Fayette County

How many illegal short-term rentals are in Lexington? It’s in the hundreds, city says

Lexington began enforcing rules regarding registration and fees of short-term rental operators on Jan. 11. The city says hundreds still haven’t received appropriate licensing from the city.
Lexington began enforcing rules regarding registration and fees of short-term rental operators on Jan. 11. The city says hundreds still haven’t received appropriate licensing from the city. AP

Lexington believes there are at least 200 unlicensed short-term rentals operating throughout city limits.

After years of debate, the city finally passed regulations on short-term rental in July.

The regulations would require all short-term rental operators to pay a $200 license fee. Operators with multiple properties would pay $200 on the first property and $100 on remaining properties by Jan. 11.

In addition, those operating short-term rentals before July would have to receive a zoning compliance permit. New operators would have to go to the board of adjustment for approval for many unhosted — when the owner is not on site — short-term rentals.

In January, the city had 250 units with zoning approval but weren’t licensed, said Wes Holbrook, director of revenue for the city.

Those unlicensed operators were sent notices in early February. The city then sent second notices to those operators. The number of unlicensed operators with zoning permits is now around 200, Holbrook said.

The city has not issued any fines as of yet but will likely start fining those operators soon, city officials said.

Some operators have started to come into compliance or have abandoned their short-term rental operations after receiving notice from the city.

“We had about 100 after the initial notice who are either application in-progress or have indicated they are no longer going to list or host,” Holbrook said.

As of March 20, 579 short-term rental properties are fully compliant, meaning they have their necessary zoning and city licensing permits, according to city records.

In addition, the city is in the process of buying software that will help it identify unlicensed short-term rental operators.

That means there could be more scofflaw operators identified in coming months.

Operators found to be renting and not licensed with the city can face fines of up to $500 a day, according to the ordinance. Operators who run afoul of city rules can also be denied future licenses.

Scroll through the interactive map below to where short-term rental homes are located in Lexington-Fayette County. Having trouble viewing this map? Click here.

Beth Musgrave
Lexington Herald-Leader
Beth Musgrave has covered government and politics for the Herald-Leader for more than a decade. A graduate of Northwestern University, she has worked as a reporter in Kentucky, Indiana, Mississippi, Illinois and Washington D.C. Support my work with a digital subscription
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