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Short-Term Rental Regulations Guide: Missoula, Montana

Overview: Are Short-Term Rentals Allowed in Missoula, MT?

Yes, short-term rentals are explicitly allowed in Missoula, MT. The city has established a regulatory framework that permits short-term rentals while implementing registration requirements and monitoring to address community concerns. According to the 2016 ordinance, whole-dwelling-unit tourist homes must register with the city annually, while bedroom rentals within a home are not regulated under this ordinance.

Missoula takes a balanced approach, encouraging accessory dwelling units (ADUs) to be rented as permanent housing while allowing registered short-term rentals as a legitimate business activity. The city monitors the impact of vacation rentals and maintains the ability to adapt regulations if displacement of rental housing occurs.

How to Start a Short-Term Rental Business in Missoula

Step 1: Determine Your Business Structure

You are considered a tourist home if you meet ALL of the following criteria:

• Your property lies within the Missoula City Limits
• You are offering short-term stays (less than 30 days)
• You are offering your entire home/condo/apartment/ADU as a vacation rental
• The rental has a separate entrance and living area
• You will not be sharing any common areas or spaces inside the home/residence (kitchen, bathroom, living room)

Step 2: Exclusions and Alternatives

• If you will only be renting a portion of your home, similar to a Bed and Breakfast, you need a General Business License instead
• If you are renting your own home to occupants for greater than 30 consecutive days, you are considered a landlord and would need appropriate licensing
• If renting multiple properties as a property management company, you need either:
  • A General Business License (if hiring licensed contractors for maintenance)
  • A Contractor Business License (if handling your own maintenance/repairs)

Step 3: Business License Threshold

Any person conducting business within Missoula City Limits and grossing more than $6,000 annually must obtain a business license. If your business grosses less than $6,000 annually, you must submit an exemption affidavit for approval.

Step 4: Application Process

Apply well in advance of your planned opening date, as the review process fluctuates and can take up to 12 weeks during peak times. Use the Accela Citizen Access Permitting and Licensing Portal to apply and track your application.

Required Documents, Permits, Licenses, and Guidelines

Business License Requirements

1. Tourist Home Registration - Flat fee for new applications and renewals
2. Business License Application - Through the city portal
3. Exemption Affidavit (if grossing less than $6,000 annually)
4. Background Check Application (if applicable)

Insurance and Bond Requirements

• General Liability Policy - Must be maintained and current
• Bond Requirements (if applicable to your business services)
• Certificate Holder - The City of Missoula should be listed as certificate holder on your insurance policy
• Your insurance provider should email renewed policies to: coordinators@ci.missoula.mt.us

Compliance Requirements

• Neighbor Notification - Neighbors within 150 feet must be notified about the vacation rental
• Annual Registration - Must be renewed each year with expiration on January 31st
• Zoning Compliance - Business licenses are reviewed for code compliance in zoning and building

Specific Regulations: City, County, and State Level

Missoula City Regulations

Registration Requirements:

• Whole-dwelling-unit tourist homes must register annually with Development Services
• Approximately 80 tourist homes are currently registered
• Registration fee serves as a policy lever to incentivize or disincentivize short-term rentals

Operational Guidelines:

• Short-term rentals defined as rental of a home or room for less than 30 days
• Bedroom rentals within a home are NOT regulated under the tourist home ordinance
• Neighbors within 150 feet must be notified of operations
• Complaint resolution system available for residents
• Safety-focused registration system to gather data and ensure compliance

Fee Structure and Penalties:

• Tourist Home Registrations expire January 31st with no penalty for late renewals
• Different license types have varying penalty structures (25% at one month past due, 50% at two months, 100% after three months)

Missoula County Regulations

The provided content focuses primarily on city-level regulations within Missoula City Limits. County-specific short-term rental regulations were not detailed in the provided content.

Montana State Regulations

State Business Setup Requirements:

• Articles of Incorporation (LLC, Inc., Sole Proprietor, etc.) through the Montana Secretary of State
• Tax ID acquisition through state channels
• ICEC (Independent Contractor Exemption Certificate) through the Montana Department of Labor and Industry

State-Level Housing Policy Context:

• Montana communities, including Missoula, Bozeman, West Yellowstone, Kalispell, and Whitefish, have experienced "flooding" of short-term rentals according to University of Montana studies
• Short-term rentals can cause problems including community fracturing, safety concerns, and increased rent prices for residents

Contact Information

Primary Contact

City of Missoula - Business Licensing

• Phone: 406-552-6000
• TTY: 406-552-6131
• Email: coordinators@ci.missoula.mt.us
• Address: 435 Ryman St. Missoula, MT 59802
• Portal: Accela Citizen Access Permitting and Licensing Portal

Department of Housing and Community Development

• Director: Erin Pehan (for policy questions)
• Contact: Through City of Missoula main number

Additional Resources

• Secretary of State: https://biz.sosmt.gov/
• Department of Labor and Industry: https://erd.dli.mt.gov/work-comp-regulations/montana-contractor/independent-contractor
• Search Existing Licenses: Accela Citizen Access Portal

Important Notes and Warnings

License Transfer Restrictions

• No license transfers - Change in physical location, ownership, or business nature requires a new application
• Business licenses are location-specific and reviewed for zoning compliance

Insurance and Bond Compliance

• Your license will be locked if insurance or bond information expires or is cancelled
• Locked licenses cannot pull permits, schedule inspections, or renew
• Certificate of Insurance must list City of Missoula as certificate holder

Background Check Requirements

Background checks are required for:

• Any owner/employee working on existing residential property
• Contractors and handyman services (except state-licensed Plumbers and Electricians)
• All janitorial or cleaning service providers
• All Itinerant or Mobile Vendors

Operating Restrictions

• No operation before license approval - Apply well in advance
• No vending in Commercial Business District (CBD) during regular operating hours
• Market exceptions - Vending only at established markets may not require city license

Source Links

1. Missoula Current - Vacation Rental Regulations
2. City of Missoula Business License FAQ
3. Business Insider - National Short-Term Rental Regulations

Disclaimer: This guide is based on the provided content about Missoula, MT. If you need specific information about Huson, MT, please provide the correct source materials, as the current content focuses exclusively on Missoula regulations. Always verify current regulations with local authorities before establishing a short-term rental business.