Lexington Homeowners and Lawmakers Face Off Over Short-Term Rental Legislation

Lexington, Ky. – An Airbnb lobbyist presented two significant bills to the Interim Joint Committee on Local Government Tuesday, advocating for regulations that would reshape the landscape of short-term rentals in Kentucky. The proposals aim to restrict local governments’ ability to regulate these rentals and to grant tenants the right to rent out properties with their landlord’s consent.

Jason Underwood, representing Airbnb, highlighted the financial impact of short-term rentals, stating, “They paid about $14 million in local taxes, resulting in an overall impact of about $606 million for this platform alone.” He emphasized the role of short-term rentals in supporting the tourism sector, particularly the Kentucky Bourbon Trail, where visitors often seek close accommodation options.

Underwood’s advocacy includes working on a bill to ban conditional use permits used by cities like Lexington, Louisville, and Frankfort to regulate un-hosted rentals. He criticized the use of these zoning tools, typically associated with businesses deemed less desirable in residential areas, arguing they hinder property owners from capitalizing on their investments.

However, many local residents oppose Underwood’s proposals. Kaye Myers, a resident of Lexington’s Kenwick neighborhood, expressed concerns over treating un-hosted rentals like commercial businesses in residential areas. “For years, it’s been a very mixed-use community, but those businesses tended to benefit the neighborhood,” she remarked.

Residents like Tomi Ross noted a disturbing trend: an increase in property values driven by an influx of short-term rentals. “The houses that were $100,000 or $200,000 are now $500,000 to $700,000,” Ross stated, adding that the growing number of rentals is leaving neighborhoods feeling desolate.

The community is increasingly concerned about losing local regulations that safeguard affordable housing options. “We are rapidly removing a wide spectrum of housing, including affordable units,” said Myers. Ross urged that the needs of permanent residents be prioritized over tourist attractions, stating, “We need to think about the people living in our cities before we think about the tourists visiting our cities.”

In a related development, the city of Richmond is also considering amendments to its short-term rental ordinances. A commission meeting held Tuesday night proposed potential changes to zoning regulations and new registration and renewal fees for rentals, signaling a broader conversation about the impact of short-term rentals on local communities.

The future of short-term rental legislation in Kentucky remains uncertain, with lawmakers grappling with the balance between economic growth and community concerns. As discussions continue, both supporters and opponents are keenly watching how these potential changes could reshape residential neighborhoods throughout the state.