Overview: Are Short-Term Rentals Allowed in Bessemer?

Yes. Short-Term Rentals are permitted within the City of Bessemer, but only in full compliance with a dedicated city ordinance (Ordinance No. 383) and with a valid, annually renewed Short-Term Rental License. Operating an STR without a license is expressly prohibited. The city’s regime is designed to authorize STRs while imposing safeguards to protect public health, safety, and neighborhood character. Bessemer’s rules are distinct from neighboring Birmingham’s more restrictive framework, which has considered prohibitions in residential zones and caps on permits. Investors should focus on Bessemer’s ordinance for compliance in this market.

How to Start a Short-Term Rental Business in Bessemer

1. Verify zoning and site eligibility

• Confirm your property is within City of Bessemer jurisdiction and meets the STR use definition under the Zoning Ordinance (updated June 2022). The STR ordinance references the City’s Zoning Code for “Dwelling Unit” definitions and compliance.
• Be aware that only one STR is permitted per parcel. Accessory structures, RVs, and tents may not be used for overnight occupancy and do not count toward capacity.

2. Designate and qualify a Local Agent

• Appoint a Local Agent who can respond within 60 minutes and be available 24/7 while the unit is rented/occupied.
• The Local Agent must have keys/authority to manage issues, accept service of process for violations, and be listed on all filings and posted notices.
• The owner can serve as the Local Agent if meeting all requirements.

3. Prepare the Short-Term Rental License application

• Submit annually; licenses expire December 31.
• Include all required information, affirmations, and the administrative fee (amount set by City Council resolution; contact the City Clerk for the current fee).
• Ensure the application is complete; incomplete applications will not be reviewed.

4. Submit and obtain license

• Submit the completed application and fee to the City. Upon approval, you will receive your Short-Term Rental License, which states the maximum capacity and is tied to the designated Local Agent.

5. Comply with ongoing operational rules

• Post the Local Agent notice (16-point type) in a first-floor window/door.
• Maintain required safety devices (two ABC fire extinguishers, smoke/CO alarms).
• Follow occupancy rules, parking restrictions, waste handling, and quiet hours.
• Include STR rules in every guest agreement and post a placards on-site with capacity, agent contact, fire extinguisher locations, and exit map.

6. Renew annually

• Renew your license every calendar year; the city requires ongoing compliance (no outstanding fines/penalties and no prior revocation unless appealed).

7. Advertising compliance

• Any advertisement must include the STR license number and the approved capacity.

8. Monitor for changes

• City policies and fees may change via council resolution. Verify current fee and inspection requirements before each license cycle.

Required Documents, Permits, Licenses, and Guidelines

• Short-Term Rental License (annual; expires December 31; one per parcel; renew each year).
• Administrative fee (set by City Council resolution).
• Local Agent designation and acceptance of service of process.
• Application information required:
  • Owner(s) name(s), address(es), and telephone number(s).
  • Local Agent name, address, and 24-hour telephone number.
  • STR street address; additional identifying info if multiple units share the same address.
  • Signatures of Property Owner(s) and Local Agent.
  • Number of Bedrooms and computed Capacity.
  • Number of Parking Spaces (as defined by ordinance).
  • Property sketch: dwelling location, driveway/access, designated off-street Parking Spaces; STR floorplan and intended bedrooms.
  • Proof of ownership or legal authority to operate (deed, lease, or written permission).
  • Intended availability dates during the calendar year.
  • Such additional information as the City deems appropriate.
• Affirmation and Acknowledgment signed by applicant:
  • Owner(s) and Local Agent will comply with the STR ordinance, City Code, and Zoning Code.
  • Acknowledgment that violations can lead to suspension/revocation and penalties under City, State, County, and Health Department rules.
• Compliance with all applicable:
  • Residential building, health, nuisance, and safety codes.
  • State law requirements for smoke/carbon monoxide alarms and testing.
  • Zoning requirements and district standards.
  • Solid waste and septic/sewer rules.

Specific Regulations for Short-Term Rentals (City of Bessemer)

These are the operational rules you must follow once licensed. Treat this as your operational checklist.

• Capacity and Bedrooms

  • Capacity is the maximum number of overnight occupants per the STR License.
  • Bedrooms must meet the ordinance’s definition: separate room for sleeping with a door and code-approved egress window; minimum floor area 70 sq ft (plus 50 sq ft per additional person), at least 7 ft in one dimension; no attic/basement without egress; not a kitchen, dining area, den, or family room.
  • Occupancy math:
    • 1 Bedroom: maximum 4 occupants.
    • 2+ Bedrooms: maximum occupants = 2 × number of bedrooms.
    • Up to 4 children under age 13 are not counted in the capacity limit.
    • Parcels under 10 acres: maximum 10 occupants.
    • Parcels 10 acres or more: maximum 14 occupants.
  • No overnight occupancy in accessory structures, RVs, motor homes, travel trailers, or tents; all overnight lodging must be in the STR.

• Egress

  • Every sleeping area must have a door and an available window providing required emergency egress per residential/building/fire codes.

• Parking

  • Parking Spaces must be off-street, at least 9 ft × 20 ft, in a garage/carport, driveway, or paved/gravel parking pad.
  • No on-street parking for guests; guest parking cannot be used in capacity calculations.
  • All guest parking must be entirely on-site and off the roadway.

• Noise and Quiet Hours

  • Quiet hours: 11:00 PM to 7:00 AM. Noise must not disturb neighbors’ quiet/comfort/repose.

• Waste

  • Garbage and recycling: place cans curbside no earlier than the day before pickup; remove within 36 hours after pickup.
  • If not on public sewer, maintain a properly sized/functioning septic system; deficiencies are grounds for immediate license revocation.
  • No Porta-Johns or similar temporary waste methods for an STR.

• Local Agent Posting

  • Post a city-provided notice (16-point type) in a prominent first-floor door or window listing the Local Agent’s name and 24-hour phone number.

• Safety Devices

  • Install a minimum of two Type ABC fire extinguishers in code-mandated locations.
  • Install the minimum number of smoke/carbon monoxide alarms per State law and keep them annually tested/certified.

• Notice to Occupants and Placard

  • Provide the full set of STR regulations in the written rental agreement.
  • Post a placard inside the STR with:
    • Capacity,
    • Local Agent contact information,
    • Fire extinguisher locations,
    • Exit map.

• Zoning and Parcel Limits

  • Only one STR per parcel; STR must comply with the City’s Zoning Code.
  • Accessory structures may not be used for overnight occupancy or included in capacity.

• Advertising and License Display

  • Include your STR License number and approved capacity in every advertisement.
  • Present license details upon request.

• Special Events

  • Weddings, parties, family reunions, bachelor/bachelorette parties, and similar gatherings are prohibited if they exceed capacity or otherwise violate the ordinance.

• Inspections and Compliance

  • The City may conduct periodic inspections (with or without prior notice) to ensure compliance with public health and safety regulations.

• Violations, Penalties, Enforcement, and License Actions

  • Violations include (not exhaustive): failure to update information; advertising/occupancy exceeding the license; Local Agent unavailability; false/misleading application info; operating without a license; failure to comply with Section 5 regulations; any ordinance breach.
  • Civil Infraction Penalties:
    • First violation within one year: $100.
    • First repeat violation within one year: 2 × first offense ($200).
    • Second or subsequent repeat violations within one year: 2 × repeat offense fine ($400).
  • Suspension:
    • After notice and hearing, the City may suspend the STR License for up to 90 days upon a first violation within the calendar year; premises cannot be used as an STR during suspension.
  • Revocation:
    • After a second violation in a calendar year and a hearing, the City may revoke the License. The owner is not eligible for an STR License for 12 months from revocation.
  • Remedies:
    • The City may pursue other enforcement actions, including civil actions for injunctive relief.
  • Enforcement Officials:
    • City Ordinance Enforcement Officer, City Supervisor, any law enforcement officer, or persons authorized by the City Board.

Contact Information (Local Authority)

• City Clerk’s Office (for licensing, applications, renewals, and fee inquiries)

  • City of Bessemer
  • City Hall location: Not specified in the provided materials
  • City Clerk: Jennifer Adams (as per ordinance attestation)
  • Email/phone: Not specified in the provided materials

• Planning/Building/Zoning (for zoning and building code compliance)

  • Department not specified; inquiries routed via City Hall

• Ordinance Enforcement and Inspections

  • City Ordinance Enforcement Officer; City Supervisor; law enforcement; authorized City Board persons

Note: For septic or health matters, contact the appropriate county or state health department; specific contact details are not provided in the ordinance.

Links to Source Pages

• City of Bessemer Short-Term Rentals Ordinance (Ord. No. 383) — www.cityofbessemer.org/wp-content/uploads/2022/08/Revised-Ordinance-383-STR.pdf
• City of Bessemer Zoning Ordinance (Updated June 2022) — www.cityofbessemer.org/wp-content/uploads/2022/06/ZoningOrdinance-updated-6.22.pdf

Alabama State Context (selected highlights investors should confirm):

• Alabama law requires installation of smoke alarms and carbon monoxide alarms in residential dwellings; specific numbers, placement, and interconnection/testing standards apply. Investors should verify the current State Fire Marshal and building code requirements before occupancy.
• The ordinance requires annual testing/certification of alarms and compliance with state law, local building codes, and health department rules.
• Solid waste, septic systems, and nuisance provisions are subject to state and local regulations; violation of these can result in immediate license suspension/revocation.

Practical Investor Notes

• The City uses “Administrative Fee” language but does not state the amount in the ordinance; it is set by City Council resolution. Verify the current fee before application.
• Inspection scope and frequency are at City discretion and may occur without prior notice; maintain safety devices and records.
• The Local Agent’s 24/7 availability and 60-minute response time are hard requirements; ensure backup coverage is arranged.
• The “children not counted” allowance is capped at 4 under 13; model your capacity accordingly.
• Capacity limits are determined by bedrooms, parcel size (<10 acres vs ≥10 acres), and the maximum cap of 14 occupants for larger parcels.
• Septic/sewer compliance is foundational; issues can cause immediate revocation.

If you need the current application form or fee schedule, contact the City Clerk’s Office or the City’s Planning/Building Department through City Hall.