Rentals in Louisville
INTO THE WEEDS OF RENTING PROPERTY
QUESTIONS BY STEPHANIE VIRGIN | ANSWERS BY RACHEL MANDELL Associate Planner
We heard your questions and wanted to find out the answers. The rules and regulations for renting out a property in the City of Louisville are ever-changing and we wanted to bring you the most up-to-date answers regarding multiple scenarios for short-term and long-term rentals. We got into the weeds with Rachel Mandell, Associate Planner for the City of Louisville's Planning & Services Department of Development.
PRIMARY RESIDENCE USED FOR RENTALS:
Q: I'd like to rent my primary residence out 1 time for Derby, how do we go about setting our home as a rental with the city?
Rachel: "Regardless of how many times you plan on renting your property as a short term rental throughout the year, it will need to be registered with Louisville Metro Planning and Design Services. In fact, websites such as Airbnb require the registration number associated with your property in order to list the rental. To register your primary residence, you will need to submit the Short Term Rental Annual Registration Form, along with two pieces of ID that are issued by the government (i.e. drivers license, vehicle registration, tax return, voters registration card) proving primary residency, and your Louisville Metro Revenue Commission number (for paying transient room taxes)."
Q: We travel often and want to rent out our home (primary residence) while we travel. What steps do I need to take to rent out my house?
Rachel: "To rent your primary residence as a short term rental, you will need to submit the Short Term Rental Annual Registration Form along with the required documents associated with the application (proof of residency and revenue commission number). However, be cautious of whether or not the property can be defined as your ‘primary residence.’ Per the Land Development Code, a primary residence is where an individual spends a majority of their time during the year. If you are away for more than half of the year (cumulative) for travel, a “facts or circumstances’ test may need to be performed to determine if the property is truly your primary residence."
LONG-TERM RENTAL TURNED 1 TIME SHORT-TERM:
Q: I own an investment property where we usually have long-term renters. Can I rent it out for Derby while we currently don't have long-term tenants?
Rachel: "If the property is not your primary residence and is not commercially zoned, a *conditional use permit would be required to register the property as a short-term rental."
CHANGING LONG-TERM RENTAL TO SHORT-TERM:
Q: What do we need to do to change our long-term rental property to a short-term rental for good?
Rachel: "If the property is not your primary residence and is not commercially zoned, a conditional use permit would be required to register the property as a short term rental. Please keep in mind that in residential zoning, a short term rental conditional use permit is limited to a single family home or a duplex. If the structure type is a triplex or larger, then short term rentals are not permitted."
Q: I'm deciding whether to sell or rent out the house I'm moving from, what steps do I need to take to turn a second residence into a rental - short-term & long-term?
Rachel: "If the property will no longer be your primary residence and is residentially zoned, a conditional use permit would be required to rent the property as a short term rental. To convert the property into a long term rental (meaning that the rental contracts lasts longer than 29 consecutive days), the property will need to be registered with the Codes and Regulations department."
Please keep in mind that the current ordinance prohibits conditional use permits for short term rentals from being within 600ft of one another. A 600ft map can be requested for the property by emailing [email protected]
Q: I'm looking to buy a home and turn it into a short-term rental. What do I need to do to determine if I can short-term rent a home I haven't purchased yet?
Rachel: "I’d recommend to first verify that the property is within Louisville Metro’s jurisdiction. Suburban Cities, such as Jeffersontown, Norton Commons, St. Matthews, etc., have their own regulations pertaining to short term rentals. If the property is within the jurisdiction of a suburban city, contact the respective planning department and verify that short term rentals are permitted. Additionally, all properties within the TNZD zoning district require a conditional use permit, regardless if it is your primary residence.
Second, request a 600ft map from the Planning and Design department by emailing [email protected] to verify that there isn’t already a conditional use permit within 600ft of the proposed location.
If the above steps have been completed and the applicant would like to move forward with the conditional use permit process, submit the Short Term Rental Conditional Use Permit Pre-Application to the Planning and Design Services department. This will require the signature of the current property owner, but the prospective buyers can submit the application as long as they have obtained the signature. This will get the process started for obtaining a conditional use permit for the property."
Rachel says, "For further information regarding the conditional use permit process, regulations in suburban cities, determining primary residency, etc., please contact the Planning and Design Services department at 502-574-6230 (customer service).
For information regarding obtaining a Revenue Commission Number, contact the Louisville Metro Revenue Commission at 502-574-4860.
She continues on to say "My best piece of advice is to contact the Planning and Design Services department prior to purchasing a home with the intention of using it as a short term rental. The ordinance is very thorough and site specific, so having a planner take a deeper look into the property is worth your while."