Indy council considers permit system for Airbnbs, VRBOs
Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
Indianapolis owners of short-term rentals—such as Airbnbs or VRBOs—would be required to obtain annual permits under a new proposal pending before the City-County Council.
The measure, authored by Democratic Councilor Kristin Jones, aims to create a permitting program that would allow the Department of Business and Neighborhood Services to conduct inspections of properties as a condition of registration. Short-term rental owners would be required to pay a $150 annual registration fee.
The council referred the proposal to the Metropolitan and Economic Development Committee, where it will receive a public hearing at 5:30 p.m. Monday in the City-County Building Public Assembly Room.
The proposal is a step that some see as necessary to weed out bad actors that offer short-term rentals that can become hotspots for crime.
Some residents in the Old Southside have advocated for registration fees since at least 2022. Their efforts have brought together neighbors, a local short-term rental owners organization city leaders and police officers in support of some sort of regulation of short-term rentals. Even Airbnb supports Jones’ proposal.
Jones told IBJ in a statement that the measure “has been a significant focus” for the council, “driven by passionate advocacy from our constituents who have expressed their concerns for the future of short-term rentals in Indianapolis.”
“This proposal addresses immediate concerns by establishing a permitting and inspection program; it also lays a strong foundation for the sustainable growth of short-term rentals in our city,” the statement said. “I want to extend my heartfelt thanks to everyone who participated in the discussions and shared their stories.”’
Short-term rentals, often associated with platforms like Airbnb or VRBO, have occasionally been cited as hotspots for Indianapolis crime. Beginning in 2022, Judith Essex and others in the Old Southside neighborhood association sounded the alarm on the concerns caused by these homes and convened neighborhood leaders across the county.
The group formalized in months to create the “coalition to address short-term rentals.” Essex said that the group ultimately included neighborhood organizations, City-County councilors, neighbors and businesses. The collaboration extended to the Indiana Short-Term Rental Alliance and the Indianapolis Metropolitan Police Department’s Nuisance Abatement Unit.
Essex said the group is happy to see city-level work to regulate these properties. So is the local alliance of short-term rental owners.
Jim Borthwick, an Indianapolis-based owner of short-term rentals, told IBJ that the permits and associated costs are reasonable and largely comparable to that of other short-term rental permitting programs in other cities. As the president of the Indiana Short-Term Rental Alliance—a loose advocacy and networking group of 50 plus property owners—Borthwick said most see that bad actors can give the business a bad reputation.
“Being a good neighbor to those around us is very important to the Indy hosting community,” Borthwick said.
The short-term rentals themselves aren’t going anywhere. According to Airbnb, the company’s rentals helped generate an estimated $434 million in gross domestic product for Indiana’s economy last year. A spokesperson for the company told IBJ in an email it is supportive of the council measure, “which protects responsible home sharing and enables Indianapolis to benefit from the growing opportunities around tourism.”
The Department of Business and Neighborhood Services would handle enforcement of the measure if it passes. If property owners failed to follow the ordinance, the department could inspect properties, issue citations and revoke registrations.
In a statement, IMPD said the department “looks forward to any ordinance or proposal that would assist in addressing and mitigating issues related to short-term rental properties” and called the measure “a step toward enhancing the safety and quality of life for all Indianapolis residents.”