Council reviews short-term rental rules; recommends owner-occupied start and annual safety inspections

Fountain Green City Council and planning staff reviewed draft rules for short-term rentals (STRs) on Jan. 9 and agreed to move the policy forward with an initial, conservative approach that restricts STRs to owner-occupied properties and requires annual safety inspections.

Planning staff summarized the Planning Commission recommendation: allow short-term rentals only when the owner occupies the dwelling at least 50% of the year (owner-occupied STR), require a building and fire safety inspection conducted by the fire chief at the time of license issuance and renewal, and designate sleeping rooms at the safety inspection. The Planning Commission also recommended an initial owner-occupied-only policy so the city can take “baby steps,” then revisit the policy later if demand or circumstances warrant.

Council discussion focused on privacy and enforcement. Several councilmembers raised concern about annual inspections entering private living space and asked staff to limit inspections to the rented area where practical. The fire chief and staff clarified inspections will emphasize safety elements such as egress, smoke detectors, heating and water-heater clearances; the initial inspection would establish compliant sleeping-room designations and then be timed with business-license renewal to minimize intrusion. The city will notify owners in advance and provide a 30-day notice before permit anniversary or renewal.

The council and Planning Commission discussed enforcement against absentee landlords who buy properties to rent them repeatedly without a local presence; staff emphasized the owner-occupancy requirement and a 24-to-30-minute on-site availability requirement (the host must be reachable and able to respond rapidly to problems) to reduce that risk.

Why this matters Short-term rental rules affect neighborhood character, housing availability and municipal liability. The owner-occupancy restriction and annual safety inspections aim to balance safety and nuisance prevention while allowing limited hosting opportunities for residents.

What’s next Staff will finalize forms and ordinance text to add definitions to chapter 2 and a specific section in chapter 11, prepare inspection forms, and present a finalized ordinance draft and application forms to the council for formal adoption. The council asked staff to clarify whether the 50% occupancy requirement must be consecutive or cumulative; staff will add clarifying language to the draft.