Madison City Council holds work session on regulations of short-term rental property

MADISON – During a work session last Wednesday, the Madison City Council discussed potential regulations for short-term rentals.

A short-term rental (STR) is most typically defined as the rental of a housing unit for less than 30 days. Commonly called ‘Airbnb rentals’ or Air Bed and Breakfast, the STRs are currently not allowed in the city, and there is no approved use type in the zoning ordinance or city code.

The city council is considering changing that and looking into zoning, permits and taxes.

Most of Alabama’s Big 10 Cities allow STRs, including Auburn, Decatur, Dothan, Hoover, Huntsville, Mobile, Montgomery, and Tuscaloosa. Birmingham and Madison are the two members of the Big 10 that do not permit or regulate STRs.

According to a release from the city, concerns expressed about STRs include changes in the character and intent of neighborhoods and apartment communities, noise and parking issues, disruptions to housing supply, and operation by non-local owners.

During the work session, Madison Mayor Ranae Bartlett expressed concern because the city is not collecting fees from rental permits or lodging taxes.

“It’s happening, and we’re losing revenue. What we’ve been doing is totally unsatisfactory, saying ‘it’s not allowed, but it’s happening’, she said. “We should find a way.”

A public comment period will be held later in the spring. The city council will take up the issue following the Planning Commission’s recommendation.