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Short-Term Rental Certificate Applications Open April 1 in Decatur

The City of Decatur will begin accepting short-term rental certificate applications on April 1, 2026, following the City Council’s recent passage of an ordinance establishing standards for short-term rentals throughout the city.

Short-term rentals, such as full-home and limited-room rentals within occupied homes, are already active in Decatur. The ordinance establishes a uniform framework for registration, safety inspections, parking standards, and neighborhood protections.

Planning Director Chad Bowman stated that the policy clearly sets expectations for residents and property owners.

“This ordinance provides residents and property owners with clear expectations,” Bowman said. “It establishes reasonable limits, enhances enforcement, and ensures short-term rentals can operate without disturbing neighboring communities.”

Short-term rentals are furnished homes or rooms rented for overnight stays of fewer than 30 consecutive days. The ordinance identifies two types: tourist homes, which rent out entire houses, and homestays, where an owner rents a room within an occupied residence.

Key standards include:

• Spacing limits in residential areas to prevent overconcentration
• Off-street parking requirements tied to guest capacity
• Safety inspections prior to approval
• A local owner or agent within 50 miles who can respond to issues within one hour

The ordinance also sets a yearly limit of 150 short-term rental approvals in eligible residential zones.

Bowman said the application process will also help the city gain a clearer understanding of where short-term rentals are operating.

“While some lodging taxes are already being remitted through booking platforms, those payments are aggregated,” Bowman said. “The application process allows the city to understand where short-term rentals are operating and ensure they meet the same standards.”

Mayor Kent Lawrence stated that the ordinance strikes a balance between neighborhood stability and responsible property use.

“Clear rules safeguard neighborhood stability while permitting responsible property use that benefits local tourism and small businesses,” Lawrence said.

Additional guidance outlining the application process and required documentation will be released before April 1.

A 90-day grace period will allow time for education and compliance before monetary fines begin. Residents experiencing issues with a short-term rental may contact the City of Decatur.

Property owners looking for more information can contact the Decatur Planning Department.

In Decatur, We Are Better Together.