STR ordinance. Besides the public outreach already conducted, the City could
consider mailing some type of notice to all property owners, for example with utility bills.
Staff also recommends using the City’s website as an informational tool. As part of its efforts to
solicit public input, staff created a project webpage for STRs with a tab along the top of the
City’s homepage. At present, the page includes an explanation of why the City is considering
this issue, what the current regulations are, and how to submit public comment. This page could
be revised and expanded to include an FAQ section on the new regulations, a mechanism for
submitting complaints, a link to registration forms, including the fire inspection form so that
applicants know what to expect and hopefully successfully pass an inspection on the first visit,
and some information about other requirements such as the hospitality use tax, insurance, and
Health Department licensing.
129
Page 15
If the Commission decides to adopt new STR regulations, the STR team will work with staff in
the Community Development Department to create forms and informational material such as
brochures.
I. Effective date; grace period.
If finally adopted, an ordinance regulating STRs would be effective 30 days after final adoption.
For STRs that are currently operating legally, either under a CUP and a business license (in R-1,
R-2, R-S, and NEHMU) or just a business license (in other zoning districts) Staff recommends
allowing for a grace period of 90 days for owners to apply for registration. Staff suggests the
City send mail notices of the new ordinance to the approximately 45 STRs with active business
licenses.
Any property or structure used as an STR that is not currently in compliance with existing City
regulations is considered a non-conforming illegal use. Continued non-conforming illegal use
after the effective date of the ordinance, if adopted, would be punishable as a misdemeanor as
described in 1.01.210, BMC. To get the word out about the new ordinance, Staff suggests a
press release, including a note about the new ordinance in utility bills, and posting notices on the
City’s webpage, the official posting board, and on the City’s social media outlets.
UNRESOLVED ISSUES:
Timeliness of Required Inspections: Should the Commission pass an ordinance with these, or
similar, regulations, there may be a significant and immediate increase in STR applications
requiring fire inspections. If this occurs, formal approval of applications could be delayed by
weeks or months. To alleviate any backlog created by the inspection requirement, the Fire
Department could develop a self-inspection and certification process that would allow STR
owners to self-certify that they meet minimum safety requirements. This would allow them to
operate with provisional approval until a Fire Department inspection could be conducted.
ALTERNATIVES: The recommendations included herein are staff recommendations based
on what staff considers best practices as applied to the City. Should the Commission desire to
regulate STRs throughout the City differently than recommended the Commission should be
mindful of regulating on the basis of public health, safety, and general welfare concerns.
FISCAL EFFECTS: In order for the proposed regulations to be effective, additional staff time
and resources will be required for code and law enforcement officers to enforce the regulations,
and for fire inspectors to conduct fire inspections. Should the City choose to use monitoring
software, there will be yearly licensing fees.
Attachments:
Attachment A: Assistant City Manager Recommendations
130
Page 16
Attachment B: Data on STRs gathered by INC
Attachment C: Data on STRs gathered by City staff
Attachment D: Data and other materials submitted by Airbnb
Attachment E: Feedback from public forums
Attachment F: Recommendations submitted by INC
Attachment G: Survey of regulations in other cities
Attachment H: Host Compliance software: summary of services and pricing
Attachment I: Cost estimate for doing vacation rental inspections
Map 1: STRs with legal CUPs and business licenses
Map 2: zoning districts where STRs recommended to be allowed
Report compiled on: April 17, 2017
131
Assistant City Manager Recommended Regulations for Short Term Rentals
April 24, 2017
Page 1
Attachment A
PROPOSED REGULATIONS: SHORT TERM RENTALS
April 24, 2017
A. Legislative findings:
1. Short term rentals provide economic opportunities to short term rental owners and other city
businesses by attracting visitors to engage in economic and social activities within the city.
2. Short term rentals add to a vibrant, diverse and welcoming community by providing
accommodations for a wide variety of visitors, including tourists and travelers, friends and
family of residents, and temporary workers.
3. The primary purpose of R-S and R-1 residential zoning districts is to provide for primarily
single-household and two-household residential and related uses within the city.
4. The rental of sleeping rooms while the owner is present on the property is a primarily
residential use.
5. The rental of a dwelling unit that is owner-occupied more than half the year is a primarily
residential use.
6. Restrictions on parking and noise and requirements providing for easy reporting of concerns
and complaints are necessary to help protect city residents’ peaceful enjoyment of their
residences and neighborhoods.
7. Reasonable, narrowly tailored regulation of short term rentals, including requirements for
fire inspections, liability insurance, and trash removal is necessary to protect the health,
safety and welfare of city residents and visitors.
B. Recommended revisions to Chapter 12, BMC: Business Licensing
That Chapter 12, BMC be revised to make one definition consistent with Chapter 38, and
to add short term rentals to the list of uses exempted from the requirement to obtain a business
license.
Section 12.01.010.A.4. "Home occupationHome-based business" means the use of a portion of a dwelling as an office, studio or workroom for occupations at home by one or more persons residing in the dwelling unit. No home occupation shall occupy more
132
Assistant City Manager Recommended Regulations for Short Term Rentals
April 24, 2017
Page 2
than 20 percent of the gross floor area nor more than 400 square feet of gross floor area. The activity must be clearly incidental to the use of the dwelling for dwelling purposes,
and shall not change the character or appearance thereofhas the meaning ascribed to it in
38.42.1380.
Sec. 12.02.040. - Exemptions.
A. No license shall be required of any person or entity for any mere delivery in the city of
any property purchased or acquired in good faith from such person or entity as the
person or entity's regular place of business outside the city where no intent by such
person is shown to exist to evade the provisions this chapter.
B. No license shall be required of any nonprofit organization as defined by this chapter.
C. No license shall be required of any person under 18 years of age.
D. No license shall be required for any property manager managing or renting less than
three rental dwelling units as defined in 38.42.940.
E. No license shall be required for short term rentals as defined in 38.45.030. EF. The exemptions listed in subsections A, B, C, and D and E of this section do not apply
to a transaction, use, or business involving marijuana.
C. Recommended revisions to Chapter 38, zoning districts: authorized uses
That Chapter 38, Articles 8-13 of the Bozeman Municipal Code be amended to remove the
term “extended stay lodging” as a type of authorized use, and to add “short term rental” as an
authorized use in all zoning districts except for B-1, Industrial zoning districts, and PLI, where Type
3 short term rentals are authorized subject to approval of a conditional use permit in R-1 and R-S
zoning districts, as follows. Note that the NEHMU zoning district authorizes those principal uses
allowed in the R-2 zoning district, and therefore short term rentals would be allowed as a principal
use if these recommended regulations are adopted.
133
Assistant City Manager Recommended Regulations for Short Term Rentals
April 24, 2017
Page 3
Table 38.08.020 (residential zoning districts)
Table of Residential Uses
Authorized Uses
R-S R-1 R-2 R-3 R-4 R-5 R-O RMH
Extended stay lodgings C C C P P P P —
Short term rentals (Type 1) P P P P P P P P
Short term rentals (Type 2) P P P P P P P P
Short term rentals (Type 3) C C P P P P P P
Table 38.09.020 (residential emphasis mixed-use zoning district)
Table of Uses
Table of Uses Maximum Gross Building Area Authorized Uses
Extended-stay lodgingsShort term rentals 40,000 square feet P
Table 38.10.020 (commercial zoning districts)
Table of Commercial Uses
Authorized Uses
B-1 B-2 B-2M B-3
Extended-stay lodgingsShort term rentals -- P P P
134
Assistant City Manager Recommended Regulations for Short Term Rentals
April 24, 2017
Page 4
Table 38.11.020 (urban mixed use zoning districts)
Table of Uses Authorized Uses
Extended-stay lodgingsShort term rentals P
D. Recommended revisions to Chapter 38, definitions
That several definitions in Chapter 38, Article 42 of the Bozeman Municipal Code be
amended as follows:
Sec. 38.42.390. - Bed and breakfast home.
A single-household dwelling which remains owner-occupied at all times providing one or
more guest rooms for compensation, and where food service is limited to breakfast which may be served to overnight guests only.
Sec. 38.42.940. - Dwelling.
A building, or portion thereof, meeting the requirements of the city's adopted International
Building Code and used by one household, as defined by this article, for residential
purposes. Dwelling occupancy duration is typically longer than 30 continuous days. Dwellings may exist in many configurations, including single-household, two-household, multiple-
household dwellings and group homes. Dwellings do not include hotels, motels, extended stay
lodgings or tourist homesType-3 short term rentals.
Sec. 38.42.1040. - Extended stay lodgingsReserved.
Guest rooms intended or designed to be used, or which are used, rented or hired out to be
occupied, or which are occupied for sleeping purposes for guests and contain kitchen facilities for food preparation, including, but not limited to, such facilities as refrigerators, stoves and
ovens. Generally an individual guest will not exceed 30 days stay. This definition includes
dwelling units used, rented or hired out for vacation homes.
Sec. 38.42.1410. - Hotel or motel.
A building or a group of buildings in which lodging is provided and offered to transient guests for compensation; the term "hotel or motel" shall not include a boardinghouse, extended
stay lodgingsshort term rental, lodginghouse or roominghouse.
135
Assistant City Manager Recommended Regulations for Short Term Rentals
April 24, 2017
Page 5
E. RECOMMENDED NEW REGULATIONS FOR SHORT TERM RENTALS
1. Purpose. The purpose of this article is to provide for the regulation of short term rentals
in certain zoning districts within the city in order to preserve neighborhood character
while encouraging economic activity and diversity, and to promote public health, safety,
and welfare.
2. Applicability.
A. The provisions of this article apply only to short term rentals as defined herein. This
article does not apply to any rental of a dwelling unit which is governed by the
Montana Residential Landlord Tenant Act of 1977.
B. Type-1 short term rentals are exempt from sections 7, 8, and 9.
C. A dwelling purchased as a “lower-priced home” subject to the restrictions in
38.43.120, or that received financial support from the city, including but not limited
to down payment assistance, impact fee payment, or other funding, shall not be used
as a Type-3 STR.
3. Definitions.
A. Hosting platform means a person or entity that provides a means through which an
owner may advertise and offer for rent a short term rental to the general public.
B. Owner includes any part owner, joint owner, tenant in common, joint tenant, tenant
by the entirety, or lessee with exclusive possession under a valid lease or rental
agreement, and any agent of the owner such as a property manager.
C. Owner-occupied means the owner occupies the dwelling as his or her principal
residence for more than 50% of the calendar year.
D. Responsible person means the person responsible for addressing all maintenance,
nuisance, and safety concerns related to a short term rental.
E. Short term rental means a vacation home; dwelling as defined in 38.42.940;
accessory dwelling unit; or room within a vacation home or dwelling, rented by or on
behalf of the owner to the general public for compensation for periods of less than 30
consecutive days. For purposes of this article, short terms rentals are classified as:
136
Assistant City Manager Recommended Regulations for Short Term Rentals
April 24, 2017
Page 6
1. Type-1: Rental of one or more bedrooms in an owner-occupied dwelling while
the owner is occupying the same dwelling unit for the entire rental period.
2. Type-2:
a. The rental of an owner-occupied dwelling if the owner is not occupying the
dwelling during the entire rental period.
b. The rental of a permitted accessory dwelling unit (ADU) whether or not the
ADU’s owner is present in the primary dwelling unit during the rental period.
c. The rental of one dwelling unit within a duplex whether or not the duplex’s
owner is present in the duplex’s other dwelling unit during the rental period.
3. Type-3: A short term rental that is not owner-occupied.
4. Where allowed. An owner may establish and maintain a short term rental in all zoning
districts where such use is authorized in Chapter 38, articles 8-11 and 14 subject to the
requirements of this article.
5. Compliance with laws.
A. In addition to the provisions of this article, the short term rental owner must comply
with all other applicable local, state and federal laws, including but not limited to city
parking regulations, including time limitations and ADA parking restrictions; lodging
facility use tax and accommodations sales tax regulations; health department
permitting requirements; the Americans with Disabilities Act; fair housing laws;
building codes and fire codes, and the nondiscrimination provisions in chapter 24,
article 10. Loss of any required permit or license will result in revocation of the short
term rental registration in accordance with section 9.
B. Compliance with all applicable laws and regulations is the sole responsibility of the
owner and city approval of an application for short term rental registration in no way
waives or transfers to the city such responsibility. In addition, the owner is solely
responsible for verifying the use of a property as a short term rental is compatible
with insurance and mortgage contracts, home owners’ association covenants, rental
agreements and any other contracts which govern the use of the property.
137
Assistant City Manager Recommended Regulations for Short Term Rentals
April 24, 2017
Page 7
6. Administration. The director shall collect all registration fees and shall issue
registrations and renewals thereof in the name of the city to all persons qualified under
the provisions of this article and shall have the power to:
A. Make rules. The director shall promulgate and enforce all reasonable rules and
regulations necessary to the operation and enforcement of this article. All rules are
subject to commission review and modification.
B. Adopt forms. The director shall adopt all forms and prescribe the information to be
given therein.
C. Obtain approvals. The director shall submit all applications to interested city
officials for their approval as to compliance by the applicant with all city regulations
which they have the duty of enforcing.
D. Investigate. The director shall investigate and determine the eligibility of any
applicant for a short term rental registration as prescribed herein.
E. Examine records. The director shall examine the books and records of any applicant
when reasonably necessary to the administration and enforcement of this article.
F. Give notice. The director shall notify any applicant of the acceptance or rejection of
the application and shall, upon the director’s refusal of any registration, at the
applicant's request, state in writing the reasons therefor and deliver them to the
applicant. New applicants will be notified within seven working days.
G. Record keeping. The director shall maintain at all times a record of registered short
term rentals, including the full name of each registrant, the address at which such
short term rental is operated, the date of issuance, the fee paid therefor, the telephone
and address of the applicant, and the time such registration will continue in force.
7. Registration. The following requirements apply to all short term rentals unless
otherwise noted.
A. General. It is unlawful for any person to operate within the city a short term rental
without having first registered the short term rental with the Department of
Community Development. A separate registration shall be required for each short
term rental.
138
Assistant City Manager Recommended Regulations for Short Term Rentals
April 24, 2017
Page 8
B. Registration of Type-1 short term rentals. Owners wishing to operate a Type-1
short term rental must register the short term rental with the Department of
Community Development on a form provided by the city.
C. Application for registration of Type-2 and Type-3 short term rentals. The
applicant must complete and submit an application for a short term rental registration
to the Department of Community Development using a form provided by the city.
Before the application will be accepted by the director, the applicant must provide:
1. The name, telephone number, address, and email address of all property owners
and of the responsible person, if different. If the property owner is a business, the
name(s) and contact information of all business owners must be provided.
2. A description of the short term rental, including street address, number of
bedrooms, maximum occupancy pursuant to this article, and number of off-street
parking spaces available for guests’ use.
3. A site plan.
4. Certification the applicant has read and understood the standards in section 8 and
that the property applied for meets the standards.
5. For Type-3 short term rentals in R-1 and R-S zoning districts, applicants will be
subject to the requirements of BMC 38.40 which requires noticing of property
owners within a 200-foot radius.
6. The registration fee.
7. Copy of application for health department public accommodation license.
D. Safety inspections of Type-2 and Type-3 short term rentals.
1. Initial inspection. Prior to issuance of a short term rental registration, an
inspection by the city fire department must be completed and signed off by a city
fire inspector, or by an NFPA-certified fire inspector using an inspection form
approved by the city fire marshal. A fire inspection form will be provided to the
applicant with the application materials.
2. Re-inspection. If re-inspection or multiple visits by a fire inspector are required
before the inspection form may be signed, additional inspection fees will apply.
3. Subsequent inspections; self-certification. The city fire marshal may require a
repeat inspection on a periodic basis, and at any time upon complaint or evidence
of non-compliance. Applications for annual renewal of registration will include a
self-certification by the applicant that they continue to comply with the fire
inspection checklist. A repeat inspection will be required if a registration is
allowed to lapse.
139
Assistant City Manager Recommended Regulations for Short Term Rentals
April 24, 2017
Page 9
E. Safety hazards. The short term rental owner acknowledges that the city, or any
authorized representative thereof, have the right to suspend operation of the short
term rental when the rental is causing or contributing to an imminent public health or
safety hazard.
F. Fees. Short term rental registration and inspection fees shall be established by
resolution of the city commission.
G. Listing of registration. The short term rental registration form will require the
applicant to agree to inclusion in an online listing of short term rentals registered with
the city, to include the registrant’s name, address and contact information.
H. Additional requirements for new registrations of Type-3 short term rentals in R-
1 and R-S zoning districts.
1. Notification of neighboring property owners. The applicant for a Type-3 short
term rental registration in R-1 and R-S zoning districts must provide written notice
on a form provided by the city to all owners of properties within 200 feet of the lot
on which the proposed short term rental is located. The notice must include the
name, address, telephone number and email address (if any) of the responsible
person.
2. Conditional use permit. Applicants wishing to register a Type-3 STR in R-1 and
R-S zoning districts must first receive approval for a conditional use permit in
accordance with 38.19.110.
I. Change in ownership. An STR registration does not run with the land, and a change
in ownership of the STR terminates the STR registration. The new owner wishing to
continue operation of the property as an STR must apply for registration following
the process described in this section.
J. Expiration. Registrations issued pursuant to this article are valid for one year from
the month in which such registration is issued and will expire automatically unless
renewed in accordance with this section.
K. Renewal. The registrant may apply to renew the registration annually using a form
provided by the city. It is the registrant’s responsibility to renew the registration on
time even if a courtesy reminder is not received by the registrant.
140
Assistant City Manager Recommended Regulations for Short Term Rentals
April 24, 2017
Page 10
8. Short term rental requirements. The following requirements apply to Type-2 and
Type-3 short term rentals unless otherwise noted.
A. Short term rental agreement; written rules for guests. The short term rental
owner must enter into a written rental agreement with the guest for each stay in the
short term rental.
1. The guest must be provided with a written list of rules applicable to the short term
rental with the rental agreement, and the rental agreement must include a written
acknowledgement by the renters of their agreement to comply with such rules.
2. The list of rules must include those rules required by this article to be included.
3. The list of rules must be prominently displayed within the short term rental.
B. Responsible person. The applicant must designate a person responsible for
addressing all maintenance, nuisance, and safety concerns related to a short term
rental. The responsible person must reside or have their principal place of business
within the city limits of Bozeman. The responsible person must be available to take
and respond to reports of concerns and complaints 24 hours per day, 7 days per week
during rental periods. The name and contact information for the responsible person
must be included in the list of rules.
C. Maximum occupancy. The maximum occupancy of a short term rental is two
persons per bedroom plus two additional persons, subject to available parking spaces.
The maximum occupancy must be included in the list of short term rental rules.
D. Trash removal. The responsible person must ensure proper disposal of solid waste
pursuant to local and state rules, regulations and laws. The schedule for trash and
recycling collection and instructions for proper disposal must be included within the
short term rental rules.
E. Signage. During a rental period, there must be a sign posted inside the front door of
the short term rental showing the locations of all fire extinguishers in the unit, the gas
shut-off valve, and fire exits.
F. Noise and nuisance
1. The owner of the short term rental must ensure that use of the short term rental by
guests is in compliance with the noise provisions of chapter 16, article 6 and all
nuisance provisions of the Bozeman Municipal Code.
141
Assistant City Manager Recommended Regulations for Short Term Rentals
April 24, 2017
Page 11
2. A prohibition against making loud noise in such a manner as to disturb the quiet,
comfort or repose of a reasonable person of normal sensitivity must be included in
the short term rental rules.
3. All outdoor activities producing noise discernible from a neighboring property
shall cease by 10:00 p.m. This requirement must be included in the short term
rental rules.
G. Display of short term registration number. The owner must include the short term
rental registration number in all listings of the short term rental on any hosting
platform and print advertising.
9. Violations; enforcement.
A. Registration suspension or revocation. The city manager may suspend or revoke a
short term rental registration when the registrant commits one or more of the
following acts or omissions:
1. Failure to comply with any provision of this article;
2. Operating or allowing the operation of the short term rental in such a manner as to
create a public nuisance, cause a breach of the peace, constitute a danger to the
public health, safety, welfare or morals, or interfere with the rights of abutting
property owners;
3. Cancellation of the health department’s public accommodation permit, tax
authority registration, or any other required permit; or
4. The securing of the registration by fraud or misrepresentation, to specifically
include false or incorrect information on the registration application.
B. Procedure. Should the city manager decide to suspend or revoke a registration, the
registrant will be given notice and an opportunity to respond following the procedures
in 12.02.180, except that should the city manager determine the short term rental or
its operation present a safety hazard or require immediate remedy, the city manager
may order operation of the short term rental to cease immediately.
C. Appeal. The registrant will have the right to appeal the decision of the city manager
by following the provisions of 12.02.190.
D. Violation constitutes a misdemeanor. In addition to suspension or revocation under
subsection A of this section, a knowing violation of this article constitutes a
misdemeanor punishable as described in 1.01.210.
142
June 27, 2016 To: Mayor Carson Taylor, Deputy Mayor Cyndy Andrus Commissions Chris Mehl, I-Ho Pomeroy, & Jeff Krauss From: InterNeighborhood Council (INC) RE: Short Term Rental Concerns for Residential Neighborhoods Neighborhoods are an integral part of the city of Bozeman. They are at the center of what makes Bozeman a viable and livable community. The City clearly values neighborhoods and their input. The creation of the Neighborhood Recognition Ordinance, the InterNeighborhood Council (INC) and the hiring of a full-time Neighborhood Coordinator show the City’s commitment to Bozeman’s neighborhoods. An issue that is affecting viable residential neighborhoods in Bozeman and around the country is short-term rentals (Extended Stay Lodging), where people rent a place for less than 30 days. In 2013 there were 140 listings in the Bozeman area on VRBO alone. Today there are almost 300. Of the first 50 VRBOs listed, 13 are located in Bozeman in R1 and R2 zoning or 25% and none of these have the required City Conditional Use Permit (CUP). At the recent May 16, 2016 City Commission meeting there was considerable discussion and concern about the rapid growth of short-term rentals (such as via VRBO, Airbnb and Craigslist). The INC is also concerned about this growth and its impact on the quality of life in residential neighborhoods and this issue was raised to you in our annual State of the Neighborhoods presentation earlier this year. We commend the Commission for moving forward to address this issue and to review and revise current regulations in the next 6months so they can be included in the updated Unified Development Code. The Commission also indicated at their May 16 meeting that you wanted to put an emergency ordinance on an upcoming agenda. Such an ordinance would allow the City to put on hold new CUP applications for short-term rentals in R1, R2 and RS until current regulations can be revised. The INC recommends the Commission approve an emergency rule or an “interim zoning ordinance” at its July 11 meeting. This would put the brakes on new short-term rental CUP applications, which would allow time for City staff and the community to discuss where short-term rentals should be allowed and how they should be regulated. These short-term rentals not only affect the quality of residential neighborhoods but also the availability of affordable housing. An “interim zoning ordinance” would send a powerful message to the community that the City cares about its neighborhoods and expects short-term rentals to be legal. Bozeman’s InterNeighborhood Council (INC) Jennifer Rockne, Chair & INC representative for SCAN – South Central Kathy Powell, Vice Chair & INC representative for UNA – Univeristy Neighbors Bob Wall, Secretary and & INC representative for SENA – Southeast & INC Representatives from: BPNA – Bogert Park BCNA – Bozeman Creek Bozeman Ponds Loyal Garden MarLin – Marwyn-Lindle NHVN- New Hyalite View Network NENA – Northeast VUNA – Valley Unit
143
Vrbo
11/3/2016
1055 hrs
144
Airbnb
11/3/2016
1110 hrs
145
Mountain home
11/3/2016
1120 hrs
32 homes
1/3 in Bozeman
146
Approximate numbers for Vacation Rentals in the City of Bozeman on 11/3/2016
Top vacation home rental websites in 2013/2014 per NY Times (1-5 in no particular order)
Numbers listed below are rental properties that appear to be in city limits. Example: VRBO has 286 total properties on their website listed
as “Bozeman, MT”. It appears only 106 (average) are in city limits.
1. VRBO –106
2. Airbnb –226
3. Home Away –166
4. Tripadvisor/vacation rentals –70
5. Roomorama –no properties
Private Management Companies -? (example: Montana Home)
147
January 12, 2017
Hon. Carson Taylor
Mayor
City of Bozeman
City Hall
P.O. Box 1230
121 North Rouse Avenue
Bozeman, Mt. 59771
ctaylor@bozeman.net
Re: Home Sharing Laws in Bozeman, Montana
Mayor Taylor,
On behalf of Airbnb, I urge the City of Bozeman to adopt regulations that support
responsible home sharing and the economic value it provides to households and
businesses in your community.
While we strongly believe that short term rentals (STR) must comply with all health,
safety, construction, zoning and fire codes, and should include insurance,1 blunt
prohibitions on STR activity will hurt hundreds of middle class families who rely on
home sharing to make ends meet and the scores of local businesses that benefit from the
additional foot traffic generated through home sharing.
As a result, we hope you choose to address STR in a comprehensive manner that is in
the best interest of the residents and businesses of your city.
Home sharing is an increasingly important component of the Big Sky economy. Last
year alone, 1,800 Montanans welcomed 77,000 guests. In addition, 54,000 Montana
residents used Airbnb to travel domestically and abroad.
The vast majority of Montana hosts are middle class residents who share their homes
occasionally to pay for their mortgage, medicine, and student loans, or save money for
retirement or a rainy day. In fact, last year, the typical host shared their home for fewer
than three days a month, bringing in $5,200 to help make ends meet.
These dollars not only help households make ends meet, but also contribute to spending
at small businesses in our neighborhoods. An average of 35 percent of guest spending
occurs in the neighborhood where they stay, bringing economic benefits to small
businesses well beyond the traditional tourist hotspots.
1 Airbnb provides all hosts and guests with a $1 million insurance policy. For more information, see:
https://www.airbnb.com/host-protection-insurance; https://www.airbnb.com/guarantee.
148
Bozeman has one of the largest communities of Airbnb hosts and users in the state. In
2016:
• There were 300 Active Hosts who welcomed 13,000 guests to 350 listings, with
the typical host earning $5,500 over the course of the year.
• 72 percent of Bozeman hosts are women, with the average host age being 44.
• 37 percent of hosts are over 50. Supplemental income from STR is particularly
important to this population, which often struggles to “age in place” on fixed
incomes.
• The typical listing was rented for 49 nights, highlighting the fact that most hosts
are not full-time commercial operators, but instead rent out their home or a
portion of their home during vacations or other times when they are out of town.
In fact, nearly 80 percent of listings are rented for fewer than 90 days a year, with
only 5 percent of listings renting for more than 180 days a year.
• Guests stayed an average of 3.3 nights per stay, with an average group size of only
2.4 people, showing that short-term rentals on Airbnb are primarily couples and
families.
• The average age of guests was 40.
• In addition to those who visited Bozeman using Airbnb, 12,000 Bozeman
residents used Airbnb to travel elsewhere in the U.S. and abroad in 2016.
Bozeman should embrace this community by following the lead of other municipalities
that have passed comprehensive regulations that recognize the benefits of home
sharing.
We look forward to working with you to craft regulations that protect public safety and
quality of life while ensuring that home sharing can continue to be an economic boon to
your community.
Please don’t hesitate to reach out if you have any questions or concerns.
Sincerely,
Andrew L. Kalloch
Airbnb
CC: Hon. Cynthia Andrus, Deputy Mayor
Hon. Chris Mehl, Commissioner
Hon. I-Ho Pomeroy, Commissioner
Hon. Jeff Krauss, Commissioner
149
Summary of comments collected at the
Short‐Term Rental Community Forums
THEME: REGULATIONS
WORST FEARS:
STRs are banned and inability to continue renting home as a STR (22)
Loss of income (2)
Over regulation (13)
Not owner occupied
Confusing regulations that are difficult/impossible to enforce (3)
STRs are required to be owner‐occupied
City would enact regulations without input from owners
(The process to approving an STR) is not fair & equitable (4)
STRs are not allowed in R‐1 (4)
STRs are not allowed in R‐2 (3)
Neighborhood is only LTR instead of owner‐occupied
STRs are primarily Investment (properties) (3)
Not enough regulations on STRs in other zoning districts
Fears will determine policy instead of facts/data (3)
(Operating a STR will be a) Violation of HOA covenants
Too many (in a neighborhood); (policy suggestion) 2‐3 per neighborhood block
Any fee (for permitting an STR)
Taxing on City services ‐ pressure on City services without compensation (if there is
not a registration fee for STRs)
Allowing this business use will fundamentally change our understanding of zoning
laws that have been in operation for generations.
If more STRs (are) allowed, the City, county, and State laws don't make it too
difficult to do that.
(There won't be) equality for all landlords ‐ STRs & LTRs (4)
(Policy suggestion) limit 1 STR per person or entity
BEST OUTCOMES:
Regulations that do not prohibit STRs
(There is a) Streamlined/easy process (to register a STR)
City would realize there are existing rules (that) address most fears
150
Minimize the # of STRs (in Bozeman
If STRs are regulated apply same regulations to LTRs
Balanced & fair plan that will differentiate between stand alone and owner
occupied STRs (less restrictions for owner‐occupied STRs) (2)
Market regulations (where booking reviews regulate the market) (4)
Regulate R‐2/Ban R‐S/R‐1 (23)
(The only STR regulations should be) Regulating for health/safety & paying hotel tax
(11)
(STRs should be only) Hosted properties (where the) owner/manager onsite
STRs are allowed in all zoning districts with a maximum of 90 days as a rental
(Only allow) 1 STR per owner
Create a new zoning district that allows only STRs
Owners be allowed to manage their own primary residence. Whether it be renters
over or under 30 days without calling it a commercial or business enterprise (9)
THEME: ENFORCEMENT
WORST FEARS:
No enforcement or imbalanced enforcement of the regulations (14)
The cost of enforcement makes (STRs) a detriment to City rather than a benefit
BEST OUTCOMES:
STR regulations are enforced (3)
THEME: NEIGHBORHOOD CHARACTER
WORST FEARS:
Neighborhood (is) dominated by STRs
Dark neighborhood because STRs aren't allowed
Poorly managed units (due to) out of state owners, noise, trash, parking (16)
STRs lack respect for neighborhoods (3)
(STRs are) not part of the community/neighborhood (12)
Safety
Development companies purchase multiple properties as income properties driving
out existing residents and the community spirit.
Bozeman will transition into a transient resort community.
Losing sense of community they're too many STRs in one area
Reduce real long‐term neighbors who are accountable to what goes on in
community
151
Deterioration of neighborhood
Absentee owners will lead to no pride in neighborhood.
Neighborhoods transformed into businesses.
Neighborhoods become like hotel‐row: very busy, increased parking and noisy
Loss of neighborhood and sense of place.
Erosion of single family neighborhoods with congestion, noise ‐ fireworks, parking
problems
Changing quality and character of R‐1, R‐2 neighborhoods
Absentee owners managing STRs
Worried about not having long‐term family communities + +
If allowed, fragmentation from a family neighborhood to a much more commercial
neighborhood with many people coming and going. + +
Allowing business use of homes will fundamentally change the family‐oriented
quality of the neighborhood, that it will reduce the participation of residents in city
life.
Disrupting neighborhoods
BEST OUTCOMES:
Well managed properties
Helps keep the scale of neighborhood
Neighbors don't know it's a STR
Not deteriorating
No parties
Fun & enriching for my family and the people renting
STRs remain attractive
Protection of neighborhood character
Visitors develop greater appreciation for Bozeman and the community by staying in
a STR
(STRs would have) Well‐maintained properties
Contribute to neighborhood
Add diversity to neighborhood
Maintained at a pristine condition.
Create safety and upkeep by not having empty homes while owner away + +
Fair and reasonable controls for STR users and owners in all zones so that owners
and users have options, maintaining equal vitality in all neighborhoods. + +
Balance of full‐time, ST, LT occupants in a neighborhood.
Ability to share our community with guests who typically come back more than
once.
152
THEME: BUSINESS OF STRs
WORST FEARS:
(Increase in) Second & third homes
More big chain hotels
Absentee owners
Being sued over STR (rules/regulations) as the owner
Drive up property values as investors buy up properties
Development companies purchase multiple properties as income properties
driving out existing residents and the community spirit.
Exploitation by non‐local homeowners/renters
Expensive legal challenges
Hotel lobbying to influence regulation
Conglomerates making STRs a commercial enterprise with multiple non‐friendly
properties +
Replace primary residences with business‐oriented occupants.
All‐cash absentee investors who aren't invested in community. +
BEST OUTCOMES:
Businesses would respect the desires of residents and families. Balance needs of
their business with needs/desires of families
Prevent speculative or commercial use of properties as STRs
THEME: COMMUNITY
WORST FEARS:
Loss of positive experience of renting basement
Not meeting or interacting with travelers
Inability to show visitors best part of Bozeman: people and neighborhoods
Loss of Bozeman's reputation as a friendly city
Lack of diversity
Visitors to Bozeman don't have a nice home to stay in ‐ forced to stay in hotel.
Cost‐prohibitive for visiting families if they have to stay in hotel.
Loss of diversity of visitors. (if STRs are banned)
Gentrification
Denied opportunity of City growth if not allowed.
Lack of opportunities to use my home
153
City will enter this arena because (of) a few complaints ‐ miss big picture
Too much focus on STRs not on (long‐term) rentals
By not allowing STRs it takes away the number of tourists. It adds diversity if
managed professionally.
STRs will be unavailable as an option for visitors and homeowners + + +
Unrealistic community expectations (unrealistic to think there shouldn't be STRs)
Bad stories will outweigh good stories of STRs and it will affect the route of what is
accomplished.
BEST OUTCOMES:
No Problems
Exercise freedom over my domicile
Positive reputation for Montana
Ambassador for Bozeman
Residents having opportunities to befriend visitors from a far enriching their lives
Community building ‐ goodwill ambassador for Bozeman
Continue to have STRs to meet folks from all walks of life
Opportunity to share our town
Meeting new people for neighbors, renters, homeowners, everyone…
Allowing STRs attracts more diverse travelers.
Bozeman community spirit stays intact.
Opportunities to meet people from all over
Convenient home‐like setting to stay in
Fills community need for academics, doctors, nurses, people building homes,
people coming to work for short‐term
Greater options for visitors and seasonal workers
Enhance community and appreciate it
(STRs are a better) Option than staying at Chain hotels = better quality tourist
experience (at an STR)
Positive introduction to Bozeman for those who are looking to move here
Offering a more welcoming option for tourists
Income‐generating, community building and friendship enriching
Contributes to diversity in community
Personalizing Bozeman to a global audience. + + +
Fostering community‐minded tenants; return visitors who sometimes become
residents.
STR standards are higher which results in better maintained homes
Maximizing the use of existing housing
154
Students would be happy to not pay rent over the summer and (the rental) could
be used as an STR.
Part‐time residents can rent out their home. i.e. Snow birds.
STRs could turn into long‐term community members.
THEME: ECONOMIC
WORST FEARS:
They are banned ‐ (loss of) additional income
People stop coming to Bozeman because no STRs
Loss of income
Loss of income to community
Lowering property values
Loss of income for all ‐ city & state lose $ (taxes and fees) ‐ so would owner
That they (STRs) be prohibited and loss of income and (in)ability to keep up with
rising taxes and lifestyle in retirement
Loss of income to other small businesses ‐ housekeeper, lawn care
Losing funding (because STRs are banned)
Want everyone doing STR to pay tax (not a worst fear ‐ wants equality of those
paying taxes)
Affordable housing impacts
Loss of income leads to selling house
Decrease in property values
Increase housing prices
Decrease in LTR (available to those who need rentals)
Lack of opportunity for less wealthy to buy
(Banning STRs will create a…) Loss of opportunity for income (and ability to keep
up with) increase in taxes
Become financially prohibitive to operate an STR
Drive up property values as investors buy up properties
So many STRs that STR owners lose business.
Loss of long‐term rentals
Price inflation of rentals
College rentals will take over if we don't focus on that or STR
Taking money/clients from hotel industry.
Availability of short‐term housing for employees and workers doing temp work
Due to changes in my own work and career, fear not being able to afford my own
home while traveling if I can't rent it while traveling.
155
If not allowed, (there won't be) not enough availability of short‐term housing for
out‐of‐town visitors, travelers because Bozeman (is) growing so rapidly + +
BEST OUTCOMES:
Free flowing market
More income to City, state
Increased income to pay taxes
Income potential
Income opportunity for owner and City of Bozeman
Makes housing more affordable
Higher density
Increased property values
Generate revenue ‐ bed tax, convention visitors bureau
Tourism
Ability to rent x2
Terrific income source especially for single heads of household
Referral for Bozeman business
People are able to keep up w/ rising tax and bills and not forced to leave.
Affordable lodging. STRs are a good value.
Protecting the market of LTRs
Additional/off‐season income for homeowners.
Allowing the younger generation to be able to afford a house in Bozeman.
Boost to all segments of our economy.
STR renters stay longer (than those at hotels) and spend more money in our
community.
STR income helps pay for increased property taxes
Held economy of Bozeman
Taxes to state
Added income helps people with limited income live in Bozeman
STR contribute to the economy: restaurants, shopping
Comfortable retirement due to STR income
Increased tax base
Increased equity for homeowners
Opportunity for additional income
Quite a bit of money spent in our community at shops and restaurants by visitor
Job creation for locals. +
Less wear and tear on neighborhoods; more parking availability if STRs are allowed
Being able to off‐set expenses by having a STR
Helps economy of Bozeman: create jobs; supplemental income +
156
STRs make jobs. More than LTR.
Income generation for many ‐ restaurants, guides, etc.
Off‐setting rising homeowner costs in the Valley.
Allow people to stay in their homes as a retired, fixed income
Income generation that is going directly back into the community + +
Allow property owners to obtain reasonable return on investment in their property
while complying with ordinances and pay appropriate taxes and not overburden
infrastructure
Short‐term workers/non‐tourist will have reasonably priced accommodations.
157
Short-Term Rental Recommendations from The InterNeighborhood Council (INC) February 16, 2017 To: Mayor Carson Taylor Deputy Mayor Cyndy Andrus Commissioners: Jeff Krauss, Chris Mehl, and I-Ho Pomeroy Chuck Winn, Assistant City Manager & City’s Short-Term Rental Task Force Chris Kukulski, City Manager From: The InterNeighborhood Council (INC) RE: Short-Term Rental Recommendations As the number of short-term rentals (STRs) grows in Bozeman and around the country, it is important to address their impact on the community and neighborhoods. The InterNeighborhood Council (INC) commends the City Commission for directing staff to engage the community in a discussion about STRs, gather information on how other cities are dealing with STRs, and work to draft an STR Ordinance for Bozeman. The INC understands the interest in STRs by visitors and the benefits that hosts receive from renting STRs. At the same time the INC is concerned about protecting neighborhood livability and character if motel-like businesses are present. The INC offers the following recommendations to ensure healthy neighborhoods and allow STRs where appropriate. It is also essential that STR regulations are enforced and administered effectively and consistently. To accomplish this, the city needs to staff appropriately.
INC Recommendations for Short Term Rentals 1. Revise the definition in City Code from “Extended Stay Lodging” to “Short-Term Rental”. State simply that a Short-Term Rental is the rental of a room, whole house or ADU for less than 30 days.
2. Require a License for all STRs with an annual renewal. License would have a fee. A new license would be required if the property is sold or has a new owner. Annual renewal would have: a self-certification (checklist) process to verify fire, health and safety, insurance, bed tax has been paid to state and potentially number of nights rented. Include a note to STRs in application information and a FAQ on-line sheet that homeowners insurance usually does not cover business liability or damage. Suggest they contact their homeowners insurance. 3. License number should be included on all advertising – online or print. This suggests to the reader that the STR listing is legal and allows a way for enforcement to verify STRs operating without a license.
4. Require a Fire & Health & Safety inspection with fees to cover cost of inspections.
With initial application for license
Annual inspection lottery - all self-certifications would be put in a lottery and small percentage would be randomly inspected each year. 5. Follow Minimum parking requirements in current City Code 6. Limit number of guests to 2 per bedroom, plus an additional 2 unless parking minimum requirements reduce number of allowed guests.
158
2 7. Where to allow STRs and in what Zoning Districts:
Type 1 Owner of STR On-Site Renting a room or Permitted Accessory Dwelling Unit (ADU)
□ Allow in All Zoning Districts
Type 2 Primary residence (As shown on Tax return - owner at home 51% of time or more) Renting whole house; Owner Not home when renting STR
INC representatives have several different opinions about how to mitigate the impact of STRs on a neighborhood.
□ Option A: Allow in all residential zoning districts or □ Option B:
• Allow STRs in R-2, R-3, R-4, R-5, R-O.
• Do not allow or limit STRs in R-1 and R-S Possible ways to limit number of STRS: 1. Limit number of days per year that a residence can be rented as a STR (90 days) 2. Create Density Caps 3. Require Conditional Use Permits (CUPs)
Type 3 Not Primary Residence NOTE: The INC has concerns about people or companies buying multiple homes to use primarily as STRs. No owners live in these homes. We encourage the City to find a way to regulate or prevent this.
□ Allow in R-2, R-3, R-4, R-5, R-O
□ Do not allow or limit STRs in R-1 and R-S Possible ways to limit number of STRS: 1. Limit number of days per year that a residence can be rented as a STR (90 days) 2. Create Density Caps 3. Require Conditional Use Permits (CUPs)
8. Notify neighbors when a STR application is made. Provide 30 days for comment. An appeal process should be in place for neighbors as well as the Primary owner applying for an STR license. 9. Post STR rules onsite and send STR rules to renters as part of rental agreement and terms of use. Address noise quiet hours, no outdoor sleeping, camper or tents, trash, snow removal, etc. 10. Require 24 hr local contact for STR posted inside residence, mailed to all nearby neighbors and listed on City on-line STR site. Also include who to call at city with complaints or problems.
11. Enforcement:
Require all STRs, including those currently having CUPs, to be in compliance with new regulations going forward.
Fine STRs operating without a license.
Develop tiered approach for violations by licensed STR such as: o First time offense – written warning o Second time offense – revocation of license for 6 months
o Third offense – revocation of license for 2 years It is essential that STR regulations are enforced and administered effectively and consistently.
159
3 Thank you for reviewing and considering these recommendations for STR regulations. The City has invested in keeping neighborhoods livable and healthy. STRs offer some benefits to homeowners and neighborhoods, but they can also create issues that impact neighborhoods negatively if not regulated well.
InterNeighborhood Council Jennifer Rockne, Chair and representing South Central Association of Neighbors Kathy Powell, Vice Chair and representing University Neighborhood Association Maddy Weisz, Valley Unit Neighborhood Association Jack Tyler, Flanders Creek Neighborhood Association Eli Anselmi, Loyal Gardens Neighborhood Association Ginny Cowan, Bozeman Creek Neighborhood Association Gail MacMillan, Bogert Park Neighborhood Association Dave Chambers and Paul House, Northeast Neighborhood Association Joe Genovese, New Hyalite View Neighborhood Evette Allison, Marwyn-Lindley Neighborhood Lisa Prugh, Cooper Park Neighborhood Association Dave Gibson, Southeast Neighborhood Association
160
1
SHORT TERM RENTALS – SURVEY OF REGULATIONS
Austin Hood River OR Missoula Flagstaff Vail Breckenridge
How
implemented
Under Zoning-Use & Dev.
Regs-Add’l Reqts for Certain
Uses (25-2-288 et seq)
Requires separate STR
license applications for:
1 = Owner occupied (SF, MF
or duplex)
2 = Not owner occupied (SF
or duplex)
3 = Not owner occupied (MF)
“STR Operating License”
added under Title 5
Business Taxes, Licenses
& Regulation; added as
approved use to Title 17,
Zoning
Adds “Tourist Homes” as
principal use in all
residential, business and
commercial, and
industrial and
manufacturing zoning
districts (except M1 and
M2); adds standards;
adds Tourist Home Unit
(THU) definition
Regulated by
Coconino County.
Requires vacation
rental permit
including site plan
approval.
Added short term
rentals to the
business license
requirement.
Regulations
contained in
Business
Occupational
Licenses and Tax
section of city code.
Single-family homes
used as
“accommodation
units” are subject to
special conditions.
License
Required?
YES; annual YES; annual STR
Operating License
YES; annual Tourist Home
Registration
YES; renewable 5-
year vacation rental
permit
YES; annual
business license
YES
Fee New license:
$393 + $50 “notification fee”
Renewal: $236
Inspection: $225
Reinspection: $100
Application review: $75
Annual license: $150
$50 initial; $25 renewal $200 Annual fee of $150
if renting up to two
STRs for more than
14 days, and $325 if
renting three or
more STRs, plus a
per-unit charge of
$17 (if within the
“core” of Vail), or
$12.75 (if outside
the “core”)
Annual fee
depending on size:
Studio: $75
1-bed: $100
2-bed: $125
3-bed: $150
4+ bed: $175
Definitions STR types:
Type 1 Primary: owner-
occupied at least 51% of the
time; is an entire dwelling
unit; recorded w/county as a
homestead
Type 1 Secondary: associated
with an owner-occupied
principal residential unit; and
an entire dwelling unit
Type 1 Partial Unit (room
rental): must include
exclusive use of a sleeping
“Hosted Homeshare”=
the transient rental of a
portion of a dwelling
while the homeowner is
present
(“transient rental”= rental
of dwelling unit or
room(s) for compensation
on <month-to-month
basis)
“Vacation Home Rental”=
“Tourist Home is a private
home or
condominium that is not
occupied by an owner or
manager and is rented,
leased or furnished in its
entirety to guests on a
daily or weekly basis.”
“Vacation Rental”
shall mean the
business of letting
any Dwelling or any
portion of any
Dwelling for
occupancy for any
time period less than
thirty (30)
consecutive days in
duration in a
residential zoning
district to a single
“a rental of an
accommodations
unit or dwelling
unit, or any room
within an
accommodations
unit or dwelling
unit, for a term not
in excess of thirty
(30) consecutive
days.”
“Accommodation
unit” defined as
“Separate and
distinct living units
including
condominium,
townhome, house,
trailer, studio unit,
condo-hotel units,
or any such other
similar unit which is
rented to any
person, who, for
161
2
Austin Hood River OR Missoula Flagstaff Vail Breckenridge
room and shared use of full
bathroom; owner is
“generally present” for
duration of rental; not more
than one partial unit at the
property is simultaneously
rented for any period <30
consecutive days; limited to
single party of individuals
Type 21: SF or duplex; not
owner-occupied or
associated with owner-
occupied principal residence;
are an entire dwelling unit
Type 3: MF (apartments/
condos); not owner-occupied
or associated with owner-
occupied principal residence;
an entire dwelling unit
transient rental of entire
dwelling unit
Family through one
contract at any given
time.
consideration, uses,
possesses or has the
right to use or
possess such
accommodation
unit, regardless of
the number of days
during a license year
such unit is rented.”
“short term”
defined as less than
30 days
Density cap? YES, except for Type 1
For Type 2 app: 3% limit of
SF and duplex STR units (type
1 or type 2) within each
census tract. May not be
located on a lot that is within
1000 feet of a lot on which
another Type 2 is located.
For Type 3 app: In a non-
commercial zone, no more
than 3% of total # of dwelling
units at the property, and no
more than 3% of total # of
units located within any
building are STR Type 3 uses;
limit is 25% in commercial
zones
NO YES
No more than 1 THU
permitted per parcel in
R215, R80, R40, R20, R8,
R5.4, R3.
No more than two units
per building in RT2.7,
RT10, RT5.4, RM2.7,
RM1.5, RM1, RM0.5,
RMH and unzoned lands
NO
NO NO
1 Austin is no longer accepting Type-2 STR applications, and plans to ban them by 2022. They have been sued by the Texas Public Policy Foundation.
162
3
Austin Hood River OR Missoula Flagstaff Vail Breckenridge
Regs
distinguish
between zoning
districts?
YES
commercial and non-
commercial have different
density caps
YES
R-1, R-2, R-3=HH and VHR
accessory use to
residential use
C-1, C-2=HH and VHR
permitted use
YES
density caps apply in
certain zoning districts
YES
Principal use in
residential zones and
mobile home zone
YES
Splits Vail into Zone
1 (town “core”) and
Zone 2 (outside
core). Business
license fee is higher
in core.
NO
Max occupancy -No more than 2 adults per
bedroom plus 2 additional
adults may be present in a
STR between 10:00 pm and
7:00 am
-No more than 10 adults at
one time, or 6 unrelated
adults
Except in residential zoning
districts limit is no more than
4 unrelated adults
2 persons per bedroom
plus two additional
persons
No more than one guest
per 150 square feet of
floor area
2 per bedroom plus
2, not to exceed 10
persons.
NO NO
Parking Not addressed (same as any
dwelling unit). Any parking
restrictions are included in
packet of information
provided by Director with
each license.
1 hard-surfaced off-street
parking space per every
two bedrooms; round up.
Also can use shared
parking agreement within
250 feet.
Not addressed (same as
any dwelling unit)
one on-site parking
space per bedroom
with a minimum of
two on-site parking
spaces required. All
on-site parking
spaces
shall be located upon
improved surfaces
set aside for that
purpose in a site plan
accompanying the
permit application.
All vehicles shall be
parked on-site in said
spaces
Not addressed
(same as any
dwelling unit?)
Only on-site, or in
city-designated off-
site parking lot
Owner-
occupied or
primary
residence
requirement?
YES for Type 1 YES, in residential zones
must be primary
residence.
NO. a Tourist Home is “a
private home or
condominium that is not
occupied by an owner…”
NO NO NO
163
4
Austin Hood River OR Missoula Flagstaff Vail Breckenridge
Local contact
required 24/7?
YES YES, all zones. Local=w/in
10 miles. Must be
available 24/7
YES YES NO YES
Day limit? NO YES, only in residential
zones. 90 days/year
NO NO NO NO
Application –
submittal reqts
-owner name & contact etc
-certification by prop owner
that property not subject to
outstanding code or state
law violations
-proof of property insurance
-proof of payment of hotel
occupancy taxes
-owner name & contact
etc
-proof of residential use
(residential zones only);
-Listing info if property
listed online;
-proof of garbage service;
-completed fire safety
checklist (also reqd for
renewal)
-Site and parking plan
(only in residential zones)
-owner name & contact
etc
-zoning designation
-square footage of unit
-fire inspection checklist
Site plan
information;
application form asks
whether HOA is
aware; property
management plan
demonstrating how
the VR will be
managed and how
impacts to
neighboring
properties will be
avoided
-owner name &
contact etc
Owner name and
contact; property
info; info on
proposed use (short
term/long term)
Safety
requirements;
Inspection
For Type 2 and Type 3,
structure must have valid
cert of occupancy, and must
have been determined by
the building official not to
pose a hazard to life, health,
& public safety based on a
minimum life-safety
inspection
Must submit completed
fire safety checklist with
application and renewals.
City authorized to inspect
with reasonable notice
No safety inspection, but
THUs must meet all
applicable building codes
Website reminds
applicants to register with
the city-county health
dept.
Submit notarized
affidavit affirming to
the size and location
of emergency escape
and rescue openings;
installation of smoke
alarms.
NO NO
Tenant rules Owner must provide license
info packet provided by the
City to the tenants, and post
packet “conspicuously” in
common area
Applicant must
acknowledge receipt and
review of “Good
Neighbor Guidelines”;
must be incorporated in
rental contract, posted
online, provided in
dwelling unit. Guests
provided with parking
restrictions.
NO Include max
occupancy; quiet
hours; parking
restrictions;
emergency contact;
removal of trash;
“good neighbor”
provisions (light;
ATVs; animals)
NO List of “special
conditions” must be
provided to guests
164
5
Austin Hood River OR Missoula Flagstaff Vail Breckenridge
Notice to
neighbors
Director mails notice of
contact info for local contact
to all properties within 100
feet of STR at licensee’s
expense
For VHRs, must either
provide annual mailing to
neighbors w/in 250 feet
containing license # and
contact info; or post
placard or sign on
property with same info
Prior to application
applicant must notify all
property owners within
150 feet
NO NO NO
Proof of
property
insurance
req’d?
YES NO NO NO NO NO
Garbage
collection
requirement
YES Must submit proof of
garbage service with
application (VHRs only)
NO YES NO YES
Mandatory
postings
YES
License within interior in
visible common area
YES
License within interior,
adjacent to front door
YES
-Max occupancy must be
conspicuously posted
within unit
-Contact info of local
responsible party, along
with regulatory agency
contact info within unit
YES
A laminated sheet
containing
emergency contact
information shall be
posted near the
telephone or in a
prominent and
visible location if
there is no telephone
installed at the
Vacation Rental.
NO YES
License and list of
special conditions
must be posted
Signs Not addressed Not addressed Signs prohibited Signage shall not
exceed permitted
allowances for
residential uses in
underlying zone.
Not addressed Not addressed
Advertising Owner may not advertise
unit as STR if not licensed as
STR
Must include license # “if
legally possible”
Not addressed Not addressed Must include tax
number
Not addressed
165
6
Austin Hood River OR Missoula Flagstaff Vail Breckenridge
Revocation
procedure
Director may deny app to
renew if 2 offences in 12-
month period; appeal
process provided
Yes with notice of
decision/appeal/stay/
hearing procedures
If Development Services
determines 3 violations of
any City ordinance or law,
registration revoked for 1
year. Appeals made to
Board of Adjustment
If permit or CUP is
revoked, a new
permit for the same
owner and location
may not be issued for
a period of at least
one year from the
date of revocation.
Suspension/revocati
on/injunction
process.
Requires written
notice of warning;
then suspension by
finance director
with notice at least
20 days prior to
hearing, and appeal
to town council.
Length of
suspension
increases with # of
violations. If
revoked, license
holder can reapply
in a year
Other misc.
rules
-Licensee or guest may not
use a STR for an “outside
assembly” of >6 adults
between 7am and 10 pm
- No “assembly” of persons
outside between 10pm and 7
am
-No noise audible to an
adjacent residence or
business is allowed between
10:30 pm and 7 am
- No sound equipment
producing sound audible at
the property line is
permitted between 10 pm
and 10 am.
ADU cannot be used as a
short term rental.
-No individual can
register more than two
THUs in residential
districts.
-Applicants may
request to exceed
listed standards with
a CUP application
-Accessory
Dwelling/Guest
House: On properties
containing both a
primary residence
and
an ADU or detached
guest house, both
units may be rented
out as one
property under the
same contract.
Noise: no person
shall make, cause or
control
unreasonable noise
upon the single-
family
accommodation
unit which is audible
upon a private
premises that such
occupant has no
right to occupy
166
Simple fixed pricing based on your municipality's short-term rental
compliance monitoring and enforcement needs
APPROXIMATELY HOW MANY SHORT-TERM RENTALS OPERATE IN YOUR COMMUNITY?
50 100 200 300 400 500 600 800 1000 1200
1200+ (MAILTO:TEAM@HOSTCOMPLIANCE.COM)
TREND
MONITORING
• Active monitoring of
jurisdiction's STR
listings across 15+
STR websites
• Monthly report on
aggregate STR
activity in jurisdiction
• Monthly analysis of
STR trends in
jurisdiction
• Automatic alerts if
the # of STR listings
reach a pre-
dertermined level
380/yr$
COMPLIANCE
MONITORING
Get all Address
Identification features
PLUS
• Ongoing monitoring
of STRs for zoning
and permit
compliance
• Pro-active and
systematic outreach
to unpermitted and/or
illegal short-term
rental operators
(using jurisdiction's
form letters)
• Monthly staff report
on jurisdiction's
12,150/yr$
TAX
COLLECTION
SUPPORT
Get all Compliance
Monitoring features
PLUS
• Ongoing monitoring
of jurisdiction's
listings for tax
compliance
• Pro-active,
systematic and data-
informed outreach to
short-term rental
operators regarding
their tax remmitance
obligations (using
jurisdiction's form
letters)
17,550/yr$
24/7
HOTLINE
Get all Tax Collection
Support features
PLUS
• 24/7 staffed
telephone and email
hotline for neighbors
to report non-
emergency problems
related to STR
properties
• Daily/Weekly staff
reports containing:
◾The # and types of
reported incidents
◾List of properties
for which incidents
20,790/yr$
ADDRESS
IDENTIFICATION
Get all Trend
Monitoring features
PLUS
• Detailed monthly
report with:
◾Up-to-date list of
jurisdiction's
active STR listings
◾High resolution
screenshots of all
active listings
◾Full address and
contact
information for all
identifiable STRs
8,100/yr$
HOME (/)
SOLUTIONS (/SOLUTIONS/)
CLIENTS (/CLIENTS/)
PRICING (/PRICING/)
NEWS (/NEWS/)
CONTACT (/CONTACT/)
CLIENT LOGIN (HTTP://APP.HOSTCOMPLIANCE.COM)
RESOURCES
WHITEPAPERS & GUIDES (/WHITEPAPERS/)
SHORT-TERM RENTAL ORDINANCE TOOL (/MODEL-ORDINANCE/)
WEBINARS & RECORDINGS (/WEBINARS-RECORDINGS/)
ROI CALCULATOR (/ROI-CALCULATOR/)
ABOUT
ABOUT US (/ABOUTUS/)
WHAT WE DO (/WHAT-WE-DO/)
PRESS COVERAGE (/PRESS-COVERAGE/)
SPEAKING APPEARANCES (/SPEAKING-APPEARANCES/)
Page 1 of 3Pricing — Host Compliance
4/17/2017https://hostcompliance.com/pricing/
167
zoning and permit
compliance:
◾Up-to-date list of
STRs operating
illegally or without
the proper permits
◾Full case history
for non-compliant
listings
•Monthly staff report
on jurisdiction's STR
tax compliance:
◾Up-to-date list of
STRs suspected
of under-reporting
taxes
◾The list of
evidence that
serves as the
foundation for the
suspicion of tax
under-reporting
• Custom reports and
analysis to support
tax audits and other
STR related
investigations
have been
reported
◾Full
documentation of
all reported
incidents
◾Digital recordings
and written
transcripts of all
calls
• Custom reports and
analysis of hotline
related activities
CLICK HERE TO REQUEST A CUSTOM PRICE QUOTE
All packages comes with extensive benefits:
Dedicated Account Management
Whether you are new to short-term rental
code enforcement or a seasoned
professional, your account manager can
help you get the most out of the Host
Compliance platform.
U.S.-Based Tech Support
Host Compliance's technology is build
and hosted in California and our U.S.
based team takes care of our clients with
responsive, high-quality support.
In-House Compliance Team
Our team is here to support you and with
more than 20 years of technology and
local government government experience.
All Data in One Place
Host Compliance makes sure that all your short-term rental
compliance information is in one place and always in sync.
in jurisdiction
(where available)
Reliable Performance
We provide the most accurate information and average
turnarounds under 24 hours to help you get on with your work
Page 2 of 3Pricing — Host Compliance
4/17/2017https://hostcompliance.com/pricing/
168
Cost Estimate Sheet for Doing
Vacation Rental Inspections
1. Make initial contact.
o Generate phone or email contact.
o Gather information for Vacation Rental Inspection Form and information for
Business License Application search. Needed information is:
Business License name or Business License number.
Access Naviline Computer Program for search and print Business License
Application for Building Division and Fire Department.
Create a Vacation Rental Inspection Form populated with all gathered
information.
2. Schedule Inspection. o Vacation Rental Inspection.
Bozeman Fire Department
o Business License Application Inspection.
Bozeman Fire Department.
Bozeman Building Division 3. Drive to inspection address and conduct the following inspections:
o Vacation Rental Inspection.
This inspection is a change of use inspection from a Group R3 occupancy
to a Group R1 occupancy (transient in nature).
This inspection includes the following:
• Address, visible from the street.
• Smoke detectors as per current code.
• Portable fire extinguishers.
• Emergency egress windows from each sleeping room.
• All exit doors and windows are operable.
• All exit paths are unobstructed.
• Required separation between garage and dwelling unit.
• No large amounts of stored flammable liquids.
• Any other conditions affecting fire/life safety to the public. o Business License Inspection.
Bozeman Building Division and Bozeman Fire Department.
This inspection includes the following:
• Same Fire/Life Safety items above.
• All electrical hazards and Ground-Fault Circuit-Interrupter Protection where required.
• Check dish washer for proper airgap.
169
Page 2
• All stair protection. o Vertical rise and Horizontal run on treads.
o Handrails and guardrails.
Proper height off the nose of the stairs.
Handrail continuity, gripping surface and without interruptions by newel posts or other obstructions.
• Mechanical Rooms.
o Separation from bedrooms, bathrooms and living spaces. o Water heaters and furnaces are vented properly (no CO back into living spaces).
o Water heaters are strapped for seismic loads.
o All units have access to their own sub-panels (electrical
circuit breakers) and all utility shut-offs.
• Multi-Residential Units. o Duplexes, Condominiums and Townhouses.
Check all 1-hour fire partitions and 1-hour horizontal
assemblies for continuity and fire stopping of all
through-penetration.
4. After inspection write correction notice if necessary and return to office to complete paperwork and computer entries. 5. If necessary schedule re-inspection and check for corrections.
o If all items corrected, issue an approved Vacation Rental Inspection Report to give
to the County Health Department. 6. Return to the office and complete all computer entries for Business License Application and sign-off in Naviline. Calculation of Fees (ARM 24.301.138). 1. Charge for requested inspection.
a. $75.00 per hour, with any portions of an hour rounded up to the next full hour.
Travel may be charged as per the state of Montana’s existing rates for these items.
170
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(!(
!(
!(
!(
!(
!(
!(
!(!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
!(
SUNSETSUNSETHILLSHILLSCEMETERYCEMETERY
OAK ST
FRONTAGERDS11THAVEBAXTER LN
W OAK ST
DURSTON RD NROUSEAVEINTERSTATE90HWY
W OAK ST
E MAIN ST
BRIDGER DR
FRO
N
T
A
G
E
R
D
W BABCOCK ST N 7TH AVEW COLLEGE ST
E PEACH ST
SCHURCHAVESWILLSONAVEW PEACH ST
S
OU
R
D
O
U
G
H
R
D
HUFFINE LN
S 19TH AVEN11THAVEN7THAVENFERGUSONAVEW KAGY BLVD
EOAKST
W MAIN ST
COTTONWOODRDBAXTER LN
SFERGUSONAVEHIGHLANDBLVDN19THAVEN19
T
HA
V
ESTUCKY RD S3RDAVEDAVISLNDAVISLNHARPER PUCKETT RDW KAGYBLVD
INTERSTATE90HWY
EKAG
YBLV
DEKAGYBLVD
2017 Short Term Rentals
Legend
!(STR with Business License
!(STR with CUP
City Limits
Map intended for planning purposes only.
´
0 0.50.25 Miles
Map Updated: 4/14/2017
171
R-1
PLI
R-3
M-2
R-S
B-2
M-1
R-3
R-1
B-2
B-2
R-3
R-1
R-2
R-3
PLI
M-1
PLI
M-2
B-3
R-S
PLI
B-2
R-2
R-4
R-2
R-1
R-3
B-2
PLI
BP
R-1
PLI
B-2
R-4
PLI
R-3
PLI
R-4
R-2
REMU
R-1
R-O
PLI
R-3
R-3
R-4
R-2
R-4
R-4
R-4
R-4PLI
R-4
R-3
R-1
R-1
PLI
R-4
PLI
R-S
M-1
R-3
B-2M
R-S
R-3
R-OBPBP
B-2
R-O
R-S
R-3
R-1
R-5
R-3
R-O
BP
R-5
PLI
R-3
R-O
R-1 R-O
R-S
R-MH
R-2R-2
M-1
R-2
B-2
R-4
R-O
HMU
UMU
R-2
BP
BP
R-3R-1
R-1
R-4 R-4
R-MH
R-3R-1
R-4
R-2
R-S
R-4
R-MH
R-S
M-1
B-1
PLI
R-2
R-4
R-4
BP
B-2
B-2
R-4
R-3
R-3
R-O
R-3
R-S
PLI
R-1
R-4 BP
R-3
R-2
PLI
R-1
R-O
BP
R-3
M-1
R-2 R-4
R-3
R-4
R-O
R-3
R-4
R-4
R-3
R-2R-3
B-1
R-2
R-1
PLI
R-4
R-4
B-1
R-3
R-1
R-2
M-2
R-4
R-4 R-O
R-1
R-2
R-4
B-1
R-3
B-2
R-O
M-1
R-1
R-4
B-2
R-3
R-4
PLI
R-3R-2
B-1R-2
R-4
PLI
R-3
R-4
M-1
B-1
R-S
R-1
R-S
B-2
R-2
R-3
R-O
R-4
B-2
R-O
R-2
R-O
R-3
R-OR-4
R-2
R-O
R-4
M-1
R-O
R-3
R-3
R-3
R-2R-O
R-2
R-O
B-1
R-1
BP
R-2
R-S
R-3
R-2
R-3
R-1
R-S
R-S
Short Term Rental Zoning Districts by Allowed StatusRevised: April 13, 2017
This map was created by theCity of BozemanDepartment of Planningand Community Development
¯1 inch = 4,500 feet
Intended for Planning purposes onlysome layers may not line up properly.
Green = Principal UseYellow = Conditional UseRed = Not Allowed
172