Fishers staff proposes rental-registration system and 10% subdivision permit cap for single-family rentals

City staff presented a proposal to create a rental-registration program and a subdivision-level cap on permitted single-family rental units during the Fishers City Council meeting on Jan. 13, 2025.

The proposal, led by Jordan (city staff member), would require owners of single-family homes used as rentals to register and receive a permit to operate. Jordan said the city would use new software that combines county homestead exemption data and rental listings to maintain a real‑time inventory of single‑family rentals. Jordan told council the software shows "just over 25,100 single family rentals in Fishers," which she said represents about 8% of single‑family homes and roughly 30% of all rental units in the city.

City leaders said the software also identified ownership patterns that motivated the proposal. Jordan said nearly half of single‑family rental properties are owned by out‑of‑state landlords and about 25% are held by institutional investors (which the staff memo defines as companies owning 1,000 or more units nationwide). The administration argues those trends make a proactive registry and permit system necessary to protect housing quality and preserve homeownership opportunities.

The proposed ordinance would include a 10% permit cap at the subdivision level, the staff presentation said. Properties that already operate as rentals before the ordinance’s effective date would be grandfathered as "legacy" rentals and would not be subject to the 10% cap until a change in ownership. Jordan said permits would not expire while ownership remains unchanged; a permit becomes invalid when the property is sold.

Enforcement and inspections: Jordan said the city would not require routine, city‑initiated annual inspections. Instead, the program would rely on a complaint‑driven inspection model consistent with the city’s existing code‑enforcement approach. The presentation also described criteria that could lead to permit revocation for chronic violations. The city would use the software to combine code‑enforcement history, utility delinquency and other data to flag properties with repeat problems.

Permit verification and timing: Staff demonstrated that the online platform would allow prospective buyers to check, in real time, whether a property is eligible for a rental permit. Jordan said the administration does not plan to charge a registration fee in the program’s first year; she also noted statutory limits on registration fees (a council member and staff referenced a nominal limit of around $5). The proposed rollout would include a 10–12 month registration introduction period to encourage compliance, and a 90–120 day window to allow transactions already under way to complete before the permit cap goes live.

Outreach and next steps: Jordan and other staff said they will conduct targeted outreach to homeowners associations (HOAs), realtor groups and title companies; staff will also meet with community groups that have shown interest. The administration plans to bring a first reading of an ordinance to council in February or March and sought council direction to proceed.

What council members asked and recommended: Council members and stakeholders asked about incentives to convert rental homes back to ownership, how long legacy permits remain valid, how the city will treat boarding houses or shared‑room tenancies, and whether HOAs need liability protection. Jeff Tees, chairman of the HOA Alliance, told council that some HOAs have tried to address rentals and that a city policy would help neighborhoods that cannot secure HOA restrictions. Lindsey Bennett, corporation counsel, said staff has reviewed statutory authority and expects to rely on a combination of statutory provisions regulating residential leases and the city’s home‑rule authority, and that the city is working with outside counsel to refine legal language.

Why it matters: Staff framed the proposal as a long‑term planning tool rather than an immediate enforcement sweep. City officials said the program aims to limit rental concentration that could change the character of neighborhoods, while preserving the right to rent properties and allowing existing rentals to continue until they change ownership.

A first reading of the ordinance is expected in a forthcoming council meeting; details on fines, permit‑revocation criteria and precise fee structure are to be included in the draft ordinance.