Overview: Are STRs Allowed in Decorah, IA?

• Explicit answer: Yes. Short-term rentals (STRs) are allowed in Decorah, Iowa and are regulated through the city’s Rental Housing Ordinance (Chapter 5.28).
• The city’s Planning and Zoning Commission amended Chapter 5.28 in February 2020 to include “short‑term housing rentals,” reflecting a formal licensing and compliance framework.
• Decorah permits STRs in all zoning districts (as confirmed by Commission discussion during the ordinance amendment), but STRs remain subject to the city’s zoning and property standards.
• A Residential Rental Property Permit and inspection are required. The city’s current permit form states “No Fee for Short Term Rentals.” Plan on a $0 permit fee, but verify annually.
• Inspections: New rentals and any transfer of ownership require an inspection; existing rentals are inspected on a three‑year rotation unless requested otherwise. Annual renewal is required.
• State taxes: Iowa imposes a 5% state hotel/motel tax. Local (city/county) hotel taxes may also apply; hosts must register and remit to the Iowa Department of Revenue, typically monthly or semi‑annually.

This overview is grounded in Decorah’s adopted ordinance (Chapter 5.28 amendments via P&Z Commission minutes) and the city’s official permit form.

How to Start a Short‑Term Rental Business in Decorah

1. Confirm zoning and location suitability

• Decorah allows STRs across zoning districts (per Commission discussion of Chapter 5.28 amendments). Still, ensure your parcel complies with the underlying zoning (e.g., setbacks, uses, parking).
• For properties near sensitive areas (historic districts, downtown design review zones), check any façade/signage or design criteria constraints with the Zoning Administrator.

2. Obtain the required Residential Rental Property Permit

• Submit the city’s Residential Rental Property Permit & Inspection form. The form currently indicates “No Fee for Short Term Rentals.”
• Provide property owner details, property address, type of rental (select “Short Term”), number of units, and contact information.

3. Schedule and pass required inspections

• New rentals and transfers of ownership require an inspection.
• Existing STRs are inspected on a rotating schedule every three years unless otherwise requested.
• The permit references the 2015 International Property Maintenance Code (IPMC). Expect inspection criteria tied to habitability, safety, and maintenance.

4. Renew annually

• The permit requires annual renewal. Keep a calendar to submit renewal documents, confirm inspection status, and maintain compliance records.

5. Register for state and local hotel taxes

• Register with the Iowa Department of Revenue to collect and remit the 5% state hotel/motel tax.
• Determine if Decorah or Winneshiek County imposes local hotel taxes; collect and remit as required.
• File returns monthly or semi‑annually, as directed by the Iowa Department of Revenue.

6. Market the property while staying compliant

• Market through mainstream platforms (Airbnb, VRBO, etc.) once permits, inspections, and tax registrations are in place.
• Maintain records of guest stays, receipts, and tax remittances for audits.

Actionable next steps

• Contact the Zoning Administrator to confirm zoning and design criteria.
• Download the city permit form, complete and submit.
• Schedule your initial inspection; plan for annual renewals and three‑year rotation inspections.
• Register for hotel/motel tax with the Iowa Department of Revenue; set up monthly/semiannual filing cadence.

Required Documents, Permits, Licenses, and Guidelines

• Residential Rental Property Permit & Inspection (Decorah)

  • Application includes property owner information and rental details; specify “Short Term” as the rental type.
  • Address: 400 Claiborne Drive, PO Box 138, Decorah, IA 52101
  • Contact: (563) 382-3651 | Website: decorahia.org
  • Annual renewal; inspections required as outlined above.
  • Current permit form states “No Fee for Short Term Rentals.”

• Inspection compliance

  • References the 2015 International Property Maintenance Code.
  • New rentals and ownership transfers require an inspection.
  • Existing rentals: three‑year inspection rotation.

• Zoning compliance

  • STRs allowed in all zoning districts; verify specific parcel requirements with the Zoning Administrator.
  • Additional downtown design criteria may apply (e.g., signage, façade alterations).

• Tax registration and filings

  • Iowa state hotel/motel tax: 5%; file monthly or semi‑annually per Iowa Department of Revenue guidance.
  • Check whether Decorah/Winneshiek County levies local hotel taxes; collect and remit if applicable.

• Recordkeeping and renewals

  • Keep inspection reports, permit renewals, guest logs, tax filings, and correspondence for city/state.

Specific Regulations: City (Decorah), County (Winneshiek), and State (Iowa)

• City of Decorah (Chapter 5.28 – Rental Housing Permits)

  • STRs are explicitly included via amendments adopted in 2020 (per Planning & Zoning Commission minutes).
  • Permit application and inspections required; annual renewal.
  • Inspections:
    • New rentals and ownership transfers require inspection.
    • Existing rentals inspected on a three‑year rotation unless requested otherwise.
  • Fees: “No Fee for Short Term Rentals” appears on the city’s current permit form; confirm annually.
  • Zoning: STRs allowed across zoning districts (Commission language during amendment).
  • Safety/maintenance standard: 2015 IPMC.

• Winneshiek County

  • No county-specific STR ordinances are evidenced in the provided sources. Expect county-level health, safety, and nuisance codes to apply in general; confirm with county offices if operating outside city limits or in special districts.

• State of Iowa

  • Hotel/Motel Tax: 5% state tax. Register with the Iowa Department of Revenue; file monthly or semi‑annually.
  • Local option hotel taxes may apply depending on jurisdiction.
  • Iowa manages STRs primarily at the local level; cities may set licensing, zoning, and operating standards.
  • Standard health, fire, and safety codes apply; landlords should adhere to property maintenance, building, and life-safety standards.

Important regulatory nuance

• Third‑party market information claims Iowa cities cannot require STR-specific permits. Decorah’s Chapter 5.28 and permit form directly contradict that claim—Decorah does regulate and requires permits/inspections. Rely on Decorah’s ordinance and official forms for compliance.

Contact Information: Local Authority for STRs in Decorah

• City of Decorah – City Hall / Zoning Administrator (City Manager)

  • Address: 400 Claiborne Drive, PO Box 138, Decorah, IA 52101
  • Phone: (563) 382-3651
  • Fax: (563) 382-6525
  • Website: decorahia.org
  • Hours: Monday–Friday, 7:30am–4:00pm
  • Use city hall for permit submissions, inspection scheduling, renewals, zoning verification.

• Iowa Department of Revenue (State taxes)

  • For hotel/motel tax registration, filings, and guidance: tax.iowa.gov
  • File returns and remit state hotel/motel tax; inquire about local option hotel tax if applicable.

Links to Source Pages

• City of Decorah – Residential Rental Property Permit & Inspection (fillable PDF; March 2024): www.decorahia.org/wp-content/uploads/2024/03/Rental-Permit-March-2024-fillable.pdf
• City of Decorah – Planning & Zoning Commission Minutes (February 10, 2020): www.decorahia.org/wp-content/uploads/2020/01/February-10-2020-Planning-and-Zoning-Minutes.pdf
• DecorahNews.com – Community Conversation Series, Housing challenges in and around Decorah, Part One: Short-term rentals: decorahnews.com/news/10248/decorahnewscom-community-conversation-series-housing-challenges-in-and-around-decorah-part-one-short-term-rentals/
• STR Profit Map – Iowa STR Regulations (state-level overview): www.strprofitmap.com/regulations/IA
• RedAwning – Decorah, Iowa STR Market Overview (market conditions and general guidance): pm.redawning.com/market-overview/decorah-iowa

Compliance Checklist (Concise)

• Verify zoning with Decorah Zoning Administrator; confirm any downtown design criteria.
• Submit Residential Rental Property Permit (Short Term selected); confirm current fee policy.
• Pass inspection (new STR or ownership transfer); track three‑year rotation for existing STRs.
• File annual permit renewal; keep all inspection and renewal records.
• Register with Iowa Department of Revenue; collect/remit 5% state hotel/motel tax; verify local option hotel tax.
• Maintain property to 2015 IPMC standards; ensure fire and life safety equipment.
• Retain guest logs, tax filings, and communications with city/state for audits.

Note: Regulations evolve. Confirm current requirements (fees, inspection cadence, tax rates) with the City of Decorah and Iowa Department of Revenue before operating or renewing.