Overview: Are short‑term rentals (STRs) allowed?

• Under the current sources reviewed, Alexandria has not adopted its own municipal zoning. Short‑term rentals within Alexandria are therefore governed by Campbell County’s zoning and codes for unincorporated areas of the county.
• The county ordinance defines “Bed and Breakfast Establishment” (owner‑occupied, typically ≤ 8 guest rooms or suites) and separately defines “Hotel‑Motel” for transient lodging. The provided ordinance does not expressly identify “short‑term rental” (i.e., whole‑unit transient rental) as a permitted use in any residential zone.
• Practically, this means investors should plan on either:
  • Operating as a permitted Bed & Breakfast in a residential zone (owner‑occupied, limited scale, typically conditional use); or
  • Targeting a zone or parcel where transient lodging/hotel‑motel uses are allowed (e.g., appropriate commercial or mixed‑use zones); or
  • For unincorporated county locations, pursue a Conditional Use Permit where transient lodging might be considered (if a host wants to operate a full STR model in a residential zone).
• Investors must verify zoning on the property they plan to acquire before purchase.

How to start a STR business in this market

• Step 1: Site and zoning verification
  • Obtain the parcel’s zoning from the Campbell County Planning & Zoning map and verify permitted uses and conditions.
  • For residential zones: plan to operate only if eligible as a Bed & Breakfast (owner‑occupied) or by obtaining a conditional use permit (if transient lodging is contemplated).
  • For commercial/mixed‑use zones: evaluate whether transient lodging/hotel‑motel is allowed by right or with conditions.
• Step 2: Engage planning and permitting
  • Apply for any required zoning permits (e.g., Conditional Use Permit) and coordinate with the Zoning Administrator.
  • If structural changes, additions, or new construction are needed (e.g., room count increases, exterior alterations), submit for building permits; verify building code and housing code compliance.
• Step 3: Health and fire safety
  • Coordinate with the County Health Department for applicable inspections and approvals (including well/septic where relevant).
  • Confirm fire safety and life‑safety requirements for transient lodging operations (e.g., alarms, extinguishers, egress, occupancy limits).
• Step 4: Tax and licensing
  • Register for Kentucky sales tax (including accommodations sales tax), set up collection/remittance processes.
  • Obtain the local business license (County Clerk) and any relevant state lodging/health permits if applicable.
• Step 5: Operational setup
  • Prepare STR policies (occupancy, quiet hours, parking), signage plan (Article XIV of the ordinance governs signs), and property management plan.
  • For multi‑unit projects or B&Bs, prepare an operations manual (housekeeping, linens, guest services) and ensure ADA/Fair Housing considerations are addressed where applicable.

Required documents, permits, licenses, and guidelines

• Zoning and Planning
  • Zoning verification (Official Zoning Map)
  • Conditional Use Permit (CUP) application (if seeking transient lodging in a residential zone or where required by zone)
  • Site plan requirements (Article IX, Section 9.19)
  • Building permit(s) if structural changes or new construction are required
• Permits and Inspections
  • Building permits and Certificate of Occupancy (Articles XVI)
  • Health Department approvals/inspections (especially for B&B and any food service)
  • Fire safety/life safety approvals for lodging use
• Business Registration and Taxes
  • Kentucky sales tax registration (including accommodations tax)
  • Local business license
  • Transient room tax account (if a separate local account is required by the Kentucky Department of Revenue)
• Operational Compliance
  • STR policy documentation (occupancy limits, quiet hours, parking, guest rules)
  • Signage plan compliant with Article XIV (Permitted Use and Location of Signs, sign permit requirements)
  • Compliance with County General Regulations (Articles IX) including erosion/sedimentation controls (Section 9.7), flood protections, parking, and setbacks

Regulations (city, county, and state) that affect STRs

• City/County (Alexandria is within Campbell County; county zoning applies)
  • Zones: Residential, Agricultural, Commercial, Industrial, Institutional, Mixed Use, and Overlays (e.g., PUD, RCD). The presence of commercial/mixed‑use zones may be critical for projects seeking transient lodging use by right.
  • Permitted vs Conditional Uses: Uses allowed by zone or through conditional use process (Board of Adjustment; Articles IX and XVIII). Hotel‑motel uses are not expressly listed as permitted in residential zones within the ordinance excerpt reviewed.
  • Bed & Breakfast: Defined as owner‑occupied dwelling providing lodging and meals, typically limited to 8 guest rooms/suites; typical treatment is as a conditional use in residential zones.
  • Home‑Based Business: Article IX, Section 9.11 allows home occupations subject to strict limitations; it is generally for indoor, low‑impact activities and does not authorize transient lodging. An STR is typically not a permitted home‑based business under those rules.
  • General Regulations: Off‑street parking (Article XI), loading/unloading (Article XII), fence/wall/obstruction rules (Article XIII), signage (Article XIV), and performance standards (Article XV).
  • Administration and Enforcement: Zoning permits, building permits, and Certificates of Occupancy (Article XVI). Penalties and enforcement through the Zoning Administrator and Board of Adjustment (Article XVI, Section 16.9; Article XVIII).
• State (Kentucky) highlights that impact STRs
  • Sales and Accommodations Tax: Kentucky requires collection/remittance of sales tax on transient lodging. Businesses must register with the Department of Revenue and file returns.
  • Lodging and Health Requirements: If hosting lodging, ensure compliance with applicable state health and lodging standards. Requirements vary by activity type (e.g., providing meals, room counts).
  • Building Codes: Construction, alteration, and occupancy must meet adopted codes (Article IX, Section 9.15 references housing/building codes).
  • Local Accommodations/Taxes: Some Kentucky jurisdictions also impose local transient room taxes and registration; the source does not provide a specific rate or registry for Campbell County—investors should verify with the local Health Department and Kentucky DOR.

Contacts and contacts for STRs and related approvals

• Campbell County Planning & Zoning Office (Zoning Administrator)
  • Address: Campbell County Courthouse, Alexandria, KY
  • Planning Commission office (per ordinance language): located in the Campbell County Courthouse
  • Phone and email are not provided in the sources; contact the Campbell County Fiscal Court office for the current Planning & Zoning phone/email or inquire directly at the Courthouse.
• Campbell County Building Inspector (Per Article XVI)
  • The County employs Building Inspectors under the Planning & Zoning Office for building code enforcement
  • Contact via the Planning & Zoning office for current phone/email
• Campbell County Health Department
  • Health permits and inspections
  • Address and phone/email are not in the provided sources; contact the County Fiscal Court or the Campbell County Health Department directly
• Kentucky Department of Revenue (DOR)
  • Sales and accommodations tax registration and compliance
  • Use the official Kentucky DOR website for contact details and online services

Citations/Source Pages

• Campbell County Official Zoning Ordinance (unincorporated Campbell County): campbellcountyky.gov/egov/apps/document/center.egov?view=item;id=349

Notes

• The provided ordinance excerpt does not include municipal STR‑specific licensing for Alexandria. Alexandria is in Campbell County and generally uses county zoning for areas outside city‑incorporated boundaries.
• For any commercial‑zone lodging project or for residential‑zone B&B operations, coordinate early with Planning & Zoning for a formal use determination and conditional use processing (if required).
• The county’s general regulations and sign rules, as well as building and occupancy approvals, are essential compliance steps prior to opening.