Weigh in on the future of short-term rentals in Derby City

Metro Council is seeking comments on new regulations for companies like Airbnb.

Butchertown in the Spring.JPG

District 4 Councilperson Jecorey Arthur spearheaded the temporary moratorium after seeing people move away from Butchertown due to the high concentration of short-term rentals.

Photo courtesy of Louisville Tourism

There are 2,400+ short-term rentals (STRs) in Derby City. More commonly referred to as Airbnb or VRBO, the city is currently reviewing and recommending improvements to the regulation of STRs — which was last updated in 2019.

Metro’s Planning & Design Services + the Planning Commission are overseeing the process. They released their list of recommendations addressing residents’ concerns last week.

Louisvillians can now provide feedback on the proposed new regulations ahead of the next public hearing date, set to take place in the next 30 days or so.

Here are a few of the notable proposed changes:

  • Hire a government employee dedicated to short-term rental applications and regulations
  • Require owners to live at their properties for six months before applying for an owner-occupied rental application + require a Kentucky ID as part of proving residency to host a short-term rental
  • Strengthen the current 600-ft rule by limiting the Board of Zoning Adjustment’s ability to grant exceptions
  • Reduce the number of guests allowed at a rental — determined by the number of bedrooms
  • Enforce harsher penalties for hosts/owners who break the rules — like prohibiting new registrations if a citation is issued within the past year
  • Raise the annual $100 registration fee

Louisvillians can provide comments on the future of short-term rentals during the Planning Commission’s hearing on Monday, July 17 at 5:30 p.m. You can attend virtually or in-person at the Old Jail Building downtown, or submit your thoughts ahead of time. After the meeting, the proposed regulations will be sent to Metro Council for a final vote. See the timeline.

Eight Metro Council Members have also approved a city-wide temporary moratorium that could halt all new STR applications for up to six months while the city debates the proposed changes. A full Metro Council on the vote was scheduled to take place on Friday, June 1, but was delayed.