Bozeman Short Term Rental Rules

The Bozeman City Commission adopted regulations for Short Term Rentals (formerly known as extended stay lodgings) that are effective as of December 1, 2017. City Of Bozeman Ordinance 1974 states that all new Short Term Rentals must comply with the new regulations.

The new rules come with a $250 annual registration fee and a one-time $225 fire inspection fee. Some homeowners will also see a $1,508 fee for an administrative conditional use permit. Commissioner Chris Mehl states that there may be adjustments to these fees in the future, as the city commissioners will have the chance to look at and assess the fees every year.

Rentals that are owner occupied, whether the owner is there during the time of the rental or not, are allowed in most types of residential zoning districts.

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:

What kind of short term rental is allowed in each zoning district?

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 to comply with the new rules. These special provisions include some specific time frames and steps that are in Sections 7 and 8 of Ordinance 1974. 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.

Grace period. The Commission has provided for a 60 day grace period after the new ordinance takes effect. This grace period will expire on January 30, 2017. The grace period is provided to enable property owners to make applications without penalties after the new regulations take effect. An owner of a current short term rental needs to submit a complete application and applicable fees within the grace period in order for it to be of benefit to them. During the grace period, owners who have submitted complete applications can continue to operate their short term rental even though their registration has not yet been approved if they have submitted a self-certification for safety compliance.
The new regulations reduce the intensity and types of short term rentals that are allowed in residential districts. The Commission provided a “grandfather” option to allow operators of existing short term rentals who do or do not currently have approval for a short term rental at their site to obtain approval. There are several requirements for this to occur.
First, the owner must make application for a conditional use permit (CUP), a special form of zoning review. The CUP requires additional material to be submitted and an additional one time application fee. This will apply to any type 3 short term rental and to type 2 short term rentals in the R-S and R-1 districts. Secondly, the operator must provide sufficient proof that their short term rental was in operation prior to January 1, 2017. Options to show proof of operation are:

1) A city issued conditional use permit (CUP) for extended stay lodging;

2) A city issued business license for extended stay lodging;

3) Bed tax registration with the Montana Department of Revenue and proof of payment of bed taxes;

4) A public accommodations license with the Montana Department of Health and Human Services; or

5) Such other evidence as may be acceptable to the City Attorney.

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.

The owner of a Type-1 short term rental may rent or offer for rent up to two bedrooms in the dwelling, except that in a two-bedroom dwelling, only one bedroom may be rented or offered for rent. No other area of the dwelling may be rented or offered for rent.

The maximum occupancy of a Type-2 or Type-3 short term rental is two persons per bedroom plus two additional persons, except that this number may be reduced by the city based on available parking spaces.

What is a Conditional Use Permit (CUP) and do I need one for a short term rental?
A conditional use permit (CUP) is a type of land development review used for uses that are questionable in certain locations Most short term rentals will not require a CUP. A CUP is required when an application occurs for a type of short term rental not allowed under the new regulations that take effect on December 1, 2017. Such applications have been allowed to enable existing facilities to come into compliance with the new regulations. . A CUP for a short term rental is approved by the Director of Community Development. If you believe that you may require a CUP please make an appointment with the Department of Community Development to verify this and to obtain the required forms and information on how to apply.