City of Bozeman Considers Short-Term Rental Ordinance

After review by the Community Development Board, Commission to discuss issue Oct. 17
 
BOZEMAN— On Oct. 17, Bozeman City Commission will consider an ordinance changing short-term rental regulations. The most notable potential revision includes banning “Type 3” rentals – homes that are not owner-occupied for the majority of the year. If the Commission votes to approve this change, there may be limitations on renewals for existing owners and bans on any new Type 3 short-term rentals.

The ordinance also proposes splitting “Type 2” rentals into two categories: Type 2A, a single-household dwelling unit (house) that is the host’s primary residence, and Type 2B, an ADU on the same lot or one unit in the same building as the primary residence (such as a duplex or condo unit). Additional changes in the ordinance include adjusting terminology referring to hosts and increasing the residency requirement from 50 percent to 70 percent of the year.

 
The City’s Community Development Board considered the ordinance at a public hearing on Oct. 2. Public comments were made both in opposition to the proposed ban and in support of it. The Board ultimately recommended the City Commission adopt the ordinance with several amendments. Most notably, this includes only banning new Type 3 short-term rentals and allowing existing lawful Type 3’s to continue operating. The Commission will discuss the ordinance and whether to make the Board’s suggested changes or other changes on Oct. 17.

 
Most of Bozeman’s STR regulations originated in 2017. Ordinance 1974 established a number of regulations classifying types and where they are allowed, as well as the need to register, have a fire inspection, and comply with permit requirements.  More recently in July 2023, Commission passed Ordinance 2131 which requires hosting platforms such as Airbnb and VRBO to remove listings that fail to provide a valid city permit number.

 
“The City is already seeing improved compliance as a result of the July ordinance, and we expect this trend to continue as more hosts become aware,” Erin George, Deputy Director of Community Development explained. “Should the next ordinance be adopted in one form or another, our staff will be ready to help everyone navigate the changes.”

 
More information on short-term rentals and the regulations around them can be found at https://www.bozeman.net/departments/community-development/planning/short-term-rentals.