Lexington adopts new short term rental regulations effective December 2024

The Lexington Board of Adjustment meeting on February 10, 2025, focused on the newly adopted regulations for short-term rental (STR) applications in the city. These regulations, which came into effect on December 12, 2024, were established by the Urban County Council to address growing concerns about the impact of STRs on local neighborhoods.

James Mills from the planning staff presented the key changes to the STR regulations. Notably, the maximum occupancy for STRs has been reduced from 12 to 10 guests. This change limits the number of occupants to two per bedroom, plus an additional two guests. Furthermore, the city will now accept a maximum of 10 STR applications per month, a response to the high volume of applications previously received.

The regulations also stipulate that STRs with an occupancy greater than 10 will require a conditional use permit. Additionally, STRs are prohibited from being used for private events, such as weddings or parties, that exceed the maximum occupancy limit.

Mills highlighted that the board will consider the compliance record of applicants and whether nearby STRs have been cited for nuisance issues. A significant update includes the introduction of a 2% cap on the number of unhosted STRs within a 1,000-foot radius in residential zones, aimed at preventing over-concentration and protecting the housing stock.

The meeting included discussions on specific applications, with two cases falling within the newly established 600-foot buffer zone, which restricts the placement of STRs in close proximity to one another. The board will evaluate these applications based on the new criteria, ensuring that they do not adversely affect the surrounding community.

Overall, the meeting underscored the city's commitment to regulating short-term rentals while balancing the interests of residents and property owners. The board's decisions in the coming months will be crucial in shaping the future landscape of STRs in Lexington.