Short-term rental listings have declined in Lexington. What rules has the city added in recent years?
During its July 1st meeting, Council's General Government and Planning Committee will get an update on efforts to enforce Lexington's regulations on short-term rentals.
As the presentation from Revenue Director Wes Holbrook will show, Lexington has seen the number of short-term rental listings decline in recent years. For example, when the city's compliance software first went live, it identified 1,290 short-term rental listings in Lexington. The current number has dropped to 787, the presentation states.
Review the materials for this meeting here.
Since 2023, the city has added new licensing requirements, density restrictions and stepped up enforcement against non-compliant short-term rentals. The city is responding to complaints from residents, particularly downtown and nearby, who say there have been too many unhosted short-term rentals in their neighborhoods.
What rules do short-term rentals have to follow in Lexington?
In July 2023, Lexington passed a short-term rental ordinance requiring operators to license and register their units. They were given a six-month grace period to do so, according to presentation materials.
Along with other permitting and licensing requirements, all short-term rental operators have to get a Special Fees License through the city's Revenue Division. The license is subject to annual renewal at $200 for the first unit and $100 for every additional unit, per the city's website.
Unlicensed short-term rentals can be fined up to $500 a day for non-compliance.
After they're licensed, short-term rentals are not allowed to:
- Exceed their occupancy limit, which by local rules is currently set at 10 guests.
- Host private events, such as weddings or parties, between 11 p.m. and 7 a.m.
- Host commercial events like concerts or ticketed events at any time, among other restrictions.
The city's Revenue Division began the identification, investigation and enforcement of non-compliant operators starting in January of 2024.
Later that year, it launched a new Compliance Hotline at 859-710-9048. Complaints can also be made via an online form here, including for loud parties, parking, and other issues.
In December 2024, Council amended Lexington's short-term rental ordinance to address the density of unhosted short-term rentals (where the operator does not live on the property). The changes implemented new restrictions, including:
- New, unhosted short-term rentals cannot be located within 600 feet of another unhosted short-term rental.
- New, unhosted short-term rentals cannot be approved if 2% of housing units within 1,000 are unhosted short-term rentals.
That said, it also built in some exceptions to the above conditions for units directly next to commercially zoned areas.
The changes also cut the maximum occupancy for short-term rentals from 12 to 10 guests.
The General Government and Planning Committee will meet on Wednesday, July 1st at 1 p.m. in the Government Center's second-floor Council Chamber. You can attend in-person or watch live on LexTV.
Reach out to your Councilmember and share your thoughts on Lexington's rules for short-term rentals. You can find them here.