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

Yes, short-term rentals are allowed in Lolo, Montana. However, Lolo does not have specific municipal regulations governing short-term rentals. Instead, STR operations in Lolo must comply with Missoula County regulations and Montana state laws.

This regulatory structure means that while Lolo lacks its own city-specific STR ordinances, property owners can legally operate short-term rentals provided they meet county and state requirements. The absence of local restrictions provides flexibility for investors, but compliance with higher-level regulations remains mandatory.

How to Start a Short-Term Rental Business in Lolo, MT

Starting a short-term rental business in Lolo involves several key steps that align with county and state requirements:

1. Property Assessment and Preparation

• Ensure your property meets basic zoning requirements for rental use
• Verify that your property can accommodate short-term occupancy (less than 28 consecutive days)
• Confirm compliance with safety standards including potable water, adequate wastewater disposal, and waste management

2. Regulatory Compliance Setup

• Obtain necessary licenses and permits before listing your property
• Set up tax accounts with the appropriate state agencies
• Complete health department requirements for public accommodations

3. Platform Registration

• Register your property as required under county regulations
• Obtain your registration number for display on hosting platforms
• Ensure hosting sites like Airbnb and Vrbo have your valid registration information

4. Operational Preparation

• Develop guest management protocols
• Establish cleaning and maintenance schedules
• Create emergency contact procedures and guest communication systems

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements (Montana)

1. Public Accommodation License

• Required from: Montana Department of Public Health and Human Services
• Frequency: Annual renewal required
• Purpose: Ensures compliance with public health and safety standards
• Standards include:
  • Potable water systems
  • Adequate wastewater disposal
  • Hygienic amenities (laundry facilities)
  • Thorough cleaning and maintenance protocols
  • Guest register requirements (minimum one-year retention)

2. Lodging Tax Accounts

• Required from: Montana Department of Revenue
• Taxes to Collect and Remit:
  • Lodging Facility Use Tax: 4%
  • Lodging Sales Tax: 4%
• Base Calculation: Applied to full listing price including cleaning fees and guest fees
• Duration: For reservations 29 days or shorter
• Collection: Typically handled by Airbnb and other platforms on behalf of hosts

County-Level Requirements (Missoula County)

1. Short-Term Rental Registration

• Required from: City of Missoula (serves county areas including Lolo)
• Application Fee: $636 for new registration
• Renewal Fee: $235 annually
• Registration Number Format: 20YY-MSS-STR-00###
• Requirements:
  • Online application through Accela Permit & Licensing Portal
  • Safety self-inspection checklist completion
  • Zoning verification
  • Property description including square footage
  • Host site information (URLs of online listings)

2. Tourist Home Classification

• Additional Requirements if Applicable: Neighbor notification for properties in residential (R) districts
• Definition: Dwelling units used most of the time as short-term rentals without permanent residents
• Process: Include neighbor notification (one parcel deep around subject property) during application

Safety and Inspection Requirements

1. Health Department Review

• Conducted by: Missoula City-County Health Department
• Review Components:
  • Potable water verification
  • Adequate wastewater disposal confirmation
  • Garbage disposal compliance
  • Laundry facility adequacy
  • Chemical storage practices
  • Pest control measures
  • Bathroom facility standards
  • Food storage and cooking equipment requirements
  • General property condition assessment
• Timeline: Department aims to respond within 30 days

2. Self-Inspection Requirements

• Complete Short Term Rental Safety Self-Inspection Checklist
• Acknowledge compliance with safety standards
• Submit completed documentation during application process

Specific Regulations for Short-Term Rentals

Municipal Regulations (Missoula - Applies to Lolo)

1. Registration and Compliance

• Hosting platforms must verify that listings comply with local laws by collecting the registration number
• Platforms must confirm each property's registration status
• Registration numbers must be displayed on all hosting platforms
• City monitors hosting platforms for ongoing compliance

2. Zoning and Land Use

• Short-term rentals must comply with existing zoning designations
• Tourist homes in residential (R) districts require additional neighbor notification
• Property use must align with underlying zoning requirements
• HOA covenants and condo bylaws may prohibit STR operations (not governed by city)

3. Operational Requirements

• Annual renewal required by January 31st each year
• Registration remains valid only when all reviews and inspections are complete
• City may suspend or revoke permits for incorrect information or falsification
• Property owners must maintain compliance with all applicable regulations

State Regulations (Montana)

1. Tax Obligations

• Two state lodging taxes totaling 8% on short-term rentals
• Tax collection required for stays 29 days or shorter
• Tax base includes all fees (cleaning, guest fees, etc.)
• Airbnb and similar platforms handle tax collection and remittance

2. Health and Safety Standards

• Annual Public Accommodation License required
• Regular inspections to ensure ongoing compliance
• Guest register maintenance with minimum one-year retention
• Compliance with state public accommodation rules

County Regulations (Missoula County)

1. Health Department Oversight

• Plan review process for new registrations
• Response timeline commitment of 30 days
• Environmental health compliance verification
• Staff vacancy impacts on processing times (improved as of 2024)

Contact Information for Local Authorities

Permit & Business Licensing (Missoula)

• Phone: (406) 552-6060
• Hours: 9am-4pm
• Email: coordinators@ci.missoula.mt.us
• Function: Short-term rental registration and licensing

Current Planning & Land Use Zoning (Missoula)

• Phone: (406) 552-6625
• Hours: 10am-2pm
• Email: zoningdesk@ci.missoula.mt.us
• Function: Zoning compliance and land use questions

Missoula City-County Health Department

• Address: 301 W Alder, Missoula
• Phone: (406) 258-4755
• Email: envhealth@missoulacounty.us
• Function: Public accommodation licensing and health reviews

Montana Department of Revenue

• Phone: 1-800-859-2254
• Function: Lodging tax account setup and state tax compliance

Code Compliance and Enforcement (Missoula)

• Phone: (406) 552-6630
• Function: Unregistered STR complaints

Missoula City Police (Nuisance Complaints)

• Non-Emergency: (406) 258-3452
• Emergency: 911
• Function: Nuisance and disturbance complaints related to STRs

Links to Source Pages

• Missoula STR Registration: www.ci.missoula.mt.us/3289/Short-Term-Rental-Registration
• Accela Permit & Licensing Portal: aca-prod.accela.com/MISSOULA/Cap/CapHome.aspx?module=Licenses&TabName=Licenses
• Montana Department of Revenue Lodging Tax Information: montana.servicenowservices.com/citizen?id=kb_article_view&sysparm_article=KB0013531
• Missoula City-County Health Department Public Accommodations: www.missoulacounty.us/government/health/health-department/food-lodging-body-art-child-care/public-accommodations
• Montana State Public Accommodation Rules: dphhs.mt.gov/assets/publichealth/FCS/PublicAccomodations/PAWEBRULE.pdf
• Public Accommodation License Application: dphhs.mt.gov/assets/publichealth/FCS/SanitarianResourcePage/FCSForms/PublicAccommodations/PALicenseAppPage1.pdf

Important Notes for STR Investors

• Governing Jurisdiction: While Lolo lacks specific STR ordinances, operations fall under Missoula County jurisdiction and Montana state regulations
• Fee Structure: Budget for initial $636 registration fee plus $235 annual renewal
• Processing Times: Allow adequate time for health department reviews (30-day goal) and overall application processing
• Platform Compliance: Ensure your registration number is properly displayed on all hosting platforms
• Ongoing Compliance: Annual license renewal required with continued adherence to all health and safety standards

This regulatory framework, while comprehensive, provides clear pathways for legal STR operation in Lolo. Success requires proactive compliance with both county and state requirements, ongoing communication with relevant authorities, and maintaining high operational standards throughout the property's STR lifecycle.