Overview: Short-term rentals (STRs) are allowed in Charles City, Iowa. They are generally treated as a type of lodging business and are subject to standard hotel/motel taxes and local regulations governing rental properties. Investors should be prepared to comply with city business licensing, property maintenance, and zoning requirements.

Starting an STR Business in Charles City, Iowa

1. Research Zoning: Confirm that your property is located in a zoning district where short-term rentals are a permitted use. Zoning regulations (Chapter 165 of the city code) govern how properties can be used. It is the owner's responsibility to ensure compliance. You can find more information on the city's website or by contacting the Planning and Zoning Department.
2. Obtain Business Licenses: Short-term rentals are considered a business. You will likely need a business license from the city. While the provided code of ordinances does not explicitly list a short-term rental permit, it does cover general business licensing and permitting, and Chapter 159 specifically covers "Rental Properties, Licensing and Inspection." It is crucial to contact the City Clerk or a designated department to determine the exact licensing requirements for an STR.
3. Register for and Collect Hotel/Motel Tax: Short-term rentals are subject to the city's hotel/motel tax, as detailed in Chapter 14 of the code of ordinances. You will be responsible for registering with the city and collecting this tax from guests. The tax is typically a percentage of the gross rental revenue.
4. Ensure Property Compliance: Your property must comply with all relevant city codes, including building codes (Chapter 157), property maintenance codes (Chapter 158), and noise and nuisance ordinances (Chapters 40 and 50). This includes ensuring the property is safe and sanitary for guests.
5. Maintain Accurate Records: Keep meticulous records of all rental income and expenses, as well as tax remittances. This is critical for tax compliance and potential audits.

Required Documents, Permits, Licenses, and Guidelines

• Business License: Contact the City Clerk's office for the specific application and requirements.
• Hotel/Motel Tax Registration: Register with the city to collect and remit the hotel/motel tax.
• Proof of Property Ownership/Lease: You will need to provide documentation proving you own the property or have a legal right to operate a business on it.
• Zoning Compliance Verification: A document or approval from the Planning and Zoning Department confirming the property is in a compliant zone.
• Property Maintenance Standards: You must adhere to the standards outlined in Chapter 158 of the city code.
• Nuisance and Noise Guidelines: You and your guests must comply with the noise and nuisance regulations in Chapters 40 and 50.

Specific Regulations (City, County, and State)

• City of Charles City: The city has not enacted specific, comprehensive short-term rental ordinances, meaning STRs are governed by the general business, zoning, and property maintenance regulations listed above. The most relevant local rules are the hotel/motel tax, the general rental property licensing and inspection requirements, and general nuisance and property maintenance standards.
• Floyd County (Charles City is the county seat): The provided materials do not indicate any county-level regulations specific to short-term rentals. Regulations are primarily municipal.
• State of Iowa: Statewide, short-term rentals are subject to Iowa's hotel/motel tax. Additionally, the state has regulations regarding vacation rentals, which can be found on the Iowa Department of Revenue website.

Contact Information

For questions and to begin the licensing process, contact the city departments directly.

• City Clerk's Office: For business licensing.
• Planning and Zoning Department: For zoning compliance.
• Finance/Tax Department: For hotel/motel tax registration.
• Code Enforcement: For property maintenance and nuisance questions.

You can find the contact information and department details on the official City of Charles City website: www.cityofcharlescity.org

Links to Source Pages

• Charles City Code of Ordinances: https://www.cityofcharlescity.org/DocumentCenter/View/4
• Hotel/Motel Tax (Chapter 14): Referenced in the Code of Ordinances.
• Rental Properties, Licensing and Inspection (Chapter 159): Referenced in the Code of Ordinances.
• Zoning Regulations (Chapter 165): Referenced in the Code of Ordinances.