After hearing the positives of short-term rentals from owners on Monday, the Kalispell City Council decided to continue discussion on conditions to allow them in Kalispell.

The council heard short-term rental owners describe their experience with renters, neighbors and property upkeep.

Scott and Megan Lester talked about operating a short-term rental for seven years as an investment in their property rather than a detriment. Scott Lester said they had previously rented the Second Avenue West house as a long-term residential rental, but the renters continuously allowed the property to degrade.

“We had problems with people not paying their rent. The back yard had been completely turned to mud. There were times when it was touch-and-go and it was scary,” he said. When his family found the short-term rental option, “It became a big win for us. It’s worth pointing out this is a big part of our family’s income.”

Scott said the change to a short-term rental helped his family, his property and the guest experience.

The Lesters pay a local one-woman cleaning service approximately $4,000 a year to clean the home after each visit and last year they paid $2,500 in state bed tax. Scott said the property has recovered and the guests rarely leave a mess in the home, although he noted the short-term rental market appears to regulate itself through online reviews.

“The market does self-regulate. If you do a bad job, you’ll get bad reviews and people won’t want to stay at your house,” he said.

While acknowledging that operating short-term rentals in Kalispell are not legal under city codes, several short-term rental owners talked about similar experiences with renters.

Some said renters commonly arrive in the Flathead Valley to tour Glacier National Park or visit family rather than party into the night. Often, the owners get to know renters, creating a friendly relationship that gives the renters a sense of respect for the home and sometimes produces repeat visitors.

During the public comment period Monday, one resident spoke against allowing short-term rentals, citing extra traffic and density as a concern.

Monday’s work session centered around the conditions recommended by the Kalispell Planning Board to allow short- term rentals: providing contact information for neighbors as complaints arise, providing proof of fire department and life safety inspections, registering with the state to pay the state bed tax, and proof of a state license subject to county health inspections.

Before property owners took to the lectern, other concerns were discussed, including potential density issues that could arise through a large number of short-term rentals located on one city block.

“It can be a pretty good source of revenue, but I can see entrepreneurs taking several houses and making VRBOs and changing the nature of the neighborhood,” council member Jim Atkinson said.

Mayor Mark Johnson pointed to the uncertain effect of allowing short-term rentals.

“By allowing short-term rentals, does that introduce a negative or a positive in the valley?” he asked. “That’s the crux of the question. What is the effect on the long-term history of the neighborhoods and how do we allow this going forward?”

After more than an hour of discussion and public comment, the council decided to carry the issue over to a third work session.

“I just want to point out I think it adds value to the neighborhood,” Scott Lester said.

Reporter Seaborn Larson may be reached at 758-4441 or by email at [email protected].