Overview

Short-term rentals are explicitly allowed in Billings, Montana, provided operators obtain the required permits and comply with all city regulations. Billings has implemented a structured permitting system for short-term rentals (stays under 30 days) that requires both a city business license and a short-term rental permit. The city adopted its STR ordinance in 2021 and is actively enforcing compliance, with over 300 properties identified as operating without proper permits as of February 2025.

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How to Start a Short-Term Rental Business in Billings

Step-by-Step Process

1. Verify Property Eligibility

   • Confirm the property is not restricted by private covenants, HOA rules, or zoning limitations
   • Ensure the property is not deed-restricted affordable housing
   • Verify the property is in a habitable residential structure (not accessory structures, garages, commercial buildings, or RVs)

2. Create Online Portal Account

   • Visit the Citizen Access portal at services.billingsmt.gov/citizenaccess/
   • Create a login and personal account
   • Navigate to permits section

3. Apply for Required Permits

   • Select "SHORT TERM RENTAL" for permit type
   • Complete the online application with all required information
   • Pay associated fees

4. Obtain City Business License

   • Apply for City of Billings business license for managing short-term rentals
   • This is separate from and required in addition to the STR permit

5. Designate Local Contact

   • Provide a LOCAL contact person available 24/7 for emergencies
   • This contact must be an individual person (cannot be a corporation)
   • Include name, phone, and email for the 24-hour contact

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Required Documents, Permits, Licenses, and Guidelines

Required Permits and Licenses

1. Short-Term Rental Permit

• Annual fee: $300
• Validity: One year, requires annual renewal
• Application: Through online portal (Citizen Access)
• Required for: Each STR location

2. City Business License

• First-time fee: $55
• Renewal: Annual
• License number format: OL-______
• Required for: Business of managing short-term rentals

Document Requirements

Property Information:

• Complete property address
• Property owner name(s) and mailing address
• Email and phone contact information

Authorized Representative (if different from owner):

• Name and contact information
• Mailing address
• Phone and email

Business Information:

• Business license number
• Type of STR (guest home or tourist home)
• Number of STR units per parcel

Safety Compliance Documentation:

• Emergency safety information (911, Poison Control, local contact)
• STR permit number display
• Smoke detector installation in required areas
• Fire extinguisher installation
• CO2 detector installation

Local Contact Information:

• 24-hour contact person's name
• Phone number
• Email address

Operational Guidelines

Occupancy Limits:

• Maximum 2 persons per bedroom
• Must be clearly posted in the rental unit

Property Use Restrictions:

• No rental for parties or large social gatherings
• Guests may only rent for lodging purposes related to events
• STR cannot be used for parties or large social gathering events

Property Standards:

• Must be habitable space with finished living areas
• Cannot be located in accessory structures (garages, sheds)
• Cannot be in commercial, industrial buildings, tents, RVs, or travel trailers

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Specific Regulations for Short-Term Rentals

City of Billings STR Regulations

Zoning Compliance:

• Must comply with all zoning requirements
• Subject to Billings City Council adopted regulations
• Zoning Coordinator can revoke permits for violations

Permit Revocation Grounds: The STR permit may be revoked if:

• Property has unresolved code enforcement violations
• Property is not in compliance with zoning requirements
• Applicant made false, misleading, or fraudulent statements
• Property is not available for immediate STR use
• Business license is not current

Safety Requirements:

• Emergency safety information must be posted
• STR permit number must be displayed
• Smoke detectors required in sleeping rooms and hallways
• Fire extinguishers required
• CO2 detectors required

Operational Requirements:

• Compliance with noise regulations (quiet hours 8 PM - 7 AM)
• Parking restrictions (private driveway first, then street where permitted)
• No parking on lawns or non-driveway areas
• Proper solid waste disposal instructions required

Yellowstone County Regulations

Properties in Yellowstone County zoning jurisdiction must comply with both city and county regulations. The application indicates that properties fall under "City of Billings and Yellowstone County Zoning Jurisdiction," requiring compliance with both jurisdictions.

State of Montana Regulations

Tax Obligations:

• Lodging Facility Use Tax: 4% on stays under 30 days
• Lodging Sales Tax: 4% in many cases, totaling 8% in lodging-specific taxes
• Filing: If platforms don't collect, register with Montana Department of Revenue
• Additional local taxes: May apply in certain tourism districts

Business Entity Requirements:

• If forming business entity (LLC, corporation), register with Montana Secretary of State
• State tax registration may be required depending on business structure

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Contact Information for Local Authority

Primary Contact - Planning Division

City of Billings Planning Division

• Address: 316 N 26th Street, 5th Floor, Billings, MT 59101
• Phone: (406) 657-8247
• Email: Contact through Planning Division
• Online Portal: services.billingsmt.gov/citizenaccess/

Additional Contacts

City of Billings Main Office:

• Address: 316 N. 26th Street, Billings, MT 59101
• Phone: (406) 657-8433

Code Enforcement Division:

• Contact for: Violations and compliance issues
• Referral process: Properties not in compliance after 60-day notice period

Montana Department of Revenue:

• Contact for: State tax obligations and registration
• Website: revenue.mt.gov

Emergency and Compliance Contacts

Local 24-Hour Contact (Required):

• Must be designated by property owner
• Available for guest emergencies and neighbor complaints
• Must be individual person (not corporation)
• Response required for city inquiries

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Enforcement and Penalties

Current Enforcement Action (2025)

The City of Billings identified over 300 properties operating without proper permits as of February 2025. The city is conducting courtesy outreach before enforcement.

Penalty Structure

Municipal Infraction Penalties:

• First offense: $300
• Additional days: Each day constitutes a new violation
• Escalation: Penalties can increase up to $500 per violation
• Legal basis: Billings Municipal Code (BMCC) 18-1304

Grace Period:

• 60 days from courtesy notice to come into compliance
• No backpay collection for previously missed registration fees
• Failure to comply after grace period leads to municipal court citations

Compliance Monitoring

Detection Methods:

• Software scanning of STR websites
• Cross-referencing with city permit database
• Community reporting system
• Neighbor complaints

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Source Pages and Links

Official City Documents

1. Short-Term Rental Application 2025

   • www.billingsmt.gov/DocumentCenter/View/44976/Short-Term-Rental-application?bidId=
   • Complete application form and requirements

2. Online Citizen Access Portal

   • services.billingsmt.gov/citizenaccess/
   • Portal for permit applications and business license applications

3. City Business License Information

   • www.billingsmt.gov/981/Business-License-Information

News and Announcements

4. City News Release - STR Compliance (Feb 24, 2025)

   • www.billingsmt.gov/CivicAlerts.aspx?AID=2684
   • Official city announcement about enforcement actions

5. KULR8 News Coverage

   • www.kulr8.com/news/billings-targets-300-short-term-rentals-without-permits/article_ac3db57e-f2d5-11ef-8106-23c6fb3a5302.html
   • Media coverage of enforcement initiative

State Resources

6. Montana Department of Revenue

   • mtrevenue.gov/
   • State tax requirements and registration

7. Montana Secretary of State

   • sosmt.gov/
   • Business entity registration requirements

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Important Notes for Investors

1. Compliance Deadline: If operating without permits, act within 60 days of city notice to avoid penalties
2. Dual Licensing: Each STR location requires both a business license and STR permit
3. Local Contact Requirement: Cannot use corporate entities as 24-hour contacts
4. Annual Renewals: Both permits must be renewed annually with associated fees
5. Proactive Verification: Confirm zoning and HOA compliance before purchasing properties for STR use

The regulatory framework in Billings is well-established and actively enforced. New operators should budget for the $355 initial cost ($55 business license + $300 STR permit) plus annual renewal fees, and factor these costs into investment projections.