Is Airbnb legal in Indianapolis?

Airbnb Regulations in Indianapolis: A Brief Overview for Hosts

The short-term rental market in Indianapolis has expanded rapidly, with regulations designed to address the needs of both hosts and the local community. Understanding these regulations is crucial for anyone looking to operate an Airbnb in the city.

1. Licensing Requirements:

   • Hosts must obtain a short-term rental (STR) permit from the City of Indianapolis if renting out property for less than 30 consecutive days.
   • Applications require proof of ownership, a detailed floor plan, and local contact information.
   • The permit fee is capped at $150, and renewal is free unless previously revoked.

2. Required Documentation:

   • Proof of ownership (e.g., deed or tax statement).
   • A detailed floor plan of the rental unit.
   • Contact details for the host and any local representative.

3. Tax Obligations:

   • Short-term rentals are subject to Indiana's 7% sales tax and a 10% county innkeeper's tax in Marion County.
   • Hosts are responsible for collecting and remitting these taxes on behalf of their guests.

4. City-Wide Regulations:

   • The principal renter must be at least 21 years old, and occupancy limits are based on the property size.
   • Owners must display their contact information in the rental unit and provide it to neighbors.
   • STRs are subject to mandatory safety inspections at the owner's expense.
   • There is a two-night minimum stay requirement to discourage partying or disruptive activities.

5. Restrictions:

   • New STR permits are prohibited in certain residential zones, and permits are non-transferable upon the sale of the property.
   • Hosts must comply with local ordinances regarding noise, trash, and parking, and engaging in prohibited activities such as large gatherings is not allowed.

6. Enforcement and Compliance:

   • The level of enforcement is considered moderate, with regular inspections and penalties for non-compliance (up to $500 per violation).
   • Positive relationships with neighbors and compliance with local rules are emphasized as essential for successful hosting.

For those interested in hosting in Indianapolis, it's vital to remain informed about ongoing regulatory updates and engage with both the community and local authorities to foster a positive environment for all involved.