The Columbia Falls Planning Commission began the first of what promises to be several discussions on how the city can better regulate short-term rentals here.

The city currently has 121 short-term rentals, with 11 undergoing the permitting process, and 110 approved. Of those 98 have business licenses and 90 have paid resort tax, according to a report by City Manager Eric Hanks.

However a search of sites like VRBO show more than that, he noted, as not everyone is complying with city law. In zoning areas where short-term rentals are allowed under zoning, there are 30 short-term rentals. Outside of that area, such as residential areas, there are 91 with conditional use permits.

All told, that amounts to 4.7% of the 1,930 residential units in the city having short-term rentals.

Of those without permits, the most common are no fire or no health inspections. Some are permitted, but do not have a required valid city business license (which has to be renewed annually).

Some actually pay resort tax, but don’t have any of the above-mentioned permits, Hanks noted.

Short-term rentals grossed $3.2 million in 2025, and paid $96,000 in city resort taxes.

Ten grossed more than $50,000 annually; with 28 grossing $25,000 to $50,000; 25 grossing $15,000 to $25,000; and 32 grossing less than $15,000.

The bulk of the planning commission discussion centered on enforcement of existing code and bolstering other codes to make it easier to enforce the regulations and pursue scofflaws.

One of the easier ways is for the city to require a registration number with the property. Websites like Airbnb and VRBO then require users to show that number on their listing, or it will be taken down.

That would require  a change in city law,  but is fairly easy to do.

Another way to is to change the zoning regulations, possibly using a tiered system, that would allow for owner occupied, but not investor-owned properties.

 Commission members mulled ways to accomplish this. The idea is to allow owner-occupied vacation rentals to continue,  but discourage or simply outlaw investor-owned properties altogether, where the owner never lives in the property.

Commission member Justin Ping said the town he formerly lived in Colorado was virtually ruined by investor short-term rentals and he was passionate that it should not happen here.

Hanks noted that some owners are getting permits from the city for short-term rentals in order to increase the property value of a home for sale.

One way to curb that is to not allow the permit to stay with the property after the sale. 

What commissioners didn’t want to do was crimp owner-occupied short-term rentals, as many homeowners use the additional rental income from say, an apartment or separate dwelling on the property, to afford the home in the first place.

Others rent their home for six months in the winter while they go south.

Regionally, other cities have taken a variety of tactics. Whitefish only allows short term rentals in its resort zoning district, while Kalispell has capped them at 2% of its total housing base.

But Kalispell also has issues with enforcement.

To that end, commissioners suggested that some of the revenue generated by short-term rentals here be used for code enforcement. The city recently added an accountant position (in Roger Elliott), which could help in that regard, Hanks noted.

The commission and city council will take up the matter more thoroughly in upcoming meetings. Mayor Don Barnhart has made the issue a top priority as the city revamps its zoning and land use plan in the coming months.

City planner Eric Mulcahy said the zoning changes could occur this year yet. City Attorney Justin Breck previously told council that the city can regulate short-term rentals through zoning and do it legally by grandfathering the use. Once the property is sold, the permit to have a short-term rental would be terminated.

Over time, the city would end up with less and less short-term rentals.