Short-term rental regs get preliminary OK

The Flathead County commissioners on Tuesday took the first step toward imposing regulations for short-term rental housing by passing a resolution of intent to adopt a permit process and performance standards for rentals.

Commissioners Gary Krueger and Pam Holmquist voted in favor of the zoning text amendment, which will require an administrative conditional-use permit for homeowners who operate short-term or vacation rentals in zoned areas of the county. The North Fork Zoning District was exempted from the proposal because guest cabins are a permitted use.

Commissioner Phil Mitchell voted against the text amendment, asserting that some of the issues of allowing short-term rentals in residential neighborhoods haven’t been adequately addressed. He argued unsuccessfully to impose a three-night minimum stay for vacation rentals.

Once the county publishes a legal advertisement outlining the changes made to the original proposal, residents will have 30 days during which to submit further public comment. The commissioners will consider final adoption at some point after that.

If the text amendment is approved, operators of vacation rentals will be required to obtain an administrative conditional-use permit through the county Planning Office.

The Northwest Montana Association of Realtors proposed the zoning text amendment as a way to protect homeowners, the property rights of neighbors and the traveling public.

Currently, operating a rental unit for less than 30 days is an illegal use in zoned areas of the county. Nevertheless, there are hundreds of rentals operating throughout the county through online venues such as VRBO (Vacation Rental By Owner) and Airbnb.

The commissioners pored over the findings of fact outlined in the planning staff report, making minor adjustments before tackling changes to the performance standards.

A sticking point was whether to include language about the length of stay at a vacation rental. Mitchell moved to require a minimum stay of three nights at such rentals, but it died for lack of a second.

There was also discussion about whether to specify how many adults would be allowed per bedroom, and it was decided on a 2-1 vote — with Mitchell opposing — to remove that stipulation and state that maximum occupancy would be determined by the septic capacity allowed by the county Environmental Health Department.

“I have a problem writing code without an enforcement arm,” Krueger said. “I don’t know how we’re going to put a sheriff in their bedroom” to determine how many people are sleeping there.

Krueger pointed out that if complaints are lodged by the neighbors of a vacation rental, the county Board of Adjustment would mitigate and make decisions in such cases. While the zoning text amendment aims to require the same performance standards for all vacation rentals, there’s a big difference between a home on 40 acres or a home on a narrow road, Krueger said.

Mitchell suggested a parking requirement of one off-street space per bedroom, but the other two commissioners favored a more general approach by stating the rental owner simply must have adequate off-street parking.

Krueger said he believes the application process for an administrative conditional-use permit gives the county the ability to look at each rental situation individually. He reiterated the Board of Adjustment “has great leeway” to handle cases where mitigation is needed.

“We’ve put a lot of sideboards on this,” Krueger said. “I really think we’ve done a good job.”

Creating regulations for short-term rentals has been a 50/50 debate. The county Planning Board came to a 4-4 impasse on the proposal in March and sent it to the commissioners without a recommendation. Public comment likewise has been both in support and opposition of the proposal.

Prior to the commissioners’ discussion, vacation rental owner Steve Pleasants asked the commissioners to deny the text amendment and give rental owners an opportunity to work with the real-estate community to “give everyone a voice.”

Mitchell later asked Erica Wirtala, government affairs director for the Northwest Montana Association of Realtors, if the association had reached out to short-term rental owners when developing its proposal.

Wirtala said the association didn’t specifically contact short-term rental owners, but noted that property managers, who are required to be licensed through state Board of Realty Regulations, provided extensive comments on the proposed text amendment and represent a large percentage of the rentals.

NMAR looked at short-term rental regulations for the cities of Columbia Falls and Kalispell, as well as other places such as Gallatin County, and came up with a “mash-up” of regulations for the proposal, she said.

Planning Director Mark Mussman said he didn’t know of any organization for people who market their homes. The Montana Bed and Breakfast Association provided comments in support of the zoning text amendment, Mussman added.

Features editor Lynnette Hintze may be reached at 758-4421 or lhintze@dailyinterlake.com.