Billings Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Billings, Montana?

In Billings, Montana, short-term rental regulations were adopted in 2020 to introduce the concept of legal short-term rentals to the community. The city permits both guest homes and tourist homes, with a maximum of one short-term rental permit per dwelling. The regulations are intended to be preliminary, with the city planning to refine them over time to develop a set of standards with longer-term applicability.

To operate a guest home or tourist home, a valid short-term rental permit approved by the city is required, along with a separate special review approval. The purpose of the short-term rental permit program is to facilitate the permitting of short-term rental units to allow for varied accommodations and experiences for visitors while retaining the character of the neighborhoods.

All short-term rental advertising must include the Billings’ Short-Term Rental Permit number. Short-term rental units must also comply with health, safety, and code compliance regulations, including the presence of smoke detectors and fire safety measures.

Additionally, short-term rentals must register with the city, obtain a one-time fire inspection and health inspection, and renew their registrations annually. Hosts are also required to maintain a guest register and are subject to lodging taxes imposed by the state. The regulations are managed at the city level, and hosts must comply with safety and building codes, collect and remit local occupancy taxes, and limit occupancy.

Each short-term rental must have an active City business license and a Short-Term Rental Permit for each location. The application process involves creating a login, completing the application, and paying the necessary fees. Overall, the regulations aim to ensure the safety, compliance, and quality of short-term rental accommodations in Billings, Montana.

Starting a Short Term Rental Business in Billings

If you're thinking about starting a short-term rental business in Billings, Montana, it's important to understand the city's regulations. Both guest homes and tourist homes are permitted, but only one short-term rental permit is allowed per dwelling1.

The city's short-term rental regulations are preliminary and subject to change as the city continues to develop a set of standards with longer-term applicability1. To operate a guest home or tourist home, you must obtain a valid short-term rental permit, as approved by the city1. Short-term rental units must contain smoke detectors, fire alarms, and other safety features13. All short-term rental advertising must include the Billings' Short-Term Rental Permit number1.

To obtain a permit, you must apply online through the Citizen Access portal and pay the required fees5. You must also obtain a City of Billings business license for the business of managing a rental5. It's important to note that short-term rental hosts in Montana are required to apply for and obtain a Public Accommodation License annually

Short Term Rental Licensing Requirement in Billings

In Billings, Montana, short-term rental licensing requirements are in place to ensure compliance with local regulations. Key aspects of these requirements include:

• Short-Term Rental Permit: Each short-term rental location requires a valid Short-Term Rental Permit from the Planning Department, which needs to be renewed annually3.
• Business License: Each short-term rental manager must have an active City business license3.
• Advertising: All short-term rental advertising must include the Billings' Short-Term Rental Permit number4.
• Local Contact Information: A local contact person must be available 24 hours a day for emergencies, and their contact information must be provided to the City of Billings3.
• Health, Safety, and Code Compliance: Short-term rental units must adhere to health, safety, and code compliance standards, such as containing smoke detectors and fire extinguishers4.

These requirements aim to facilitate the permitting of short-term rental units while retaining the character of neighborhoods in Billings4.

The City of Billings anticipates refining these regulations over time to develop a set of standards with longer-term applicability4.

Required Documents for Billings Short Term Rentals

To operate a short-term rental in Billings, you must obtain the necessary permits and comply with the regulations outlined in the City Code1. The following documents are required:

• City Business License: Each short-term rental that you manage will require an active City business license3.
• Short-Term Rental Permit: You must obtain a Short-Term Rental Permit for each location from the Planning Department, which needs to be renewed annually3.
• Local Contact Information: Provide a local contact person available 24 hours a day for emergencies, including their name, phone number, and email address3.
• Advertising: All short-term rental advertising must include the Billings' Short-Term Rental Permit number2.
• Health, Safety, and Code Compliance: Short-term rental units must contain smoke detectors, fire extinguishers, and comply with other safety regulations2.
• Application: Complete the City of Billings Short Term Rental Application 2023, which includes information about the property, owner, and local contact person3.

By obtaining these documents and complying with the regulations, you can legally operate a short-term rental in Billings.

Billings Short Term Rental Taxes

In Billings, Montana, short-term rental taxes have been a topic of concern for vacation rental owners. The Lodging Facility Sales and Use Tax was signed into law by Governor Steve Bullock, raising the sales tax from 3% to 4% 1. This tax can quickly add up to even five or $10,000, including penalties and interest, so it's essential for short-term rental owners to stay informed and compliant1.

To help rental owners manage these taxes, companies like Rob Stephens' platform have emerged. They provide a solution for ensuring that rental owners charge the correct tax rate and file and pay taxes on time1. The short-term rental industry has been growing in recent years, and understanding these changes and their impact on rental owners is crucial1.In addition to tax regulations, the City of Billings has adopted short-term rental regulations to facilitate the permitting of short-term rental units and maintain the character of neighborhoods2.

A short-term rental permit is required for a natural person whose name appears on the deed of the dwelling unit or property, or for a trust with specific conditions2. Each short-term rental managed by an owner or property manager will require an active City business license and a Short-Term Rental Permit for each location from the Planning Department, which needs to be renewed annually3.

To summarize, short-term rental taxes in Billings, Montana, have increased, and it's essential for rental owners to stay informed and compliant. Companies like Rob Stephens' platform can help manage these taxes, while the City of Billings has adopted regulations to facilitate the permitting of short-term rental units and maintain neighborhood character.

Montana wide Short Term Rental Rules

Montana has specific rules and regulations for short-term rentals, which are growing in popularity across the state. Some key points to consider include:

• Lodging Facility Sales and Use Tax: Governor Steve Bullock signed a bill raising the sales tax from 3% to 4% for short-term vacation rentals through platforms like Airbnb and HomeAway1.
• Local Regulations: The Montana Legislature is considering changes to regulations on short-term rentals, with some bills aiming to shield them from local restrictions2. For example, Senate Bill 467 would have prohibited counties, cities, and towns from enacting restrictions on rental periods for Airbnb-style lodgings2.
• City of Bozeman: Effective December 14, 2023, Type 3 short-term rentals (STR) are prohibited within the City of Bozeman3. To operate a short-term rental in the city, you must obtain a Short Term Rental (STR) Hosting Permit3.
• Insurance and Compliance: It is essential to ensure that your short-term rental complies with local regulations, including obtaining the necessary permits and licenses3. You should also check mortgage or lease/rental terms, homeowner covenants, and insurance policies to ensure adequate coverage for short-term rental use3.
• Hosting Platforms: Some cities, like Billings, have voted to ban short-term rentals except for grandfathered-in properties and others4. To improve compliance with short-term rentals within the city, Ordinance 2131 was passed to ensure that hosting platforms confirm a property meets the local regulations3.

In summary, Montana has specific rules and regulations for short-term rentals, including taxes, local regulations, and compliance requirements. It is crucial for short-term rental owners to stay informed about these changes and ensure their properties comply with the relevant laws and regulations.

Does Billings strictly enforce STR rules? Is Billings Airbnb friendly? Do hosts operate in Billings despite the rules?

Billings, Montana, has specific regulations regarding short-term rentals (STRs), which may impact the operation of Airbnb and other similar platforms. Here are some key points to consider:

• STR Rules: Billings has strict regulations for STRs, which may include obtaining permits and adhering to zoning restrictions3.
• Airbnb Friendliness: The city's stance on STRs may affect the friendliness of Billings towards Airbnb and other short-term rental platforms.
• Hosts' Operations: Despite the rules, some hosts may still operate short-term rentals in Billings, potentially facing enforcement actions or legal issues.

To ensure compliance with local regulations, hosts should:

• Obtain the necessary permits and adhere to zoning restrictions3.
• Check mortgage or lease/rental terms, homeowner covenants, and insurance policies to ensure coverage for short-term rental use2.
• Consult with appropriate professionals for tax, insurance, health code, or legal questions2.

In summary, Billings has strict regulations for STRs, which may impact the operation of Airbnb and other platforms. Hosts should ensure compliance with local rules and regulations to avoid potential enforcement actions or legal issues.

How to Start a Short Term Rental Business in Billings

Starting a short-term rental business in Billings, Montana, involves several steps and considerations. Here's a straightforward guide to help you get started:

Understand the local regulations: Familiarize yourself with the city's zoning laws and regulations regarding short-term rentals. Check the Billings Code Enforcement website for information on zoning districts and allowed types of short-term rentals5.

Obtain necessary permits and licenses: Apply for the required permits and licenses, such as a short-term rental permit, a public accommodation license through the Gallatin City-County Health Department, and a fire-safety inspection form2.

Prepare your property: Ensure your property meets the local health code and other legal requirements. Check your mortgage or lease/rental terms, homeowner covenants, and insurance policies to make sure they allow short-term rental use2.

List your property: Register your property with hosting platforms like Airbnb, VRBO, or others. Make sure your property meets the local regulations and requirements for short-term rentals2.

Promote your rental: Advertise your short-term rental to potential guests through various channels, such as social media, online travel agencies, and local marketing.

Maintain compliance: Stay updated on any changes to the city's regulations and ensure your property remains compliant. Regularly check for any updates on the Billings Code Enforcement website3.

By following these steps and staying informed about the local regulations, you can successfully start a short-term rental business in Billings, Montana.

Who to contact in Billings about Short Term Rental Regulations and Zoning?

For information about short-term rental regulations and zoning in Billings, contact the Planning Department at 2825 3rd Ave. North, 4th Floor, Billings, MT 59101, or call 406-247-86763.

What do Airbnb hosts in Billings on Reddit and Bigger Pockets think about local regulations?

Airbnb hosts in Billings, Montana, are subject to various laws and regulations. These regulations are determined by the state, county, and city levels and may include taxes, licensing requirements, and zoning restrictions. For instance, short-term rental hosts in Montana are required to register with the Montana Department of Public Health and Human Services4. In Billings, specific zoning changes have been proposed to restrict Airbnb and other short-term rentals to specific districts5.

Additionally, there have been discussions about the requirement for hosts to live on the property3. It's important for hosts to stay updated on the evolving regulations and seek legal or consulting advice to ensure compliance with the local laws1. The regulations are aimed at balancing the interests of hosts with those of the city and its residents3.