Overview and Legal Status of STRs

Short-term rentals are allowed in Council Bluffs, Iowa. While the city has not adopted a dedicated short‑term rental ordinance, Iowa state law (House File 2641) explicitly restricts cities from prohibiting STRs or requiring special licenses or permits for STRs. The result is that STR operators in Council Bluffs can operate provided they comply with the broader city rental property framework and standard state obligations.

The city maintains a robust rental housing inspection program for all residential rental units (including short-term rentals), and state hotel/motel tax obligations apply to accommodations rented for 90 consecutive days or less.

How to start a short‑term rental business in Council Bluffs

• Confirm your property use is permissible under zoning. Council Bluffs is in Pottawattamie County. While the county zoning ordinance provides general land‑use rules and definitions (for example, “Bed and Breakfast Home” as a conditional use in certain districts), it does not contain short‑term rental–specific prohibitions. However, verify with the city planning department that your intended use and occupancy comply with local zoning and building standards. If the property is outside city limits but inside the county, ensure the use is consistent with the county’s zoning district.
• Register each rental unit with the city. Council Bluffs mandates annual registration for all rental properties, including STRs. Registration must be renewed by December 31 each year.
• Align the property with safety and building standards. The city’s rental inspection program enforces minimum physical standards for all dwellings, rooming houses, and rooming units. Ensure compliance with smoke detectors, egress, and other safety measures (see “Specific regulations” below).
• Register for state and local lodging taxes. Iowa imposes a 5% state hotel/motel tax on stays of 90 days or less. Many jurisdictions add a local option hotel/motel tax; confirm the combined rate for Council Bluffs and register with the Iowa Department of Revenue for sales tax purposes.
• Obtain appropriate insurance. Although not detailed in the provided sources, reliable short‑term rental insurance is necessary for liability and property protection. Even where city rules do not mandate a specific coverage level, prudent operators carry comprehensive policies.
• Establish local management or designate a local contact. While not specified in the Council Bluffs sources, many Iowa cities require a 24/7 local contact for rentals. Out‑of‑state owners should plan for on‑call management to respond to complaints or emergencies.
• File and remit lodging taxes. Use the state sales tax portal and local processes as applicable; keep meticulous records of rental income, occupancy, and taxes collected.
• Monitor occupancy and tax thresholds. The state lodging tax applies to rentals of 90 days or less; standard residential leases (typically 30 days or more) fall outside this tax framework, but always confirm definitions and thresholds for compliance.

Required documents, permits, licenses, and operational guidelines

• Annual Rental Housing Registration for each unit:
  • Single‑family dwellings: $95 per unit
  • Two‑family dwellings (duplex): $130 per unit
  • Multi‑family dwellings: $77 per unit plus $47.50 per unit
  • Late fee: $25 per unit if renewal is not completed by December 31
• Completed Rental Housing Inspection, as required under the city’s rental inspection program.
• Property documentation:
  • Proof of ownership (e.g., deed)
  • Property information, including address and floor plans
  • Owner/operator identification and contact details
• Tax compliance:
  • Iowa sales tax permit for hotel/motel tax collection (for accommodations 90 consecutive days or less)
  • Documentation of local option hotel/motel tax registration (if applicable in Council Bluffs/Pottawattamie County)
• Insurance documentation:
  • Property and liability coverage appropriate for short‑term rental operations (city does not specify minimums in the provided materials)
• Local contact information:
  • 24/7 reachable point of contact (recommended best practice; may be required by other Iowa cities; Council Bluffs sources do not specify a local contact requirement)

Specific regulations for STRs: city, county, and state

• City of Council Bluffs (Rental Housing Program):
  • All rental units must be registered annually. Registration deadlines, fees, and re‑inspection fees are applied uniformly across the city’s rental housing stock.
  • Inspections are random and complaint‑based, focusing on dangerous conditions and compliance with minimum physical standards for residences.
  • Re‑inspection fees apply after failed initial inspections. See fee schedule below.
  • Enforcement is through the Building Division’s Community Development Department.
• Pottawattamie County (Zoning and Land Use):
  • The county’s zoning ordinance governs land use in unincorporated areas and defines lodging‑related uses (e.g., Bed and Breakfast Home) as conditional uses in certain districts.
  • While short‑term rentals are not explicitly defined in the county code, operators must ensure their use is compatible with the zoning district and any applicable conditional use requirements.
• State of Iowa:
  • Short‑term rentals are lodging offered for a fee for less than 30 consecutive days (definition used for regulatory and operational purposes).
  • State lodging (hotel/motel) tax of 5% applies to accommodations of 90 consecutive days or less.
  • Many Iowa cities and counties also impose local option hotel/motel taxes; operators should confirm local rates.
  • Iowa law (House File 2641) limits cities from prohibiting STRs or requiring licenses or permits specific to STRs; cities may still have general rental registration and inspection programs.

Council Bluffs rental registration fees and re‑inspection charges

• Annual rental registration:
  • Single‑family: $95 per unit
  • Two‑family: $130 per unit
  • Multi‑family: $77 per unit plus $47.50 per unit
• Late registration fee: $25 per unit
• Re‑inspections and missed inspection fees:
  • 2nd re‑inspection: $100
  • 3rd and subsequent re‑inspections: $100 each
  • No‑show fee for missing a scheduled inspection: $100
  • Inspection fee for non‑registered houses (3‑year cycle): $100 per inspection

Contact information (local authority in charge of rental housing/STR oversight)

• City of Council Bluffs — Rental Housing Program
  • Physical/mailing address: 209 Pearl St, Council Bluffs, IA 51503
  • Phone: (712) 890‑5283
  • Fax: (712) 328‑7007
  • Hours: Monday–Friday, 8:00 am–5:00 pm
  • Website: Council Bluffs — Rental Housing
• General City Contact:
  • City Hall: 209 Pearl Street, Council Bluffs, IA 51503
  • Phone: (712) 890‑5100

Links to source pages (IMPORTANT)

• Council Bluffs — Rental Housing
  • Overview, registration, fees, re‑inspection charges, contact information: www.councilbluffs-ia.gov/2282/Rental-Housing
• Iowa Short‑Term Rental Laws — Comprehensive state overview
  • Definitions, tax obligations, statewide rules, and city‑by‑city notes: www.checkmaterentals.com/blog/iowa-short-term-rental-laws
• Opinion and legislative context
  • Iowa cities’ restrictions and House File 2641 limitations: www.desmoinesregister.com/story/opinion/columnists/iowa-view/2022/09/22/iowa-cities-restrictions-airbnb-short-term-rental-housing/10378275002/
• Pottawattamie County Zoning Ordinance
  • Zoning definitions and land use regulations (e.g., Bed and Breakfast Home): www.pottcounty-ia.gov/files/county_code/zoning_ordinance_39864.pdf

Notes and practical guidance for investors

• Registration timing matters. Register each unit by December 31 to avoid late fees and ensure continuous compliance.
• Inspection readiness is critical. Maintain working smoke detectors, proper egress, and adherence to minimum housing standards. The city performs both random and complaint‑based inspections; being prepared at all times reduces risk and costly re‑inspections.
• Confirm local lodging taxes. Although the state rate is 5%, local option taxes may apply. Verify the combined rate for Council Bluffs/Pottawattamie County and confirm how and where to file.
• Professional management helps. Designate a local contact or professional manager who can respond quickly to issues; this aligns with best practices and can reduce friction with neighbors and city inspectors.
• Track renewal dates individually. Because registrations are annual and tied to each unit, maintain a unit‑level compliance calendar to avoid interruptions.

This guide integrates city, county, and state obligations to give investors a practical, compliance‑ready pathway to launch and operate short‑term rentals in Council Bluffs.