Setting Up A Short Term Rental In Louisville KY

Navigating the short-term rental legal process

Setting up a short-term rental listing in Louisville, KY is not as difficult as you would think. Many parts of the country are plagued by heavy regulation that can increase the barriers-to-entry for newcomers and those unfamiliar with the process. Louisville’s short-term rental climate is very accepting, as long as your property fits the guidelines and you follow the proper legal requirements.
 
A short-term rental is defined as a rental that is 29 consecutive days OR LESS.  Therefore, if a property is rented for a minimum of 30 days, this is not a short-term rental. Occupancy tax of 8.5% must be paid to the city on short-term rental proceeds.

Not all properties can be short term rentals

Property types that qualify for short-term rentals in Louisville, KY:
 
Single Family Residence
Duplex
Condominium*
Commercial Building**
 
*Condominium owners must have written permission from the association board.

**Commercial Buildings must be zoned C-R, C-N, C-1, C-2 or C-3 and the property meets the following criteria: 1) within 200 feet of a TARC route, 2) within .75 miles of a public park, 3) within one mile of a National Register District or local Preservation District. 
 
Property types that DO NOT qualify for short-term rentals in Louisville, KY:
 
Multi-family Dwellings (3 or more units under a single roof)
 
You can have more than three listings on a single plot or land (example: The main house is a duplex and the back yard has a carriage house), but not under the same roof.
 
Commercial buildings can also have more than three (3) short-term rental units.

Short Term Rentals in Louisville Condos

All Condos must have a CUP, regardless of owner-occupancy.

Any condo within any R zone:

1) Requires a CUP, 2) Must be primary residence of owner, 3) Must have written confirmation of permission from condo association

Registration and Permitting –

If the property you are looking to rent is your primary residence, all you need to do is register with Louisville Metro Planning and Design Services ANNUALLY, pay $25, and register with Louisville Metro Revenue Commission for payment of occupancy tax.

If the property you are looking to rent is NOT your primary residence, or is in the TNZD (traditional neighborhood zoning district), you must apply for and obtain a conditional user permit (CUP) from Louisville Metro Government in order to legally operate a short-term rental.

Additional short term rental rules to follow…

Other Rules:

  • Obtain a CUP (if necessary)
  • Register annually with Louisville Metro Planning and Design Services
  • Remit 8.5% Occupancy Tax to Louisville Metro Revenue Commission
  • Meet smoke detector requirements
  • Post an evacuation plan
  • Do not serve or sell food or alcohol
  • Do not post outdoor signage as advertisement
  • Occupancy limitations are 2X the number of bedrooms, plus four (4)
  • Failure to register is the equivalent of operating without a permit
  • STR regulations do not supersede lease agreements, homeowner’s association bylaws, covenants, deed restrictions, or any other agreement, law or regulation that prohibits subletting or use of your dwelling as a short-term rental. 
  • The following cities that retain independent zoning authority have not adopted a zoning ordinance specifically allowing short term rentals: Anchorage, Douglass Hills, Graymoor-Devondale, Hurstbourne, Indian Hills, Jeffersontown, Lyndon, Middletown, Prospect, Shively, St. Matthews and St. Regis Park. Therefore, check regulation before beginning the STR process in these areas.

Helpful links:

Applications

1. Short Term Rental Annual Registration Application Form (In Person or Mail Submittal Option)
2. Short Term Rental Annual Registration Application Form (Online Submittal Option) 
3. Short Term Rental CUP Pre-Application
4. Short Term Rental CUP Formal Application

Helpful Links

How to register your short term rental 
LOJIC map to find your property’s zoning
Frequently Asked Questions
Metro Council Short Term Rental Ordinance Amending Metro Code (Title XI, Chapter 115.515–115.521)
Metro Council Short Term Rental Ordinances Amending Land Development Code
Smoke Detector Requirements (Title IX, Chapter 94.02)
Map of Metro Council Zoning Authority Area
Process for Conditional Use Permit approval
Louisville Metro Revenue Commission

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