Overview: STR Status in Marshalltown

Short-term rentals ARE allowed in Marshalltown, IA. The city has explicitly defined and regulated short-term rentals within its zoning framework. Short-term rentals are categorized as accessory uses under "Household Living" and are permitted subject to zoning compliance. Marshalltown also recognizes "homestays" as a specific type of short-term rental with more restrictive parameters.

How to Start a Short-Term Rental Business in Marshalltown

Step 1: Property Requirements

• Zoning Compliance: Your property must be located in a zoning district that allows household living uses
• Property Type: Single-family detached, duplex, townhouse, or multi-family dwellings are eligible
• Accessory Use Status: STRs are considered accessory uses to the primary residential use

Step 2: Determine Your STR Category

Option A: Standard Short-Term Rental

• No specific guest limit defined in the code
• Can be offered year-round without the 90-day restriction

Option B: Homestay (More Restrictive)

• Maximum of 4 guests at any one time
• Maximum of 90 days per calendar year
• Limited to single-family detached, duplex, or townhouse dwellings

Step 3: Property Preparation

• Ensure the property meets all housing safety and building codes
• Install required smoke detectors, carbon monoxide detectors
• Ensure proper egress routes for safety
• Consider parking implications for guests

Step 4: Registration and Compliance

• Register with the City of Marshalltown
• Obtain any required business licenses
• Ensure compliance with local tax requirements
• Maintain records of guest stays and revenues

Required Documents, Permits, and Licenses

Primary Documentation Requirements

1. Zoning Compliance Certificate

   • Verify your property zoning allows STR use
   • Obtain from the Planning & Development Department

2. Business License

   • Apply through the City Clerk's office
   • Required for any commercial STR operation

3. State Sales Tax Permit

   • Register with Iowa Department of Revenue
   • Required for collecting/remitting state sales tax

4. Property Insurance

   • Standard homeowner's or renter's insurance may not cover STR activities
   • Consider commercial liability coverage
   • Verify coverage with your insurance provider

5. Fire Safety Compliance

   • Install required smoke detectors and carbon monoxide detectors
   • Ensure compliance with egress requirements
   • Consider fire extinguisher placement

Permits and Approvals

• Building Permits: May be required for significant property modifications
• Sign Permits: If placing exterior signage for your STR
• Parking Plan: Document how guest parking will be managed
• Fire Inspection: May be required for properties with multiple units

Specific Regulations for Short-Term Rentals

Zoning and Land Use Regulations

Permitted Use Classification:

• Short-term rentals are classified as "accessory uses" under "Household Living"
• Must be subordinate to the primary residential use of the property
• Cannot be the principal use of a property

Property Type Restrictions:

• Homestays limited to: single-family detached, duplex, townhouse
• Standard STRs allowed in apartment buildings and multi-family dwellings

Operational Parameters:

For Homestays:

• Maximum occupancy: 4 guests at any one time
• Maximum operating days: 90 days per calendar year
• Guest rooms must be within the principal building
• Must be offered in exchange for compensation

For Standard STRs:

• No specific guest limit defined in current regulations
• Can operate year-round
• May include accessory buildings on the property

Safety and Building Requirements

• Properties must meet all applicable building codes
• Minimum safety standards include working smoke detectors
• Carbon monoxide detectors where applicable
• Adequate egress routes for emergency evacuation
• Property must be maintained in safe, habitable condition

Tax Implications

• Short-term rental income is subject to federal income tax
• Iowa state sales tax applies to short-term rentals
• Local lodging taxes may apply
• Keep detailed records of all income and expenses
• Consider quarterly estimated tax payments

Guest Management

• Establish clear house rules and occupancy limits
• Monitor compliance with local noise ordinances
• Ensure adequate parking arrangements
• Consider guest screening procedures

County and State-Level Regulations

Marshall County Regulations

• County-level regulations primarily apply to unincorporated areas
• Properties within city limits are governed by municipal codes
• Check with Marshall County for properties outside city boundaries

Iowa State Regulations

• Iowa Administrative Code regulates various aspects of lodging
• State sales tax requirements apply to all short-term rentals
• Iowa Civil Rights Act applies to rental practices
• State health and safety codes may apply to properties with multiple units

Federal Considerations

• Short-term rental income is taxable at federal level
• Consider occupancy requirements for tax purposes
• Americans with Disabilities Act considerations if offering accessible accommodations

Contact Information

City of Marshalltown Departments

Planning & Development Department

• Phone: (641) 754-5713
• Email: planning@marshalltown-ia.gov
• Address: 101 East Main Street, Marshalltown, IA 50158
• Responsible for: Zoning compliance, building permits, inspections

City Clerk's Office

• Phone: (641) 754-5700
• Email: clerk@marshalltown-ia.gov
• Address: 101 East Main Street, Marshalltown, IA 50158
• Responsible for: Business licenses, permits

Fire Department

• Phone: (641) 754-5724
• Email: fire@marshalltown-ia.gov
• Address: 19 North 3rd Avenue, Marshalltown, IA 50158
• Responsible for: Fire safety inspections, emergency procedures

Marshall County

• Phone: (641) 754-6376
• Address: 1 East Main Street, Marshalltown, IA 50158
• For properties outside city limits

State Resources

Iowa Department of Revenue

• Phone: (515) 281-3114
• Website: iowa.gov/department-revenue
• For tax registration and compliance

Iowa Tourism Office

• Website: traveliowa.com
• Resources for tourism-related businesses

Important Resources and Links

Primary Source Documents

• Marshalltown Zoning Ordinance - Chapter 156: www.marshalltown-ia.gov/DocumentCenter/View/7171/ARTICLE-M_WORD-USAGE_DRAFT_021122
• Marshalltown Municipal Code: Available at City Hall or online at city website

Additional Resources

• Iowa Department of Revenue: Tax guidance for short-term rentals
• Short-Term Rental Resources: Various industry websites and guides
• Local Realtor Associations: Market analysis and property information

Compliance Checklist

Before operating your STR, ensure you have:

• [ ] Verified zoning compliance for your property
• [ ] Obtained all required business licenses and permits
• [ ] Registered for state sales tax
• [ ] Updated insurance coverage for STR activities
• [ ] Installed required safety equipment (smoke detectors, CO detectors)
• [ ] Established clear house rules and occupancy limits
• [ ] Created emergency procedures and contact information
• [ ] Set up record-keeping systems for income and expenses
• [ ] Confirmed compliance with all local, state, and federal requirements

This comprehensive guide provides the framework for legally operating a short-term rental in Marshalltown, IA. Always verify current regulations with the city and consider consulting with local legal and tax professionals for specific situations.