Kansas City proposes an ordinance to require permit fees from Airbnb hosts

Kansas City is considering a proposed “short-term stay” ordinance that would require Airbnb hosts to register with the city and pay annual registration fees.

A draft, which could go to the City Plan Commission March 7, responds to growth in “sharing-economy” rentals by homeowners or apartment renters.

Currently, it’s actually illegal to rent homes for short-term stays in the city. Updating laws to reflect current reality is one reason to consider the ordinance, said Kate Garman, the city’s innovation analyst.

Another reason is that some neighbors have asked City Hall to address their concerns about transient visitors in nearby houses or apartment buildings that have high Airbnb or HomeAway use.

“We haven’t had any reports of crime,” Garman said. “It’s mainly just that people are noticing the activity.”

The draft ordinance will be discussed Wednesday afternoon at a 4 p.m. community meeting at the Greg Klice Community Center, located at the corner of The Paseo and East 17th Terrace.

The proposed rules would create two types of special use permits for short-term stays — Type 1 for owner-occupied residences and Type 2 for non-owner occupied residences.

The city would define a short-term stay as “the rental of an entire dwelling unit or an entire property for a period of not more than 30 days, where the host is engaged in a contract for rental of that specific unit or property with only one party for the duration of the contract.”

Rentals to more than one party at a time “constitute a bed and breakfast” that would fall under different lodging regulations, according to the draft. “One party” could refer to up to eight persons under a single rental contract.

The proposal calls for a $100 first-year registration fee for short-term stay hosts of Type 1, renewable for $50 annually in each year following.

Such Type 1 hosts could rent out their entire homes when they’re away for short-term periods or they could rent out spare space when they’re at home. The ordinance would set a 90-night-a-year limit on Type 1 rentals.

Special use permit applications for Type 2 rentals are proposed to cost $596, renewable in two years upon application to the Board of Zoning Adjustment. This type would apply when a house or rental unit is nobody’s fulltime residence and its primary use is for short-term rentals.

Benjamin Breit, a spokesman for Airbnb nationally, said the company has been “engaged in productive conversations with the city toward clear, fair rules for home sharing. Unfortunately there are several concepts in this ordinance that would make it difficult for Kansas City residents to share their homes.”

Breit said the company appreciates that Kansas City “is soliciting public input and going about this transparently” and hopes that Airbnb hosts will be able to “help guide the direction of the ordinance in a positive way.”

Airbnb provides a “tool chest” that explains its global policies and rental guidelines.

Kansas City’s draft ordinance is published at kcmomentum.org; click on the link provided under the “Short Term Stay Draft Ordinance” headline.

This story was originally published February 13, 2017 at 12:19 PM with the headline "Kansas City proposes an ordinance to require permit fees from Airbnb hosts."