A practical, compliance-focused guide for investors, property managers, and hosts.

Overview: Are Short-Term Rentals Allowed in Creston, IA?

Yes. Based on the City of Creston’s current Rental Housing Inspection Program and municipal code references, short-term rentals are allowed in Creston. The governing documents do not expressly prohibit short-term rentals (e.g., bookings of fewer than 30 days). However, STRs must comply with the same framework that applies to “rental properties” and rental units under the City’s Rental Housing Inspection Program (Resolution No. 102‑24, effective April 1, 2024). This includes registration, inspections, and compliance with building, life-safety, and nuisance standards.

• Key point: If your property is occupied by someone other than the owner for more than 30 days per year, it is considered a “rental property” and must be registered and inspected under Creston’s program. Many STRs will exceed this threshold and therefore fall into the program’s scope.
• Important nuance: Hotels, as defined by Chapter 137C of the Iowa Code, are excluded from the City’s inspection program. Some short-term rental structures may qualify as a “hotel” under state law; however, most typical STRs in residential settings do not. If you intend to operate as a hotel/inn, consult the City to confirm whether your property can qualify for the exclusion.
• Explicit prohibition? No. There is no direct “short-term rental ban” in the City materials provided. But be aware of general nuisances, fire/life-safety, and zoning requirements that may affect STR operations.

Bottom line: If your STR is occupied by guests for more than 30 days per year, plan to register and pass inspections. If you believe your operation qualifies as a hotel/inn under Iowa law and City policy, confirm with the City before assuming exemption.

How to Start a Short-Term Rental Business in Creston

1. Confirm zoning and permissible use

• Confirm that your property’s zoning allows transient lodging or that an STR can operate without a special use permit. If unsure, contact the City or Union County.

2. Decide whether the City’s inspection program applies

• If your property will be rented to anyone other than the owner for more than 30 days per year (including STR guests), register as a rental property with the City of Creston under the Rental Housing Inspection Program (Chapter 147 and Resolution 102‑24).
• If you intend to operate as a hotel/inn and believe you may be exempt, request written confirmation from the City.

3. Register with the City of Creston

• Complete the “Rental Housing Registration Form” (Appendix B in the City policy) and submit it to:
  • City of Creston, Public Works Department
  • 116 W Adams Street or P.O. Box 449, Creston, Iowa 50801
• Registration fees:
  • $50 for the first unit
  • $15 for each additional unit
  • Late fee: $50 per day (cap $500)
• Registration creates consent for inspection and requires you to attest that units meet the City’s checklist.

4. Coordinate and pass inspections

• You have 60 days from registration to schedule an inspection with the designated inspector.
• Baseline inspection cycle: every 3 years. Properties passing the first inspection with no noted concerns receive a 4-year cycle. Properties requiring multiple inspections may be placed on an annual cycle.
• Costs: $100 for the first unit; $40 per additional unit; $100 for re-inspections; $100 “no show” fee.
• The City may contract with an outside inspector (e.g., a private firm). Plan to pay inspection fees directly to the inspector.

5. Obtain and maintain your Rental Compliance Certificate

• After a passing inspection, you must maintain a current Rental Compliance Certificate to operate. A provisional certificate is available once registered but prior to initial inspection.

6. Manage guest communications and scheduling

• Tenants (and guests for STRs treated as rentals) must be notified by the owner/manager before an inspection. An owner’s representative must be present during the inspection and must be at least 18 years old.

7. Set up taxes and remittance

• State hotel/motel tax: If you operate as lodging, register with the Iowa Department of Revenue and collect/remit the state hotel/motel tax.
• Local lodging taxes: Confirm whether the City or Union County imposes a local lodging tax, the rate, and filing method. Remit as required.

8. Comply with ongoing obligations

• Maintain compliance with the Rental Housing Inspection Checklist (fire/life safety, plumbing, electrical/mechanical, exterior/interior standards).
• Address nuisance complaints promptly (e.g., weeds, snow, trash). Unresolved nuisance issues can trigger additional inspections and fees.
• If major violations are identified, correct within 48 hours; other violations within 60 days.

Required Documents, Permits, Licenses, and Guidelines

City of Creston (if your property is occupied by guests for more than 30 days per year)

• Rental Housing Registration Form (Appendix B)
  • Submit to Public Works (address above)
  • Fees: $50 first unit + $15 per additional unit; late fee $50/day up to $500
• Consent to inspection (by registering)
• Maintain a current Rental Compliance Certificate (provisional before first inspection; current after passing)
• Copies of forms that may be needed during or after inspection:
  • Rental Housing Inspection Form (Appendix C)
  • Rental Housing Complaint Form (Appendix D) — tenants may file; you may be charged $100 if complaint has merit
  • Rental Housing Inspection Appeal Form (Appendix E)
• Inspection and compliance requirements (Appendix A – Checklist highlights):
  • Exterior/structure: house numbers; roof/walls in repair; safe stairs/handrails; grading/drainage; no debris/vermin; no illegal vehicles; no unsafe storage of combustibles
  • Interior: structurally sound; safe/sanitary condition; adequate stair handrails; habitable room illumination
  • Plumbing: operable kitchen sink, toilet, shower/bathtub; hot/cold water; proper sewer connections; dryer vented; proper drainage not discharging into city sewer
  • Electrical/mechanical: sufficient service; clearances; heat to maintain 68°F; GFCI near water; labeled panels; operable flues/shutoff valves; adequate outlets; PRV discharge within 6 inches of floor
  • Fire safety: smoke alarms in each sleeping room, outside sleeping areas, and on each floor; egress windows; properly sized ABC fire extinguisher(s); CO detectors where applicable; egress routes; fire resistance ratings maintained

State of Iowa (typical STR obligations)

• Sales tax permit and hotel/motel tax registration with the Iowa Department of Revenue (if operating lodging/transient accommodations). Collect/remit hotel/motel tax and applicable sales taxes.
• Local lodging tax: Confirm local lodging tax requirements (City and/or Union County) and file/remit as required.

Additional items you should verify

• Zoning clearance for STRs (transient lodging use) with the City/County.
• No special business license is expressly required in the provided City materials, but confirm with the City whether any municipal business license is required for STRs.
• Insurance: Obtain appropriate property and liability coverage for STR operations.
• Vacation rental best practices: Clearly communicate occupancy limits, quiet hours, parking, and house rules; implement measures to reduce disturbances and prevent nuisance complaints.

Specific Regulations: City, County, and State

City of Creston (Resolution 102‑24; Rental Housing Inspection Program; Chapter 147)

• Registration: Required for all rental properties; owner or owner’s representative must file registration and consent to inspection.
• Timing:
  • New or newly converted rentals: register within 30 days.
  • Owner has 60 days from registration to schedule the initial inspection.
  • Transfer of ownership: re-register within 90 days (no refund; no second registration fee if re-registered within 90 days).
  • Units out of service: file written notice; upon re-registration, schedule inspection within 60 days.
• Inspection schedule:
  • Baseline: once every 3 years.
  • First-time pass with no noted concerns: next inspection in 4 years.
  • Properties requiring two or more inspections in a 3-year cycle move to annual inspections until passing on first attempt.
• Major violations (48-hour re-inspection): structural failure; storage of flammable liquids; inoperable fuel equipment flues; electrical cords/wiring failure; inoperable heating system during winter; other life-safety issues. Failure to correct triggers referral as a Dangerous Building (Chapter 145) and potential uninhabitability determination until corrected and re-inspected.
• Other violations: 60-day correction window; failure leads to non-compliance, potential certificate revocation, and penalties.
• No-show policy: $100 “No Show” fee if owner/manager does not attend a scheduled inspection. Two business days’ notice required to reschedule (except for 48-hour re-inspections).
• Nuisance complaints: Grass/weeds and snow removal must be addressed; other nuisances unresolved within Code Enforcement timeframes can trigger a full rental inspection or re-inspection and standard inspection fees.
• Tenant complaints: Current tenants only; complaint must be in writing on Appendix D; inspection within 10 business days; major violations within 48 hours. If complaint has merit, the property owner pays the $100 inspection fee; if not, the tenant pays.
• Appeals: Owner may appeal to the Creston Board of Adjustment (file within 30 days). Board holds a hearing within 45 days and rules within 30 days. Owner may then request a City Council hearing within 10 days of the Board’s ruling.
• Certificates: Provisional certificate allowed before initial inspection; current certificate required to operate; certificates can be revoked for non-compliance.
• Fees (Appendix F):
  • Registration: $50 first unit + $15 per additional unit; late fee $50/day (max $500)
  • Inspections: $100 first unit; $40 per additional unit
  • Re-inspection: $100
  • No-show: $100
  • Tenant complaint inspection: $100 (charged to landlord if violations found; to tenant if no violations found)
• Exemptions: Hotels (as defined by Iowa Code Chapter 137C), government-owned dwellings, dormitories, nursing homes/long-term care, and church parsonages.

Union County

• No county-specific STR ordinance was provided. Confirm any county-level lodging taxes or health/safety requirements with Union County.

State of Iowa

• Hotel/motel tax and sales tax obligations likely apply to lodging operations. Register with Iowa Department of Revenue and collect/remit taxes. Iowa Code Chapter 137C governs hotels and related lodging definitions; some STR formats may fall outside that definition and therefore not be exempt from City inspection/registration requirements.

Contact Information (Local Authority in Charge of STRs)

• City of Creston — Rental Housing Inspection Program
  • Public Works Department
  • Address: 116 W Adams Street or P.O. Box 449, Creston, IA 50801
  • Policy and forms are maintained by the City; inspections may be performed by a contracted inspector. The City’s website hosts the policy, forms, and checklists.
• If your operation qualifies as a “hotel/inn,” confirm exemption status with the City (Planning/Building/Code Enforcement).

Source Pages

• City of Creston — Rental Housing Inspection Program Administrative Policy (Resolution 102‑24)

  • Source URL: www.crestoniowa.gov/DocumentCenter/View/2151/Rental-Housing-Inspection-Program-Administrative-Policy

• News article: “Landlords fight rental inspection proposal” (contextual reference to the program and community discussion)

  • Source URL: www.crestonnews.com/news/local/2023/04/06/landlords-fight-rental-inspection-proposal/

Notes:

• This guide reflects the City of Creston’s Rental Housing Inspection Program effective April 1, 2024, as provided. Requirements can change; verify zoning, lodging tax, and inspection details with the City and Union County before operating.