Legislative Update: Short Term Rentals in Kansas City Missouri

We have  copy of the proposed Short Term Rental Ordinace.

It could mean that if you are renting out the space over your garage or if you own a 4 plex, live in one unit and rent out one of the units as a short term rental you may not be able to get a license to continue to rent.

Here’s the Summary:

The short term rental (STR) ordinance allows for two types of permits. The first is owner occupied short term rental. This is for homeowners who seek to put their full-time residence on a software platform for the purpose of renting it out to guests for a time less than thirty days per stay. Full time residence means the host inhabits the property for a minimum of 270 nights per year. The second type of STR is non-owner occupied short term rental which are for property owners who do not live on the property full time and rent out the property to guests for a time less than thirty days per stay.

Short term rentals are allowed in all residential zones with the exception of R-10 and R-7.5. These designations are mostly in traditional single family neighborhoods, and this keeps in line with the character of the neighborhood. An exception in these zones has been made for designated historic structures or structures within historic districts.

Owner occupied permits are allowed via a registration program and will be $100 the first year and $50 in following years. The first year, the property owner is required to notify adjacent residential properties of the proposed use. They are not required to get approval of the neighbors.

Non-owner occupied permits are allowed via an administrative approval ($259 first year and $50 registration each year following) and the supportive signatures of 75% of adjacent residential property owners. If the property owner is unable to obtain the 75% approval then they may pursue a special use permit ($595 application fee) through the standard process.

Accessory dwelling units (ADU) are currently not allowed for rental to non-family members and therefore, this ordinance does not allow for short term rentals either. Staff has committed to reviewing all ADU rentals in the coming year.
Multi-family dwelling units are allowed to be used for owner occupied rentals, but not allowed to be used for non-owner occupied rentals.

Hosts will be required to obtain a business license. STR’s will not be required to capture transient taxes. Taxing STR’s would require two steps: an enabling statute from the state legislature, and a vote by the people of Kansas City. It would be an extension of the Convention & Tourism tax, a 7.5% tax on the total stay that the guest would pay, and the host (or platform on behalf of the host) would collect.

In an effort to treat STR’s similar to Bed and Breakfast, we added B&B into the R-6 zoning district.

The following is the draft of the STR ordinance. This draft was released to the public on May 19 to give them time to review and respond. Since that release, staff has made a couple of minor amendments, as follows:

1. We have added two family dwellings as they are treated the same throughout the zoning and development code as well as the building code.
2. Carriage houses were added to the R-10 exception.
3. Addition of STR as a permitted use in Table 120-1

Click here to read the full porposed ordinace.