Alabama Supreme Court denies nonconforming status for Auburn short term rental case

The City of Mobile Board of Adjustment meeting on May 5, 2025, spotlighted a critical discussion surrounding the legality of short-term rentals in residential districts. A key focus was the interpretation of zoning laws and their implications for property owners seeking to operate short-term rentals.

Legal representatives emphasized that courts have consistently defined a "single housekeeping unit" as requiring a stable and permanent occupancy, akin to a family living together. This definition explicitly excludes transient uses, such as hotels or bed and breakfasts, from single-family residential areas. The discussion referenced a recent Alabama Supreme Court ruling in the case of Dixon v. City of Auburn, which denied a property owner's request for nonconforming use status for a short-term rental. The court ruled that the owner failed to demonstrate that his rental use was established before the city enacted an ordinance prohibiting such rentals.

The implications of this ruling were clear: property owners in Mobile who began renting their homes short-term after the relevant zoning laws were enacted may face similar challenges. The board reiterated that the ordinance unambiguously prohibits transient uses in residential districts, reinforcing the need for compliance with local zoning regulations.

As the meeting concluded, it became evident that the future of short-term rentals in Mobile hinges on strict adherence to these definitions and legal precedents, leaving many property owners to reconsider their rental strategies in light of the law.