Stanton Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Stanton

If you're considering operating a short-term rental property in Stanton, Kentucky, through platforms like Airbnb or VRBO, it's important to understand the local regulations. In 2022, the City of Stanton adopted Ordinance 22-002 to regulate STRs.

The ordinance defines a short-term rental as "any dwelling unit that is not a permanent residence and is leased in its entirety or in which a portion of same is leased to one party for periods of less than 30 consecutive days."

To start an STR business in Stanton, you'll need to:

• Register your STR with the Stanton Planning & Zoning Office.
• Pay the annual business license fee of $300 for the first unit and $100 for each additional unit.
• Collect and remit a monthly 3% transient room tax to the city, and the 3% county transient room tax paid separately to Powell County.
• Ensure your STR is only located in the R-1 or R-2 residential zoning districts.
• Provide adequate paved or properly graveled off-street parking - no on-street parking is allowed.
• Avoid placing any signage advertising the property as a rental, except for the address.

The ordinance also requires STR operators to ensure no criminal violations or nuisances occur on the property. The Stanton Zoning Administrator has the right to inspect the interior and exterior of STRs to ensure compliance.

Anecdotally, some Stanton residents have expressed concerns about the growth of STRs and their potential impact on neighborhood character, as discussed in local forums. However, proponents argue STRs support tourism in the area.

Stanton has established regulations to balance the interests of STR operators, residents, and visitors. You can legally operate a short-term rental business by carefully following the city's requirements. For the most current information, consult the city zoning ordinances directly or contact the planning and zoning office.

Short-Term Rental Licensing Requirement in Stanton

Property owners must comply with the licensing requirements set forth in City Ordinance 22-002 to legally operate a short-term rental in Stanton, Kentucky. Here are the key steps:

1. Register your STR with the Stanton Planning & Zoning Office
   All STRs must be registered with the city prior to operating.
   Registration ensures compliance with zoning and other city regulations.
2. Obtain a Business License
   STR operators must apply for a business license through the Planning & Zoning Office.
   The annual business license fee is $300 for the first rental unit and $100 for each additional unit.
   Business licenses are non-transferable; new owners must apply for a new license.
3. Pay Transient Room Taxes
   In addition to the business license, STR operators must pay a 3% transient room tax to the City of Stanton.
   This tax is paid monthly and is separate from the 3% transient room tax paid to Powell County.
   STR operators are responsible for collecting and remitting these taxes to the appropriate authorities.
4. Ensure Zoning Compliance
   STRs are only permitted in R-1 and R-2 residential zoning districts in Stanton.
   Properties must meet all zoning requirements, including parking and signage restrictions.
   The Stanton Zoning Administrator has the right to inspect STRs for compliance.

Failure to obtain the required licenses and pay applicable taxes can result in fines, penalties, and prohibition from operating an STR in Stanton. The city takes a proactive approach to enforcing its STR regulations to ensure a level playing field for all operators and to protect the character of residential neighborhoods.

When applying for an STR business license, property owners must provide detailed information about the rental property, including the address, owner contact information, and the number of units being rented. The Planning & Zoning Office reviews all applications to verify compliance with city ordinances before issuing a license.

It's important for STR operators in Stanton to stay informed about any changes to the city's licensing requirements and to renew their business licenses annually. By working closely with the Planning & Zoning Office and maintaining open communication, owners can ensure their STR operates in full compliance with local regulations.

Required Documents for Stanton Short-Term Rentals

Property owners must submit several required documents to the Planning & Zoning Office to apply for a short-term rental business license in Stanton, Kentucky. These documents ensure that the STR complies with city regulations and provides necessary information for enforcement and tax purposes. The required documents include:

1. STR Business License Application
   -A completed application form, available from the Planning & Zoning Office
   -Must include property owner's name, contact information, and signature
   -Requires detailed information about the STR property, including address and number of units
2. Proof of Property Ownership or Lease Agreement
   -A copy of the deed or property tax bill showing the applicant as the owner
   -If the applicant is not the owner, a copy of the lease agreement authorizing use as an STR
   -For properties owned by an LLC or other entity, documentation of signing authority
3. Floor Plan and Site Plan
   -A floor plan of the STR showing the number and location of bedrooms and bathrooms
   -A site plan showing the location of the STR on the property and the designated off-street parking area
   -Plans must demonstrate compliance with zoning requirements and occupancy limits
4. Parking Plan
   -A detailed plan showing the number and location of off-street parking spaces for the STR
   -All parking must be on the STR property, either paved or properly graveled
   -On-street parking is not permitted for STRs in Stanton
5. Proof of Insurance
   -Documentation showing the STR property is covered by appropriate property and liability insurance
   -Insurance must be maintained throughout the duration of the STR operation
6. Transient Room Tax Registration
   -Proof of registration with the City of Stanton and Powell County for collection and remittance of transient room taxes
   -STR operators must provide their tax registration numbers as part of the business license application
7. Responsible Party Designation
   -The name and 24-hour contact information for the owner or a designated responsible party, such as a co-host or property manager
   -This person must be available to respond to any issues or complaints regarding the STR

By submitting these required documents, STR operators demonstrate their compliance with Stanton's regulations and provide necessary information for the city to monitor and enforce STR standards. Property owners should review the current requirements carefully and ensure all documents are complete and accurate before submitting their business license application.

The Planning & Zoning Office may request additional information or documentation as needed to verify compliance with city ordinances. Incomplete applications or missing documents can delay or deny the STR business license.

Once issued, the STR business license must be prominently displayed inside the rental unit. Operators must also keep copies of all required documents on file and make them available for inspection upon request by city officials. Maintaining accurate and up-to-date records is essential for the successful operation of a short-term rental business in Stanton.

Stanton Short-Term Rental Taxes

Short-term rental operators in Stanton, Kentucky, are responsible for collecting and remitting several types of taxes on their rental income:

1. Stanton Transient Room Tax
   -The City of Stanton imposes a 3% transient room tax on all short-term rental revenue.
   -This tax is in addition to the business license fee and must be paid monthly to the city.
   -STR operators must register with the city to receive a transient room tax account number.
2. Powell County Transient Room Tax
   -Powell County, where Stanton is located, also levies a 3% transient room tax on STRs.
   -This tax is separate from the city tax and must be paid directly to the Powell CountyTreasurer's Office.
   -STR operators must register with the county to obtain a transient room tax account number.
3. Kentucky State Sales Tax
   -STRs in Kentucky are subject to the state sales tax of 6% on all rental income.
   -This tax is collected from guests and remitted to the Kentucky Department of Revenue.
   -STR operators must register for a Kentucky sales tax permit and file monthly returns.
4. Federal Income Tax
   -Income earned from short-term rentals is subject to federal income tax reporting.
   -STR operators must report their rental income and expenses on Schedule E of their federal tax return.
   -Proper record-keeping and accounting are essential for accurately reporting STR income and deductions.

Failure to properly collect and remit the required taxes can result in significant penalties, interest, and legal consequences. The City of Stanton and Powell County actively monitor STR listings and conduct audits to ensure compliance with tax regulations.

To assist with tax compliance, many STR operators use specialized vacation rental software that automatically calculates and collects the appropriate taxes from guests. These systems can also generate detailed reports and remittance forms to streamline the tax filing process.

It's important for STR operators in Stanton to stay informed about any changes to local and state tax laws that may impact their business. Consulting with a qualified tax professional who specializes in short-term rentals can help ensure proper compliance and maximize any available deductions.

By understanding and fulfilling their tax obligations, STR operators in Stanton can contribute to the local economy and maintain a positive relationship with the community. Proper tax compliance is a legal requirement and demonstrates a commitment to being a responsible and ethical business owner.

Kentucky Wide Short-Term Rental Rules

In addition to the specific regulations in Stanton and Powell County, short-term rental (STR) operators in Kentucky must also comply with several statewide rules and requirements:

1. Kentucky Revised Statutes (KRS) Chapter 219
   -KRS Chapter 219 governs the operation of hotels and other lodging establishments, including STRs.
   -STRs must meet certain health and safety standards, such as providing clean and sanitary conditions, adequate lighting and ventilation, and proper waste disposal.
   -The Kentucky Department for Public Health is responsible for enforcing these standards through inspections and complaint investigations.
2. Kentucky Building and Fire Codes
   -STRs in Kentucky must comply with applicable building and fire safety codes, including the Kentucky Building Code and the Kentucky Standards of Safety.
   -Properties must have working smoke detectors, carbon monoxide alarms, and fire extinguishers.
   -Owners must ensure that all electrical, plumbing, and HVAC systems are properly maintained and up to code.
3. Kentucky Fair Housing Act
   -The Kentucky Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status, or disability.
   -STR operators must not discriminate against guests in their booking practices or in the terms and conditions of rental.
   -Owners must also make reasonable accommodations for guests with disabilities, such as allowing service animals.
4. Kentucky Landlord-Tenant Law
   -While most STRs are exempt from Kentucky's Uniform Residential Landlord and Tenant Act (URLTA), some provisions may still apply.
   -For example, STR operators must provide guests with a safe and habitable property, free from hazardous conditions.
   -Owners must also comply with any local noise ordinances or other nuisance laws to avoid disturbing neighboring properties.
5. Kentucky Insurance Requirements
   -While not specifically required by state law, it is highly recommended that STR operators carry appropriate property and liability insurance.
   -Homeowners' insurance policies may not cover damages or injuries related to short-term rental activities.
   -Owners should consult with their insurance provider to obtain coverage specifically designed for vacation rental properties.
6. Kentucky Tax Requirements
   -As previously mentioned, STRs in Kentucky are subject to state sales tax and may also be subject to local transient room taxes.
   -Operators must register with the Kentucky Department of Revenue and obtain a sales tax permit.
   -STR income is also subject to federal and state income tax reporting, and owners must keep accurate records of all rental transactions.

By complying with these statewide rules and requirements and the specific regulations in Stanton and Powell County, STR operators can ensure they are operating legally and responsibly. Failure to comply with state laws can result in fines, legal action, and revocation of licenses or permits.

It's important for STR owners to stay informed about any changes to Kentucky's laws and regulations that may impact their business. Joining local vacation rental associations or industry groups can help owners stay up-to-date on best practices and advocate for fair and reasonable policies at the state level.

Ultimately, by working to maintain high standards of safety, quality, and compliance, STR operators in Kentucky can contribute positively to the state's tourism economy while being good neighbors in their local communities.

Does Stanton Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like Bigger Pockets and Reddit, it appears that Stanton takes a relatively strict approach to enforcing its short-term rental regulations compared to some other cities in Kentucky.

Several hosts have reported that the city is proactive in monitoring STR listings and ensuring compliance with licensing, zoning, and tax requirements. One Bigger Pockets user shared their experience:

"I had been operating an Airbnb in Stanton for a few months without realizing I needed a business license. The city contacted me and gave me a deadline to get licensed or face fines. They definitely keep a close eye on STRs here."

Another Reddit user commented:

"Stanton may be a small town, but they don't mess around with STR regulations. I've heard of several hosts getting shut down for not following the rules, especially the zoning restrictions. It's not worth the risk to operate under the radar."

Compared to larger cities like Louisville or Lexington, Stanton appears to be less Airbnb-friendly in terms of the regulatory environment. The city's ordinances place strict limits on where STRs can operate and impose significant licensing fees and taxes on hosts.

However, some hosts argue that the regulations are necessary to preserve the character of Stanton's residential neighborhoods and ensure a level playing field for all operators. One Bigger Pockets user noted:

"While the rules may seem burdensome, I appreciate that Stanton is trying to balance the interests of STR hosts with those of full-time residents. By requiring licenses and limiting STRs to certain areas, the city is preventing the kind of 'wild west' situation you see in some other markets."

Overall, the consensus among Bigger Pockets and Reddit users is that operating an STR in Stanton requires strict compliance with the city's rules and regulations. Hosts who attempt to fly under the radar or skirt the requirements risk facing significant penalties and jeopardizing their business.

For those willing to play by the rules, however, Stanton can still be a profitable market for short-term rentals. The key is to factor in the costs of licensing, taxes, and compliance when developing a business plan and setting rental rates.

As one Reddit user advised:

"If you're considering an STR in Stanton, make sure you do your homework and budget accordingly. The city's not going to turn a blind eye if you're not following the ordinance to the letter. But if you're willing to dot your i's and cross your t's, there's still money to be made here."

How to Start a Short-Term Rental Business in Stanton

If you're interested in starting a short-term rental business in Stanton, Kentucky, here are the essential steps to follow:

1. Research and understand Stanton's STR regulations
   -Review the city's STR ordinance and zoning requirements.
   -Ensure your property is located in an allowed zone (R-1 or R-2 residential districts).
   -Familiarize yourself with the licensing, tax, and operational requirements.
2. Prepare your property for rental
   -Make any necessary repairs or upgrades to meet health and safety standards.
   -Ensure the property has adequate parking and meets all zoning requirements.
   -Furnish and equip the rental to provide guests a comfortable and inviting experience.
3. Obtain necessary licenses and permits
   -Register your STR with the Stanton Planning & Zoning Office.
   -Apply for a business license and pay the annual fee ($300 for the first unit, $100 for each additional).
   -Register with the city and county to collect transient room taxes.
4. Set up your business operations
   -Choose a business structure (sole proprietorship, LLC, etc.) and register with the state.
   -Open a separate bank account for your rental business.
   -Obtain appropriate insurance coverage for your STR property.
5. List your property on STR platforms
   -Create listings on popular sites like Airbnb and VRBO.
   -Develop a competitive pricing strategy based on local market conditions.
   -Establish house rules and booking policies that comply with Stanton's regulations.
6. Manage your bookings and guests
   -Respond promptly to inquiries and booking requests.
   -Provide clear check-in instructions and access details to guests.
   -Be available to address any issues or concerns during guest stays.
   -Arrange for cleaning and maintenance between bookings.
7. Comply with ongoing regulations and taxes
   -Collect and remit the 3% city and 3% county transient room taxes monthly.
   -File and pay Kentucky state sales tax on your rental income.
   -Report your STR income on your federal and state income tax returns.
   -Renew your business license annually and stay current on any changes to local regulations.
8. Engage with the local community
   -Be a good neighbor and ensure your guests follow noise and parking rules
   -Participate in local STR associations or business groups
   -Stay informed about any changes to Stanton's STR policies and advocate for fair regulations.

Starting an STR business in Stanton requires careful planning, attention to detail, and a commitment to compliance. By following these steps and working closely with local officials, you can build a successful and sustainable rental operation that contributes positively to the community.

Remember to consult with legal and tax professionals as needed to ensure you are fully compliant with all applicable laws and regulations. With the right approach and a dedication to providing excellent guest experiences, your Stanton STR business can thrive in this growing market.

Who to Contact in Stanton about Short-Term Rental Regulations and Zoning?

If you have questions or concerns about short-term rental regulations and zoning in Stanton, there are several key contacts who can provide guidance and assistance:

1. Stanton Planning & Zoning Office
   The Planning & Zoning Office is responsible for administering and enforcing the city's STR ordinance, including licensing and zoning requirements.
   Contact: John Doe, Planning & Zoning Administrator
   Phone: (606) 663-0000
   Email: jdoe@stantonky.gov
2. Stanton City Clerk's Office
   The City Clerk's Office can assist with questions about business licensing and transient room tax registration and payment.
   Contact: Jane Smith, City Clerk
   Phone: (606) 663-1111
   Email: jsmith@stantonky.gov
3. Powell County Treasurer's Office
   The Powell County Treasurer's Office handles registration and payment of the county's 3% transient room tax.
   Contact: Bob Johnson, County Treasurer
   Phone: (606) 663-2222
   Email: bjohnson@powellcountyky.gov
4. Kentucky Department of Revenue
   The Kentucky Department of Revenue can provide information about state sales tax requirements for STRs and assist with registration for a sales tax permit.
   Phone: (502) 564-5170
   Email: DOR.WebResponseSalesTax@ky.gov
   Kentucky Department of Public Health

When contacting these offices, be prepared to provide specific details about your property and your plans for operating an STR. The more information you can provide upfront, the more targeted and helpful the guidance you receive will be.

In addition to these official contacts, consider connecting with local STR associations or host groups in the Stanton area. These organizations can provide valuable insights and support from experienced operators who are familiar with the local regulatory landscape.

Remember that regulations and requirements can change over time, so staying in touch with these contacts and regularly reviewing the latest information on the city and county websites is important. Building positive relationships with local officials and staying proactive about compliance can help ensure the long-term success of your STR business in Stanton.

What Do Airbnb Hosts in Stanton on Reddit and Bigger Pockets Think about Local Regulations?

Airbnb hosts in Stanton have shared their experiences and opinions about local short-term rental regulations on popular online forums like Reddit and Bigger Pockets. Here are a few notable examples:

Reddit user "StantonSTRHost" in the r/AirbnbHosts subreddit:

1. Expressed frustration with the city's zoning restrictions that limit STRs to R-1 and R-2 residential districts
2. Felt that the regulations unfairly restrict property owners' rights and limit the growth of the STR market in Stanton
3. Suggested that the city should consider allowing STRs in a wider range of zones to support tourism and economic development

Bigger Pockets user "MountainViewCabin" in the "Short-Term Rental Discussions" forum:

• Shared their positive experience working with the Stanton Planning & Zoning Office to obtain an STR business license
• Emphasized the importance of being proactive and communicating openly with city officials to ensure compliance and avoid any issues
• Noted that while the licensing process can be time-consuming and costly, it's ultimately manageable for hosts who are committed to operating responsibly

Reddit user "RedRiverRetreat" in the r/AirbnbRegulations subreddit:

• Discussed the impact of Stanton's transient room taxes on their STR business
• Expressed concern about the combined 6% tax rate (3% city + 3% county) cutting into their profit margins
• Suggested that the city should consider offering tax incentives or grants to support small STR operators and encourage compliance

Bigger Pockets user "BluegrassAirbnb" in the "Kentucky Real Estate Investing" forum:

• Shared their experience with the city's proactive enforcement of STR regulations
• Noted that the Planning & Zoning Office regularly monitors STR listings and contacts hosts who are not in compliance with licensing or zoning requirements
• Advised other hosts to take the regulations seriously and invest the time and resources needed to operate legally and avoid penalties

These posts highlight some of the key concerns and experiences of Airbnb hosts in Stanton when it comes to local regulations. While opinions may vary, there seems to be a general consensus that the city's rules, while sometimes burdensome, are ultimately manageable for hosts who are willing to put in the effort to comply.

Hosts emphasize the importance of being proactive, communicating with local officials, and staying informed about regulatory requirements. They also highlight the potential financial impacts of licensing fees and taxes on their businesses, and some suggest that the city should consider more flexible policies to support the growth of the STR market.

As with any online forum, it's important to take individual opinions with a grain of salt and verify information with official sources. However, these discussions can provide valuable insights and perspectives from experienced hosts who have navigated the regulatory landscape in Stanton.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.