Overview: Are Short-Term Rentals Allowed in Fontanelle, Iowa?

Short-term rentals are allowed in Fontanelle, Iowa. Based on the city’s Code of Ordinances, there are no provisions that expressly prohibit or specifically regulate short‑term rentals at the municipal level. Properties may be operated as STRs provided they comply with general city ordinances and applicable state‑level requirements (e.g., lodging establishment licensing, fire safety, food service if meals are provided, tax remittance). If and when local zoning or licensing requirements are adopted, the City Clerk will be the primary administrator of licenses and permits (see sections 1.01–1.14 and 18.10 of the Code; website: fontanelleia.org).

Key implications:

• No city‑specific STR license or permit is currently identified in the Code.
• Use your property consistent with zoning and building and land use regulations (Chapter 155); obtain any permits required for repairs, alterations, or occupancy under those rules.
• Always confirm state compliance (licensing, food service, fire safety) and handle taxes appropriately.
• Monitor City Council meetings (second Monday of each month, 7:00 p.m.; Chapter 17, section 17.04) for any new STR measures.

How to Start a Short-Term Rental Business in This Market

1. Assess property and use:

   • Verify zoning compliance for residential rental use (Chapter 155).
   • Confirm access, parking, and neighborhood compatibility; city traffic, parking, and nuisance regulations apply (Chapters 60–70, 50–55).
   • Ensure the building is safe and maintained (dangerous buildings Chapter 145; nuisance abatement Chapter 50).

2. Obtain any necessary building and land use permits:

   • Repairs, alterations, or changes in occupancy often require permits; submit Applications for Building/Land Use Permits and, where applicable, Certificate of Occupancy (see Suggested Forms at the end of the Code).

3. Address state lodging and safety compliance:

   • Lodging establishment licensing at the state level may apply (e.g., hotels/motels, bed‑and‑breakfast). Iowa lodging laws typically require state licensing, adherence to fire safety standards, and—depending on services—food service permits.
   • Confirm fire safety requirements based on occupancy and facility size; Iowa law delegates fire and building safety oversight to the State Fire Marshal’s Office for lodging.
   • If you provide meals or on‑site food service, separate food service licensing may be required at the state level.

4. Implement tax handling:

   • Remit applicable state sales/use taxes and any local options as required. Coordinate with the Adair County Treasurer (local collection).

5. Insurance and liability:

   • Obtain liability coverage appropriate for transient lodging operations.
   • Note the city’s general indemnity provision (Chapter 1, section 1.04), which applies to applicants for permits/licenses.

6. Operations:

   • Establish guest policies to avoid public peace, health, and safety issues (Chapters 40–47).
   • Manage occupancy, noise, trash, parking, and posted house rules to prevent municipal infractions (Chapter 4 outlines enforcement and penalties).
   • Maintain the property and address nuisances promptly (Chapter 50–55).

7. Recordkeeping and renewal:

   • Keep records of all permits, inspections, licenses, and taxes. Renew any state lodging license annually per state requirements.
   • If the city later creates STR licensing, the City Clerk will maintain the record (section 18.10).

Required Documents, Permits, Licenses, and Guidelines

• Building/Land Use Permit (if performing construction, alteration, or significant repairs):
  • Application form provided in the Code’s Suggested Forms section.
• Certificate of Occupancy (as applicable):
  • Application and certificate forms provided in the Code’s Suggested Forms section.
• State Lodging Establishment License:
  • Lodging facilities in Iowa generally require a state lodging license and must meet fire and life safety standards. Confirm occupancy classification and fire code requirements with the State Fire Marshal’s Office.
• Food Service Licensing (if serving food):
  • Required when meals are provided to guests. Contact the Iowa Health and Human Services for guidance.
• Sales/Use Tax Registration and Filing:
  • Register with the Iowa Department of Revenue (Iowa Dep’t of Revenue: 515‑281‑3114; website: iowa.gov/taxes). Remit state sales/use tax and any local option taxes as applicable.
• Insurance:
  • General liability coverage appropriate for lodging operations.
• Additional local documentation as applicable:
  • Signage permits (Chapter 146).
  • Water, sewer, and utility compliance (Chapters 90–99).
  • Solid waste plan (Chapters 105–107).

Specific Regulations: City, County, and State

• City of Fontanelle (no STR‑specific ordinance currently in force):

  • Zoning/land use: Chapter 155 (no STR‑specific restrictions identified).
  • Building/Property: Chapter 145 (dangerous buildings), Chapter 155 (building and land use), Chapter 146 (signs/awnings/canopies).
  • Public health/safety: Chapter 41 (public health and safety), Chapter 40 (public peace), Chapters 50–55 (nuisances, junk, animals).
  • Traffic/Parking: Chapters 60–70 (general traffic, parking).
  • Utilities: Chapters 90–99 (water meters and rates, sanitary sewer).
  • Enforcement: Chapter 4 (municipal infractions; civil penalties), Section 1.14 (standard criminal penalty $65–$625; up to 30 days imprisonment possible).
  • Administrative: Chapter 18 (City Clerk issues/revokes licenses and permits; keeps records), Chapter 17 (Council establishes policies).

• Adair County:

  • No county‑specific STR license or tax requirements identified in the provided Code materials. Property taxes and local option tax remittance are typically handled through the County Treasurer. If any county lodging taxes or permits are enacted in the future, the Treasurer’s Office would be the likely contact.

• State of Iowa:

  • Lodging establishment licensing (typically under state lodging statutes, including fire/life safety oversight; administered by state agencies).
  • Food service licensing (when meals are provided to guests).
  • Sales/use tax and local option taxes apply; registration and remittance via Iowa Department of Revenue.
  • Fire and building safety standards applicable to lodging; confirm specific requirements with the State Fire Marshal’s Office.

Note: This analysis is limited to the content provided. Investors should verify whether any updated county or city ordinances, or additional state overlays, have been enacted since adoption of the Code in 2019.

Contact Information

• City of Fontanelle — City Clerk (Licenses/Permits):
  • Phone: 641‑355‑4072
  • Website: fontanelleia.org
• Iowa Department of Revenue (Tax Registration/Filing):
  • Phone: 515‑281‑3114
  • Website: iowa.gov/taxes
• Adair County Treasurer (Property/Local Option Taxes):
  • Contact via Adair County Courthouse (general information; specific phone not provided in the Code)
• State Fire Marshal’s Office (Fire/Life Safety for Lodging):
  • Phone: 515‑281‑5821
  • Website: dfs.iowa.gov
• Iowa Health and Human Services (Food Service and Lodging Licensing Guidance):
  • Phone: 866‑227‑6008
  • Website: hhs.iowa.gov

Links to Source Pages

• Code of Ordinances — City of Fontanelle, Iowa (Adopted 2019.1):
  • Source page (PDF): fontanelleia.org/wp-content/uploads/2021/11/Code-Fontanelle-Ver-Adopted.pdf

Important Notes and Investor Takeaways

• Fontanelle currently operates under a permissive framework for STRs—no city‑specific license or cap is codified in the Code.
• Compliance hinges on general city ordinances (nuisance, parking, zoning, safety) and state requirements (lodging licensing, fire safety, food service licensing, taxes).
• Always pull permits for construction/alterations and ensure occupancy safety; the City Clerk is your point of contact for any new licensing if adopted.
• Use the provided forms for building/land use permits and certificates of occupancy when applicable.
• Monitor council agendas and minutes for future STR policy developments.