The city of Columbia Falls will have a more robust way to regulate short-term rentals in the next year, but stopped short of requiring owner-occupancy of the property as the city’s planning commission had recommended.

The tweaked regulations, which the city will try out for the next year, will focus on regulating short-term rentals more closely so they comply with city and county codes.

Here’s a look at some of the highlights:

• Under the new regulations, there would be no cap on the number of short-term rentals and all rentals would undergo the same review and compliance process regardless of zoning.

• In addition there would be strict enforcement of short-term rental permits, management and compliance standards, and resort tax collection requirements. 

• Short-term rental permit numbers must be displayed on hosting platforms and other advertisements. The city has contracted out with Deckard Technologies for software that will help staff manage short-term rentals in the city. The platform uses data mining to collect data while automatically cross-checking with the city-provided Short-Term Rental permit records for compliance. Provides notification to the city and the non-compliant host. It also collects data on occupancy rates, nightly rents, revenue generation and other data. In addition, Hosting platforms may only advertise properties displaying a valid city-issued short-term permit number.

• Actively rented properties require a local contact who can respond to complaints and be present at the property within 60 minutes. 

• Failure to comply with short-term rental ordinances, operational standards, and resort tax reporting requirements may result in civil penalties, suspension, and/or termination of a short-term rental permit, the city notes.

• Permits terminate upon sale or transfer of property ownership.

• Notification of neighbors in residential zones would be required.

The city will update the zoning code to adopt short-term rental restrictions for apartments with more than 10 units in the total complex. Right now the city is putting short-term rental restrictions on new developments as they come before the board. Changing the code will take a few months and variance to the zoning restriction would be reviewed by the city Planning Commission and City Council. 

Full implementation of fees and most policies comes in January 2027.

The fee for having a short term rental will also go up starting next year. Currently a short-term rental owner pays for a business license which is $40 a year with an initial $325 administrative conditional use permit.

The new fee would be $350 initially with a $250 renewal. The initial fire inspection fee is $150, with a $75 fee for renewal.

Council approved the new short-term policies, though Councilwoman Marijke Stob suggested the city explore a short-term rental tax, where the funds, in turn, would go toward affordable housing projects in the city.

City Attorney Justin Breck said he would have to do more research on such an idea to explore the legalities.

Short-term rentals do pay the city’s resort tax, but the revenue to the city is comparatively minimal — they paid about $96,000 last year, for example.