Overview: Are Short-Term Rentals Allowed in Warsaw, KY?

YES - Short-term rentals are allowed in Warsaw, KY. However, they are strictly regulated under City Ordinance 2023-08, which was passed on January 8, 2024. The ordinance explicitly states that "short-term rentals shall be permitted at owner occupied homes (hosted) and non occupied homes (non hosted)" but requires mandatory registration with the City Clerk.

How to Start a Short-Term Rental Business in Warsaw, KY

Step-by-Step Process:

1. Property Assessment

   • Verify your property is eligible (single-family, attached single-family, or unit within multiple-family dwelling, including manufactured homes)
   • Check that your property is not within restricted categories (hotels, motels, extended stay facilities, bed & breakfasts, jails, convents, monasteries, or nursing homes)
   • Confirm compliance with city zoning requirements

2. Registration Process

   • Complete registration form with the City Clerk
   • Pay annual registration fee ($50.00, or $25.00 if after July 1st)
   • Submit required documentation
   • Registration must be renewed annually by February 1st

3. Insurance Requirements

   • Obtain minimum $1,000,000 liability insurance coverage
   • Maintain continuous coverage during rental periods
   • Present proof of current insurance annually

4. Compliance Setup

   • Install UL-standard smoke alarms in required locations
   • Establish 24/7 contact system for guests
   • Notify adjoining property owners of registration
   • Prepare for annual inspections

Required Documents, Permits, Licenses, and Guidelines

Mandatory Requirements:

Registration Form Must Include:

• Host's name, address, telephone number, email address, and other pertinent contact information
• Name and contact information of a person residing within 25 miles responsible for safety/maintenance concerns
• Physical address of short-term rental and unit number (if applicable)

Annual Documentation:

• Proof of current insurance (fire, hazards, general liability) with $1,000,000 minimum coverage
• Registration fee payment ($50.00 annually, $25.00 if after July 1st)

Operational Requirements:

• UL-standard smoke alarms in:
  • All sleeping rooms
  • Every room in the path of egress from sleeping area to main exit
  • Each story, including basements
• 24/7 contact information posted conspicuously within rental unit
• Maximum occupancy limits posted within rental unit

Compliance Guidelines:

• Notify adjoining property owners of registration
• Abide by all noise, nuisance, and waste restrictions
• Maintain insurance coverage continuously
• Comply with city zoning ordinances and building/fire codes

Specific Regulations for Short-Term Rentals

City-Level Regulations (Warsaw Municipal Code):

Definitions:

• Short-term rental: Dwelling unit rented for 30 consecutive days or fewer
• Host: Property owner offering dwelling unit for short-term rental
• Transient guest: Person paying rent for occupancy less than 30 consecutive days
• Hosted vs. Non-hosted: Whether owner is present during rental

Operational Limits:

• Maximum occupancy: 2 persons per bed/sleeper sofa
• Maximum rental days: 240 days per calendar year
• Minimum rental period: 24 hours
• No simultaneous renting to multiple parties under separate contracts

Geographic Restrictions:

• Maximum 4 homes per city street for short-term rentals
• Maximum 10 homes per established subdivision for short-term rentals

Compliance & Enforcement:

• 3+ complaints in same calendar year triggers investigation
• 7-day written notice of violations required before action
• Appeal process available through Mayor
• Civil penalties per day of violation
• City liens authorized for unpaid fines

County & State-Level Regulations:

Kentucky State Requirements:

• Payment of applicable transient room taxes
• Compliance with Kentucky Revised Statutes (KRS §§65.8801 through 65.8840 and §§39.01 through 39.11)
• Occupational license tax compliance if applicable at federal, state, county, and city levels

Gallatin County:

• No specific county-level STR regulations identified in provided content
• County taxes and fees may apply

Contact Information

City of Warsaw Local Authority:

Warsaw City Clerk

• Responsible for STR registration and compliance
• Phone: Contact through City Hall
• Address: 303 East Main Street, Warsaw, KY
• Registration and renewal must be submitted through City Clerk

City of Warsaw Contact:

• Meeting Location: 303 East Main Street, Warsaw, KY 41095
• Utility and tax bill payment: www.cityofwarsawky.org
• Mayor: Charles "CE" French
• City Clerk: Carolyn Caldwell

Source Documents

Primary Regulatory Documents:

1. Warsaw City Council Meeting Minutes - January 8, 2024

   • warsaw.ky.gov/2024%20Council%20Meeting%20Mintues/JANUARY%208,%202024%20MEETING%20MINUTES.pdf

2. Ordinance 2023-08 (Full Text)

   • kypublicnotice.com/KYLegals/2024/70149-2024-01-17_1004.pdf

3. Warsaw City Council Meeting Agenda - January 8, 2024

   • warsaw.ky.gov/2024%20Council%20Meeting%20Agendas/JANUARY%208,%202024%20MEETING%20AGENDA.pdf

Important Notes for Investors:

• Ordinance 2023-08 took effect upon passage and publication (January 17, 2024)
• Registration is mandatory before offering any property for short-term rental
• Registration is non-transferable to new owners
• The ordinance applies to existing and future short-term rentals
• Violations can result in revocation of registration and liens against property