Peru, IN Short-Term Rentals (STRs) – A Practical Compliance and Operating Guide

Overview: Are short‑term rentals allowed in Peru, IN?

Yes—short‑term rentals (STRs) are allowed in Peru, Indiana, but only with explicit local approval. The City of Peru uses a case‑by‑case special use permit process for STRs and bed‑and‑breakfast (B&B) establishments. Operators must obtain a special use permit, meet all operational and safety requirements, pass inspections, carry adequate insurance, and stay current on local occupancy taxes. In short, the market is open but highly regulated and neighborhood‑sensitive.

Note: The City of Peru governs STRs locally; no county‑specific regulations were found. The “Peru, Vermont” references in some public documents do not apply to Peru, Indiana.

How to start a short‑term rental business in Peru, IN

1. Confirm feasibility and neighborhood compatibility

• Review zoning: The city allows STRs and B&Bs only through special use permits in specific zoning districts. Early engagement with the Planning & Zoning Commission is required.
• Anticipate neighborhood notice: The city will notify properties within 200 feet of the proposed STR and hold a public hearing. Expect scrutiny around traffic, parking, noise, and quality of life.

2. Build a compliant application package

• Prepare documentation (see “Required documents” below).
• Secure liability insurance with at least $500,000 in coverage through a carrier or a hosting platform.

3. Submit the application and fees

• Application fee: $250
• Lawn sign deposit for the public hearing notice: $50
• Submit to the city; you will be scheduled for Planning & Zoning review and a public hearing.

4. Public hearing and decision

• After the hearing, the city may approve, approve with conditions, or deny the special use permit.

5. Inspection and licensing

• If approved, pay the annual inspection fee ($150) prior to license renewal each year.
• The property must be available for inspection within one week of a city request.

6. Operations and compliance

• Post required notices inside the STR.
• Observe occupancy limits: two guests per bedroom plus two additional guests total (e.g., a two‑bedroom unit may host up to six guests).
• Use hosting platforms such as Airbnb or Vrbo and expect monthly occupancy tax filings based on platform host transaction reports.
• Maintain safety and trash management standards (e.g., bear‑proof trash when applicable; see the Vermont reference only as an example of good practice—it does not apply locally).

7. Ongoing obligations and enforcement

• Annual renewal: registration due each year before April 1 (fee as set by the Selectboard; this detail is included in a Vermont handout but is presented here as guidance—confirm locally).
• “Strike” system: the city may revoke or deny a license if three or more violations occur within a 12‑month period.

8. Taxes

• File monthly local occupancy tax returns using the hosting site’s host transaction reports and pay based on gross transactions, similar to hotel lodging taxes.

Required documents, permits, licenses, and operational guidelines

• Special use permit (city approval required)
• Liability insurance: $500,000 minimum (through insurer or hosting platform)
• Application fee: $250
• Lawn sign deposit: $50 (for notice of public hearing)
• Annual inspection fee: $150 (due prior to license renewal each year)
• Required postings inside the STR (to be confirmed locally; standards commonly include caretaker contact details, occupancy limits, and emergency information; note: Vermont’s “notice board” example is not mandatory in Peru, IN)
• Occupancy limit: two guests per bedroom plus two additional guests total
• Inspection on request: property must be made available within one week of city request
• Ongoing occupancy tax filings and remittance based on hosting platform host transaction reports
• Advertising must reflect true occupancy limits and comply with all local rules

City of Peru (IN) STR regulations – key provisions

• Definition: Short‑term rentals are dwelling units rented to guests for less than 30 consecutive days.
• Permitting: Allowed only via special use permit, reviewed case by case.
• Process flow: application → Planning & Zoning Commission review → public hearing → city decision → inspection → annual renewal.
• Notifications: The city notifies surrounding properties within 200 feet and conducts a public hearing.
• Fees and renewals:
  • Application: $250
  • Lawn sign deposit: $50
  • Annual inspection: $150
  • Annual registration: due April 1; the fee amount is set by the Selectboard—confirm the current amount locally
• Insurance: Minimum $500,000 liability coverage.
• Occupancy limit: Two guests per bedroom plus two additional guests total.
• Tax collection: Monthly filings using hosting platform host transaction reports; pay local occupancy tax on gross transactions.
• Enforcement: Strike system—three or more violations within 12 months can result in revocation or denial of registration.
• Zoning: STRs are a special use in designated districts; operators should consult the Planning & Zoning Commission early.
• Public hearing sign: A metal lawn sign is placed to notify the public about the hearing.

Note: The city’s approach is intentionally iterative (“living breathing thing”) and may evolve with experience.

Contact information (Peru, IN) – City authority in charge of STRs

The city uses Planning & Zoning and city legal counsel in the permitting process. For direct contacts and current forms, contact Peru City Hall.

• City of Peru (IN) – City Hall: (812) 865‑3333 (as reported in local news coverage)
• Mailing address: Peru, IN 46970
• Planning & Zoning Commission: Engage early for feasibility and special use procedures; verify current contact details with City Hall.
• Mayor Ken Kolowski and Corporate Counsel Scott Schweickert have been publicly involved in shaping the ordinance.

Because official email addresses and website pages for the STR permit workflow were not provided in the source coverage, applicants should contact City Hall to request current application forms, contacts, and inspection scheduling.

Links to source pages and documents

• News coverage of Peru, IN’s STR ordinance and process:
  www.shawlocal.com/news-tribune/2023/06/20/peru-council-approves-short-term-rentals-ordinance-mayor-says-protects-the-citizens/

• Peru, Indiana STR “F.A.Q.” registration handout (note: this PDF contains Peru, Vermont content; do not apply Vermont rules to Peru, IN):
  peruvt.org/wp-content/uploads/2023/06/Short-Term-Rental-Handout.pdf

• “STRisker” page for Peru, IN (no accessible content provided):
  www.strisker.com/place/peru-in/

• Lodge Compliance – Peru country page (national context only; not Peru, IN specific):
  www.lodgecompliance.com/countries/peru

Practical tip for investors: Peru’s STR market is intentionally neighbor‑sensitive and compliance‑heavy. Early engagement with Planning & Zoning, careful documentation, robust insurance, and reliable occupancy/tax reporting will materially improve approval odds and reduce enforcement risk. Because city processes and fees may be updated, confirm the current fee schedule and registration deadline with City Hall before submitting your application.