HomeMy WebLinkAbout02-06-17 Public Comment - M. Brown - Short Term Rentals I
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Want to Rentuse Occasionally To Visitors —
What Law Applies In Montana?
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Is it a residential dwelling unit?
Yes—the Residential Landlord and Tenant Act"applies to, A dwelling unit is a"structure or the part of a structure that is used
regulates and determines rights,obligations,and remedies as a home,residence,or sleeping place by a person who main-
under a rental agreement,wherever made,for a dwelling unit tains a household..." MCA 70-24-103(4).
located within this state." MCA 70-24-107
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Do the number of days rented matter?
No—the Act is not limited to longer-term rentals. If not in a rental agreement then terminations take place week-
If in a rental agreement,the rental duration can be for any length of iy or monthly, depending on how frequently rent is collected.
time and is not restricted. MCA 70-24-201(2)
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Does the fact that it's rented to "transient guests" matter?
No--that's only relevant if it's not occupied by an owner. "Tourist home" is defined as "a private home or condominium that
An "establishment" includes, among other businesses listed is not occupied by an owner or manager and that is rented, leased,
under the Hotel,Motel and Rooming House codes,a"tourist home". or furnished in its entirety to transient guests on a daily or weekly
MCA 50-51-201 basis."MCA 50-51-102
Can local governments impose licensing requirements on residential rentals?
No—local governments are prohibited from exercising any power tenants beyond what is provided in Title 70, chapters 24 and 25".
that applies to or affects landlords, "when that power is intended MCA 7-1-111(13) s
to license landlords or to regulate their activities with regard to
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Does anything else in Montana law require residential rentals by an owner to be treated as a business?
No--only if a person is"engaged in the business of...operating an is not occupied by an owner or manager and that is rented,leased,
establishment"(a"tourist home"). The Code for Hotels,Motels and or furnished in its entirety to transient guests on a daily or weekly
Rooming houses requires"a person engaged in the business of con- basis. MCA 50-51-201
ducting or operating an establishment"to acquire an annual license. In addition, the Montana Tax Code treats rental source income
MCA 50-51-201 separately from income"derived from a trade,business,profession,
An "establishment" includes, among other businesses, a "tourist or occupation" MCA 15-30-2101(18)(a).
home" which is defined as "a private home or condominium that
Can the City of Bozeman say I'm operating a business?
No—not unless you're a property manager renting out 3 or more exempted by state law". (Bozeman Code Sec. 12.01.010fA(1).
dwelling units (Bozeman Code Sec. 12.02.040) or otherwise con- Sec 12.02.010 and Sec 12.02.040(D).)
ducting a "business" — i.e. carrying on an activity for profit "not
So which planning rules apply?
If the principal use is as a residence by the owner, the occasion- some zoning classifications is unhelpful and confusing, but should
al and incidental rental by an owner of the dwelling for similar be understood as referring to a principal use of a dwelling for rental
residential use should not change its status and requirements of vacation homes on a commercial basis, not an incidental and
set out for home-based businesses do not apply. MCA 7-1-111(13) occasional, temporary use. (And if challenged that code provision
Use of the definition of"extended stay lodging" in the context of might fall foul of MCA 7-1-111(13).)
This flow chart has been researched and prepared by a layperson,not a Montana-qualified lawyer..and should not be relied upon without obtaining
appropriate legal advice applied to an owner's individual circumstances. Feb.s,2017