Mobile zoning committee reviews short term rental regulations following Auburn case

The City of Mobile's Board of Adjustment meeting on June 2, 2025, was dominated by a critical discussion surrounding short-term rental regulations, sparked by a recent Alabama Supreme Court ruling. The case, Dixon vs. City of Auburn, has significant implications for property owners in Mobile who are navigating the complexities of zoning laws related to short-term rentals.

Jim Rosler, representing the city's planning and zoning department, presented a detailed analysis comparing Mobile's zoning ordinances to those of Auburn, emphasizing that both cities share similar regulations regarding single-family dwellings and short-term rentals. Rosler highlighted that the Auburn case involved a property owner who began renting out a basement as a short-term rental before the city adopted any regulations on such rentals. The court ruled against the owner, stating that the lack of enforcement by the city did not exempt him from zoning laws.

In Mobile, the situation is nuanced. While short-term rentals are not outright prohibited in residential districts, they require a conditional use permit. Rosler pointed out that the property in question had not applied for such a permit, which is essential for compliance with the city's regulations. He argued that the property owner's claim of nonconforming use status was unfounded, as the use of the property for short-term rentals was not permitted under existing zoning laws.

The applicant's representative, Carrie Kamanos, countered Rosler's assertions, arguing that their client had been operating under the assumption that their use was compliant, especially since they had been remitting lodging taxes to the city. Kamanos contended that the city’s collection of these taxes indicated an acceptance of their rental practices, and that the recent changes in regulations should not retroactively penalize property owners who believed they were in good standing.

The board members engaged in a robust dialogue, questioning the clarity of the zoning laws and the responsibilities of property owners to seek guidance from the city. The discussion underscored the ongoing tension between regulatory compliance and property rights, as well as the challenges faced by homeowners in understanding complex zoning regulations.

As the board deliberates on this matter, the outcome could set a precedent for how short-term rentals are regulated in Mobile, impacting both current operators and future property owners looking to enter the short-term rental market. The board's decision will be closely watched, as it may influence the balance between maintaining neighborhood integrity and accommodating the growing demand for short-term rental options.