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Carmel clarifies short-term rental rules after state changes; owner-occupied STRs face simplified process
Summary
City counsel said state law changes allow owner-occupied short-term rentals to qualify under a simplified process while non-owner STRs still require approvals; the city may revoke STR permits after three ordinance citations.
Sergei, the city’s deputy corporation counsel, told attendees the state’s omnibus legislation required changes to Carmel’s short-term rental (STR) ordinance and the city amended its local code accordingly.
He said owner-occupied properties that qualify under the relevant criteria may now operate as STRs under a streamlined local process and lesser local approval steps, while non-owner-occupied STRs continue to require board-of-zoning-appeals review and compliance with unified development standards. "If you are an owner occupied short term rental, you you have it by bridal as long as you meet a very short list of criteria," Sergei said, clarifying the owner‑occupied pathway.
Enforcement detail attendees were given: the city may withdraw an STR permit after three citations for city-ordinance violations. Sergei advised residents to call code enforcement only when a likely ordinance violation occurs, because revocation depends on repeated citations.
Why it matters: The STR classification and enforcement route differ from the city’s long-term rental-cap rules; attendees were advised that STRs are regulated separately and that HOAs still may use their covenants to address STRs where permissible.
Next steps for residents: If neighbors are troubled by a problematic STR, call the city’s code-enforcement line so staff can investigate; HOAs interested in tighter local controls should consult their attorneys about covenant amendments.
