Algood City Council approved a permit system for short-term rental properties (STRP) Tuesday.
Mayor Lisa Chapman-Fowler said the city’s code previously had no ordinance addressing STRP’s.
“I’m sure most of you all are aware that there are some short-term rentals or people that own homes and they rent them out daily and weekly,” Chapman-Fowler said. “This is a permitting process for anybody who wants to have a short-term rental property. They have to meet all of our requirements and permitting processes. All of those type things are covered under this ordinance.”
The ordinance requires property owners to show proof of insurance and to obtain a permit and business license. The city codes department will also conduct annual inspections of the home.
Algood City Attorney Danny Rader said state law includes a grandfather clause that may apply to current short-term rental owners.
“There are specific requirements under the state law that a person must meet to be grandfathered in,” Rader said. “Including the requirement that they have paid sales tax for six of the 12 months preceding this adoption.”
Rader said owners meeting those requirements will not have to meet the city’s permitting requirements. The owner would still need to pay sales tax.
An unidentified resident told the council Tuesday night that the new rules would take away business from the city.
“Do you understand the impact if you stop short-term rentals in Algood? Because people who come here are spending money in your town.” He said. “If you do this, you’re taking that away from your community.”
The council voted unanimously to approve the permitting system. The ordinance will take effect in 14 days.