Bozeman Short Term Rental Rules
Bozeman City commissioners on October 18, 2023 voted to ban any future non-owner occupied short-term rentals(Classified as Type-3) in Bozeman and grandfather in existing permitted Type-3 units. These new regulations impact short-term rentals, including rentals offered on platforms like Airbnb and Vrbo.
Existing non-owner occupied permitted units and owner occupied permitted units(Type-1 & Type-2) must comply with the regulations for Short Term Rentals (formerly known as extended stay lodgings) that are effective as of August 11, 2023. City Of Bozeman Ordinance 2131 states that all Short Term Rentals must comply with the regulations.
The rules come with a 6 Step Short Term Rental (STR) Hosting Permit Application Process.
- PREREGISTRATION
- STATE & COUNTY REQUIREMENTS
- FIRE INSPECTION
- SKETCH PLAN/FLOOR PLAN
- REGISTRATION
- RENEWAL
The provisions apply only to transient occupancy of a short term
rentals. The restrictions do not apply to any rental of a dwelling unit which is governed and defined by The Montana Residential Landlord and Tenant Act of 1977 (Landlord Tenant Act). Transient occupancy of a short term rental means occupancy which has the following characteristics: a. The period of occupancy is less than 28 consecutive days, and b. The renter has a principal residence other than the short term rental.
Short terms rentals are classified as:
1. Type-1: A short term rental of one or more bedrooms in an owner-occupied dwelling while the owner is occupying the same dwelling unit for the entire rental period.
2. Type-2: a. A short term rental of an owner-occupied dwelling if the owner is not occupying the dwelling during the entire rental period. b. A short term rental of a permitted accessory dwelling unit (ADU) whether or not the ADU’s owner is present in the primary dwelling unit during the rental period. c. A short term rental of one dwelling unit within a duplex whether or not the duplex’s owner is present in the duplex’s other dwelling unit during the rental
period.
3. Type-3: A short term rental that is not owner-occupied.
The City of Bozeman registration process does not address every issue which may be applicable to operation of a short term rental, including but not limited to taxes, insurance, health code, and other legal issues outside of the City’s regulations. Persons interested in having a short term rental should also check mortgage or lease/rental terms, home owner covenants, and insurance policies as standard homeowner’s insurance may not cover short-term rental use. Check to make sure you have adequate home, personal property, and liability insurance. If you have tax, insurance, health code, or legal questions please consult an appropriate professional. The City of Bozeman does not advise on issues related to short term rentals other than its own regulations.
Bozeman Short Term Renal Categories
Under the ordinance, short-term rentals are placed in three categories:
| Type | Description |
|---|---|
| Type I | Owners rent out spare rooms while staying in their homes. |
| Type II | Owners rent their homes when they’re not present. |
| Type III | Homes aren’t owner-occupied, such as vacation homes rented by someone who lives elsewhere in the city. |
What kind of short term rental is allowed in each zoning district?
|
Authorized Uses in Residential Districts |
|||||||||
|
R-S |
R-1 |
R-2 |
R-3 |
R-4 |
R-5 |
R-O |
REMU |
RMH |
|
|
Short term rentals (Type 1) |
P |
P |
P |
P |
P |
P |
P |
P |
— |
|
Short term rentals (Type 2) |
— |
— |
P |
P |
P |
P |
P |
P |
— |
|
Short term rentals (Type 3) |
— |
— |
— |
— |
— |
— |
— |
P |
— |
|
Authorized Uses in Non-Residential Districts |
||||||
|
B-1 |
B-2 |
B-2M |
B-3 |
UMU |
HMU |
|
|
Short term rentals (Type 1) |
— |
P |
P |
P |
P |
P |
|
Short term rentals (Type 2) |
— |
P |
P |
P |
P |
P |
|
Short term rentals (Type 3) |
— |
P |
P |
P |
P |
— |
** As of October 18, 2023 only grandfathered Type-3 rentals are allowed. **
**Other districts not listed do not allow short term rentals.**
Authorized Use Key:
- Principal uses are indicated with a “P,”
- Conditional uses are indicated with a “C,”
- Uses which are not permitted with the district are indicated by a ” — “
Short Term Rental FAQ
What happens if I don’t register my short term rental?
Not registering a short term rental is a misdemeanor offense. A misdemeanor is subject to penalties established in Section 38.34.160 [CCS1] of the Bozeman Municipal Code including fines, imprisonment, and civil penalties.
How do I grandfather in my short term rental?
The City Commission adopted some special provisions to enable existing and operating short term rentals. These special provisions include some specific time frames. These provisions can be complex. Please contact the Department of Community Development if you intend to submit an application that relies on the grace period or grandfather provisions.
How many people can stay in my short term rental?
There is a maximum capacity that is determined by the type of short term rental you have and the number of sleeping areas. Please reference the City of Bozeman Regulations of Short Term Rentals linked to at the top of this article for maximum limits.
Contact one of our Real Estate Agents if you have questions about Bozeman Short Term Rentals. Our experienced agents will answer your questions.
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