Overview: Short-Term Rental Status in Lawrence, KS

Yes, short-term rentals are allowed in Lawrence, KS under specific regulations and licensing requirements. The City of Lawrence enacted comprehensive short-term rental regulations in 2018 through Ordinance 9560, establishing a licensing and inspection program. Both owner-occupied and non-owner-occupied short-term rentals are permitted, though they fall under different regulatory pathways and requirements.

As of 2025, there are approximately 110 short-term rental licenses in good standing in Lawrence. The city has implemented a cap system limiting owners to three short-term rental properties, though discussions about modifying this limit have occurred at the city commission level.

How to Start a Short-Term Rental Business in Lawrence

Step 1: Determine Your Property's Classification

Lawrence categorizes short-term rentals into two primary types:

Owner-Occupied Short-Term Rentals:

• Permitted as an accessory use in all housing types
• Owner must reside in the unit for more than 182 days per calendar year
• Requires annual license and inspection
• Allowed without Special Use Permit

Non-Owner Occupied Short-Term Rentals:

• Requires Special Use Permit before operation
• Must go through public hearing process at Planning Commission and City Commission
• Permitted in all zoning districts except single-dwelling residential and planned development districts
• Requires annual license and inspection

Step 2: Verify Zoning Compliance

Before proceeding, confirm your property's zoning designation:

Permitted Zoning Districts for Non-Owner Occupied STRs:

• Commercial, Industrial, MU (Mixed Use), PUD (Planned Unit Development), PRD (Planned Residential Development), PCD (Planned Commercial Development), PID (Planned Industrial Development), POD (Planned Office Development), UR (Urban Residential), U/U-KU (University/University of Kansas), and OS (Open Space)

Prohibited for Non-Owner Occupied STRs:

• Single Dwelling Residential Districts (RS)
• Multi-Dwelling Residential Districts (RM) for certain applications

Use the Interactive Map of Lawrence to determine your property's zoning district by selecting "Zoning Layers."

Step 3: For Non-Owner Occupied Properties - Obtain Special Use Permit

If operating a non-owner occupied STR, you must obtain a Special Use Permit:

1. Application Process: File with Planning and Development Services
2. Public Hearings: Required before both Planning Commission and City Commission
3. Neighbor Notification: Notice provided to neighbors within 400 feet
4. Conditions: The City Commission may impose conditions to alleviate effects on surrounding neighbors

Required Documents, Permits, Licenses, and Guidelines

Short-Term Rental License

Required Information for License Application:

• Property address(es)
• Owner's name, address, telephone, cellular number, and email
• If owner has local address (within 40 miles): May appoint Resident Agent
• If owner does not have local address (within 40 miles): MUST appoint Resident Agent
• Statement confirming notice sent to property owners within 200 feet
• Workers' compensation insurance certificate (if applicable)
• Statement indicating whether STR will be Owner Occupied or Non-owner Occupied
• Proof of Special Use Permit (if Non-owner Occupied)
• Non-discrimination statement
• Owner or Resident Agent signature with notarized authorization

Financial Requirements

License Fees:

• Annual Short-term Rental License Fee: $17.00
• Inspection Fee: $50.00 per dwelling unit

Insurance Requirements:

• Minimum $1,000,000.00 coverage for casualty, personal injury, and property damage

Tax Compliance:

• Must provide proof of payment for preceding year:
  • State retail sales tax
  • Local retail sales tax
  • Any applicable transient guest tax

Annual Inspection

All STR properties must undergo annual inspection by City of Lawrence inspectors. The inspection process is similar to long-term rental inspections and uses standardized forms.

Specific Regulations

Occupancy Limits

Occupancy is governed by zoning district regulations:

Single Dwelling Residential Districts (RS):

• Maximum 3 unrelated individuals

Multi-Dwelling Residential Districts (RM):

• Maximum 4 unrelated individuals

Commercial, Industrial, and Other Districts:

• Detached Dwellings: Maximum 3 unrelated individuals
• All other housing types: Maximum 4 unrelated persons

Note: Minor children are not included in occupancy counts.

Accessory Dwelling Unit (ADU) Restrictions

• STRs are prohibited in Accessory Dwelling Units
• Only one unit (principal residence OR ADU) may be rented at a time
• Owner must reside in one of the units to permit STR use

License Term and Renewal

• License valid from issuance until 11:59 p.m. on December 31 of current year
• Renewal required annually
• City sends renewal notice at least eight weeks before expiration
• Failure to renew before December 31 results in license expiration

Violation Penalties

Municipal Offense Penalties:

• Minimum fine: $500.00
• Maximum fine: $2,500.00 per violation
• Municipal judge cannot suspend minimum fine for certain violations

Enforcement Actions:

• Notice of Violation
• Probation (time to remediate violations)
• License revocation
• Habitual violator designation (3+ revocations)

Tax Collection Requirements

• Airbnb has an agreement with Kansas to collect and remit sales tax and transient guest tax
• Other platforms may require self-reporting
• Must maintain compliance with state and local tax requirements

Douglas County Regulations

In addition to city regulations, Douglas County has implemented separate vacation rental standards:

County-Level Changes (2024):

• Previously required Conditional Use Permit for all vacation rentals
• Now allows administrative review and approval for certain vacation rentals if criteria are met
• All vacation rental properties must be registered with the county

County Contact for Vacation Rental Information:

• Douglas County Zoning and Codes

Refer to the Douglas County Zoning and Land Use Regulations for specific vacation rental regulations beginning on page 165.

Contact Information

City of Lawrence - Code Compliance Division

Phone: (785) 832-3345
Email: rentallicensing@lawrenceks.gov
Address: 6 E 6th Street, Ground Floor, Lawrence, KS 66044

Code Violation Reporting

Phone: (785) 832-7700
Online Form: Report Code Violation

Douglas County Zoning and Codes

Address: 1100 Massachusetts Street, Lawrence, KS 66044
Website: dgcoks.gov/zoning-and-codes

Additional City Contacts

City Hall: (785) 832-3000
Email: cityhall@lawrenceks.gov
Address: 6 East 6th Street, Lawrence, KS 66044

Current Regulatory Discussions

As of 2023, the Lawrence City Commission has discussed potentially modifying the three-unit cap for commercial property owners, though no changes have been enacted. The cap remains in effect, with approximately 110 licensed STRs currently operating in the city.

Source Links

• Short-Term Rental FAQ (2018)
• Ordinance 9560 - Short-Term Residential Rental Property Code
• Douglas County Updated Vacation Rental Standards
• Lawrence Code Compliance Division
• Lawrence Times - Short-Term Rental Cap Discussion

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This guide is based on regulations as of 2025. Always verify current requirements with city and county authorities before investing in or operating a short-term rental property in Lawrence, KS.