News

City Council Approves Short-Term Rental Ordinance with Clear Standards and Neighborhood Protections

The Decatur City Council approved a short-term rental ordinance Monday evening that establishes clear, enforceable standards for how short-term rentals operate across the city.

Short-term rentals, including full-home rentals and limited room rentals within occupied homes, already exist in Decatur. The ordinance establishes a consistent framework for registration, safety, parking, and neighborhood impacts, while recognizing short-term rentals as part of today’s travel and housing landscape.

The ordinance reflects years of public input, committee work, and coordination with the Planning Commission, along with revisions made in recent weeks to strengthen clarity and enforcement.

Planning Director Chad Bowman said the ordinance focuses on predictability and accountability.

“This ordinance gives residents and property owners clear expectations,” Bowman said. “It sets reasonable limits, improves enforcement, and helps short-term rentals operate without disrupting surrounding neighborhoods.”

Key provisions include spacing limits in residential areas, off-street parking requirements, safety inspections, and a requirement that every short-term rental list a local owner or agent within 50 miles who can respond quickly if issues arise. The ordinance also sets an annual limit of up to 150 short-term rental approvals in eligible residential zones, with density rules used to prevent overconcentration.

Mayor Kent Lawrence said the ordinance supports long-term community stability.

“This is about balance,” Lawrence said. “We are protecting neighborhoods while allowing responsible property use that supports tourism and local business. Clear rules help everyone understand what’s allowed and what’s expected.”

Applications for short-term rental certificates will open on April 1, 2026. Enforcement actions and monetary fines will begin after a 90-day grace period to allow time for education and compliance.

City officials emphasized that the ordinance provides residents with clearer protections, defines a process for property owners, and equips staff with tools to enforce standards consistently.

Short Term Rental Frequently Asked Questions 

What is a short-term rental?
A short-term rental is a furnished home or room rented for overnight stays lasting fewer than 30 consecutive days.

What types of short-term rentals does the ordinance cover?
The ordinance covers two types:

• Tourist Homes: Entire homes rented for short stays.
• Homestays: Owner-occupied homes where only one room is rented to guests, with access to a bathroom and shared living space.

When does the ordinance take effect?
The ordinance takes effect April 1, 2026. Applications for short-term rental certificates will begin that day.

When does enforcement begin?
Monetary fines will begin after a 90-day grace period. During that period, operators will receive written notice and guidance to address the issues.

Does this apply to residential neighborhoods?
Yes. Residential areas are subject to spacing and adjacency limits to prevent overconcentration. Commercial zoning districts and riverfront properties follow different standards.

Is there a cap on short-term rentals?
Yes. Up to 150 short-term rentals may be approved annually within eligible residential zones. Density and spacing rules still apply.

What are the parking requirements?
Short-term rentals must provide approved off-street parking. The number of vehicles overnight may not exceed the approved number of spaces. Trailored vehicles must be parked off-street. Parking exceptions may be requested through BOZA in limited cases.

Who do residents contact if there is a problem?
Each short-term rental must list a local owner or agent within 50 miles who can respond within one hour. Residents may also report concerns directly to the City of Decatur.

What happens if the rules are not followed?
Violations may result in fines, corrective action, or loss of the rental certificate. Repeated verified complaints can lead to revocation.

Learn More
Please contact the Decatur Planning Department for further guidance on the application process and enforcement. To read the ordinance in its entirety, follow this link.