Short-term Rentals

New Regulations Approved

After a year of community engagement and analysis, City Council approved new regulations for short-term rentals on Sept. 5, 2023. Short-term rentals are generally defined as the rental of a dwelling unit (or a portion thereof) for guest housing for a period of less than 30 days. The new rules establish both zoning regulations and a licensing process for short-term rentals that place certain limitations aimed at minimizing impacts on the local housing supply and to the surrounding neighborhood. The ordinance may be found in the document library to the right.

Have questions? Please reach out to staff via email or phone or book a meeting directly by selecting a date and time through our online scheduler.

Summary of New Regulations

• Location: Allows short-term rentals as an accessory use to residential dwellings, which include all zone districts except the Industrial, Development Resource, and Public districts.
• Delayed Start for Licenses: Beginning Jan. 1, 2024, each short-term rental is required to obtain a Short-term Rental and a Sales and Use Tax license. Licenses are valid for a period of two years.
  
• Primary Residence: The property being offered as a short-term rental must be the operator’s primary residence (i.e., where they live throughout the year – not a second home); they do not need to be physical at the property while it is being rented.
• Accessory Dwelling Units: On lots where there is both a single-family dwelling unit and an accessory dwelling unit, short-term rentals are allowed in either dwelling unit. However, a person cannot live in the accessory dwelling unit as their primary residence while renting the primary home as a short-term rental on a full-time basis.
• Primary Manager Contact: A person locally available (or within a reasonable drive) is required to field calls 24 hours a day.
• Occupancy: The maximum number of guests allowed within a short-term rental is limited to two persons per bedroom, plus two persons.
• Internal Posting: Internal signage is required and must include the license number, the local responsible party’s contact information, and the physical address of the short-term rental.
• Safety Inspection. A basic life safety inspection is required when obtaining a license. The inspection will confirm that the rental includes smoke detectors, carbon monoxide detectors, fire extinguishers, etc.
• Advertising: City of Lafayette license number must be included in all advertisements.
• Signage: The short-term rental may display one non-illuminated wall or window sign that is up to 1 ½ square feet.
• Parking. Guest parking must be on-site, though a maximum of two vehicles are allowed off-site if there was no on-site parking available.
• No Simultaneous Rental: Short-term rentals cannot include simultaneous rental to more than one party under separate contracts. This is intended to prevent more than one short-term rental contract from operating within the same dwelling unit at the same time.

Key Meetings

• July 26, 2023: The Lafayette Planning Commission voted (4-0) to recommend approval of the proposed ordinance, with two additional recommendations:
  • City Council extend the effective date of the ordinance to six months after the date of passage of the ordinance on second reading; and
  • City Council specifically consider the definition of “primary residence” in Section 3 of the ordinance and related provisions concerning compliance and enforcement.
• Aug. 15, 2023: City Council held a public hearing and approved the proposed ordinance on First Reading. Council opted to approve the ordinance without changes, such as those recommended by the Planning Commission.
• Sept. 5, 2023: City Council approved the proposed ordinance on Second Reading. The regulations take effect on Jan. 1, 2024.

Why did the City consider regulations for short-term rentals?

• Short-term rentals are prohibited in the City’s zoning regulations, though there are over 100 rentals currently operating.
• The City periodically receives complaints from neighbors near short-term rentals about parking, noise, and maintenance of the rentals, and from current rental operators and potential investors about the current prohibition.
• Locations of short-term rentals are constantly changing and maintaining up-to-date information on this activity remains a challenge.
• City sales tax and City lodging tax are not being remitted by short-term rentals in some cases.

What questions was this project intended to answer?

• Regulations: What rules are needed to ensure that short-term rentals don’t negatively impact Lafayette’s housing affordability and minimize impacts on surrounding residential properties?
• Licenses and Taxes: How do we ensure that all rentals are permitted and paying taxes?
• Administration and Enforcement: What systems are needed to implement the new rules?

How can I get involved?

Thanks to everyone who participated in the project so far! We have summarized what we've heard in an updated briefing book that can be found in the document library to the right.