Fayette County Council enacts new zoning regulations for short term rentals

Lexington's Urban County Council has implemented new regulations for short-term rentals (STRs) in Fayette County, aiming to address community concerns and enhance compliance. Effective December 12, 2024, these regulations will require all new STR applications to adhere to stricter guidelines, including a conditional use permit for rentals accommodating more than ten guests.

The updated rules stipulate that the maximum occupancy for STRs is now capped at two individuals per bedroom, plus an additional two guests, bringing the total to ten. Furthermore, the Board of Adjustment will limit the approval of new conditional use applications to a maximum of ten per month. This measure is designed to prevent over-concentration of STRs in residential areas, with a new requirement that no STR can be located within 600 feet of another permitted STR.

In addition to these occupancy limits, the council has established that STRs cannot exceed 2% of all dwelling units within a 1,000-foot radius in residential zones. If these criteria are not met, applicants may seek relief by demonstrating that their rental will not contribute to an over-concentration of unhosted STRs or adversely affect local housing stock.

During the meeting, the council reviewed specific cases, including a request for a conditional use permit for an unhosted STR at 2351 Harrods Point Trace. Despite meeting the distance requirements, staff recommended disapproval due to the applicant's previous compliance issues, including operating without a license. The applicant acknowledged the violations but attributed them to misunderstandings and personal circumstances.

These new regulations reflect the council's commitment to balancing the interests of STR operators with the needs of the community, aiming to mitigate potential nuisances and protect the integrity of residential neighborhoods. As the implementation date approaches, stakeholders will be closely monitoring the impact of these changes on both the rental market and local residents.