Average Rent in Lexington, KY & Real Estate Market Forecast 2026

Short-Term Rental (STR) Regulations

As of September 2021, Lexington, KY does not have specific regulations in place for short term rentals (STRs). However, there are some general guidelines and considerations that investors should be aware of before purchasing a property for STR purposes in the city:

1. Zoning regulations: Investors should check the zoning regulations in the specific area where they are considering purchasing a property for STR. Some neighborhoods may have restrictions on short term rentals or require a special permit.

2. Business license and taxes: Investors will need to obtain a business license to operate a short term rental in Lexington. They will also be required to collect and remit transient room taxes on a monthly basis.

3. Safety and health regulations: Investors should ensure that their property meets all safety and health regulations, including fire safety standards, building codes, and occupancy limits.

4. Homeowners' association rules: If the property is located in a neighborhood with a homeowners' association, investors should review the association's rules and regulations regarding short term rentals.

5. Noise and nuisance regulations: Investors should be mindful of noise regulations and ensure that guests are respectful of neighbors and local ordinances.

6. Insurance considerations: Investors should check with their insurance provider to make sure they have the appropriate coverage for a short term rental property.

7. Market demand and competition: Investors should research the demand for short term rentals in Lexington and assess the level of competition in the market before making a purchase.

Overall, while Lexington does not currently have specific regulations for short term rentals, investors should still do their due diligence and consider the potential risks and challenges associated with operating a short term rental property in the city.